Private Equity Bros Weekly

📊 Weekly Summary

A quick round-up of the week’s most important financial and economic news:

Gold surged past $3,300/oz as investors fled to safety amid escalating US-China tariff tensions and a weaker dollar. The Fed held its stance as Chair Powell warned that tariffs could complicate the fight against inflation. Meanwhile, the IMF said a global recession isn’t expected, despite downward revisions to growth.

US retail sales jumped the most in two years amid tariff-driven front-loading. The BoC held rates at 2.75% while forecasting a year-long recession. Markets remain unsettled: leveraged loan issuance nears a record drought, corporate bond spreads widened sharply, and global investors slashed US equity exposure. Still, Wall Street banks capitalized, raking in $37B from a volatile Q1 trading surge.

Let’s break it down.

📈 Recent Finance News

Gold exceeds $3,300/oz as investors seek shelter from tariff war: A weaker dollar and US-China trade tensions drive investors to the safe-haven asset (RT)

IMF indicates no global recession despite US tariffs: New growth projections will include notable markdowns, but not recession (BBC)

Fed in wait-and-see mode as J Powell warns on tariffs: The central bank may face a dilemma between curbing inflation and fostering growth (CNBC)

China seeks reset with EU amid Donald Trump’s trade war: China dispatched trade delegations to European capitals in hope of finding alternative markets (FT)

BoC held rates at 2.75% and forecast a year-long recession: In pausing consecutive cuts, the bank said it would ensure inflation stays under control (CBC)

US retail sales rose by the most in two years amid tariff jitters: The most since January 2023, as consumers front-loaded purchases to avoid tariffs (YF)

US leveraged loan issuance drought is about to set a record: This would be the longest run without a deal launch since at least 2013 (BBG)

Wall Street banks reaped $37B in Q1 trading boom: Investors rejig their portfolios amid Trump's second term volatility (DM)

Global investors dumped US stocks at record pace since February: Fund managers were net 36% underweight in US equities, the lowest in 2 years (RT)

Corporate bond bid-ask spreads surged to 20 bps in market turmoil: Dealers ask higher compensation for trading investment-grade corporate debt (BBG)

🔍 Newly Released Reports

• Capital Market & Wealth Management Issues (KPMG)

• Equity Focus - A Man-Made Problem (BNP Paribas)

• All Weather Lens on Market Uncertainty (SS)

• Advantages of AI-Powered Real Estate (JLL)

• Real Estate Risks and Vulnerabilities (EGOV)

• Family Office Quarterly Outlook (UBS)

• Finnish M&A Transaction Trends (EY)

• Private Equity Sponsor Sync (Weil)

• Venture Pulse Q1-25 (KPMG)

• Private Credit 2025 (C&P)

• Vision to Value (LB)

🤝 M&A Activity

KKR explores sale of Atlantic Aviation amid strong infrastructure demand (PEI)
Potential Deal Value: $10B

OpenAI in talks to acquire AI coding tool Windsurf (CNBC)
Potential Deal Value: $3B

Bain Capital & CC Capital granted extension to bid for Insignia Financial (PEI)
Potential Deal Value: $2.2B

Vista Energy acquires Petronas’ Argentina oil stake (EC)
Deal Value: $1.5B

Japfa shareholders approve founding family-led take-private bid (ST)
Deal Value: $877M

KKR to acquire German IT firm Datagroup (RT)
Deal Value: $508M

Infinite Reality will buy the AI startup Touchcast (GN)
Deal Value: $500M

Atlas Holdings to acquire UK banknote printer De La Rue (Guardian)
Deal Value: $348M

Foresight Group to buy UK battery storage firm Harmony Energy (Investing)
Deal Value: $278M

Lyft to enter European market with FreeNow acquisition (RT)
Deal Value: $198M