Public Markets 3d Briefing
×Market Turmoil
Stocks wsj.com suffered their worst week since April, with the S&P 500 falling 3% as investors grappled with surging oil prices and a surprise drop in US payrolls. Oil prices wsj.com skyrocketed at their fastest pace on record, with crude futures hitting their highest level since July 2024. The jobs report bloomberg.com showing 92,000 jobs lost in February sent shockwaves through markets, casting doubt on the labor market's stability.
Energy Crisis Deepens
The Strait of Hormuz remains effectively closed, with only nine empty oil supertankers bloomberg.com visible in the Persian Gulf. Bangladesh bloomberg.com is preparing to ration fuel deliveries as the country stretches existing reserves. Thailand bloomberg.com farmers are racing for diesel while Indian refinery executives monitor the Persian Gulf through the night. The UAE bloomberg.com is "managing" offshore oil output as Kuwait cuts production, with energy buyers across import-dependent Asia feeling the impact of a dramatic crunch.
Global Economic Fallout
Most emerging-market currencies bloomberg.com fell for a fourth day as the Middle East conflict rages on. Europe ft.com faces renewed energy fears as coal creeps back into favor, with a protracted conflict threatening to derail expectations of falling global coal consumption. The euro-area economy bloomberg.com expanded less than initially reported at year-end, with trade weighing on growth. UK lenders ft.com raised mortgage rates amid warnings over inflation and energy prices, as market mood "has completely changed" following the outbreak of Middle East war.
Private Markets Under Pressure
BlackRock bloomberg.com is scaling back retail private-credit ambitions as market angst grows. Secondary buyers wsj.com are eyeing private-credit assets as redemptions mount, with a rise in discounted secondary deals expected. Direct lenders bloomberg.com have taken control of nearly 150 companies in Europe after borrowers could no longer afford debt payments. First Brands creditors ft.com reckon with dwindling chances of repayment as upcoming asset sales are expected to yield as little as $200 million to pay off a debt pile exceeding $12 billion.
Tech and AI Developments
OpenAI ft.com and Meta are in talks over computing capacity as the companies scrap a deal to expand a flagship Texas data center. Broadcom wsj.com faces challenges despite booming AI business, struggling to impress investors with chip projections while its software business drags. Google ft.com gave CEO Sundar Pichai a new pay deal worth up to $692 million, including stock options tied to Waymo's growth. The US ft.com is drafting strict new AI guidelines amid tensions with Anthropic over Pentagon contracts.
Corporate Moves and M&A
Servier wsj.com agreed to buy Day One for $2.5 billion, expanding its oncology portfolio with a 68% premium to the closing price. USA Rare Earth bloomberg.com is poised to acquire the remaining stake in a Texas rare earth deposit for about $73 million. EQT bloomberg.com bought East Coast warehouses from Mapletree for $575 million. Mapletree Investments agreed to sell the portfolio to EQT Real Estate.
Financial Sector Developments
Western Alliance ft.com sued Jefferies over loans linked to First Brands, filing the lawsuit in New York state court. Goldman Sachs Asset Management bloomberg.com said non-payment in private credit remains low, with few borrowers struggling to meet loan payments. Goldman Sachs reported that 146 European companies have ceded control to direct-lending funds amid debt distress.
Regulatory and Legal Issues
The SEC bloomberg.com is resisting 5x leveraged ETFs, creating hurdles for new fund launches. The SEC bloomberg.com ended its case against crypto billionaire Justin Sun, with a firm affiliated with him paying $10 million. Crispin Odey ft.com is appealing a UK watchdog's decision to ban and fine him following sexual misconduct allegations. A DEA investigation bloomberg.com into Jeffrey Epstein centered on allegations of money laundering, drug trafficking, and other crimes.
Regional Market Impacts
Japanese stocks bloomberg.com rebounded from a market rout after strong US economic data boosted sentiment. Korean defense contractor LIG Nex1 bloomberg.com soared on reports of potential Gulf orders for missile interceptors. Mainland Chinese investors bloomberg.com sold a record $3.5 billion of Hong Kong stocks, underscoring waning appetite for shares seen as vulnerable to geopolitical uncertainty. Qatar Airways bloomberg.com started relief flights as Middle East skies remain closed, helping passengers stranded by airspace shutdowns.
Alternative Investments
Polymarket wsj.com and Kalshi are each eyeing roughly $20 billion valuations as prediction markets seek to double their previous valuations. Stablecoin firms bloomberg.com are betting big on AI agent payments that barely exist, with Circle and Stripe racing to build systems for a world where autonomous AI agents transact millions of times daily. Campari bloomberg.com raised its dividend after strong US sales growth, seeing its stock make its biggest gain in months.