FT News Briefing US watchdogs take on private equity
Aug 29, 2022
Financial markets are bracing for prolonged high interest rates following a hawkish speech by Jay Powell. Meanwhile, EU officials are set to suspend a visa agreement with Moscow amid rising geopolitical tensions. In the spotlight, U.S. regulators intensify scrutiny on the $10 trillion private equity sector, raising concerns about competition and public welfare. These discussions highlight proposed reforms in merger guidelines and the implications for sensitive industries, including nursing homes. Additionally, Alibaba faces challenges as it navigates the U.S.-China relationship.
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Hawkish Stance on Inflation
- Investors are bracing for higher interest rates as central bankers prioritize fighting inflation.
- The Fed's focus is on bringing down inflation, even if it means sacrificing economic growth.
EU Visa Suspension for Russians
- EU foreign ministers plan to suspend the visa agreement with Moscow, making it harder for Russians to get travel documents.
- This move is a direct response to Russia's invasion of Ukraine and aims to further isolate Russia.
US Watchdogs Target Private Equity
- US antitrust officials are targeting the private equity industry, scrutinizing anti-competitive behavior.
- They are concerned about private equity's impact on competition and ordinary citizens.