Bloomberg Surveillance: Lynn Martin on Global Market Trends
Jan 29, 2024
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NYSE Group President Lynn Martin joins Bloomberg's roundtable to discuss principal trends that may shape global markets this year. Topics include investing in cryptocurrency, parental approval for app downloads, impact of regulations on financing, potential changes in lifespan of private companies, challenges of misinformation in the era of AI, impact of politics on financial markets, importance of reliable systems for risk management, and volatility in the economy.
Geopolitical events contribute to increased volatility in global equity markets, while US capital markets remain strong and reliable.
Companies are becoming more focused on being public-market ready, articulating clear messages to investors, and demonstrating the ability to thrive in the public markets.
Deep dives
Geopolitical Events and Volatility
Geopolitical events, such as the recent events in the Middle East, contribute to increased volatility in the global equity markets. The surprise factor of these events adds to the unpredictability and volatility. While there are discussions about regional and geographical polarization of capital markets, the US capital markets remain strong and reliable. Capital markets in the US have shown resilience and have been a vital source of liquidity for raising capital.
Impact on IPOs and Valuations
The potential volatility and unknown factors in the coming year have led to companies being cautious about their IPO plans. Private equity companies have been hesitant to accept valuation cuts, which has affected IPO activity. However, there is optimism for more IPOs in 2024, with the market seeing a recalibration of valuations. Companies are becoming more focused on being public-market ready, articulating clear messages to investors, and demonstrating the ability to thrive in the public markets.
Artificial Intelligence and Misinformation
The use of artificial intelligence (AI) in various sectors, including finance and energy, has brought about efficiencies and transparency. However, there are challenges related to misinformation and false videos generated by AI. In the digital age, almost every company incorporates technology in some way, making them technology companies. The regulatory landscape is shifting, pushing more financing activity into private markets. Companies are expected to become more disciplined regarding when they tap into the public markets and will need to articulate a clear path to profitability.
NYSE Group President Lynn Martin joins the roundtable to discuss principal trends that may share global markets this year with Bloomberg's Jonathan Ferro and Lisa Abramowicz