00:00President Donald Trump's sweeping tariffs on more than 90 countries around the world have come into effect today.
00:07How are the markets reacting to this news?
00:10Well, so far, certainly Wall Street seems to be shrugging off the impact of these tariffs.
00:15But remember, a lot of the valuations that are really supporting the Wall Street gains that we've seen,
00:22that's partly to do with the frenzy surrounding all things AI.
00:26And as that juggernaut continues to thunder ahead, it is keeping those valuations high.
00:35But in the background, we do have these concerns bubbling along, particularly in so-called Main Street Real America,
00:42about the fact that these tariffs are going to lead to higher prices for American consumers.
00:49And at the moment, I don't think this is being fully factored in.
00:52There are expectations that the U.S. economy is slowing.
00:57Of course, we had that volatility at the end of last week as the labor market data show that the jobs market is weakening more quickly than expected.
01:07So I do think, actually, that there could be even more volatility ahead as the bigger implications of Trump's tariff wars become clear.
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