Emerging Assets Sink for Worst Day Since April on Risk Off Mood

Following a warm reception from President Trump, Saudi Arabia's Crown Prince Mohammed bin Salman is expected to shift the Kingdom's focus from petrochemicals to technology, which may lead to significant investment opportunities. Experts from Basilinna and the Council on Foreign Relations discuss the implications for investors.

Meera Pandit, Executive Director and Global Market Strategist at JPMorgan Asset Management, expressed concern over the recent rise in unemployment. She indicated that the Federal Reserve may hold interest rates steady in December, with potential gradual cuts next year, likely limited to two or three adjustments. This sentiment reflects broader anxieties regarding the labor market's health.

A mortgage loan for Chicago’s Bank of America Tower is being refinanced with $700 million in bonds, marking a significant development in the city's struggling real estate market. This deal is noted as the largest mortgage bond transaction in Chicago since the onset of the COVID-19 pandemic, according to sources familiar with the situation.

Andrea Auerbach, Global Head of Private Investments at Cambridge Associates, predicts that private markets will reach their lowest point in 2026, with expectations of improved exit and fundraising activities compared to 2025. This outlook was shared during an interview with Romaine Bostick and Katie Greifeld on 'The Close.'

Connie McDonald and Pam Weekes, co-founders of Levain Bakery, addressed rising food costs and consumer resilience during an interview with Romaine Bostick and Katie Greifeld on 'The Close.' McDonald noted that the desire for treats persists regardless of economic conditions, highlighting the bakery's upcoming cookbook release.

Hedge funds faced significant challenges as they scrambled to cover short positions following a sharp two-day swing in the stock market. On Thursday, they rushed to mitigate losses, only to reverse those positions the next day when stock prices rebounded.

Jeff Aronson, co-founder and managing principal of Centerbridge Partners, defended private credit and direct lending during an appearance on 'Bloomberg The Close.' He stated that labeling private credit as 'garbage lending' is an exaggeration, emphasizing the cyclical nature of lending markets. This defense comes after DoubleLine Capital's CEO, Jeffrey Gundlach, criticized private credit earlier in the week.

A pair of San Francisco hotels, emblematic of the city's declining commercial real estate market, have been sold at a significant discount of 75%. This transaction represents a pivotal moment in San Francisco's recovery as it begins to attract major global investors once again.