FT News Briefing Guerilla. Economist. Colombia’s next president?
May 27, 2022
China is stepping in to support Sri Lanka with crucial funding amid its economic crisis. Meanwhile, Wall Street reacts to Snap's poor earnings report, causing a ripple effect in the tech sector. In Colombia, a former guerrilla fighter turned economist is poised to shake up the political landscape as voters express dissatisfaction with the status quo. This potential leftist victory could echo broader anti-incumbent sentiments taking root across Latin America, raising both hopes and concerns about future reforms on the continent.
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Tech Sell-Off
- Tech companies face merciless investor scrutiny, especially after issuing warnings or poor earnings.
- Snap's stock plummeted 30% after a warning, similar to Target's 25% drop and Netflix's 40% decline.
Treasury Bonds Rebound
- U.S. Treasury bonds reversed their downward trend due to attractive prices and recession fears.
- Investors see treasuries as a hedge against potential economic downturn triggered by rising interest rates.
European Bank Sell-Off
- Capital Group, a major shareholder in European banks, sold over $7 billion in shares this year.
- Portfolio manager Nick Grace led the sell-off due to changing sentiment after the Ukraine war and interest rate prospects.