Public Markets 3d Briefing
×Market Turmoil
The S&P 500 bloomberg.com futures plunged 1.2% as military conflict in Iran rattled global markets. European stocks posted their biggest two-day drop since April, with the Stoxx 600 tumbling as conflict in the Middle East intensified. Canadian equities stumbled by the most since April's tariff-fueled market rout as an escalating war in the Middle East unnerved investors.
Oil & Energy
Oil surged bloomberg.com for a second day as the US and Israel stepped up their war against Iran, with US oil futures climbing as much as 7.5%. The conflict's impact on energy assets in the Persian Gulf deepened, pushing crude prices higher. Norsk Hydro's Qatari aluminum plant shut down after Iran attacks cut off gas supply to its joint-venture partner.
Geopolitical Crisis
President Trump bloomberg.com expressed concern that strikes against Iran could lead to new leadership equally troubling to Washington. The US burned through more of its limited Tomahawk stockpile in strikes on Iran, raising concerns about readiness for potential conflicts with China. Russia sees an opportunity to boost oil income as war disrupts Hormuz, with soaring prices and potential renewed Indian buying threatening to boost Kremlin's war chest.
Private Markets
Brookfield Asset Management bloomberg.com said the US war in Iran hasn't changed its plans to build data centers with Qatar Investment Authority. Apollo Global Management bloomberg.com CEO Marc Rowan warned of a "shakeout" in private markets, saying this will be a shakeout and not short-term. Blackstone Inc. wsj.com President Jon Gray defended credit portfolio marks as shares slumped following record redemptions from its $82 billion private-credit fund.
Credit & Fixed Income
Municipal bonds bloomberg.com deepened their selloff on Tuesday, with benchmark yields rising as much as eight basis points amid geopolitical unrest in the Middle East. Business development companies are sitting on a massive pile of leveraged loans that could be sold to meet redemption requests and push spreads wider, according to Deutsche Bank analysts.
IPO & Public Markets
SpaceX bloomberg.com has added Citigroup Inc. to the banks leading its initial public offering, moving closer to its debut. NYSE Group bloomberg.com President Lynn Martin said global conflicts including strikes on Iran are unlikely to put a complete stop to companies tapping US public markets. The conflict in Iran threatens to push up US inflation as surging oil prices and more pain at the pump could impact consumer prices.
Tech & Innovation
Meta wsj.com is creating a new Applied AI Engineering Organization in its Reality Labs division with a "flat structure" featuring up to 50:1 ratio of individual contributors to managers. Colgate-Palmolive wsj.com has turned to AI evangelist Iraklis "Kli" Pappas to drive employees toward using AI for more than just polishing emails.
Financial Services
Wells Fargo bloomberg.com Head of Artificial Intelligence Saul Van Beurden discussed how the company is leveraging AI to improve productivity and empower its workforce. JPMorgan Chase bloomberg.com and Wells Fargo are providing about $1 billion in debt to support the management buyout of hospital operator Select Medical Holdings.
Asia Markets
Singapore may relook its GDP outlook bloomberg.com on Iran crisis and oil price impact, with Deputy Prime Minister Gan Kim Yong saying the city-state will revise its economic outlook if needed. Hong Kong energy stocks rose as oil prices rallied on Iran conflict, while Asian stocks fell as US-Iran jitters persisted with South Korea leading losses.
Latin America
Colombia bloomberg.com is planning reciprocal tariffs of 50% on imports from Ecuador, intensifying an economically-damaging spat between the ideological foes. Brazil's government is resisting the idea of extending a financial lifeline to BRB, a state-owned bank controlled by a political adversary.
UK & Europe
UK stocks bloomberg.com offer an effective hedge against renewed geopolitical turmoil following the outbreak of war in Iran, according to Citigroup strategists. UK Chancellor of the Exchequer Rachel Reeves said the Office for Budget Responsibility forecasts she would meet her key fiscal rule to cover day-to-day expenditure with tax revenues in 2029/30 with a £23.6 billion buffer.
Middle East Impact
Dubai's ft.com reputation as a haven was shaken as missiles struck the city, with officials urging residents to return to normal while holidaymakers cancel trips. The mass cancellation of flights to and from bullion hub Dubai has left traders unable to move their metal, highlighting potential bottlenecks to physical gold flows that could emerge from war in the region.
Market Sentiment
Soros Fund Management bloomberg.com CIO Dawn Fitzpatrick said investors are in for a "painful" 18 to 24 months as markets grapple with geopolitical risks and the threat of AI disruption. Ares Management bloomberg.com CEO Mike Arougheti called a forecast that private credit default rates could reach 15% "absolutely wrong," while Apollo's investing.com Rowan warned of shakeout in private credit amid rising defaults.
Corporate News
Best Buy wsj.com forecasted tepid growth as consumer demand slows, projecting weak growth for the year ahead as it expects consumers to continue hunting for value. Thor Industries wsj.com maintained its fiscal-year outlook but warned that new tariff measures, inflation and the recent conflict in the Middle East could weigh on results.