Investors Are Underestimating Impact of Full-Blown Trade War, Morgan Stanley's Ahya Says

The video discusses the escalating trade tensions between the US and China, focusing on the potential economic impacts, including recession risks for both countries. It examines the role of tariffs, currency manipulation, and investor perceptions, highlighting the possibility of corporate defaults. The video also explores monetary and fiscal policy responses and provides an outlook on currency movements and the bond market.

How are investors perceived to be underestimating the impact of trade tensions on the economy?

Discuss the implications of corporate defaults in the US as mentioned in the text.

What is the expected response of the Federal Reserve if a full-blown trade war occurs?