Bloomberg Daybreak: Asia Edition Dollar Weakens After Trump Comments, Mag Seven Earnings Preview
Jan 28, 2026
Phil Palumbo, founder and CIO of Palumbo Wealth Management, on tech earnings, AI capex and which stocks may benefit. Robert Kaplan, former Dallas Fed president and Goldman vice chairman, on dollar moves, gold demand and central-bank reactions. They discuss the dollar slump, investor repositioning, AI-driven spending and risks to markets in concise, fast-paced conversations.
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Investors Hedging Dollar Tail Risk
- Global investors are rebalancing to hedge tail risks, buying gold and alternative safe havens as they reassess U.S. exposure.
- Robert Kaplan says this is repositioning, not a wholesale run from the U.S., and should run its course with calmer tail-risk messaging.
Stability Trumps Export Gains
- A weaker dollar can boost exports but extreme U.S. debt makes currency stability a higher priority than export gains.
- Kaplan argues the U.S. prefers a stable dollar to ensure demand for long-term Treasuries and fiscal financing.
Japan's Policy Dilemma Is Structural
- Japan faces structural constraints: aging population, shrinking workforce, and high leverage limit fiscal stimulus options.
- Kaplan says calming markets likely needs coordinated fiscal and central-bank action but fundamentals require productivity gains, including via AI.