What we’re reading (3/25)
“How High Inflation Will Come Down” (New York Times). “Things are very different now. Back then almost everyone expected persistent high inflation; now few people do. Bond markets expect inflation eventually to return to prepandemic levels. While consumers expect high inflation over the next year, their longer-term expectations remain ‘anchored’ at fairly moderate levels. Professional forecasters expect inflation to moderate next year.”
“Clients Plead With Top Custodian Banks To Stay In Russia” (Reuters). “Global banks including Citigroup Inc, JPMorgan Chase & Co and Societe Generale face pressure to commit to remaining as custodian banks in Russia, as rivals and funds fret they may lose services critical to future investment in the country.”
“Veteran Investor Jeremy Grantham Says Putin's Behavior Has Him Reconsidering His Near-Term Market Forecasts” (Insider). “‘[W]hen a war starts, everything is scrambled, and it multiplies all the uncertainties,’ he said. ‘We were certainly in the Vampire Phase. But I'm humble enough to say that when a war of this magnitude occurs — with ramifications that could extend beyond that — all bets are off.’”
“Behind The Scenes, The IPO Playbook Is Changing” (Wall Street Journal). “The IPO market has frozen over. When it thaws, it could look much different. So far this year, just 22 companies have gone public in traditional initial public offerings, raising a combined $2.3 billion through Tuesday, according to Dealogic. That is a huge downshift from last year, when 79 companies had raised nearly $36 billion by this point.”
“A Big Swing At Big Tech” (New York Times). “The European Union has just agreed on one of the world’s most far-reaching laws to rein in the power of tech companies. The Digital Markets Act is aimed at stopping the largest tech platforms from using their interlocking services and considerable resources to box in users and squeeze emerging rivals. It could potentially reshape app stores, online advertising, e-commerce, messaging services and other everyday digital tools, in Europe and beyond.”
