US asset managers fall after China's retaliatory tariffs extend market downturn

Alliancebernstein Holding LP

04/04/2025 14:54

Updates

** Shares of U.S. asset managers fall in early trading after China's finance ministry said on Friday it will respond to President Donald Trump's tariffs with additional tariffs of 34% on all U.S. goods from April 10

** Apollo APO.N down 8.4%, Blackstone BX.N and BlackRock BLK.N drop 6%, and Charles Schwab SCHW.N slips 4.5%

** Janus Henderson JHG.N falls 6.8% and AllianceBernstein AB.N falls 1.9%

** Asset managers could see a drop in fees, which is often tied to the value of assets under management, if trade war fears, economic uncertainty and inflationary pressures from tariffs cause a prolonged downturn in the markets

** "After a strong finish to 2024, the escalating trade war and federal spending cuts have increased the risk of stagflation," BofA analysts said in a note

** Brokerage said that management fees will be up in Q1 2025 since correction occurred in month 3 of the quarter,  but also flagged that fees should be down in Q2 if markets don't rebound

(Reporting by Ateev Bhandari in Bengaluru)

((Ateev.Bhandari@thomsonreuters.com; ))