UNGA, Trump-Xi, and a Global Bond Selloff | Bloomberg Surveillance

The episode centers on the Trump-Xi summit, with the host and guests arguing that the meeting is more about managing a tense strategic relationship than producing a grand bargain. Elizabeth Economy said Xi Jinping is highly centralized but now operates as an equal to Trump on the global stage, while Michael Froman said the U.S. still has leverage but China is a peer competitor and the two sides are deeply interdependent. Both expected only limited deliverables, including a short extension of the trade truce, some language or process around AI risk, and perhaps modest progress on tariffs or agricultural purchases.

Froman emphasized that the U.S. is moving toward selective decoupling, especially in critical minerals, pharmaceuticals and other supply chains tied to national security, even if that means a more expensive world. Economy stressed that Japan and Taiwan are watching closely, with Japan seeking firmer U.S. backing and Taiwan continuing to de-risk from China. The discussion ended with a broad view that the Trump era has permanently changed diplomacy, even if a full return to the old system is unlikely.

The program then shifted to fixed income, where Kelley Gerrity argued that higher yields have created real opportunity in bonds despite recent price declines. She said investors should stay active and selective, because strong growth supports fundamentals even as volatility remains elevated. Jonathan Maxwell tied energy, infrastructure and geopolitics together, arguing that data centers, grid bottlenecks and heat loss create a major efficiency problem, while Moldova’s prime minister described Russian hybrid pressure, the war in Ukraine, and his country’s push for EU convergence and energy diversification.