🥛 The Yentervention 💴

Q: Bank of Japan spent an estimated $34.5B defending the yen after it breached the ¥160/dollar level, w

Bank of Japan spent an estimated $34.5B defending the yen after it breached the ¥160/dollar level, with Finance Minister warning more intervention is coming.

Q: Trump raised tariffs on European cars and trucks to 25% (from 15%), sending Porsche, Mercedes, and C

Trump raised tariffs on European cars and trucks to 25% (from 15%), sending Porsche, Mercedes, and Continental stocks down 3-5%.

Q: Berkshire Hathaway's cash pile hit a record $397B as markets remain elevated despite escalating trad

Berkshire Hathaway's cash pile hit a record $397B as markets remain elevated despite escalating trade war and Iran-driven energy risks.

Milk Road Macro·Tuesday, May 5, 2026·5 min read

Finance Politics Crypto/Web3

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AI Summary

The Japanese Yen weakened past ¥160 per dollar, prompting an estimated $34.5B Bank of Japan intervention, with Finance Minister Satsuki Katayama warning of continued 'decisive action.' President Trump escalated trade tensions by raising tariffs on European cars and trucks from 15% to 25%, causing European auto stocks like Porsche, Mercedes, and Continental to drop 2-5%. Markets remain elevated despite mounting risks from trade wars and Iran-driven energy shocks.

Key Facts

✓Bank of Japan spent an estimated $34.5B defending the yen after it breached the ¥160/dollar level, with Finance Minister warning more intervention is coming.

✓Trump raised tariffs on European cars and trucks to 25% (from 15%), sending Porsche, Mercedes, and Continental stocks down 3-5%.

✓Berkshire Hathaway's cash pile hit a record $397B as markets remain elevated despite escalating trade war and Iran-driven energy risks.

Author Takes

BearishMilk Road Macro

Japanese Yen intervention

If Japan can't stabilize the yen, it may be forced to hike rates faster than expected, triggering carry trade unwind fears and braking global capital flows.

BearishMilk Road Macro

Global markets amid trade war escalation

Markets are pumping like everything is fine, but mounting risks from trade wars and Iran-driven energy shocks could cause a sudden stop — enjoy the ride but be aware.

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