Global Markets and Economy in Flux

The article discusses Compass Group's decision to switch its share trading currency from sterling to US dollars, citing reduced FX volatility and simplified investment for global investors. This move is part of a trend among UK companies to adopt dollar or euro reporting, driven by changes in FTSE Russell's index membership rules. Other companies like HSBC, AstraZeneca, and Shell have already made similar switches. The article argues that this trend is not new and has been ongoing since the 1990s, with companies like Avis Europe and Rio Tinto having made similar changes in the past.

The Economist's finance and economics section features various articles discussing global economic issues, trade deals, and market trends. The articles analyze the impact of Donald Trump's policies on trade, the cryptocurrency market, and the potential consequences of a 'cold crypto winter.' Other topics include hedging against market bubbles using AI, the resurgence of Hong Kong as a financial hub, and the implications of Kevin Warsh's nomination to the Federal Reserve. The section also covers emerging markets, the dollar's value, and the potential effects of Japan's foreign portfolio on global markets.

The article discusses how to protect investment portfolios from a potential market crash, drawing parallels between the current AI hype and the dotcom bubble of the early 2000s. It highlights the similarity between the expensive Super Bowl advertisements by dotcom firms in 2000 and a recent AI chatbot advertisement, suggesting that history may be repeating itself. The article implies that hedging against a potential bubble burst is challenging but necessary for investors with long memories.

Nigel Farage, the leader of Reform UK, has proposed stopping interest payments on reserves held at the Bank of England, a move that has garnered unexpected support from left-wing Greens, centrist Liberal Democrats, and even former Bank of England officials. The proposal has been met with a mix of reactions, with some viewing it as a populist economic measure. Farage's motivation appears to be driven by a personal grievance against banks, which he claims 'debanked' him. The article discusses the potential implications of this proposal and its surprising backing from various political and economic quarters.

The article discusses the recent trade deals struck by President Donald Trump with Argentina and India, where both countries obtained partial relief from tariffs by making it easier for American firms to sell goods to their citizens. The deals have been criticized for being one-sided, with opposition politicians and citizens branding them as acts of 'submission' or 'total surrender'. The article questions whether the consequences of these deals will be as negative as critics claim.