Powell's October Rate Cut Hint Overshadows Trade War Angst | Insight with Haslinda Amin 10/15/2025

Market Trends & Economic Outlook - The labor market shows downside risks due to declines in both labor supply and demand [1] - Asian stocks rebounded after three days of losses, driven by optimism for a potential Fed rate cut in October [1] - A weakening dollar is expected, with a potential depreciation of 4% to 6% in 2026 [2] - Increased market volatility is expected due to known and unknown factors, including the upcoming apex summit and tariff-related uncertainties [2] Trade War & Geopolitical Tensions - The U S may stop importing Chinese cooking oil in retaliation for Beijing's refusal to buy American soybeans [1] - China's curbs on rare earth exports, materials needed for fighter jets and electric vehicles, are a key negotiation tool [1] - The real conflict between the U S and China will be over the weaponization of artificial intelligence [3] Investment Strategies & Opportunities - Investors are derisking and taking some risk off the table due to factors including 100% official tariffs [1] - Opportunities are being found in Asia, particularly in Korea, related to the AI ecosystem and chip manufacturing [2] - High-tech manufacturing and technology sectors in China are attractive investment areas, driven by the growth of the middle class [4] - Gold is seen as an interesting proposition for portfolio diversification, with potential for higher prices due to bank buying and strong retail demand [2] U S Submarine Industrial Base - The U S is facing a massive issue with its submarine industrial base, with next-generation submarine programs facing delays [6] - The Columbia Class submarines are facing delays of 12-17 months, and Virginia Class attack submarines are facing delays of 24-36 months [6] - The U S Navy needs to hire 140,000 workers over the next decade to meet the growing need for submarine construction and maintenance [6]