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After accounting for the use of custodians and acknowledging the role of state-owned enterprises, there seems to be limited evidence of China actively reducing its exposure to US assets. That said, holdings as a share of foreign assets may have been falling, while opportune sales could occur in an attempt to recruit ‘bond vigilantes’ and moderate US trade policy.
In this new episode, we explore the staggering global infrastructure investment needs over the next 25 years, why the bill is so high, and how governments and private investors might share the load.
What’s driving the latest surge in US deficit projections? Lizzy Galbraith highlights the fiscal and trade policy shifts that could reshape the global economic outlook.
While the threat of an escalation in the US trade war has receded, slowing global growth will be a drag, particularly on EMs reliant on trade. That said, a weaker US dollar and limited spillover from rising developed market bond yields should give EM central banks room to support their economies.
In this episode, we explore the Trump administration’s sweeping plans that would swell government borrowing, why bond markets are getting nervous, and what Elon Musk’s exit may mean.