Global Economic Trends and Market Shifts

The article discusses the recent performance of emerging markets (EMs) and whether their current stellar run can continue. Historically, EMs were expected to offer high returns due to their superior growth rates compared to advanced economies. Despite the IMF noting that emerging and developing economies have consistently grown faster than advanced ones this century, their stock markets have not always reflected this growth, experiencing a boom in the 2000s followed by lackluster returns until recently. The article questions the sustainability of their current success.

The Economist's finance and economics section features various articles discussing global economic trends, trade, and financial markets. Key topics include Hong Kong's resurgence as a financial hub, the implications of Donald Trump's Fed nominee Kevin Warsh's economic views, the potential decline of the US dollar, emerging markets' performance, and the impact of AI on big tech. Other articles examine the US-India trade truce, Japan's foreign portfolio, and the yen's weakness. The section provides in-depth analysis of these issues, offering insights into the complex world of finance and economics.

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 risks associated with the US dollar's decline under President Donald Trump's administration. Despite Trump's unconventional policies, including tariffs and pressure on the Federal Reserve, asset markets have remained relatively stable. The S&P 500 index has risen by 14% in the past year, driven by investments in artificial intelligence. The article suggests that holders of American assets will need to adapt to a potentially treacherous economic environment.

The article discusses the potential decline of the US dollar, citing concerns about the country's economic fundamentals and the dollar's status as a safe-haven currency. The author argues that the dollar's value may continue to fall due to issues such as the US's large trade deficits and the rise of other economies. The article references the views of William Treiber, a former Federal Reserve official, who warned about the importance of maintaining international confidence in the dollar.