Amazon plans to invest up to $4 billion in AI startup, Anthropic, while experts discuss the bond market and the possibility of negative interest rates in the US. They also explore investment opportunities in Asia, political strategies behind government shutdowns, and potential risks to the investment environment and consumer spending.
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Quick takeaways
Government shutdowns initiated by Republicans have proven ineffective in achieving desired spending cuts and instead lead to public frustration and damage to the party's reputation.
Certain politicians, including inexperienced Republicans and the influence of Donald Trump, continue to pursue government shutdowns despite evidence showing their ineffectiveness and negative consequences.
Another government shutdown led by Republicans is expected to further exacerbate dysfunction in Washington and harm the party's standing in the public eye.
Deep dives
Government Shutdowns: A Failed Strategy
In this article, Josh Green explains the recurring pattern of government shutdowns initiated by Republicans in an attempt to force spending cuts. Despite multiple shutdowns in the past, this strategy has proven ineffective in achieving the desired outcome. Republicans often believe that shutting down the government will rally public support and pressure Democrats into compromising on spending cuts. However, history shows that shutdowns lead to public frustration, with blame falling on the party responsible. The upcoming 11th shutdown, likely led by a faction of conservative Republicans, is expected to follow this same pattern. McCarthy, the current Republican Speaker of the House, faces challenges in navigating this situation due to his slim majority and focus on maintaining his position. Ultimately, the shutdown is unlikely to lead to the desired outcome and will instead damages the Republican Party's reputation and further exacerbate dysfunction in Washington.
The Flawed Logic Behind Government Shutdowns
Josh Green examines the flawed logic behind government shutdowns and why they continue to be pursued by certain politicians. He highlights factors such as new and inexperienced Republicans in Congress, who may believe shutting down the government will lead to desired spending cuts. Another reason is the influence of Donald Trump, who has encouraged Republicans to pursue a shutdown. However, evidence from previous shutdowns shows that they do not achieve the desired outcome and often backfire. Public opinion turns against the party responsible for the shutdown, and the ensuing chaos and dysfunction in Washington further erode public trust in the political system. Overall, the article suggests that this recurring strategy is unlikely to yield positive results and may harm the Republican Party's standing in the public eye.
The Potential Impacts of Another Government Shutdown
In this article, Josh Green discusses the potential impacts of yet another government shutdown initiated by Republicans. He points out that while Republicans may believe that shutting down the government will force Democrats to compromise on spending cuts, historical evidence suggests otherwise. Shutdowns typically result in public backlash, frustration, and a decline in support for the party responsible. Green notes that this shutdown could have negative consequences for the Republican Party's reputation, particularly in a time when Joe Biden's presidency is facing challenges. The article also highlights the ongoing divide within the Republican Party and the difficulties faced by Speaker Kevin McCarthy in trying to manage the situation. Ultimately, the shutdown is expected to contribute to further dysfunction and discontent in Washington.
Asia as a more attractive investment option than US and China
The podcast episode discusses how Asia, particularly Japan and Southeast Asia, is viewed as a more favorable investment option compared to the United States and China. The focus is on Japan, where the market is experiencing a 33-year high and benefiting from structural changes and corporate governance improvements. Additionally, foreign direct investment flowing out of China is finding its way into other parts of Asia, particularly Southeast Asian countries like Vietnam, Indonesia, Malaysia, and Thailand. This influx of capital is contributing to the growth and development of these smaller markets.
Payoneer CEO comments on the global economy and cross-border payments
The Payoneer CEO is interviewed in the podcast and provides insights on the global economy and cross-border payments. He highlights the increased focus of small business owners on cross-border trade, with entrepreneurs looking to export goods and services abroad and take advantage of global sourcing opportunities. Despite weakness in certain areas of the global economy, particularly due to supply chain disruptions and rising energy prices, small businesses are still looking for new channels to sell and are leveraging the global landscape. Payoneer, specializing in cross-border payments, is seeing strong growth in markets like China, Latin America, and Asia.
Bloomberg Technology co-host Ed Ludlow reports on Amazon.com planning to invest as much as $4 billion in Anthropic, bagging a crucial partner in its effort to become a major player in generative artificial intelligence. Katy Kaminsky, Chief Research Strategist at Alphasimplex Group and Bloomberg Intelligence Chief US Interest Rate Strategist Ira Jersey share their thoughts on the bond market. Jon Withaar, Head of Asian Special Situations at Pictet Asset Management, explains where to find investment opportunities in Asia. John Caplan, CEO at Payoneer, looks at the state of the global digital payment industry. Bloomberg Businessweek Editor Joel Weber and Businessweek National Correspondent Josh Green provide the details of Josh's Businessweek Magazine story Republicans Aim for New Shutdown Despite Strategy Never Working. And we Drive to the Close with Greg Halter, Director of Research at Carnegie Investment Counsel. Hosts: Carol Massar and Tim Stenovec. Producer: Paul Brennan.