The Weekly Briefing from Capital Economics

Can another set of blow-out AI earnings reignite the rally that has powered equities for so long but recently seems to have run out of puff?

Chief Markets Economist Jonas Goltermann joins The Weekly Briefing from Capital Economics to discuss the latest tech earnings, whether Scott Bessent has managed to cap Treasury yields and what investors will want to hear from Kevin Warsh in his Jackson Hole address.

Also on the show, just days after Bessent announced ‘Economic D-Day’ for Iran, Chief Emerging Markets Economist William Jackson assesses how much pain the Iranian economy is in and whether further pressure from the Trump administration could be enough to force Tehran to capitulate.
Related content
Concentrated earnings probably mean concentrated returns
https://www.capitaleconomics.com/publications/capital-daily/concentrated-earnings-probably-mean-concentrated-returns
Can Iran continue to hold out?
https://www.capitaleconomics.com/publications/middle-east-north-africa-economics-update/can-iran-continue-hold-out

This special episode of The Weekly Briefing from Capital Economics features an exclusive extract from our client briefing on the global bond sell-off, its causes, consequences and where markets go from here. 
In this edited extract, Group Chief Economist Neil Shearing and Chief Markets Economist Jonas Goltermann answer questions from clients around the world, including:
What was Scott Bessent’s Treasury market intervention intended to achieve, and why it has so far fallen short?
What are the economic forces pushing investors to demand more compensation for holding long-dated government bonds?
Which economies are most exposed to a fiscal crisis?
Is the AI credit boom affecting demand for government debt?
How high could bond yields rise from here?
Related content
Read: How to think about the bond market sell-off
https://www.capitaleconomics.com/publications/global-economics-focus/how-think-about-bond-market-sell

Read: What taxes could Burnham raise to fund his policy ambitions?
https://www.capitaleconomics.com/publications/uk-economics-update/what-taxes-could-burnham-raise-fund-his-policy-ambitions

Have a couple of softer US inflation prints taken a post-Summer Fed rate hike off the table? Did that CPI and PPI data vindicate Kevin Warsh’s divisive approach to central bank communications? And what does the death of former Premier Zhu Rongji tell us about China’s political economy today?

Group Chief Economist Neil Shearing joins David Wilder to discuss the US inflation and rate outlook, the angst at the long end of the Treasury yield curve, and why the pace and nature of reform in China today not only pales in comparison what was happening at the turn of the century, but could threaten global economic stability.

Also on the show, Deputy Chief UK Economist Ruth Gregory discusses her widely covered report on how much tax Andy Burnham could be seeking to raise in October’s Budget. She explains how the potential tax increases compare with the controversial big Budget of 2024, which taxes could rise and what the impact could be on the UK economy.
Related content
What taxes could Burnham raise to fund his policy ambitions?
https://www.capitaleconomics.com/publications/uk-economics-update/what-taxes-could-burnham-raise-fund-his-policy-ambitions

Capital Economics events
https://www.capitaleconomics.com/events

A jam-packed episode begins with Group Chief Economist Neil Shearing joining David Wilder to discuss what a surprisingly weak US employment report means for expectations that the Federal Reserve will cut interest rates in September.

Neil and David are then joined by Chief Markets Economist Jonas Goltermann to unpack the implications of coordinated US-Japanese intervention to halt the yen's slide. They discuss everything from Prime Minister Takaichi's policy agenda and its impact on market perceptions of the currency to whether Scott Bessent's move was also intended to send a message to Beijing about an undervalued renminbi.

Finally, Senior Emerging Markets Economist Liam Peach examines the latest update to our EM Financial Risk Indicators, highlighting where we see the greatest risks of a crisis and why, despite the recent energy shock, most emerging markets have remained remarkably resilient.
Related content
How worried should investors be about Takaichi’s policies?
https://www.capitaleconomics.com/publications/japan-economics-focus/how-worried-should-investors-be-about-takaichis-policies
Your questions on Japan’s markets answered
https://www.capitaleconomics.com/publications/fx-markets-update/your-questions-japans-markets-answered
EM Financial Risk Monitor (Jul. 2026)
https://www.capitaleconomics.com/publications/emerging-markets-financial-risk-monitor/em-financial-risk-monitor-jul-2026

Kevin Warsh sent financial markets into turmoil with a press conference that muddied, rather than clarified, the Fed's message. But was the confusion all part of a broader strategy from a Federal Reserve chair who takes a dim view of forward guidance? On the latest episode of The Weekly Briefing from Capital Economics, Group Chief Economist Neil Shearing joins David Wilder to discuss why he doesn't think the new chair deserves the benefit of the doubt, and why clearer communication will be essential if the Fed is to preserve its inflation-fighting credibility.

Also on the show, Chief Europe Economist Andrew Kenningham explains why, despite the horrific scenes unfolding across southern Europe, this summer's wildfires are likely to have only a limited economic impact.
Related content

The renminbi could not rebalance China on its own
https://www.capitaleconomics.com/publications/china-economics-update/renminbi-could-not-rebalance-china-its-own
Little macroeconomic impact of horrific wildfires
https://www.capitaleconomics.com/publications/europe-economics-update/little-macroeconomic-impact-horrific-wildfires