{"id":134415,"date":"2025-09-05T10:07:12","date_gmt":"2025-09-05T10:07:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/134415\/"},"modified":"2025-09-05T10:07:12","modified_gmt":"2025-09-05T10:07:12","slug":"when-the-bond-market-sneezes-corporate-america-worries-about-a-debt-induced-heart-attack","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/134415\/","title":{"rendered":"When the bond market sneezes, corporate America worries about a ‘debt-induced heart attack’"},"content":{"rendered":"

Good morning. Another day, another twist in the bond markets. One thing CEOs don\u2019t usually do in the face of a global bond selloff<\/a> is buy gold<\/a>. Although, given the decline in bond prices over the last few days, adding some gold to your balance sheet suddenly looks like a good idea.<\/p>\n

With 30-year U.S. Treasuries hovering above 5% at one point this week and long-term bond yields rising in the U.K., France, and Japan, leaders are facing tough choices when it comes to managing risk, liquidity, and volatility.<\/p>\n

The bond markets have been skittish for a while, serving as both a check<\/a> on White House fiscal policies and a warning signal<\/a> that America\u2019s economic strengths are being put to the test. Investors are demanding higher returns from governments that aren\u2019t doing enough to address rising debt.<\/p>\n

When asked, most of the leaders I talk to expect their borrowing costs to trend up, not down, in this environment. Among other things, Treasury yields are the benchmark for other lending. And rising public debt tends to erode confidence in a currency and an economy.<\/p>\n

Jamie Dimon, the CEO of JPMorgan Chase<\/a> and a longtime deficit hawk, has been warning of a potential bond crisis for some time. His concerns were downplayed<\/a> a few months ago by Treasury Secretary Scott Bessent. (Dimon also expressed concerns<\/a> about the state of private credit.)<\/p>\n

Deutsche Bank<\/a> CEO Christian Sewing has called the current selloff a \u201creflection<\/a> of, partly, political uncertainty, of a lack of reforms, of rising indebtedness.\u201d<\/p>\n

Bridgewater founder Ray Dalio believes the current policy environment is putting America on the path to a \u201cdebt-induced heart attack<\/a>.\u201d<\/p>\n

What does it mean for business? There\u2019s a recognition that concerns over deficits are not going away and likely to mount. The continued battle over the independence of the Fed doesn\u2019t instill confidence in the central bank\u2019s role in promoting market stability. And higher rates may be the price that everyone has to pay amid tax cuts and tariffs \u2013 the latter of which may harm consumers but do give a short-term boost to government coffers.<\/p>\n

Contact CEO Daily via Diane Brady at diane.brady@fortune.com<\/a><\/p>\n

Top news<\/p>\n

White House ranks loyalty of CEOs<\/p>\n

The Trump Administration has created a ranking<\/a> of 553 companies and lobby groups based on how supportive they are of President Trump\u2019s “One Big Beautiful Bill,” Axios reports. Companies\u2019 support is ranked as \u201cstrong, moderate or low.\u201d The loyalty list “helps us see who really goes out and helps vs. those who just come in and pay lip service,” a White House source told Axios. CEOs are cowed by the list, the FT\u2019s Gillian Tett says<\/a>. \u201cWhen I recently participated in different private roundtables with executives and investors, there was little private criticism either. Fealty and silence is the new norm.\u201d<\/p>\n

Tech CEOs praise Trump at presidential dinner<\/p>\n

President Trump hosted a dinner<\/a> after a meeting of the White House Task Force on Artificial Intelligence Education, at which CEOs thanked and praised the president for his pro-business stances. Apple\u2019s Tim Cook, OpenAI\u2019s Sam Altman, Google\u2019s Sundar Pichai, Meta\u2019s Mark Zuckerberg and IBM\u2019s Arvind Krishna attended. Elon Musk was conspicuous by his absence.<\/p>\n

Trump warns \u2018fairly substantial\u2019 tariffs on chips are coming<\/p>\n

\u201cI\u2019ve discussed it with the people here, chips and semiconductors, and we\u2019ll be putting tariffs on companies that aren\u2019t coming in,\u201d the president said yesterday<\/a>. \u201cWe\u2019ll be putting a tariff very shortly. You probably are hearing we\u2019ll be putting a fairly substantial tariff, or not that high, but a fairly substantial tariff.\u201d Trump has previously floated the idea of a 100% tariff on imported chips. Companies that have moved operations to the U.S. will be spared.<\/p>\n

Trump: Trade deals could \u201cunwind\u201d<\/p>\n

President Donald Trump signaled<\/a> during an Oval Office press conference this week that his administration may have to \u201cunwind\u201d recent international trade deals if the U.S. Supreme Court doesn’t uphold his tariffs. Solicitor General D. John Sauer asked the court to make a decision by September 10 due to \u201csensitive ongoing diplomatic trade negotiations.\u201d<\/p>\n

Miran promises to be independent, kinda<\/p>\n

Stephen Miran told Congress<\/a> he would act independently if he were appointed as a Fed governor, but said he also wanted to keep his job in the White House at the same time.<\/p>\n

DOJ brings charges against former unicorn CEO<\/p>\n

The Department of Justice has charged<\/a> the former CEO of a social media unicorn with fraud, among other charges, for allegedly misleading investors and destroying relevant records. Authorities claim Abraham Shafi, once CEO of startup IRL, greatly deflated the amount the company was spending on marketing and PR.<\/p>\n

Suntory chairman says he broke no laws<\/p>\n

Takeshi Niinami, who resigned as chairman of Suntory earlier this week, said he had bought a CBD supplement in the U.S. where it is legal but had never used the substance in Japan where it may not be. \u201cI believe I did not violate any laws and am innocent,\u201d he told reporters<\/a>.<\/p>\n

The markets<\/p>\n

S&P 500 futures were up 0.2% this morning. The index closed up 0.83% to 6,502.08, another record high, in its last trading session. STOXX Europe 600 was up 0.33% in early trading. The U.K.\u2019s FTSE 100 was up 0.36 in early trading. Japan\u2019s Nikkei 225 was up 1.03%. China\u2019s CSI 300 was up 2.18%. The South Korea KOSPI was up 0.13%. India\u2019s Nifty 50 was up 0.19% before the end of the session. Bitcoin rose to $112.7K.<\/p>\n

Around the watercooler<\/p>\n

Inside the Anthropic \u2018Red Team\u2019 tasked with breaking its AI models\u2014and burnishing the company\u2019s reputation for safety<\/a> by Sharon Goldman<\/p>\n

America\u2019s billionaires are older than ever, with one in five already in their 80s or 90s\u2014as millennials await the Great Wealth Transfer<\/a> by Jessica Coacci<\/p>\n

Stripe and Paradigm announce new payments-focused blockchain Tempo<\/a> by Leo Schwartz<\/p>\n

America\u2019s billionaires are worth $5.7 trillion\u2014but they\u2019ve only pledged or donated $185 billion of that in the last decade<\/a> by Emma Burleigh<\/p>\n

Frustrated Wall Street analysts want Apple to buy Perplexity. It\u2019s reportedly planning to beef up Siri to beat it instead<\/a> by Dave Smith<\/p>\n

CEO Daily is compiled and edited by Joey Abrams and Jim Edwards.\n<\/p>\n

This is the web version of CEO Daily, a newsletter of must-read global insights from CEOs and industry leaders. Sign up<\/a> to get it delivered free to your inbox.<\/p>\n","protected":false},"excerpt":{"rendered":"Good morning. Another day, another twist in the bond markets. One thing CEOs don\u2019t usually do in the…\n","protected":false},"author":2,"featured_media":134416,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[28,57492,112],"class_list":["post-134415","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-business","tag-ceo-daily","tag-markets"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/134415","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=134415"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/134415\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/134416"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=134415"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=134415"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=134415"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}