FT News Briefing Biden’s Taiwan shift, US companies see inflation, Archegos hits big banks
Mar 30, 2021
The Biden administration is reinforcing diplomatic ties with Taiwan, aiming for more engagement amidst China tensions. U.S. companies are grappling with rising inflation due to increasing costs. Meanwhile, the Archegos Capital collapse raises alarms on hedge fund leverage, signaling banks may adopt a more cautious approach. The discussion also highlights Volvo's new parental leave policy to boost gender diversity in management, showcasing progressive corporate practices.
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Biden's Taiwan Policy
- The Biden administration will make it easier for U.S. diplomats to meet Taiwanese officials.
- This decision, a continuation of a Trump-era policy, signals a potential increase in U.S.-China tensions.
U.S. Companies and Inflation
- U.S. companies are experiencing inflationary pressures due to rising commodity and labor costs, and supply chain disruptions.
- While these pressures haven't significantly affected consumer prices yet, they add to growing concerns about inflation.
Archegos Meltdown and Market Repercussions
- The collapse of Archegos Capital Management, due to excessive leverage, has exposed major banks like Credit Suisse and Nomura to significant losses.
- This incident may lead to reduced leverage for hedge funds and potential market repercussions.