A top investor at the world’s largest hedge fund says he does not expect a repeat of the “Great Inflation” of the 1970s.
Bob Prince, who runs Bridgewater Associates with Ray Dalio and Greg Jensen, told the Financial Times that long-running deflationary forces would eventually curtail recent price rises and that while “you are going to get some inflation”, it would be “moderate”.
His comments came amid a debate on Wall Street over whether a buzzing economic recovery, a flood of fiscal and monetary stimulus and supply chain troubles would cause a lasting surge in prices for goods and services. More than 70 per cent of fund managers surveyed by Bank of America said they did not expect permanent higher inflation.
Asia-Pacific stocks jumped following a rebound on Wall Street and oil rose to its highest level in two years, reversing tumultuous moves last week after Federal Reserve officials took a more hawkish tone on interest rates and inflation.
1. Downing St sticks with pension ‘triple lock’ The UK vowed yesterday to “stick” to its “triple lock” pledge for uprating the state pension, despite Treasury concerns that it could add £4bn to the annual cost of the policy. Separately, Chancellor Rishi Sunak was concerned that the prime minister had “no plan” to tackle the surge in coronavirus infections last autumn, according to former chief adviser Dominic Cummings.
2. ‘Limited enthusiasm’ for UK-EU trade deal Only one in five British voters described the agreement Boris Johnson’s government negotiated with the EU last year as a “good deal”, a survey found. But the poll also showed few minds had changed since the 2016 EU referendum — four out five people said they would still vote the same way.
3. Tesla investor: ‘deep sickness’ in UK markets Too many asset managers are obsessed with short-term performance rankings and fearful of risks, according to James Anderson, whose early bets on Facebook, Amazon and Tesla made him one of the world’s most successful investors, warning that a lack of entrepreneurial culture has left London’s FTSE 100 looking like an index from the 19th century. An investment phenomenon, Anderson’s firm is now doubling down on China.
4. Ex-Deutsche Bank trader sentenced James Vorley, a former precious metals trader at Deutsche Bank in London, was sentenced to 12 months and one day in prison for “spoofing” the gold and silver futures markets between 2008 and 2013. He was found guilty in September along with Cedric Chanu, another ex-Deutsche trader.
5. Activision Blizzard CEO’s $155m pay approved The video game company’s shareholders narrowly backed Bobby Kotick’s pay package, following a delayed vote that critics described as an effort to avoid an embarrassing rebuke.
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Catalan separatist pardons Spain’s leftwing government is to issue pardons for nine jailed Catalan separatists today, which it says will pave the way for reconciliation but the opposition argues undermines the rule of law.
NYC mayoral primary In heavily Democratic New York City, the winner of today’s primary will carry November’s general election. Eric Adams — a black former policeman who has called for more NYPD officers — is one of the frontrunners in a crowded contest.
US economic data Federal Reserve chair Jay Powell will point to “sustained” economic improvement, the labour market’s “uneven” pace of recovery and lingering Covid-19 risks in congressional testimony. Economists forecast another monthly decline in existing home sales. (FT, WSJ)
How should privacy considerations be addressed given data’s emerging status as a tradable commodity? Industry leaders will share insights at an FT virtual webinar starting tomorrow. Register for free here.
Private equity ‘raid’ on UK companies Traditional fund managers are speaking out against takeovers they say undervalue businesses. It follows a frenzied six months in which private equity dealmakers announced bids for UK-listed companies at the fastest pace in more than two decades, triggering a fierce row in the City of London.
Bermuda digs in against global tax The island tax haven’s political and business elite are responding to a G7 push for a minimum corporate income tax as they would the approach of an Atlantic hurricane, in hopes of keeping intact a 19th-century revenue regime that leaves company profits untouched.
Will boredom kill Instagram? The photo sharing app, once the apple of Facebook’s eye, has spent years rebuffing accusations of toxicity. But tedium poses a painful new threat to Instagram’s moneymaking ability just as its owner’s market valuation approaches $1tn, writes Elaine Moore.
Tech Tonic podcast: The game-changer In the first episode of a five-part series on artificial intelligence, FT innovation editor John Thornhill talks to some of the biggest names in AI research, including Demis Hassabis, chief executive of Google’s DeepMind, and asks: will AI live up to its promise, or succumb to its pitfalls?
Masters in Finance rankings The FT’s 2021 ranking of the world’s best masters in finance programmes is out. HEC Paris again leads the list, which is dominated by French business schools. Find the full list here and learn more about the methodology of the rankings here.
Summer books of 2021 The FT launches its annual summer review of the best books of the year today, starting with science fiction, business and food and drink. You can share your favourite reads of the year here. The best responses will be published on FT.com.