Bloomberg Daybreak: Europe Edition Asia’s ‘Sell USA’ Moment, SpaceX Starship Destroyed, Rome’s 'Eighth King'
May 28, 2025
Asian investors may be shifting away from US assets due to rising concerns over budget deficits and political instability. Volatility in Japan's bond yields is causing a stir in global debt markets, while SpaceX's latest rocket test ended in disaster as it disintegrated mid-flight. The UK government is easing restrictions for smaller housebuilders to boost home construction, and Italy faces a significant political moment with an influential nationalistic figure trying to maintain control over its banking landscape amidst European integration challenges.
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Summer Road Trip Planning Tips
- When planning summer road trips, consider your passengers, choose scenic routes, and prepare a playlist.
- Use a paper map for cognitive health benefits and plan a memorable meal at your destination.
Asia's Export-Investment Cycle Unwinds
- Asia's export model involved selling goods to the US and investing earnings back into US assets following the 1997 Asian financial crisis.
- This led to Asian investors holding about $7.5 trillion in US assets, a model now showing signs of unwinding due to geopolitical and economic shifts.
Asian Investment Shift Impacts Markets
- Asian money flowing into the US has significantly slowed, with some investors seeking alternatives amid recent financial losses.
- This shift causes ripple effects in global financial markets, illustrating a major change in investment flows.