World markets won a reprieve on Tuesday after three days of heavy selling that wiped trillions of dollars off the value of shares, but caution prevailed with focus on whether Washington might be willing to negotiate on some of its aggressive tariffs. ING chief economist Carsten Brzeski told Reuters markets are taking a breather to find a new balance. - REUTERS
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00:00It's obvious that financial markets today are taking a breather.
00:05They are trying to find a new balance, clearly waiting for April 9th and to see whether Donald
00:10Trump will really impose the announced tariffs or not.
00:14The European Union more has presented a stick and a carrot to the US administration.
00:21The carrot is clearly the offer to go for a free trade agreement when it comes to industrial
00:27goods and the stick is a long list of very specific products that the EU thinks can be
00:33substituted easily by European companies so it would hurt the US but would not harm the
00:40European economy.
00:42China is clearly choosing for the biggest confrontation in all these trade negotiations, showing the
00:48US government that it would not kind of double down, that instead it is willing to retaliate.
00:57It is wrongfully when it comes to the US and the US has also reacted as expected by threatening
01:03to actually double up the tariffs.
01:05So what we are seeing here is a clear escalation between the US and China.
01:10I would say this is really the founding father of all or the big mother of all trade wars
01:17happening.