In today's episode, we explore the ramifications of Moody's downgrading the U.S. credit rating and the passage of the GOP's 'One Big Beautiful Bill' in the House. We also delve into the unexpected rise in Chinese Foreign Direct Investment, particularly in Europe, and its implications for global economic relations. Join us as we unpack these pivotal developments and their potential impact on the financial landscape.

Sources:

https://bipartisanpolicy.org/blog/moodys-downgrade-the-warning-signs-are-flashing/

https://www.franklintempleton.com/articles/2025/western-asset/end-of-an-era-moodys-downgrades-us-to-aa1

https://www.csis.org/analysis/moodys-downgrade-signals-deeper-risk-us-debt-undermining-global-leadership

https://www.cbsnews.com/news/us-credit-rating-downgraded-by-moodys-loses-aaa-status/

https://www.franklintempleton.lu/articles/2025/western-asset/end-of-an-era-moodys-downgrades-us-to-aa1

https://bipartisanpolicy.org/blog/moodys-downgrade-the-warning-signs-are-flashing/

https://www.colorado.edu/today/2025/05/21/what-us-credit-downgrade-means-economy-and-your-wallet

https://www.csis.org/analysis/moodys-downgrade-signals-deeper-risk-us-debt-undermining-global-leadership

https://www.advisorperspectives.com/commentaries/2025/05/20/assessing-implications-moodys-u-s-rating-downgrade

https://www.pgim.com/markets-motion/article/us-credit-downgrade-turns-spotlight-fiscal-risks

https://bipartisanpolicy.org/explainer/whats-in-the-2025-house-republican-tax-bill/

https://www.whitehouse.gov/articles/2025/05/what-they-are-saying-one-big-beautiful-bill-clears-house/

https://www.cbsnews.com/news/house-vote-trump-tax-bill/

https://www.politico.com/news/2025/05/22/house-republicans-pass-big-beautiful-bill-after-weeks-of-division-00364691

https://www.congress.gov/bill/119th-congress/house-bill/1/text

https://bipartisanpolicy.org/explainer/whats-in-the-2025-house-republican-tax-bill/

https://www.whitehouse.gov/articles/2025/05/what-they-are-saying-one-big-beautiful-bill-clears-house/

https://www.cbsnews.com/news/house-vote-trump-tax-bill/

https://www.americanprogress.org/article/the-devastating-harms-of-house-republicans-big-beautiful-bill-by-state-and-congressional-district/

https://www.congress.gov/bill/119th-congress/house-bill/1/text

https://www.rba.gov.au/speeches/2025/sp-dg-2025-05-22.html

https://merics.org/en/report/chinese-investment-rebounds-despite-growing-frictions-chinese-fdi-europe-2024-update

https://www.china-briefing.com/news/chinas-economy-april-2025-resilient-exports-and-investment-defy-us-tariffs/

https://www.krungsri.com/en/research/macroeconomic/monthly-bulletin/bulletin-202505

https://rhg.com/research/chinese-investment-rebounds-despite-growing-frictions-chinese-fdi-in-europe-in-2024/