Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Russian Ministry of Defense: 37 Ukrainian drones destroyed in 4 hours over regions of Russia and the Black Sea.
Sheikh Qassem: Our supporters make up more than half of Lebanon's population, and all of these people are united under the banner of protecting Lebanon, its Resistance, its people, and its integrity.
Sheikh Qassem: There will be no phased handing in of our arms. [The Israelis] must first enact the agreement before we start talking about a defensive strategy.
Sheikh Qassem: Be brave in the face of foreign pressures, and we will be by your side in this stance.
Sheikh Qassem: Stripping us of our arms is like stripping us of our very soul, and this will prompt us to show them our might.
Sheikh Qassem: We will not abandon our arms, for they gave us dignity; we will not abandon our arms, for they protect us against our enemy.
Sheikh Qassem: The US efforts we are seeing are aimed at sabotaging Lebanon and constitute a call for sedition.
Sheikh Qassem: If you truly want to establish sovereignty and work for Lebanon’s interests, then stop the aggression.
Sheikh Qassem: The United States, which is meddling in Lebanon, is not trustworthy but rather poses a danger to it.
Sheikh Qassem: The United States is preventing the weapons that protect the homeland.

DeepSeek and the dollar are spoiling ‘Trump trades’: FT

  • By Al Mayadeen English
  • Source: The Financial Times
  • 28 Jan 2025 15:23
3 Min Read

A Financial Times report suggests that ahead of Trump's re-inauguration, investors are uncertain about the "Trump trade" due to a weakening dollar, volatile US tech stocks, and China's new AI initiative.

Listen
  • x
  • DeepSeek and the dollar are spoiling ‘Trump trades’: FT
    The logo for the app DeepSeek is seen on an iPhone on January 27, 2025, in Washington. (AP)

The Financial Times (FT) reported Tuesday that mere hours before Donald Trump was re-inaugurated as US president last week, Goldman Sachs hosted its annual investment summit in London. A dominant theme among attendees—particularly hedge funds and speculative investors—was the dollar, a focal point of the so-called "Trump trade."

According to FT, while Trump's economic agenda remains challenging to predict, many investors appeared confident that his presidency signals a strong dollar. This belief stems from expectations of US exceptionalism, stubborn inflation, or both. One of Goldman’s senior traders described the trade on the dollar—particularly against the Chinese renminbi—as “the most obvious trade in the world.”

However, the report notes that Trump's fiery rhetoric during his inauguration challenged this assumption. Revisiting his campaign focus on tariffs, Trump targeted Mexico and Canada instead of China, his previously stated primary economic rival. This unexpected shift led to a sharp rise in the Chinese renminbi and caused the dollar to weaken against major currencies, including the euro, yen, and sterling.

The FT report underscores growing challenges for investors banking on Trump’s second term. US markets were motivated by Trump’s promises of deregulation, lower taxes, and prioritizing American goods, with an added boost from the country’s dominance in artificial intelligence (AI). 

Related News

Syria welcomes US decision to lift sanctions, hosts US delegation

Trump claims Gaza war to end in weeks, despite ongoing Israeli assault

Rise of 'DeepSeek'

According to the report, China's new AI initiative, "DeepSeek," disrupted market sentiment, triggering a massive sell-off in US tech stocks, including an unprecedented $600 billion loss in Nvidia's market value in a single day.

The FT report highlights the fragility of the US stock market’s reliance on a handful of tech giants. French bank Société Générale noted that seven AI-linked US companies alone account for one-third of the S&P 500 index. Without Nvidia and its top customers—Microsoft, Google, Amazon, and Meta—the index would be roughly 12% lower.

Analysts are recommending diversification. “Tilting towards an equal-weighted S&P 500, rather than the tech-heavy version, makes sense,” said Manish Kabra, head of US equity strategy at Société Générale.

European stock markets in Germany and the UK have hit record highs since Trump’s return, showing opportunities outside the US. However, the FT warns that any major challenge to US Big Tech could shake global markets.

The weakening dollar and volatile US equities have raised doubts about the reliability of the so-called "Trump trades." The report warns that investors counting on a strong dollar, dominant US tech, and global market dominance will face a bumpy ride in the era of Trump 2.0.

  • United States
  • DeepSeek
  • trade war
  • Trump trade
  • Donald Trump

Most Read

Tom Artiom Alexandrovich, executive director of the defense division of the Israeli National Cyber Directorate, undated (Social media)

Israeli-born US prosecutor drops Israeli officer child sex crime

  • Politics
  • 19 Aug 2025
Almost instantly after the Helsinki Accords were signed, organisations sprouted to document purported violations, whose findings were fed to overseas embassies for international amplification. (Al Mayadeen English; Illustrated by Zeinab el-Hajj)

How ‘Human Rights’ became a Western weapon

  • Opinion
  • 23 Aug 2025
Israeli soldiers stand on the top of armoured vehicles parked on an area near the Israeli-Gaza border, as seen from southern Israel, Wednesday, Aug. 20, 2025 (AP)

Palestinian fighters target Israeli soldiers, vehicles in Gaza

  • Politics
  • 21 Aug 2025
Launch of a ballistic missile from Yemen toward the occupied Palestinian territories. (YAF military media)

Yemeni Forces announce firing hypersonic missile at Al-Lydd Airport

  • Politics
  • 22 Aug 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
Israeli Prime Minister Benjamin Netanyahu speaks during a press conference at the Prime minister's office in al-Quds, Occupied Palestine, Sunday, Aug. 10, 2025 (AP)
Politics

Netanyahu deliberately derailing truce with Gaza occupation: Hamas

Irish President Michael Higgins arrives to deliver his speech during a 42nd World Food Day celebration at FAO headquarters in Rome, on Oct. 16, 2023. (AP Photo/Alessandra Tarantino)
Politics

Irish president renews call for UN military intervention in Gaza

US Ambassador to Turkey and Special Envoy to Syria Tom Barrack speaks during an interview with The Associated Press at the US Embassy in Aukar, northern suburb of Beirut, Lebanon, Monday, July 21, 2025 (AP)
Politics

US envoy, Netanyahu discuss restraining attacks on Lebanon, withdrawal

Smoke billows following Israeli airstrikes in multiple areas in Sanaa, Yemen, Sunday, Aug. 24, 2025 (AP)
Politics

Ansar Allah vow sustained Gaza support despite Israeli strikes

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS