Sounds Alarm

• Yoshimitsu Kobayashi, a top Japanese executive, has raised concerns regarding the scale of Japanese investment in the United States, specifically citing $550 billion directed toward American infrastructure. • Kobayashi argues that these "endless" capital outflows are occurring while Japan's own domestic productivity continues to lag behind international competitors. • The situation highlights a critical tension between Japan's strategic global investments and the urgent need to revitalize its internal economy and industrial efficiency.

• Investors are facing a grim economic outlook as inflation accelerates and economic growth slows under President Trump's administration. • This trend is concerning for the stock market because corporate earnings serve as the primary long-term determinant of stock prices. • To analyze these risks, the text references the cyclically adjusted price-to-earnings (CAPE) ratio, a valuation tool introduced in 1988 by Nobel laureate Robert Shiller and John Campbell.

Powell says central bank has been facing ‘stress test’ under Trump, as supreme court weighs decision on Fed governor that president tried to fireSign up for the Breaking News US newsletter emailJerome Powell, the former chair of the Federal Reserve, has warned that a single act of political interference in monetary policy could permanently destroy public trust in the central bank.As Donald Trump’s administration continues to test the Fed’s longstanding independence, Powell said in a speech on Sunday night that the institution was in the midst of a “stress test”. Continue reading...