Public Markets 3 Days

Last updated: June 28, 2026, 2:30 PM ET

Public Markets Briefing

AI & Technology

The artificial intelligence boom continues to drive significant investment, with investors seeking creative avenues in Europe, looking beyond traditional tech giants to power suppliers and banks. Meanwhile, the Bank for International Settlements warned that AI "exuberance" risks a lengthy investment bust, potentially triggering a sharp pullback in funding for tech companies that could threaten the global economy. This comes as chipmakers globally appear expensive, with valuations high for AI-exposed markets. OpenAI has appointed Uber's former India head, Prabhjeet Singh, to lead its India operations, signaling a deepening investment in the region. SoftBank's Masayoshi Son, however, is betting against Elon Musk's, questioning the math behind space-based data centers. The surge in AI demand is also creating an energy crunch, leading Wall Street to bet billions on companies promising solutions, even if some technologies are not fully developed. In the automotive sector, Wayve is emerging as a key partner for traditional automakers aiming to compete with Silicon Valley in the race to automate driving. Demant A/S reported its best quarterly performance in 26 years, fueled by its new AI hearing aid.

Market Sentiment & Macroeconomics

Leverage that previously fueled the U.S. stock rally is now becoming a growing concern, raising unease among investors. The Federal Reserve's hawkish stance is challenging emerging-market bond rallies, complicating recent gains. Some analysts worry that the current stock valuations should worry investors, particularly concerning labor market risks. In Asia, the Hong Kong dollar hit a 10-month low as a stronger greenback buoyed expectations for further Federal Reserve rate hikes. The crypto ETF boom faced a significant "reality check" this week, with investors heading for the exits after a brutal period for the asset class. The Financial Times highlighted that your summer holiday could, as the capitalized value of vacations may be surprisingly high. In Nigeria, the country has accessed the first tranche of a $5 billion swap with a UAE bank, a move described as opaque.

Corporate Dealmaking & Finance

Private equity managers are facing scrutiny over fee structures that allow them to collect substantial fees on paper gains, particularly within semiliquid funds. Bond giant Pimco is expanding its reach into private placements, seeking to capitalize on borrowers' needs as the lines between public and private markets blur. KKR & Co. has agreed to buy Electricite de France's renewable power businesses in the U.S. and Canada, a significant deal driven by the AI boom fueling demand for electricity assets. TPG and Leonard Green are exploring the sale of Troon Golf, one of the largest U.S. golf course operators, with a potential valuation that could reach hundreds of millions. Quidel Ortho is looking to sell its testing unit, with private equity firms reportedly circling healthcare companies, as the diagnostic company's shares have fallen significantly since its COVID-19 tests were first approved. Bridgepoint, a London-based buyout group, is nearing a deal to acquire a real estate unit, signaling a move beyond traditional buyouts. Italian conglomerate Bending Spoons is employing an unusual financial strategy, acting as an "emergency room" for struggling tech businesses where returns are generated solely from earnings, a kind of financial magic trick. Elroy Air Inc., a cargo drone startup, is reportedly in advanced talks to go public through a SPAC deal, aiming to replace delivery trucks and achieve an $800 million valuation. CSA Group, a Canadian product testing and certification company, is also exploring a sale that could value the business at around C$2 billion, or approximately US$1.4 billion.

Infrastructure & Energy

Heathrow Airport's proposed third runway expansion has been described as "like a luxury Mercedes" by the head of the Star Alliance, who warned of the project's eye-watering costs. The Strait of Hormuz remains a choke point for shipping, with one CEO warning that mines could obstruct traffic for months, severely limiting safe routes. In response to the Strait of Hormuz closure, the Panama Canal expects its revenue to exceed its $5.2 billion forecast for fiscal 2026, as more ships are rerouted through the waterway, boosting its own traffic. China's new five-year energy plan allows for coal consumption growth, indicating that the stability of its energy market outweighs climate concerns. Spain's import hub is urging the EU to delay a ban on Russian gas, as LNG shipments to the bloc have risen following the Middle East war, impacting energy flows.

Geopolitics & International Relations

The U.S. conducted a fresh round of strikes against targets in Iran following a second ship being hit, escalating tensions. Ukrainian officials are increasing threats against Belarus, accusing it of aiding drone attacks by allowing its radio relay stations to be used to guide Russian drones, intensifying conflict. Weeks of intense Ukrainian strikes have rattled Crimea, leading to a state of emergency declaration and unseen disruption since Russia's annexation. A deal between the U.S. and Kazakhstan has granted American investors with ties to President Trump and the commerce secretary access to significant untapped reserves of a specific mineral, a development that deepens U.S.-Kazakhstan ties and comes as Kazakhstan's leader views Trump as heaven-sent. Venezuelan opposition leader María Corina Machado is reportedly working on a fast return to the country amid the ongoing earthquake response, a move that could reshape the political landscape. Australian pension funds are rethinking investments in UK housing due to issues with planning policy and retrospective liability, impacting the property market.

Wildfires & Natural Disasters

Wildfires have ravaged Utah and Colorado, resulting in the deaths of three firefighters. The blazes have swept through arid regions following a warm winter that produced less snow than normal, exacerbating conditions. In Venezuela, devastating twin earthquakes have struck a health system already in crisis, with firefighters using cellphone lights due to a shortage of flashlights and an overwhelmed hospital operating without running water, highlighting dire needs. Aid groups have flocked to Venezuela in a search-and-rescue frenzy, with two U.S. military ships, previously used in a blockade against Nicolás Maduro, now heading to the region with rescue teams and medical aid, offering relief. The outpouring of volunteer aid in Venezuela has reportedly clogged the only road into the disaster zone, delaying rescue crews.

Labor & Employment

The rise of driverless vehicles in Shenzhen, China, is threatening the gig economy workforce as automation drives progress, leaving drivers behind. In Japan, a mayor's decision to take maternity leave has sparked debate about gender discrimination in the workforce, as Shoko Kawata is the first mayor in Japan's history to do so, challenging norms. Young Britons are increasingly turning to private healthcare as faith in the National Health Service erodes due to backlogs, dilapidated facilities, and an aging population, leading to a forsaking of the state system. Germany's carmakers are facing historic job cuts as Chinese rivals flood the market, mounting a threat to the industrial model of Europe's largest economy, intensifying competition.

Regulatory & Legal

The U.S. insurance rulemaker has suspended investment risk designations following a cyber attack, a move that impacts how much capital insurers must hold to meet policyholder obligations, affecting financial stability. Two senators have requested that regulators probe Polymarket over deceptive advertising, following reporting on the platform's promotion of fake bets, raising concerns. Apple is set to fight a $500 million patent bill at the UK Supreme Court, in a battle over licensing of mobile connection protocols that could shape global rates for other technologies, setting a precedent. The European Union is planning a 15% tax on aluminum scrap exports, a move intended to protect domestic producers and prevent valuable metal from heading to the U.S. and Asia, influencing trade flows.

Other Market Developments

The U.S. conduct of a recent spectrum auction by the FCC raised upwards of $3.5 billion, with Verizon and T-Mobile emerging as significant winners, securing airwaves. Luxury may be in a downturn, but fragrances are performing well within the beauty industry, representing one of the faster-growing areas, though investing in them is not straightforward, offering niche appeal. Rolls-Royce is seeking state backing for an engine designed to power the next generation of narrow-body jets, as the company aims to return to powering short-haul aircraft, pursuing innovation. Adidas is embroiled in a fight to retain design rights for its World Cup ball, with a German designer claiming the Trionda is fundamentally similar to his own creations, challenging intellectual property. London-based buyout group Bridgepoint is nearing a deal to acquire a real estate unit, marking a potential expansion beyond its traditional focus on corporate buyouts, broadening its scope.