4.8 • 1.3K Ratings
🗓️ 15 May 2025
⏱️ 8 minutes
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Amid the uncertainty triggered by President Donald Trump's "Liberation Day" tariff announcements, many investors started looking for places outside the U.S. to park their capital. One beneficiary? Japan. More foreign money flowed into Japanese stocks and bonds than ever before — about $50 billion worth. Also on this morning's show: a conversation about the value of the U.S. dollar and what happens if it loses its status as the reserve currency.
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0:00.0 | I'm taking my ball and going home. What if foreign investors in the U.S. said that? |
0:06.9 | I'm David Brancaccio in Los Angeles, with Congress struggling to find spending cuts to offset its evolving plans for a tax cut. |
0:14.6 | There's always the concern about mounting government debt. Investors here and abroad buy that debt, and what would happen if they were to take their |
0:22.4 | investments elsewhere amid all the policy uncertainty here. A report from Niki Asia finds that |
0:28.5 | during the month the U.S. raised tariffs sharply, that's April, more foreign money flowed into |
0:33.5 | Japanese stocks and bonds than ever before, about $50 billion worth, Japan. |
0:39.1 | Marketplaces Kimberly Adams explains why. |
0:41.7 | While the U.S. is still considered by most global investors as a safe haven, for many, |
0:47.0 | it's looking a lot less safe than it used to, says Charles Litchfield at the Atlantic Council. |
0:52.5 | There's less interest in dollar-denominated assets and especially a desire by big, big investors |
0:59.3 | like central banks and sovereign wealth funds to get out of dollar denominated assets to an extent |
1:04.6 | and into others. So they're looking around the globe for other big, stable economies |
1:10.6 | where they can park their cash. |
1:12.9 | And the Japanese yen and yen-denominated assets are now comparatively more attractive. |
1:18.3 | But Japan isn't the only place seeing a boost in investment due to Trump's tariff policies. |
1:23.6 | Charles Bustani is a senior advisor at the National Bureau of Asian Research. |
1:28.2 | Global investors are looking at markets in Europe. |
1:30.9 | The German market, for instance, has seen an uptick in investment. |
1:35.3 | There are other markets as well. |
1:36.8 | And he expects that will continue until economic policy in the U.S. |
1:41.4 | becomes a bit more predictable. |
1:44.1 | In Washington, I'm Kimberly Adams for Marketplace. |
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