May 19, 2025 ☼ Zettelkasten ☼ Automated Post
Screenshot of Citi CEO: Something ‘deeper’ is going on in financial markets right now
Citigroup CEO, Jane Fraser, has issued a warning about the state of global markets, suggesting the world is entering a “new phase of globalization” defined by self-interest rather than cooperation. In a blog post, Fraser wrote that markets are signaling a “shift”, pricing in greater risks. Fraser explained that long-held certainties are being reevaluated with capital tilting more towards Japan, India, and parts of Europe while sovereign wealth funds are diversifying more aggressively and hedging against the dollar is now at its highest levels in years.
Market shocks have recently surfaced, such as the downgrade of the US government credit rating by Moody’s and rising 10-year Treasury yields. Additionally, the potential impact of tariffs on third-quarter earnings is causing Forbes to foresee potential turbulence for corporate profits, enforced by Fraser’s assertions that the economic consequences of tariffs will take time to materialize. Fraser concludes with uncertainties remaining, noting that companies are delaying decisions and holding off on hiring in preparation for the potential demand shocks and supplier uncertainty.#MarketShift #GlobalisationReboot #EconomicUncertainty #CorporateProfits #PotentialRisks