How reliant is the US economy on the AI investment boom? It’s a question Group Chief Economist Neil Shearing keeps getting in client meetings. On this episode of The Weekly Briefing, he tells David Wilder why there’s more to the story than hype around a new technology. Neil also explains why France faces a political – but not an economic – crisis, and what to make of China’s toughest moves yet to control rare earth exports.

Also on the show, six months after Liberation Day, Deputy Chief Markets Economist Jonas Goltermann assesses how predictions of the dollar’s demise have played out and unpacks the market’s striking response to Japan’s new LDP leader.

Analysis and events referenced in this episode:

Watch: US Outlook – Weighing the AI boom, labour constraints and the Fed’s next chapter
Read: China tightens its grip on rare earths (again)
Register: Markets Drop-In: Asset Allocation in 2026 – Why we don’t think the AI equities boom is over
Read: Japan coalition talks
Read: What would PM Takaichi mean for Japan?

The AI frenzy, Japan’s market shock and France’s political storm

The Weekly Briefing from Capital Economics

The AI frenzy, Japan’s market shock and France’s political storm