FT News Briefing

Tech IPOs lose their shimmer

Sep 29, 2023

09:22

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Investors panic as Italy's budget deficit forecast causes European government bond prices to drop sharply. Interest in the tech IPO market wanes, with poor performance and volatility being observed. The FT's Colby Smith explains the economic impact of US student loan payments restarting, potentially affecting the US economy. Discussion on the potential downward pressure caused by factors such as high interest rates, a government shutdown, energy price spike, and auto worker strike. Personal story of John Greisa, a mechanical engineer starting to repay his $58,000 student loan debt, highlights the impact on purchasing decisions and homeownership goals.

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Quick takeaways

Investors were spooked by Italy's larger than expected budget deficit, causing European government bond prices to drop.

Despite initial enthusiasm, tech IPOs like Arm, Instacart, and Clavio have seen their share prices decline and experience volatility in the market.

Deep dives

Italian Budget Deficit Causes Bond Sell-Off

Investors were spooked by Italy's larger than expected budget deficit, causing European government bond prices to drop. The sell-off also spread to UK markets, with 10-year yields rising to their highest level in a decade.

Introduction

2min

Performance of Flashy Tech IPOs and its Impact on the Industry

2min

The Impact of Ending Student Loan Payments on the US Economy

2min

The Potential Impact of Student Loan Repayments on the US Economy

2min

The Impact of Current Situation on Purchasing Decisions and Homeownership Goals

3min

European government bond prices dropped sharply as investors took fright at Italy’s larger than expected budget deficit, optimism for the IPO market seems to be fading, and the FT’s Colby Smith explains the economic impact of US student loan payments restarting.

Mentioned in this podcast:

European bond market hit by Italy’s plans for higher borrowing

Rising headwinds threaten US economy’s resilience

Instacart and Arm shares lose steam after IPO pops

Millions of US borrowers brace for the return of student debt payments

The FT News Briefing is produced by Fiona Symon, Sonja Hutson, Kasia Broussalian and Marc Filippino. Additional help from Monique Mulima, Monica Lopez, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.

Read a transcript of this episode on FT.com

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