Speaker 1: This is a breaking news update from Bloomberg instant reaction
Speaker 1: and analysis from our three thousand journalists and analysts around
Speaker 1: the world.
Speaker 2: President Trump announced his Liberation Day tariffs. It turns out
Speaker 2: they're even bigger than the smooth Holy tariffs at the
Speaker 2: beginning of the Great Depression. The move drew this reaction
Speaker 2: from Bob Michael, the chief investment officer at JP Morgan
Speaker 2: Investment Management.
Speaker 3: Given as how tariffs stand as they were announced, that's
Speaker 3: going to push the US economy into recession. They're dramatic.
Speaker 3: Its attacks on businesses and households. It's going to cause
Speaker 3: them to retrench. It's worse than most expectations. I think
Speaker 3: the caveat is we don't know what the policy response
Speaker 3: will look like. We still have until April ninth for
Speaker 3: the majority of the tariffs to be enacted, so there
Speaker 3: could be a lot of negotiation.
Speaker 2: Seema Sean about global investors, looks at prices and growth
Speaker 2: the terrors, she says will bring the worst of both worlds.
Speaker 4: The part which is probably most concerning for investors is
Speaker 4: the announcement yesterday is very styflationary, and we know from
Speaker 4: looking at previous regime, previous market movements over history that
Speaker 4: stackflation is typically the regime where rarely does any asset
Speaker 4: class do particularly well.
Speaker 2: Doug Irwin, John French, professor at dartminth says the idea
Speaker 2: that terroriffs will bring jobs back to the US is
Speaker 2: a false home.
Speaker 5: Even if we bring back some of the factories to
Speaker 5: produce these things, because the cost of importing is much higher,
Speaker 5: the jobs probably won't follow. Even with textiles and apparel,
Speaker 5: a lot can be automated. And so when we think
Speaker 5: about the steel industry, which has always been near and
Speaker 5: dear to the President's heart, in the nineteen eighties, it
Speaker 5: took ten worker hours to produce a ton of steel.
Speaker 5: Now it takes one. We're producing just as much steel,
Speaker 5: but we just need many fewer workers because and the
Speaker 5: type of workers that we need to produce steel has
Speaker 5: changed from blue collar to white collar, from hard labor
Speaker 5: to engineer monitoring equipment, and so the whole nature of
Speaker 5: the economy has changed. So we're not in the twentieth
Speaker 5: century anymore. We're in the twenty first century, and to
Speaker 5: go back to the nineteenth century is going to be
Speaker 5: really hard pull. And that's why the markets are reacting
Speaker 5: the way they are.
Speaker 2: A Wall Street legend. At at your Denny Research, the
Speaker 2: man who famously coined the term bond vigilante, had this
Speaker 2: message for the administration on behalf of the stock market vigilantes.
Speaker 5: I'd like to say, mister President, take down this tariff wall.
Speaker 2: This is the most absurd policy that one could possibly imagine,
Speaker 2: and it's a disaster for the economy.
Speaker 5: It's a disaster for the stock market.
Speaker 2: And I think the pushback on the administration from the
Speaker 2: stock market vigilantes is already quite intense.
Speaker 5: This is turning out to be not Liberation Day plus one,
Speaker 5: It's turning out to be D Day in the on
Speaker 5: Wall Street