Bloomberg Surveillance TV: June 29th, 2026

Summary

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Bloomberg Surveillance TV: June 29, 2026

Hosts: Jonathan Ferro, Lisa Abramowicz, Annmarie Hordern
Featured Guests: Alicia Levine (BNY Wealth), Mama Cub (PSP Growth), Noah (JP Morgan Private Bank)

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Episode Overview

This episode dives into the heart of current market volatility, examining the roles of technology, AI investment, and global trade policy in driving economic sentiment and portfolio strategy. The hosts guide expert guests through the changing landscape of capex-heavy tech sectors, challenges facing hyperscalers and chipmakers, tightening investment sentiment around AI, rising concerns about market concentration, and the future of the USMCA trade agreement. The tone is brisk, analytical, and pragmatic, reflecting the real-time uncertainties and opportunities animating global finance.

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Key Discussion Points & Insights

1. Market Volatility and Tech Sector Leadership

(02:01 – 07:55) Guest: Alicia Levine, BNY Wealth

• Summer of Volatility: Alicia Levine suggests the market is entering a consolidation phase after several strong years of earnings growth, with volatility set to remain elevated due to midterm elections, IPO activity, and the recent tech rally resetting.
  • "We’re still looking for 17% growth for next year. So you’re following two very strong years... but you’re going to get volatility. There has to be consolidation here." (A. Levine, 02:22)
• Rotation Beyond Tech: The conversation notes a potential shift from mega-cap tech to sectors like industrials and healthcare, but their impact is limited in terms of moving the index materially higher.
  • “Healthcare is, you know, raising its head here as an interesting sector to look at...but those are not large enough to get your index higher.” (A. Levine, 03:20)
• Hyperscalers Under Pressure: The discussion turns to the underperformance and heavy capex of hyperscalers.
  • "Headlines don’t look great, charts look terrible. But...the $800 billion that five companies are spending is funding the EPS of...60 companies.” (A. Levine, 03:43)
• Capex Fatigue & Reversion Trade: There’s pressure for hyperscalers to reduce spending, with the market signaling a limit to tolerable investment pace. Management responses could drive the next phase of market leadership.
  • "The market is saying you’re not going to get the multiple if you keep on spending like this...At some point you’re not growing capex 100% year over year." (A. Levine, 04:40)
• Structural Risks & Concentration: Levine raises systemic concerns about circular financing and heavy AI exposure across major global indices.
  • "You have more or less 20% of the S&P driving the earnings of the rest of the market, funded by six companies of the S&P...You’re starting to look at concentrated risk in AI across all your asset classes." (A. Levine, 06:24)

Memorable Moment:

• On portfolio construction in the AI era:
  • “As an asset allocator, that’s what you really have to be focused on. Like, how do you hedge that risk?” (A. Levine, 07:00)

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2. AI Investment Cycle and Global Supply Chain Risks

(10:18 – 15:32) Guest: Mama Cub, PSP Growth Analyst

• Rising Capex and Bottlenecks: AI-related capex keeps increasing as new infrastructure challenges emerge–moving from GPUs to memory to power. The upside is robust demand and growing enterprise adoption, but the payoff period and who will finance ongoing expansion are serious concerns.
  • “Capex is not only just massive, but the estimates keep moving up and we don’t know when it’s going to stop...expenses keep going up.” (Mama Cub, 10:46)
• Market Sentiment Caution: Financing fatigue is manifest in muted IPO enthusiasm (SpaceX), higher bond yields for risky AI ventures, and delayed offerings (OpenAI).
  • “The question for AI now has shifted from technology to financing...not just on ROI, but who is going to finance it and for how long?” (Mama Cub, 11:55)
  • “Bondholders...are demanding higher prices. They’re seeing on technology risk and years of negative cash flows that is uncommon in investment grade bonds before.” (Mama Cub, 12:30)
• Global Dynamics: China vs. US: Chinese AI players excel at open-source and low-cost models, shifting the competitive landscape. National security and policy are shaping tech investments and supply chains, notably involving chips and memory.
  • “The arena has already moved on from just technology to national security, national competitiveness...every country...is trying to find its own edge.” (Mama Cub, 13:38)
• Policy and Security Tensions: Notable reports (e.g., Apple seeking Chinese chips, Google limiting Meta’s compute) reinforce the interplay between economic needs and security priorities.
  • “You will see this tug of war between the economic side...and the national security side.” (Mama Cub, 14:48)
  • “Everyone is just trying to get compute. There’s just not enough demand at some point.” (Annmarie Horton, 15:20)
• Durability of AI Demand: Long-term durability hinges on cost control and broad enterprise integration, both still uncertain.
  • “You won’t get to see that until the costs are really coming down...enterprise adoption...is still waiting to be proven out.” (Mama Cub, 15:32)

Memorable Moment:

• On fragility of current sentiment:
  • “You have OpenAI delaying IPO news and all of a sudden you send shares of the whole trade down...there’s just a lot of fragileness in the market.” (Mama Cub, 12:50)

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3. USMCA at a Crossroads—Trade Policy Uncertainty

(18:33 – 23:27) Guest: Noah, JP Morgan Private Bank

• Review Mechanism Explained: USMCA’s first periodic review arrives July 1. Without new consensus, the deal faces annual check-ins until expiration in 2036. An agreement could extend USMCA up to 2040.
  • “What it calls for is if there is no agreement between the three parties, it goes to another annual review...until the agreement expires in 2036.” (Noah, 19:23)
• Expectations for Negotiations: Little substantive change is anticipated for now; likely outcome is simply a continuation of status quo with deadlines pushed forward.
  • “We’re anticipating very little modifications and that this review will...kick the can down the road.” (Noah, 20:21)
• Country-Specific Tensions:
  • US & Canada: Disputes center on energy policy and cross-border supply chains.
  • US & Mexico: Focus on transshipment (e.g., potential China circumvention via Mexico), tariffs and import content requirements.
• Impact on Business & Investment: Ongoing uncertainty about the deal hampers investment, especially given how much recent US capex (especially in AI and tech) relies on clear trade rules with Mexico.
  • “A lot of the investments that were planned out to happen are being pulled back...Capex that is very much dependent on all the AI boom.” (Noah, 22:05)
• Market Risks Are Mispriced: Sectors at greatest risk include industrials (notably autos, aerospace), which are heavily reliant on the USMCA framework.
  • “Industrial, mainly auto, aerospace. That’s where we’re seeing the biggest risks...those are the sectors most reliant and dependent on the agreement.” (Noah, 23:08)
• It’s a US Problem Too: Trade with Canada and Mexico is noted as 5% of US GDP, underscoring the interconnectedness and size of the issue.
  • “Trade with both Canada and Mexico represent 5% of the US GDP.” (Noah, 23:20)

Memorable Moment:

• On policy uncertainty stalling investment:
  • “A lot of the investments that were planned out to happen are being pulled back...the risk of that happening is that right now...we have been running in an economy that’s capex driven.” (Noah, 22:05)

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Selected Notable Quotes & Timestamps

• Alicia Levine on risk concentration:
  • “You’re starting to look at concentrated risk in AI across all your asset classes.” (06:24)
• Mama Cub on financing:
  • “The question for AI now has shifted from technology to financing.” (11:55)
• Noah on trade and investment:
  • “Maybe it’s not going to be overnight...but at some point...this could even impact the capex boom that we’re seeing in the States.” (22:20)

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Important Timestamps

| Timestamp | Segment Description | |-----------|-------------------------------------------------------------------| | 02:01 | Opening market analysis; intro with Alicia Levine | | 03:39 | Shifting tech narrative; hyperscalers under scrutiny | | 06:24 | Structural risk and asset class concentration; AI exposures | | 10:18 | AI capex cycle and infrastructure discussion with Mama Cub | | 11:55 | Financing and fragility in AI (IPO, debt market trends) | | 13:38 | China–US competitive landscape in AI | | 14:48 | National security and tech supply chain tensions | | 18:33 | USMCA periodic review explained with Noah | | 20:21 | Outlook for deal renegotiations and trade sector risks | | 23:08 | Market mispricing and sectoral vulnerabilities |

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Summary Table of Major Themes

| Theme | Takeaways | |---------------------------|--------------------------------------------------------| | Market Volatility | Rotation, consolidation, and rising risk awareness; tech leadership challenged but not done | | AI Investment & Capex | Rising costs, new bottlenecks, fragile market sentiment, and financing fatigue | | Global Trade Uncertainty | USMCA review increases risks for capex-intensive industries, trade risks are material for GDP|

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Conclusion

This episode provides a crisp snapshot of late-June 2026 market realities: shifting sector momentum, relentless drive and growing fatigue in the AI investment cycle, and the looming shadow of policy uncertainty tied to global trade frameworks. The guests consistently emphasize caution, hedging risk, and the necessity for investors to interrogate not just growth stories, but the sustainability of their financing and geopolitical underpinnings. For any investor or executive scanning the horizon, this episode captures the uneasy optimism and hard scrutiny defining this moment.

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Transcript

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[Mama Cub (PSP Growth Analyst)]

Bloomberg Audio

[Lisa Abramowicz]

Studios Podcasts Radio News.

[Jonathan Ferro]

This is the Bloomberg Surveillance Podcast. I'm Jonathan Ferro along with Lisa Abramowicz and Annmarie Horton. Join us each day for insight from the best in markets, economics and geopolitics. From our global headquarters in New York City, we are live on Bloomberg Television weekday mornings from 6 to 9am Eastern. Subscribe to the podcast on Apple, Spotify or anywhere else you listen. And as always, on the Bloomberg Terminal and the Bloomberg Business App.

We begin this hour, stocks looking to bounce back from a week full of tech jitters. Alicia Levine of BNY wealth writing Expect a summer of volatility. A midterm election year backlash and IPO supply will produce a consolidating market. Alicia joins us now for more. Alicia, good morning.

[Alicia Levine (BNY Wealth)]

Good morning.

[Jonathan Ferro]

Given all of those things that long, long what's the road? The Path to ak so the path

[Alicia Levine (BNY Wealth)]

to AK is is the earnings, right? It's the earnings and the fact that it's not just focused on the beneficiaries, but it's actually broadening throughout the S and P. And that's what gets you to the 8,000. Also, you know, the multiples are really not that High, we're back to 21 times forward earnings in a market that's growing at 23 or 24 times. On the earnings side, it's pretty extraordinary. And we're still looking for 17% growth for next year. So you're following two very strong years with a multiple that seems fine but you're going to get volatility. There has to be consolidation here. I mean some of those charts are parabolic with the memory names, you know, like, you know, that's the center of that and it's going to pull some of the market down with it just because they are the leaders right now. Right. It's not the Mag 7, the Lag 7. Right. Maybe there's a buying opportunity there frankly, but that's what's led the market higher. So you've got to, it's. So it's not just tech, it's not just memories all over the industrial space. Health care is, you know, is raising its head here as an interesting sector to look at. The charts look a lot better but those are not large enough to get your index higher. So you know you're going to have a rotation but you're challenged probably on the index level for the next few months.

[Jonathan Ferro]

Outperformance on the equal weight, outperformance on small caps.

[Lisa Abramowicz]

Right.

[Jonathan Ferro]

You alluded to it. Is it time to start thinking about the hyperscalers again which have really lacked

[Alicia Levine (BNY Wealth)]

the like and they look terrible on the charts. But I think that you have to believe that the managements there are not going to let their business go quietly into that dark night. Right. I mean if you think about some of the other companies in hyperscaler world where we thought that was the end of it, it's never going to happen. And then they revamped their businesses and we have to believe that the managements there are going to do that. The headlines don't look great, charts look terrible. But given the massive outperformance on the hardware side, I think there's some room here for the hyperscalers. I mean what's happened is the $800 billion that five companies are spending is funding the EPS of every, you know, of 60 companies. So that's where the investor base has gone, playing capital from the spenders into the recipients. And so the question you have to ask is one, how long can this funding go on and to what's the reversion trade?

[Lisa Abramowicz]

Are you expecting them to cut back on capex and actually push back on the pricing for some of these chip manufacturers?

[Alicia Levine (BNY Wealth)]

So the market is telling them to do that. The market is saying you're not going to get the multiple if you keep on spending like this. Yet at the same time the beneficiaries still move higher. So there's a bit of a schizophrenia here about what actually is the path to, you know, sort of a peaceful place for, for the market. At some point you're not growing capex 100% year over year. Right. The growth rate is going to slow, still positive, but a negative rate of change. That's where you're going to get the negative impact on the beneficiary carries and that's where you're going to start get some movement out of the hyperscalers.

[Lisa Abramowicz]

Where is the pushback the greatest when it comes to the financing of this? Is it just in the share price of the hyperscalers or is it actually in the recent performance of the Space X debt and equity as well as the potential delayed open air opening ipo?

[Alicia Levine (BNY Wealth)]

So I think it's most, it's really in the hyperscalers because the question fundamentally is can the spending justify the, the businesses that are going to come out of this in the next three to four years. And so that's really, you're seeing it in the equity market. And don't forget the business models have changed. You know we used to talk about the hyperscalers as bond equivalents, right? Throwing off cash stable businesses, very high margins, high free cash flow margins. We don't have that so much anymore. Right. So you've got, you know, two or three of them, you know, actually selling debt, having to sell debt, not just equity but debt. That's a very different business model. And that's what's happening on the equity price. It's just referring, reflecting a different business

[Annmarie Horton]

model to that point. Bis, we talked about this in the last hour. The bank of International Settlements is warning against these threats of this circular financing. It's not just equity, it's debt when it comes to the buildout. Does that give you caution?

[Alicia Levine (BNY Wealth)]

What gives me caution is that I see correlations everywhere. Right? So there's something of a concentrated correlation. Now I'm a bull. We have an 8,000 price target on the S and P, but we have to be cognizant of the risks. And the risks are that you have more or less 20% of the S and P driving the earnings of the rest of the market funded by six companies of the S and P. And you have a bond market which is now reflecting AI as well because the hyperscalers are funding themselves with debt. To do this, then if you think of emerging markets, think of the indices, right? South Korea, Taiwan. Well, 50% of the index is now AI as well. And so when you put it all together in a, what we do, a diversified portfolio, you're starting to look at concentrated risk in AI across all your asset classes. And so as an asset allocator, that's what you really have to be focused on. Like, how do you, how do you hedge that risk?

[Annmarie Horton]

How do you.

[Alicia Levine (BNY Wealth)]

Okay, so we think, you know, for infrastructure and real assets are a must in a higher inflationary world. You know, it's not popular to say goodbye Europe, but Europe really is not the AI play and other developed markets that are not focused on AI. So you have to really think about, you know, how does your exposure pair with your US exposure if it's all being driven by the same factor, which is AI investment and beneficiary. I mean, that's the issue. That's the big issue for, for all of us who do asset allocation and think about building up portfolios that withstand this.

[Jonathan Ferro]

Stay with us.

More Bloomberg surveillance coming up after this.

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[IBM Representative]

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[Public.com Representative]

IBM support for this show comes from public.com if you're actively involved in your portfolio, you probably catch yourself repeating the same actions. Buying the dip, manually sweeping idle cash, putting on a hedge on public. You can now create AI agents that handle all these tasks on your behalf. Just describe what you want to do in plain English, like if the Vix hits 25, buy a put option on the S&P 500. Or if my cash balance goes above $20,000, move the excess into my Direct Index. You approve the workflow and your agent handles the risk, monitoring the market, watching for your conditions and executing your strategies exactly as defined. An investing platform driven by your intent, not just your clicks. You can also get full read and write access to your account via the public API. Go to public.com market and fund your account in five minutes or less. That's public.com market paid for by Public

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[Jonathan Ferro]

Look at how much money is sloshing around right now. Look to South Korea. I think it's planned the race announcing massive investments in chips and data centers. Mama Cub of PSP Growth writing on one hand it signals demand is real enough to justify the scale of investment. The cautious read is that the cost of serving AI just keeps going up and so does the burden of proof. Mama Q joins us now for more. Mama, welcome to the program. There's two arguments there. Which one would you put more weight on at the moment?

[Mama Cub (PSP Growth Analyst)]

I think Good morning. I think the overall sentiment in AI is still positive today, but the big question, the elephant in the room is a capex is not only just massive, but the estimates keep moving up and we don't know when it's going to stop. First the bottleneck is on GPUs and now you see with the recent pair of investments that that bottleneck has shifted to memory and now we're talking about power. So the one thing that is certain is the expenses keep going up. But on the demand side we are seeing optimism and we're seeing enterprise adoption starting to come in, but the timeline for that is still stretched out. So the question in everyone's mind is eventually if this is critical infrastructure, that payoff that everyone's going to adopt, then it's worth it. Otherwise your capex keeps expanding upwards and investors are going to be impatient.

[Lisa Abramowicz]

Have you noticed a shift in market sentiment over the past couple of weeks? Not the belief in AI and the promises, but the willingness to finance some of this as evidenced by Space X's IPO where the price did trade down and the bonds have lost value as evidenced by open air delaying their IPO potentially to mid year next year?

[Mama Cub (PSP Growth Analyst)]

Yeah, absolutely. I think the question for AI now has shifted from technology to financing, where the question of the day is not just on roi, but let's assume demand does come, but who is going to finance it and for how long and to your point, on the public market side, there was a time a few weeks back when we thought the public equity investors cannot wait to get their hands on the 4 trillion of new market cap across Space X, across anthropic, across OpenAI. And although SpaceX, I think it's still trading above its IPO price, we're seeing that the demand is not bursting at all out of the seams in terms of everyone's just rushing to invest in that. And bondholders, I agree, bondholders are cautious that they're demanding higher prices. They're seeing on technology risk and years of negative cash flows that is uncommon in investment grade bonds before. So I do think you have that caution and it's fragile, right? You have open air delaying IPO news and all of a sudden you send shares of the whole trade down. And today with the SK Hynix news and Samsung news, you think demand is back up again and the finance markets are back up. So I think there's just a lot of fragileness in the market. But the overall sentiment, I think people are still pretty bullish.

[Lisa Abramowicz]

As you do get some financing pushback, maybe there is still this bullishness underneath. But as you do get some financing pushback, how much does that advantage the Chinese AI players over, say, the US ones? I'm thinking of Anthropic and OpenAI. Given the fact that some of those models are a lot cheaper. They are being adopted by U.S. companies that are constrained by both capacity and price here in the us how much do you see this becoming a real trend and frankly the Chinese playbook, I

[Mama Cub (PSP Growth Analyst)]

think the air has already moved on from just technology to national security, national competitiveness. You see that with the ICE Hynix news today where Korea is starting to take its hold on the memory side while the US has Nvidia and the hyperscalers. And I do think China has a lead today around the open source models, around offering the ability to run AI models more cheaply. So I don't think, I think that is still shifting and the story is still being written out right now. But every country, because now is not just about technology, is about national competitiveness, is trying to find its own edge in terms of where it can have a hold in the market in terms of its advantage and competitiveness.

[Annmarie Horton]

Speaking of China, there was a report over the weekend Apple is pressing the White House for approval to get chips from a Chinese company that is actually blacklisted. Do you see potentially more pressure in the policy arena because of what is going on with the chip sector? The demand issue. But at the same time, to Lisa's point, the cybersecurity national security issues at

[Mama Cub (PSP Growth Analyst)]

play, yeah, I think those are all intertwined again has shifted now from technology to a national issue. And I think you will see this tug of war between the economic side of things and the national security side. I mean, a few weeks ago we saw this conversation happening with Nvidia, right? Should Nvidia even be supplying GPUs at all to China? And I don't think we have an answer today, but I think that's going to be part of the conversation for the next few weeks and months to come.

[Annmarie Horton]

There was another report about Google putting limits on Meta's use of Gemini AI models. Everyone is just trying to get compute. There's just not enough demand at some point. When do you see this leveling out?

[Mama Cub (PSP Growth Analyst)]

Well, we are building out the, the, the groundwork right of infrastructure. So I think the, the things that everyone's paying attention to is is AI now going to become something durable? And I think you won't get to see that until the costs are really coming down. There's a lot of focus on costs in inference right now and you have to believe that the enterprise adoption is going to come and that is still waiting to be proven out.

[Jonathan Ferro]

Stay with us.

More Bloomberg surveillance coming up after this.

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[Public.com Representative]

for this show comes from public.com if you're actively involved in your portfolio, you probably catch yourself repeating the same actions. Buying the dip, manually sweeping idle cash, putting on a hedge on public. You can now create AI agents that handle all these tasks on your behalf. Just describe what you want to do in plain English like if the Vix hits 25, buy a put option on the S&P 500 or if my cash balance goes above $20,000, move the excess into my direct index. You approve the workflow and your agent handles the risk, monitoring the market, watching for your conditions and executing your strategies exactly as defined. An investing platform driven by your intent, not just your clicks. You can also get full read and write access to your account via the public API. Go to public.com market and fund your account in five minutes or less. That's public.com market paid for by Public

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[Jonathan Ferro]

USMCA facing its first test since being signed by the President in its first

[Lisa Abramowicz]

tab the USMCA is the largest, fairest, most balanced and modern trade agreement ever achieved. I would rather not have the agreement, but I may sign it. We do better as a country if we don't have an agreement.

[Jonathan Ferro]

The U.S. mexico and Canada set to blow past the July 1 deadline to renew their trade deal. No Cristiani, the head of Latin America investment strategy, JP Morgan Private bank writing the base case is an extension with modifications, but the tail risks are asymmetric and underappreciated by markets. Noah joins us now for more. No Good morning. Good to see you.

[Noah (JP Morgan Private Bank)]

Thank you John.

[Jonathan Ferro]

So refresher if we can. So it was NAFTA became USMCA under the President's first term and now he wants to redo the thing that he came up with.

[Noah (JP Morgan Private Bank)]

The best is the best agreement in the world. The way make sense of the way

[Jonathan Ferro]

that it works for us, please.

[Noah (JP Morgan Private Bank)]

Yes. So when NAFTA was turned into usmca, a set of a set of guidelines were put in place for periodic reviews. Were coming to that first periodic review, I think it's next Wednesday or Thursday, July 1. And what it calls for is if there is no agreement between the three parties, it goes to another annual review and another annual review and another annual review until the agreement expires in 2036. If there is an agreement, the the whole USMCA can get extended up until I believe 2040. 2040 or 2030, another 16 years.

[Annmarie Horton]

Exactly.

[Noah (JP Morgan Private Bank)]

So right now we're basically faced upon these check in. I would call it more as a check in between the three parties. Do we all agree with the same terms that were negotiated upon six years ago or do we need to tweak something or do we need to really change things and bring this review into a whole renegotiation? That's where we stand.

[Jonathan Ferro]

What are you expecting?

[Noah (JP Morgan Private Bank)]

The reality is that what we are anticipating is very little modifications and that this review will basically kick the can down the road for another annual review. There's very little insight right now that we're having any sort of agreement between the three parties, which means that July 1st will come, we're going to have the three countries sitting together saying we didn't reach an agreement and this will take us down into 2027 review and then 2028 review.

[Annmarie Horton]

If maybe briefly, what does every country want changed?

[Noah (JP Morgan Private Bank)]

There's different things for us and Canada, for example, a lot of it has to do with energy. Between Mexico and the U.S. there's a lot of concerns around transshipment, especially as Mexico brings on exports or imports from other countries, particularly China symbols in a different fashion, stamps on the label made in Mexico and then sends to the US That's a big thing. And the other one that is very important is all the reforms that have been taking place in Mexico in the last couple of years have challenged China some extent. The rules of rule of law or investor certainty precautions that were included in

[Annmarie Horton]

the original USMC Individuals business C suites definitely want clarity. I was with the president, Wisconsin, when he was addressing farmers. They want clarity, desperately want clarity on an issue like this. Given corn goes to Mexico and the likes of agriculture up to Canada. How do you see this playing out in terms of level of clarity, in terms of is it going to be like Liberation Day? We get whipsawed every day by headlines with usmca, or is this going to be one of those stories that just kind of fades into the background?

[Noah (JP Morgan Private Bank)]

I think it's going to fade into the background when it comes to markets, but it's not necessarily going to fade into the background. If you are a farmer exporting to Mexico or if you're not a producer in Mexico sending auto parts or cars to the US that's definitely not going to be the case. What has happened so far and what has happened for the last couple of years is that a lot of the investments that were planned out to happen are being pulled back. Are being paused. And the risk of that happening is that right now we're running, and you guys know these really well. We have been running in an economy that's capex driven for basically two years. Capex that is very much dependent on all the AI boom. Well, that boom is also partly dependent as well on what happens with exports. With exports and imports. Mexico became the largest exporter of advanced technology products to the US in 2025 and very few people know that. So yes, maybe it's not going to be overnight, it's not going to be from one day to the next. But at some point, if there is more uncertainty playing out in terms of how easily can you bring in Mexican exports, this could even impact the capex boom that we're seeing in the States.

[Lisa Abramowicz]

Where in markets is this risk mispriced? Not necessarily on July 1, but over the next couple of weeks and months.

[Noah (JP Morgan Private Bank)]

Industrial, mainly auto, aerospace. That's where we're seeing the biggest risks that those are. Those are the sectors that are the most reliant and dependent on the agreement to continue.

[Jonathan Ferro]

Is that a Mexico, Canada problem or a US Problem as well?

[Noah (JP Morgan Private Bank)]

It is a US Problem as well. Trade with both Canada and Mexico represent 5% of the US GDP. It's not.

[Jonathan Ferro]

It's not middle this is the Bloomberg Surveillance podcast bringing you the best in markets, economics and geopolitics. You can watch the show live on Bloomberg TV weekday mornings from 6am to 9am Eastern. Subscribe to the podcast on Apple, Spotify or anywhere else you listen. And as always, on the Bloomberg terminal and the Bloomberg Business app,

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