Trump Still Needs China as Enemy Into Election, Algebris’ Gallo Says

The video discusses the impact of geopolitical tensions, particularly involving Iran and China, on global markets. It highlights the shift from panic to euphoria in market sentiment, while noting a lack of conviction in certain sectors. The Phase One trade deal between the US and China is analyzed, with skepticism about its long-term impact. The video also explores China's currency strategy and its implications for exports and emerging markets. US-China relations are expected to remain tense, with potential market volatility leading up to elections. Finally, the video notes a trend towards market differentiation, with stronger economies outperforming weaker ones.

In what ways might the US administration's need for a potential enemy affect its relationship with China leading up to elections?

How is the differentiation in market performance among countries like Brazil and South Africa indicative of broader economic trends?