Market Still Expects Deal to Be Made, Says State Street's Ferridge

The video discusses the escalating trade tensions between the US and China, focusing on President Trump's negotiation tactics and long-standing views on unfair trade. It explores the potential global implications of these tensions, including the possibility of a trade war. Despite these concerns, the market remains calm, partly due to expectations of a deal and ongoing central bank actions. However, future market volatility is anticipated as central bank liquidity decreases.

What is a key element of President Trump's negotiation style as discussed in the video?

• Making small, incremental demands

• Starting with big statements and goals

• Avoiding public statements

• Focusing on domestic issues only

Why might China be limited in its response to US trade actions?

• They want to maintain investment opportunities

• They are focusing on other countries

• They have no interest in US markets

• They have already reached a deal

What is one reason for the current calm in the markets despite trade tensions?

• The World Cup has distracted investors

• The market believes a deal will be reached

• There is no significant trade tension

• Central banks have stopped all interventions

How has the central bank's quantitative easing affected market volatility?

• It has caused a market crash

• It has helped maintain calm in the markets

• It has had no impact on volatility

• It has increased volatility significantly

What is expected to happen in the second half of the year regarding market volatility?

• Volatility is expected to remain the same

• Volatility is expected to decrease

• Volatility is expected to disappear

• Volatility is expected to rise