25.05.07 WSJ

1. Macroeconomics

Title: You Have a Message From Taiwan
Source: The Wall Street Journal
Date: May 7, 2025
Key Takeaways:

• The Taiwanese dollar experienced an unprecedented surge against the U.S. dollar, described by strategists as a "one-in-a-trillion" event.
• This spike is attributed to Taiwan's significant exposure to U.S. investments, particularly by large insurers vulnerable to currency fluctuations.
• The event has raised concerns about the stability of U.S. fiscal policy and its impact on global investment attractiveness.
• It serves as a warning to other major holders of U.S. assets about potential volatility linked to U.S. economic instability.
  Link: Read the article

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2. M&A / Private Equity

Title: Brookfield Sees Promising Trends Beyond Tariff Turmoil
Source: The Wall Street Journal
Date: May 7, 2025
Key Takeaways:

• Brookfield Asset Management reported strong Q1 2025 results, with distributable earnings rising 20% year-over-year to $654 million.
• The firm raised $25 billion across various strategies, including $7.1 billion for real estate and $14 billion for credit strategies.
• Investments totaled $16 billion, with $22 billion in asset sales generating $9 billion in equity proceeds.
• Brookfield's focus on essential, locally operated assets has provided resilience amid global tariff-related market turbulence.
  Link: Read the article

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3. Opinion (Columnist)

Title: Trump's Bad Hollywood Trade Movie
Author: Holman W. Jenkins Jr.
Source: The Wall Street Journal – Opinion
Date: May 7, 2025
Key Takeaways:

• Jenkins critiques President Trump's tariff policies, particularly a 100% duty on foreign films, highlighting potential negative impacts on the U.S. economy.
• He argues that such protectionist measures could lead to increased economic uncertainty and hinder growth.
• The column emphasizes the importance of free trade and cautions against policies that may isolate the U.S. from global markets.
• Jenkins suggests that these tariffs could have unintended consequences, including retaliatory measures from other countries.
  Link: Read the article