Wealthion Macro Bites 10/28/25

In a symbolic visit to the aircraft carrier USS George Washington (just south of Tokyo), President Trump and Japanese Prime Minister Takaichi pledged to tighten security cooperation and increase defense funding amid an “unprecedented severe security environment.” 

Further, while it is unclear which mineral deposits are in mind, Trump and Takaichi signed an agreement to, “jointly identify projects of interest to address gaps in supply chains for critical minerals and rare earths, including derivative products such as permanent magnets, batteries, catalysts and optical materials.”  Areas of focus include joint stockpiling, diversifying supply chains, streamlining permitting and establishing floor pricing.  U.S. and Japan also agreed to cooperation in construction of Japan’s new generation AP1000 nuclear reactors and small modular reactors (SMR’s).  All sounds good.

Goldman Sachs CEO David Solomon raised eyebrows in declaring recent First Brands and Tricolor collapses do not telegraph systemic risk in credit markets, “I don’t see anything in the context of a handful of bad credit situations that’s leading me to say we have a systemic issue around the corner.”  Stay tuned…

The Bank of Canada is expected to cut rates this week due to slowing GDP (-1.6% in Q2) and rising unemployment (7.1%).

Fed rate decision tomorrow at 2 pm.  DXY dollar index -0.1%, spot gold -1.5% (down $457 from 10/20 peak) and spot silver -1.1%.

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