Trade Deal Could Lead to ‘Frothy Markets,’ Warns Invesco’s Hooper

The video discusses various risks to the global economy, including the potential for peak optimism due to unresolved issues like the phase one trade deal and Brexit. It highlights the uncertainties in US-China trade relations, particularly around tariffs and exact purchase commitments. Business sentiment has improved following the trade deal announcement, but caution remains as further developments are awaited.

What is one of the main concerns for investors regarding the current market situation?

• Economic policy uncertainty has increased.

• The phase one trade deal is already signed.

• There is complete clarity on Brexit.

• There is a risk of peak optimism due to unresolved issues.

What is a potential source of friction in the US-China trade negotiations?

• China's focus on rolling back existing tariffs.

• The US's eagerness to increase tariffs.

• The US's desire to sign multiple trade deals.

• China's willingness to commit to exact purchases.

Why might the US-China trade deal face challenges in being finalized?

• China has already agreed to all terms.

• China is focused on increasing tariffs.

• The US is eager to remove all tariffs immediately.

• The US is reluctant to reduce tariffs further.

How do businesses generally feel after the trade deal announcement?

• They believe the deal will not affect them at all.

• They are completely confident and investing heavily.

• They feel better but remain cautious about future risks.

• They are pessimistic and holding off on investments.

What is the general sentiment among businesses regarding future investments?

• Businesses are fully committed to investing.

• Businesses are indifferent to the trade deal.

• There is a significant increase in investment.

• There is a stall in investment decisions.