The article draws a comparison between the current state of the American economy and Japan’s “triple yasu” crisis of the 1990s, where stock markets fell, bond yields rose, and the currency weakened simultaneously. Today, the United States faces a similar peril, with the dollar losing over 4% in value since April and Treasury bond yields climbing. This worrying trend signals declining investor confidence in America’s economic stability, echoing the UK’s market turmoil after Liz Truss’s 2022 “mini-budget”.
While the US has long benefited from an “exorbitant privilege”—its assets seen as global safe havens—this status is now at risk due to excessive borrowing, arbitrary policymaking, and rising fears over institutional integrity. Trump’s erratic tariff policies, threats to democratic norms, and attempts to undermine institutions like the Federal Reserve have deepened market unease. Inflation expectations are rising, and budgetary decisions by Republicans risk ballooning deficits by $5.8 trillion over a decade.
Though the administration has recently backtracked on some tariffs, damage to confidence may already be done. Some economists now warn that America’s debt-fuelled dominance could end in collapse, much like the fall of the Bretton Woods system in 1971—a scenario that recently seemed unthinkable, but now feels possible.

Warren Buffett appears vindicated for offloading vast quantities of shares—including two-thirds of Berkshire Hathaway’s Apple stake—before US markets slumped in early 2024. As Apple and the S&P 500 declined, Berkshire held steady, buoyed by a hefty $334bn cash reserve. This cushion proved valuable amid turmoil sparked by Donald Trump’s surprise trade war, which rattled investors and sent markets tumbling.
Yet, while Buffett’s conservative approach has shielded Berkshire, the broader lesson is less clear-cut. Other cash-rich firms, such as Amazon, Alphabet, and Toyota, have not fared as well, and data shows no strong correlation between cash holdings and share performance. High cash piles may, in fact, represent missed opportunities, with more dynamic companies like Nvidia and Novo Nordisk generating far greater returns while maintaining smaller reserves.
Though Berkshire's liquidity may provide comfort in uncertain times, critics argue that Buffett’s reluctance to return capital to shareholders—through dividends or buybacks—dampens returns. Unlike firms that efficiently reinvest or reward investors, Buffett’s vast cash hoard, while prudent, may now seem unnecessarily cautious or unimaginative.

On 9th April, global markets teetered on the edge as both US shares and supposedly safe Treasury bonds plunged, with ten-year yields spiking to 4.5%. The panic eased only after Donald Trump unexpectedly delayed new tariffs, sparking a stock market rally. Yet the episode exposed deep vulnerabilities in the financial system.
Volatility surged, liquidity in bond markets dried up, and margin calls forced hedge funds to sell off assets, creating a dangerous feedback loop. A key concern is the “basis trade,” a risky, highly leveraged hedge fund strategy involving Treasuries and futures, which could trigger mass sell-offs if markets move suddenly—just as happened during the Covid crisis and the 2022 UK pension fund turmoil.
Although the Federal Reserve could intervene again to stabilise markets, doing so now risks accusations of masking deeper issues—like rising doubts over America’s fiscal credibility. Trump’s erratic trade policies and geopolitical tensions, especially with China, have shaken investor confidence. With inflation fears still high and political risk rising, the financial system may not withstand many more shocks before something truly breaks.

The Trump administration has significantly reduced its focus on white-collar crime enforcement, particularly in areas such as foreign bribery, public corruption, and money laundering. This shift became evident when President Trump issued an executive order in February, pausing the enforcement of the Foreign Corrupt Practices Act (FCPA). This order was beneficial for former Cognizant Technology Solutions executives Gordon Coburn and Steven Schwartz, who were facing trial on charges of bribery in India, and their case was subsequently dropped.
Under the new direction, the Department of Justice, led by Attorney General Pam Bondi, has shifted its priorities to focus on criminal organisations and drug cartels, rather than prosecuting business executives for wrongdoing that lacks clear victims. Cases involving foreign bribery, such as those against Indian billionaire Gautam Adani and Swiss trading giant Glencore, have seen some prosecutions reduced or dropped, with the Justice Department citing economic competitiveness and national security as factors.
In addition, key personnel changes at the Department of Justice and the Securities and Exchange Commission (SEC) have led to a scaling back of enforcement actions. The SEC has dropped lawsuits against several cryptocurrency companies, and the Commodity Futures Trading Commission has closed many investigations, particularly those involving decentralized exchanges. The new approach has left white-collar defense lawyers concerned about a potential slowdown in future cases and investigations, which had been a lucrative area for legal firms.

Late last week, news emerged that smartphones, laptops, and other electronics imported from China would be exempt from President Trump’s tariffs, a move that spared Apple from significant cost increases. These tariffs, announced in early April, could have substantially impacted Apple’s profit margins or led to price hikes for its customers. The announcement came at a difficult time for Apple, as it struggles with sluggish iPhone sales and the launch of new services.
Although Apple’s stock rose following the tariff exemptions, uncertainties remain, particularly as Commerce Secretary Howard Lutnick warned that additional tariffs could be imposed. This ongoing unpredictability is expected to affect Apple's stock valuation, potentially requiring a "Trump discount" due to the government’s significant influence over the company. Apple’s dependence on Chinese manufacturing, which has been integral to its cost-effective production, presents challenges for diversifying its supply chain. Efforts to relocate manufacturing could be costly and logistically unfeasible.
Additionally, the Trump administration’s pressure on Apple may extend to other areas, such as its refusal to provide law enforcement with backdoor access to its software. This evolving environment could reshape Apple’s future, making its previous high valuation harder to justify in a world where deglobalisation is gaining momentum.

Telefonica’s decision to sell its Peruvian business, which filed for bankruptcy earlier this year, is seen as a prudent move by ING analyst Jan Frederik Slijkerman. This sale, to Integra Tec International, allows the company to distance itself from the bankruptcy proceedings. Following this, Telefonica’s shares rose by 1.8%.
In other news, the Trump administration’s tariff exemptions for some tech products have created uncertainty within the tech sector, according to Jefferies analyst Charles Brennan. While the exemptions offer short-term relief, the ongoing policy volatility could hinder business confidence and decision-making. Shares in companies like Infineon Technologies and STMicroelectronics rose, but the overall market remains cautious.
Meanwhile, Delivery Hero’s shares were impacted by a legal provision for risks related to the legal status of delivery riders in Italy, following an Italian court decision. Despite this, analysts believe the company remains fairly valued.
China’s retaliatory tariffs on the U.S. could benefit domestic chip manufacturers, especially those making mature node chips, with U.S. companies potentially relocating production to avoid tariffs. Similarly, U.S. tariff exemptions on electronics could support Inari Amertron’s sales, as it provides radio-frequency chip testing for Apple suppliers.
Maxis’s share price appears to have factored in uncertainties around the second 5G rollout, with analysts expecting clarity soon. Meanwhile, Malaysia's tech sector remains cautious about policy risks despite potential short-term gains from tariff exemptions.

Viagogo, a ticket resale platform, has been criticised for allowing “misleading and potentially unlawful” practices on its site, despite ongoing scrutiny ahead of new anti-touting laws being considered by the government. These laws could cap resale prices at 10% above face value, which threatens the business model of platforms like Viagogo.
Campaigners claim Viagogo has failed to prevent tactics such as speculative selling, where sellers list tickets they don't yet have. The platform was found to have listed tickets for Bastille’s tour before they were officially released, and also displayed tickets with incorrect information, potentially breaching consumer laws. Viagogo removed some listings after being contacted by The Guardian, claiming human error in the case of early listings.
Anti-touting advocates, including MP Sharon Hodgson and FanFair Alliance, have expressed outrage, urging stronger regulations. Viagogo insists it complies with UK law, but critics argue the company’s actions continue to exploit fans, and the government consultation will also address the issue of dynamic pricing used by authorised sellers.

Gordon Brown has accused Donald Trump of "weaponising" the global trading system through high import tariffs, which he believes could lead to a breakdown in the global economic order. Brown called for a "global rescue plan" similar to the actions taken during the 2008 financial crisis, including coordinated interest rate cuts to mitigate the effects of these tariffs. He warned that if not addressed, the current economic turmoil could lead to a recession akin to the Great Depression of the 1930s.
Brown's comments, made in an interview with BBC Radio 4, have increased pressure on the Bank of England to loosen monetary policy. His remarks come as the US tariff regime has caused significant financial market turmoil, raising concerns of a global recession. Despite Trump scaling back some of the most severe tariffs, including on electronics, he has still imposed extensive tariffs, particularly on China.
Experts like Jamie Dimon, CEO of JP Morgan, have suggested a 50% chance of a US recession, while investor Ray Dalio warned that the tariff war could disrupt the post-WWII global trading system and even lead to military conflict. Brown emphasised the need for international cooperation to address the crisis, advocating for a "multipolar" world order, and suggested that the UK should seek new global partners beyond the US to address key issues like human rights and climate change.

Chinese President Xi Jinping has warned that there will be "no winners" in a trade war, emphasising that protectionism "leads nowhere" during his visit to Southeast Asia, starting in Vietnam. Xi's tour also includes Malaysia and Cambodia, aimed at strengthening China’s ties with its neighbours amid the ongoing trade tensions that have destabilised global markets.
In an article published in Vietnam’s Nhân Dân newspaper, Xi called for the protection of the multilateral trading system and stable global supply chains. He stressed that China is a reliable partner, contrasting itself with the US, which has imposed significant tariffs on Southeast Asian nations, including Vietnam. The US tariffs, particularly the 46% tariff on Vietnam, have raised concerns, especially as Vietnam strives to maintain strong trade relationships with both the US and China.
Xi’s visit to Vietnam will see the signing of around 40 agreements, including in defence, security, and infrastructure, such as railway development. Vietnam faces a delicate balancing act in maintaining relations with both the US and China, as it is highly dependent on both for exports and imports.
Analysts suggest that Xi’s visit may offer economic opportunities for Vietnam, particularly in light of the trade war's impact on its economy. However, Vietnam will also need to avoid aligning too closely with China due to the geopolitical tension between China and the US. The outcome of Xi's visit could influence the region's future trade and political dynamics, as China seeks to position itself as a stabilising force amidst global trade disruptions.