US investment bank sees downside risk to its bet on corporate earnings recovery in 2025 as the US-China tariff war escalates.
The US-China trade war may undermine overseas demand for Chinese goods and dent a recovery in corporate earnings as they turn to reluctant domestic buyers to open their purse strings, according to Morgan Stanley.
The impact on corporate earnings would probably be more visible from the second quarter, assuming there was no further escalation in trade tensions or a bigger fiscal support from Beijing, analysts Laura Wang and Chloe Liu said in a report.
