Unhedged

Scott Bessent’s role in stabilizing the markets is explored, showcasing the tightrope he walks between political loyalty and market credibility. The hosts dive into the impact of fiscal policy on Treasury yields and the shifting influence from central banks. They touch on the potential risks if inflation accelerates and the necessity for central banks to step in. Bessent's intervention in Argentina highlights his global influence. Lastly, skepticism around gold narratives and a focus on rising depreciation expenses bring intriguing investment insights.

In this discussion, Michael Stott, the Financial Times' Latin America editor, delves into the unusual U.S. proposal to aid Argentina amidst its economic strife. He explores the flamboyant Javier Milei's anarcho-capitalist policies and their implications. The conversation covers Argentina's strained peso, the historical context of Peronism, and how U.S. support might affect domestic politics. They also touch on the broader perspectives of U.S. banks and hedge funds, raising questions about the sustainability of Milei's regime with this potential lifeline.

Sanae Takaichi is the first female prime minister of Japan. She also claims Margaret Thatcher as a role model. Today on the show, Katie Martin and the FT’s Tokyo bureau chief Leo Lewis discuss this historic election and what it might mean for markets in Japan and globally. Also, they go long shorts – for real this time. For a free 30-day trial to the Unhedged newsletter go to: https://www.ft.com/unhedgedoffer.You can email Robert Armstrong and Katie Martin at unhedged@ft.com.Read a transcript of this episode on FT.com Hosted on Acast. See acast.com/privacy for more information.

China's export restrictions on rare earths shake markets and raise questions about their strategic value. The hosts debate whether this move is a tactical ploy ahead of APEC talks and how it impacts Trump's tariff strategies. They explore the sustainability of China's dominance in rare earth production and the practical challenges facing Western supply expansion. The conversation lightens up with a fun Long/Short segment discussing Strava, protein culture, and ESG trends.

Chris Giles, an economics commentator at the Financial Times with a focus on UK budget and central banking issues, shares insights on the upcoming UK 2026 Budget. He discusses the tension between the desire for robust social services and low taxes, and how Labour's tax promises create a fiscal squeeze. Chris also evaluates the potential need for substantial tax increases and the constraints imposed by bond markets on budgetary choices. The conversation wraps up with some light-hearted commentary on the IMF and those who claim they'll move to Dubai.

In this discussion, John Foley, Editor of the Lex column at the Financial Times, unravels the intricate web of AI investments among tech giants like OpenAI, NVIDIA, and Google. He explores whether AI is enriching everyone or merely entwining companies in complex partnerships. The duo also dives into the strategic maneuvering of OpenAI and the challenges of securing customer cash. Plus, they speculate on future AI beneficiaries while making bold predictions about rising beef and chocolate prices.

Laura Hughes dives deep into a shocking lead poisoning epidemic lurking in the UK. She reveals how this invisible toxin can build up in our bodies without obvious symptoms, making diagnosis tricky. Through personal stories and expert insights, the podcast uncovers the systemic issues surrounding lead exposure. Listeners will learn about the potential dangers in their own homes and how to live safely while navigating this hidden health crisis.

Gold prices are soaring, reaching nearly $4,000, and the hosts discuss the factors driving this frenzy. They explore the link between falling real rates and gold’s allure as a safe haven. The debate heats up over whether gold is a speculative bubble or a genuine portfolio hedge. Central banks are loading up on gold amid global uncertainty, while retail demand surges through gold ETFs. Concerns about Japan’s economy lead to recommendations for shorting the yen and investing in Japanese stocks, highlighting volatility amid changing policies.

Rob and Katie dive into the looming government shutdown and its potential economic fallout. They explore the staggering investment in AI and question whether it's truly driving U.S. growth. Concerns arise over inflated AI valuations and their implications. Additionally, they shed light on the shadow banking sector, revealing its massive exposure risks. The discussion also touches on the unsettling reality of cyber attacks and the rise of Covid-19 cases, painting a vivid picture of today's market challenges.

Electronic Arts, a publicly traded company, was just purchased for $55bn by a consortium of investors led by Donald Trump’s son-in-law Jared Kushner. The investors included the Saudis and Silver Lake Partners, one of the smartest players in private equity. Today on the show, Robert Armstrong speaks with US finance editor James Fontanella-Khan and US deals correspondent Oliver Barnes about the dollars behind the deal. Also, they go long and short a new wave of M&A. For a free 30-day trial to the Unhedged newsletter go to: https://www.ft.com/unhedgedoffer.You can email Robert Armstrong and Katie Martin at unhedged@ft.com.Read a transcript of this episode on FT.com Hosted on Acast. See acast.com/privacy for more information.