Public Markets 8-Hour Briefing
×Market Reaction to Iran Conflict
Oil prices extended their climb above $85 a barrel as the Middle East war entered its sixth day, directly impacting energy-dependent economies. The resulting surge fueled inflation fears across Europe, with the euro sliding to its lowest level this year against the dollar. European bond markets stabilized briefly before selling resumed, quashing bets on near-term rate cuts from the ECB. In the UK, a key swap rate gauge jumped to a 2026 high, signaling that mortgage costs are poised to rise.
Corporate Actions & Strategy
Berkshire Hathaway resumed share buybacks in the latest quarter, departing from Warren Buffett's recent avoidance of repurchases. The conglomerate's CEO, Greg Abel, also stated no plans to alter its stake in Kraft Heinz, following the food company's halted split. Meanwhile, Prada warned that integrating Versace will dilute profit margins this year, though the luxury group's own results met forecasts. Victoria's Secret projected its best year since splitting from L Brands, forecasting revenue to climb to a new high.
Deals & Capital Raising
EQT Real Estate agreed to buy an East Coast warehouse portfolio from Mapletree for $575 million. In a separate government-linked deal, Germany's KfW is working with JPMorgan Chase on a potential stake purchase in defense contractor KNDS. In capital markets, Sierra Space raised $550 million, lifting its valuation to $8 billion as it pursues U.S. defense contracts. A GM-backed autonomous driving firm, Beijing Momenta, confidentially filed for a Hong Kong IPO.
Retail & Consumer
Kroger posted higher fourth-quarter profit but offered a cautious full-year forecast under its new CEO. JD.com reported its first quarterly loss in over three years, hurt by China's food-delivery subsidy war. Victoria's Secret shares dropped despite an earnings beat and upbeat outlook, reflecting investor caution. Wizz Air fell 8% after the Middle East crisis triggered a profit warning, highlighting the transport sector's vulnerability to the conflict.
European Markets & Policy
ECB Governing Council member Olli Rehn urged a "cool head" amid the war, advising against knee-jerk reactions. Bundesbank President Joachim Nagel said the conflict's duration will be the main driver of inflation, and the ECB remains "very vigilant." The euro's slide underscores Europe's energy vulnerability, while the UK's housebuilding slowdown deepened in February, a sign of fragility before the latest energy price spike.
Other Notable Moves
BlackRock slashed the value of a private loan to zero, marking the second such sudden write-down in its private-credit portfolio. Mainland Chinese investors sold a record $3.5 billion of Hong Kong stocks in a single session, reflecting waning appetite for assets perceived as geopolitically vulnerable. South Korea's Kospi bounced nearly 10% after an Iran-driven rout, leading an EM rebound as tensions appeared to ease slightly.