Global Economy Faces Multiple Challenges Ahead

The article discusses the potential risks facing big tech companies, particularly in the digital advertising sector. While the artificial intelligence (AI) boom is a concern, another risk lies in the fact that digital advertising, a significant source of revenue for big tech companies, may not be as recession-proof as previously thought. The article suggests that digital ads may be vulnerable to a downturn in the economy, citing the previous two recessions in 2008-10 and 2020, which were shrugged off by big tech companies. However, the next recession may have a more significant impact on digital ad revenue.

The Economist's finance and economics section discusses various global economic issues, including the impact of AI on big tech, the resilience of Meta and Google's ad revenue during a recession, and the potential effects of Kevin Warsh's nomination to the Federal Reserve. Other topics include Japan's foreign portfolio, the weakness of the yen, and the rally in gold prices. The articles also touch on trade deals, the dollar's value, and the impact of the West and Ukraine on Russia's shadow fleet.

The article discusses whether the United States has reached 'peak tariff' under Donald Trump's presidency, considering the impact of his tariff policies on the global economy and potential future changes due to a looming Supreme Court decision on his use of emergency economic powers.

The article discusses the potential implications of Kevin Warsh being chosen by President Donald Trump to lead the Federal Reserve. Warsh, a former Fed governor, was seen as an inflation hawk in the past but has since changed his stance. The article explores what his appointment might mean for the Fed and the economy, given his background and previous views on monetary policy.