Unhedged

In this discussion, Adam Posen, President of the Peterson Institute for International Economics, and Claire Jones, The FT's U.S. economics editor, dissect the escalating tensions between President Trump and Fed Chair Jay Powell. They explore the implications of Trump's pressure for interest rate cuts and the risks to the Fed's independence. The conversation also touches on historical clashes between the presidency and the Fed, and how these dynamics affect economic stability. Plus, they analyze potential outcomes of the upcoming midterm elections on Trump-era policies.

Kenneth Rogoff, a Harvard economics professor and former IMF chief economist, joins Martin Wolf to discuss the declining influence of the US dollar and its implications. Rogoff argues that Trump's trade policies are accelerating this trend, potentially empowering China. They explore how the shift in currency dynamics could lead to capital flight from the US and why cryptocurrencies pose a greater threat to dollar dominance than commonly believed. They also touch on the history of trade protectionism and the fragility of the current economic landscape.

Oliver Barnes, the Financial Times' deals reporter, discusses the landmark proposed merger between Union Pacific and Norfolk Southern. He delves into how this move could reshape America's freight landscape and even fulfill Abraham Lincoln's dream of a transcontinental railroad. The conversation touches on the historical context of rail mergers, regulatory implications, and the political dynamics influenced by the Trump administration. Humorous insights on Amtrak's food offerings add a lighthearted twist, linking comfort to broader discussions on contemporary life and global warming.

Ben Hall, the Financial Times Europe editor, dives into the fallout of the recent trade deal between the EU and the US. The conversation highlights how Europe conceded to US tariffs, leaving consumers in both regions impacted. They explore Europe's hesitance to retaliate amid economic interdependence, and the challenges this poses for long-term strategies. Discussions on the implications for US energy exports versus manufacturing health add depth, showcasing the nuances of international trade dynamics.

Sujeet Indap, The FT’s Wall Street editor, dives into the world of mergers and acquisitions, discussing the impact of political shifts on deal-making. He explores the stagnation of M&A during the Trump presidency and hints at a revival with significant pending deals. The conversation covers the contentious U.S. Steel acquisition and the evolving regulatory landscape, including a focus on big tech and corporate influence. With Wall Street's renewed optimism, Indap shares insights on navigating M&A in these uncertain times.

Guest John Foley, Lex editor at the Financial Times, delves into the future of trading with insights on 24-hour trading and its potential impact on liquidity and regulation. He discusses how tech giants like Google and Meta are reshaping investment strategies through AI, moving beyond traditional metrics. The conversation also tackles Tesla's innovative approach to robotaxis and the fierce competition with Waymo, highlighting the technological challenges and economic implications of autonomous vehicles.

Nvidia has skyrocketed to a $4 trillion valuation, with discussions drawing parallels to the dotcom bubble. The rise of AI technology is reshaping major tech firms and sparking debates about sustainability and regulation. Listeners are encouraged to consider investment metrics against political insights, reflecting on broader implications. The conversation concludes on a lighter note, celebrating the joys of stone fruit season, while humorously advising moderation in indulgence.

John Foley, Editor of the Lex column at the Financial Times, dives into the surprising complexities behind Warren Buffett’s exit from the Kraft Heinz merger. He uncovers how 3G Capital's strategies impacted the company’s operations and profitability, amidst changing consumer preferences. The conversation also highlights Kraft Heinz's struggles, including an accounting scandal, and the adaptability necessary in today’s market. Additionally, they explore market trends with a focus on Bitcoin and the political factors shaping investment strategies.

In this episode, Robin Wigglesworth, Editor of FT Alphaville and finance expert, joins to explore the controversies surrounding Jane Street, one of the world’s largest traders, accused of market manipulation in India. The conversation examines the evolution of trading firms and their ethical dilemmas in the fast-paced finance landscape. With a mix of humor, they also share personal anecdotes and tackle bizarre financial tales, including amusing stories about bedbugs and penguins, while critiquing investment challenges in cryptocurrency.

The hosts explore why the stock market remains buoyant despite looming economic troubles. They dissect the implications of a new budget that could swell U.S. debt by trillions. Discussions about tariff tensions and their impact on bond yields reveal potential market volatility. The conversation also critiques unconventional networking and regressive tax policies, blending humor with serious insights. Tune in to discover what might just spook the markets!