WS #15638
Political risk is rising as Trump directs a committee to investigate the removal of Fed Governor Lisa Cook, challenging central bank independence. Concurrently, new US sanctions on the International Criminal Court (ICC) have triggered condemnation from the EU and Turkey. These developments introduce institutional volatility and potential diplomatic friction, negatively impacting the stability premium for US assets. American Express received a positive analyst initiation from BMO, citing premium card growth, while Itau Unibanco saw a price target raise. Conversely, several regional US banks (UMB Financial, Texas Capital) saw target cuts. In Japan, firms are unwinding $56bn in cross-shareholdings, the second-largest on record, which may pressure Japanese equity valuations and increase float supply.
US Political & Institutional Risk
Political risk is rising as Trump directs a committee to investigate the removal of Fed Governor Lisa Cook, challenging central bank independence. Concurrently, new US sanctions on the International Criminal Court (ICC) have triggered condemnation from the EU and Turkey. These developments introduce institutional volatility and potential diplomatic friction, negatively impacting the stability premium for US assets.
American Express received a positive analyst initiation from BMO, citing premium card growth, while Itau Unibanco saw a price target raise. Conversely, several regional US banks (UMB Financial, Texas Capital) saw target cuts. In Japan, firms are unwinding $56bn in cross-shareholdings, the second-largest on record, which may pressure Japanese equity valuations and increase float supply.