Public Markets 3d Briefing
×Oil & Geopolitics
US strategic reserves ft.com remain untapped as the Trump administration holds no discussions about using stockpiles to calm energy markets. Iranian TV bloomberg.com released footage showing destruction in Tehran after US-Israeli strikes, while Dubai defense systems bloomberg.com repelled Iranian drones and missiles with random explosions visible across the city-state. Insurers ft.com are canceling policies and raising prices for ships in the Gulf and Strait of Hormuz, with brokers warning costs could increase by up to 50% after the conflict erupted.
Market Reactions
The S&P 500 bloomberg.com fell sharply as risk-off sentiment swept through markets, with Block Inc.'s massive layoffs fanning anxiety that artificial intelligence risks upending broad sections of the economy. Bitcoin prices investing.com dropped below $64,000 following the US-Israeli attack on Iran, while crypto markets finance.yahoo.com hedged war risks through 24/7 oil and gold trading. Nvidia's uninspiring results bloomberg.com prompted investors to sell high-flying chip machinery stocks and rotate into battered shares, while European stocks traded little changed amid the AI-focused rotation.
Corporate & Economic News
Berkshire Hathaway wsj.com marked Warren Buffett's final quarter as CEO, with Greg Abel pledging to follow Buffett's framework. Berkshire's operating profit investing.com slid nearly 30% on insurance underwriting, while Abel told investors the cash pile is not a retreat from dealmaking. Block's 40% headcount cut investing.com is seen as an AI-driven reset, according to Bernstein. Barnes & Noble owner Elliott bloomberg.com is seeking London IPO pitches, inviting investment banks to pitch for roles on the book retailers' initial public offering.
Energy Markets
US crude oil production bloomberg.com fell to near 13.7 million barrels per day in December, the lowest in six months, according to the US government. Israel bloomberg.com ordered the temporary shutdown of some natural gas fields after launching attacks on Iran in a joint operation with the US. Oil prices bloomberg.com face new risks for a significant chunk of the world's supply as President Trump's decision to strike Iran creates market uncertainty. Gulf petrostates ft.com are rushing to export crude amid fears of US strikes on Iran, with Saudi Arabia and UAE boosting shipments as contingency plans are drawn up.
Global Trade & Policy
China investing.com may trim its 2026 growth target while keeping policy supportive, according to Bof A. China bloomberg.com called for an immediate ceasefire following US and Israel's bombing of Iran, as President Xi Jinping's government weighs its options in the Middle East. Canada-China trade relations bloomberg.com thawed further as China dropped tariffs on Canadian rapeseed meal and lobsters after Prime Minister Mark Carney's January visit. US farmers bloomberg.com see new Trump tariffs as yet another round of instability after looking for stability following a mercurial year under the president's trade policies.
Technology & AI
Apple investing.com is seen as an "anti-AI" safe haven, according to Moffett Nathanson. Anthropic's cyber launch investing.com is not viewed as an existential risk to the sector, says Bernstein. AI models ft.com are being discussed as potentially best served with a conscience, with some companies believing users would prefer products with morals pre-installed. AI investment investing.com in Europe lags the US but stands to gain on productivity, according to UBS. AI's impact ft.com on pricing remains a challenge as developments occur at an unprecedented pace.
Financial Services
JPMorgan ft.com cut services for Citadel Securities in a clash over roles, underscoring tensions between Wall Street banks and clients as businesses converge. Millennium ft.com poached Goldman's equities co-chief, with London-based Erdit Hoxha joining Izzy Englander's firm that manages $86 billion of assets. HSBC investing.com cut US exposure while boosting emerging market equities. Jupiter ft.com posted its first annual net inflow since 2017, indicating its turnaround is bearing fruit.
Regional Markets
The FTSE 100 investing.com hit a new high on a mining rally as the pound softened following a by-election upset. UK homeowners bloomberg.com have fared worse than renters since 2022, with new data showing the financial hit from high interest rates. Marks & Spencer bloomberg.com will exit the Philippines after four decades as changing consumer preferences reshape the retail landscape. Dubai Aerospace bloomberg.com agreed to buy Macquarie Air Finance for $7 billion, expanding its fleet to more than 1,000 units.
Deal Making
CP Group bloomberg.com plans to sell a 10% stake in True Corp., with most shares going to UBS Group AG. Carlyle CEO bloomberg.com suggested firms erred in labeling retail funds "semi-liquid," arguing asset managers should have been more forthcoming about relative illiquidity. Former Moelis banker bloomberg.com plans to plead guilty in a global insider trading case, returning to the US from France to face charges. Online travel agencies investing.com may emerge as AI winners, according to Morgan Stanley.