The Times (June 11)
“Since the historic Nato summit in The Hague one year ago this month, European leaders have pledged massive increases in defence spending in the face of increasingly acute threats of Russian aggression. Yet the reality is that key west European governments – especially the UK, France and Italy – are not putting their money where their mouth is for fear of undermining lenders’ confidence in their national debt.”
Tags: Confidence, Defense spending, Europe, France, Governments, Historic, Italy, Leaders, Lenders, National debt, Nato summit, Pledged, Russian aggression, Threats, UK
Institutional Investor (June 11)
“De-dollarization doesn’t mean capital is leaving America.” Investment decisions are often deceptively labeled de-dollarization even though the capital remains in the U.S. and is simply “changing form, swapping fixed financial claims on dollars for ownership of assets that generate cash flow and reprice with inflation.” Sovereign wealth funds and other institutional investors haven’t dumped dollars, “but increasingly avoid holding dollar claims. Bonds are giving way to utilities, pipelines, and logistics networks. Investors are moving away from returns locked in nominal dollars into assets whose income adjusts with inflation.”
Tags: Adjusts, Assets, Capital, Cash flow, Claims, De-Dollarization, Fixed financial claims, Income, Inflation, Investment decisions, Nominal dollars, Ownership, Reprice, Returns, Sovereign wealth funds, U.S.
