Markets pause for breath after yield run-up.

Today, a look at markets pausing to take a breath after the recent brutal rise in bond yields. The biggest mover Wednesday and Thursday was the Japanese yen on an apparent fresh round of intervention, although some interesting dynamics are at play in the Japanese government bond market as well. Elsewhere, a look at extreme bifurcation in AI stories for single names after earnings reports. A big focus on macro and FX and much more on today's pod, which is hosted by Saxo Global Head of Macro Strategy John J. Hardy.

Links

• Breathlessly enthusiastic Silicon Valley types talk up the most optimistic outlook for AI I have heard anywhere. Who am I to say they won't be right, but it was a bit nauseating listening, nonetheless with interesting details here and there.
• Gil Duran wrote the ingeniously titled Nerd Reich, a book charging that a tech oligarchy is undermining our democratic institutions and trying to establish a techno-authoritarian state. He traces the intellectual backdrop of its adherents like Peter Thiel, etc. A long form youtube video of the author himself talking about the book.
• An exchange on X about China's huge debt load and its implications depending on how it is unwound - Japanese-style or otherwise.
• The deepest of dives on "what really happened at Jackson Hole" - not the ramblings of Fed Chair Warsh, but rather on the actual theme of Jackson Hole this year, which was Financial Innovation: Implications for Payments and Policy.

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