Public Markets 8-Hour Briefing
×Market Volatility and Flight to Safety
US services activity expanded in February at the fastest pace since mid-2022, with the Institute for Supply Management's index rising to 56.1. Meanwhile, investors rushed into US money-market funds, lifting total assets to a record $8.271 trillion as the war in Iran fuels a broad flight to safety. Gold wagers hit a 16-week high as risk-off sentiment grew, while oil storage is filling fast in the Middle East with Hormuz blocked, threatening output cuts if the situation persists.
Energy Markets and Shipping Crisis
Shipping has collapsed through the vital Strait of Hormuz shipping strait, reaching a near standstill amid the war between the US, Israel, and Iran. Supertankers have begun to abandon planned voyages into the Persian Gulf and seek safer destinations. US-to-Asia oil shipment costs hit a record, with some deals already faltering as rates sky-high. Airlines and shippers are panic shopping for fuel hedges with prices surging, loading up on oil derivatives contracts to keep their bills from spiraling.
Private Markets and Credit Turmoil
Blackstone financed its acquisition of residential services provider Champions Group with more than $1 billion in private credit as buyout firms seek refuge from sectors prone to volatility. Apollo's Zito sees private credit pain lasting up to 18 months but downplays concerns about withdrawal waves. BlackRock's Kapnick says big firms will gain from credit turmoil while smaller lenders may get left behind. HPS CEO Kapnick discusses the next wave of private credit and future growth under BlackRock at Bloomberg Invest.
Tech and AI Developments
Nvidia's Huang said demand went "from very high to higher than that" as the AI chip giant continues its growth trajectory. Apple uses low prices to attack rivals during the memory-chip crunch, leveraging its supply-chain might to gain share in cheaper phone and laptop categories. Quantum startup Pasqal agreed to list via SPAC at a $2 billion valuation, joining the growing number of quantum startups choosing to go public through blank-check mergers.
Corporate News and M&A
Amazon cut more jobs in its robotics unit amid ongoing restructuring efforts. Baker Hughes seeks to raise $10 billion in a cross-border bond sale to fund its acquisition of Chart Industries. UFC and WWE owner TKO Group brought a nearly $1 billion loan after announcing a dividend. Victory Capital CEO says its Janus offer is a "superior proposal" despite the asset manager's existing agreement with Nelson Peltz's Trian Fund Management.
Regional Markets and Economic Indicators
New Zealand house prices edged higher in February, though the property market remained broadly subdued with values still down on a year earlier. Campari sees stable performance this year despite continued hit from tariffs, setting out cautiously positive guidance. Manufacturing rises as tariffs weigh on consumers, according to the Fed Beige Book, which shows a weaker consumer is weighing on sales across most regions.
Regulatory and Policy Developments
Wall Street regulators advance crypto and prediction market plans with new measures likely to have longstanding implications for broader financial markets. The DOJ probes US fertilizer market for possible price fixing, investigating whether several leading producers colluded to raise prices. BIS defends its global rulemaking role against US criticism as Trump administration officials remain suspicious of standards being set for American banks by a Europe-based body.
Emerging Markets and Global Investment
DoubleLine sees an emerging-market "virtuous loop" despite the Iran war, citing structural convergence between advanced and developing economies creating significant opportunities. Money rolls into emerging-market ETFs even as rout hits shares, indicating confidence that the Middle East war won't roil risk assets. BCA Research upgrades Canada and Australia amid Hormuz closure, seeing potential benefits from the geopolitical tensions.