Trump, Xi Discuss Taiwan, Trade Ahead of Planned Summit | Bloomberg Businessweek Daily 2/04/2026

Watch on YouTube ↗  |  February 04, 2026 at 21:03  |  42:30  |  Bloomberg Markets
Speakers
Sarah Hunt — Chief Market Strategist, Alpine Saxon Woods
Frank Sorrentino — CEO, ConnectOne Bank
Axel Merk — President, Merk Investments
Jennifer Welch — Analyst, Bloomberg Economics
Charlie Pellett — Anchor/Reporter, Bloomberg

Summary

The episode covered Trump's call with Xi and China's geopolitical posture, DHS enforcement changes in Minneapolis, and a market rotation that pressured technology and software shares. Sarah Hunt focused on earnings and AI disruption risks, Frank Sorrentino discussed bank consolidation and construction demand, and Axel Merk contrasted gold's defensive profile with bitcoin's risk-asset behavior.

  • Trump and Xi discussed trade, Taiwan, Iran, and an April summit; China remains sensitive to Middle East energy risks.
  • DHS is pulling 700 agents from Minneapolis and shifting to targeted enforcement.
  • Tech and software stocks sold off as investors weighed AI disruption and high earnings expectations.
  • Sarah Hunt flagged Alphabet earnings and 2026 earnings trends as key market risks.
  • Frank Sorrentino was optimistic on bank consolidation, ConnectOne, and New York metro construction demand.
  • Axel Merk favored gold as a defensive asset and viewed bitcoin as a risk asset, not digital gold.
  • Gold and silver recovered from a recent rout while bitcoin remained under pressure.
Ideas
Sarah Hunt Chief Market Strategist, Alpine Saxon Woods 13:36
Alphabet earnings are key market bellwether.
Sarah Hunt says Alphabet's after-close earnings are an important market bellwether because recent results have been mixed and expectations are high; unless Alphabet gives fantastic guidance, even decent numbers could disappoint and add pressure to tech stocks.
GOOG MED
Sarah Hunt Chief Market Strategist, Alpine Saxon Woods 14:37
AI fear drives indiscriminate software selling.
Sarah Hunt says AI disruption is the biggest concern for software and data companies, but high fear and indiscriminate selling may be overdone because embedded software ecosystems are hard to replace and it is not clear that business models will be toppled.
IGV MED
Frank Sorrentino CEO, ConnectOne Bank 21:25
ConnectOne benefits from regional bank turmoil.
Frank Sorrentino is optimistic on 2026 and ConnectOne's prospects; consolidation such as the Webster deal creates client disruption and opportunities for ConnectOne in overlapping New York metro markets, and he says the bank is well managed and positioned for growth.
CNOB MED
Frank Sorrentino CEO, ConnectOne Bank 21:50
U.S. bank consolidation remains attractive.
Frank Sorrentino says the U.S. has about 4,300 banks, natural consolidation is underway with regulators permitting more M&A and foreign capital entering, and larger banks can serve increasingly sophisticated clients; banking should remain a good business.
KBE MED
Frank Sorrentino CEO, ConnectOne Bank 26:56
NY metro construction faces severe supply shortage.
Frank Sorrentino says construction, multi-family, industrial warehouse and manufacturing markets lack product, and New York metro apartments, homes and condos are woefully undersupplied because political, zoning, environmental and insurance constraints make building difficult; he is extremely optimistic.
ITB Multi-family housing Industrial warehouse Manufacturing New York metro real estate MED
Axel Merk President, Merk Investments 36:27
Gold is defensive and supported long-term.
Axel Merk sees gold as a defensive asset with zero long-term correlation to the S&P 500, unlike crypto; after a pullback it bounced near $5,000, and geopolitical tensions plus unsustainable deficits keep long-term demand and buying interest intact.
GLD HIGH
Axel Merk President, Merk Investments 37:53
Bitcoin is risk asset, not digital gold.
Axel Merk says bitcoin is not digital gold: crypto is highly correlated with risk assets like the S&P 500, its track record is short, and unregulated products could cause disproportionate losses if the selloff continues.
BTC HIGH
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This Bloomberg Markets video, published February 04, 2026, features Sarah Hunt, Frank Sorrentino, Axel Merk discussing GOOG, IGV, CNOB, KBE, ITB, Multi-family housing, Industrial warehouse, Manufacturing, New York metro real estate, GLD, BTC. 7 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Sarah Hunt, Frank Sorrentino, Axel Merk  · Tickers: GOOG, IGV, CNOB, KBE, ITB, Multi-family housing, Industrial warehouse, Manufacturing, New York metro real estate, GLD, BTC