2025-11-07 18:18
NEW YORK, Nov 7 (Reuters) - KKR (KKR.N) , opens new tab executives signaled optimism for investment returns and dealmaking on Friday and sought to allay concerns about slower private equity fundraising, deal volume and credit defaults saying there was no reason for alarm. KKR Chief Financial Officer Rob Lewin described the environment for monetizations, meaning selling or refinancing assets in its portfolio as "constructive" and said the U.S. private equity firm expects this to continue into 2026. Sign up here. "Things feel healthy both in performance and exits," Lewin told analysts on a conference call on Friday. The traditional private equity model of buying and selling companies has been hampered as higher interest rates made it harder to profit from selling companies that were bought when rates were lower, at prices that in some cases look expensive. KKR avoided some of that during the period of very low rates, having learned lessons from over-investing before the global financial crisis, Co-Chief Executive Scott Nuttall said. "We told the firm, do not confuse a bull market with brains," Nuttall said, adding that as a result KKR is now in a position of "not having too much exposure to 2021 and 2022". Market sentiment was currently "closer to the high anxiety end" on private equity fundraising and private credit risk, Nuttall said, adding that although public and private credit defaults had picked up, there was "nothing alarming going on". KKR executives said on the call that the firm had no exposure to auto parts supplier First Brands or car dealership Tricolor, whose bankruptcies have rattled debt markets. Rising inflows, particularly to its own credit businesses, supported KKR's quarterly earnings to beat Wall Street's expectations on Friday, although news of a charge on an Asia fund reversed early gains in the stock. https://www.reuters.com/business/finance/kkr-executives-see-nothing-alarming-credit-default-rise-2025-11-07/
2025-11-07 18:06
ZURICH, Nov 7 (Reuters) - Swiss Economy Minister Guy Parmelin said on Friday he had a "very constructive" conversation with U.S. Trade Representative Jamieson Greer, as the country seeks to reduce tariffs of 39% imposed on its exports to the U.S. by President Donald Trump. "Great dynamic in our bilateral relations," Parmelin wrote on X, following the conversation on Friday afternoon, with trade and investment among the topics covered. Sign up here. The Economic Affairs Department declined to give further details. The Swiss government is turning on the charm to win some respite from the tariffs, which threaten Swiss access to one of its biggest export markets. Also on Friday Swiss Finance Minister Karin Keller-Sutter said she had spoken with new U.S. Ambassador Callista Gingrich. Swiss companies have also been working to persuade Trump to reduce the tariffs, with a delegation of business leaders meeting Trump in the White House on Tuesday. That initiative has been welcomed by the Swiss government, which said diplomatic and political exchanges were ongoing with the goal of reducing the U.S. import duties. https://www.reuters.com/business/swiss-economy-minister-has-very-constructive-conversation-with-us-trade-2025-11-07/
2025-11-07 17:34
LONDON, Nov 7 (Reuters) - Hedge funds including stock traders have returned more than 13% in 2025 to the end of October, just ahead of many of the biggest multi-strategy hedge funds, according to a Goldman Sachs report and sources familiar with each of the funds. In October, hedge fund stock pickers returned 1.75%, underperforming a 2.3% rise in the S&P 500 index (.SPX) , opens new tab. Sign up here. Crowded trades, investments with a focus on healthcare and technology stocks, and volatility added to the positive returns, Goldman Sachs (GS.N) , opens new tab said in a November 3 client note. Hedge funds bought into global equities for a second straight month, as they continued to be bullish on single stocks on a long-term basis, the report added. Technology was the best-performing sector in October, with tech, media and telecom (TMT)-focused funds up 2.1% during the month, while healthcare-focused funds posted positive returns for the fifth straight month and jumped 8.4% in October. Since then, however, tech stocks have come under pressure and tech-heavy stock markets were on Friday heading for their biggest weekly fall in seven months. October proved to be a challenging month for systematic funds and quant funds, partly due to exposure to short bets. Macro funds including those trading with systematic strategies broadly generated better returns last month, according to an executive at one of Wall Street's top three prime brokerages, who requested anonymity to discuss confidential client returns. Trades wagered at a bigger size, and bets made in the U.S. and China resulted in losses for both stock pickers and systematic funds, Goldman said. Some of the biggest multi-strategy hedge funds including Citadel, Millennium Management and Balyasny Asset Management also posted gains in October, according to people familiar with the matter. https://www.reuters.com/sustainability/boards-policy-regulation/how-hedge-funds-performed-october-2025-11-07/
2025-11-07 15:33
Nov 7 (Reuters) - Trump Media & Technology Group (DJT.O) , opens new tab reported a bigger third-quarter loss and a decline in revenue on Friday, squeezed by a surge in expenses, highlighting the Truth Social parent's steep financial hurdles. Shares of the company, a volatile favorite of retail investors, fell more than 3% in morning trading. Sign up here. Trump Media, which has consistently posted losses since its inception, faces the challenge of converting the high-profile presence of President Donald Trump on its Truth Social platform into a viable revenue stream. The company's revenue is primarily generated from advertising on the platform. The company's fortunes are inextricably linked to engagement on Truth Social, which serves as the main communication channel for Trump. The company reported total revenue $972,900 for the third quarter ended September, down 3.8% from a year earlier. In August, Trump Media and Crypto.com agreed to a deal with a blank-check acquisition company to launch a new venture that would pursue a treasury-style strategy to accumulate the cryptocurrency platform's native token CRO, deepening Trump's ties to the crypto industry. Trump Media reported a net loss of $54.8 million, wider than the $19.2 million reported in the same period last year. It saw $20.3 million in legal expenses in the quarter. Trump Media & Technology Group went public in March 2024 through a merger with a special-purpose acquisition company. The stock has been subject to high levels of volatility since its debut, often trading on political news and momentum from retail investors. Unlike most publicly traded social media companies, Trump Media does not regularly disclose key performance indicators such as monthly or daily active users. The company is led by CEO Devin Nunes, a former Republican congressman. https://www.reuters.com/business/media-telecom/trump-medias-quarterly-loss-widens-costs-soar-2025-11-07/
2025-11-07 15:28
MEXICO CITY, Nov 7 (Reuters) - Mexico's annual inflation decelerated in October, official data showed on Friday, staying within the central bank's target range, although analysts remained cautious about the path ahead. Consumer prices in Mexico rose 3.57% in the year through October, according to national statistics agency INEGI, down from 3.76% the previous month and roughly in line with economists' forecasts in a Reuters poll that pointed to a 3.56% increase. Sign up here. Despite the inflation rate remaining within the central bank's target range of 3%, plus or minus a percentage point, for the fourth month in a row, analysts and policymakers have adopted a cautious tone. "We anticipate a rebound in annual inflation in early 2026 as a result of the effects of tax increases," economists at Banamex said in a note. For next year, Gabriel Casillas, Barclays head of LatAm Economics Research, particularly mentioned the expected tax increase on soft drinks, the imposition of tariffs on imports from non-FTA countries and the awaited 12% minimum wage increase, as the most relevant issues hitting inflation. "On the monetary policy side, we still expect Banxico to match the U.S. Fed's actions one-to-one in upcoming meetings, taking the reference rate to 7.00% before year-end 25 and then to 6.50% by year-end 26," Casillas told Reuters. Mexico's central bank, also known as Banxico, lowered borrowing costs on Thursday for the fourth consecutive time, reducing its benchmark rate by 25 basis points to 7.25%, its lowest level since May 2022. The closely watched core index, which strips out some volatile food and energy prices, increased 0.29% on a monthly basis, compared with expectations of a 0.28% increase. GROWTH CONCERNS Together with concerns about core inflation, the bank's policymakers cited the ongoing weakness in Mexico's economy. Banxico's governor Victoria Rodriguez told Imagen radio late Thursday that she expects the economy to maintain moderate growth, with persisting slack conditions. The governor, who voted in favor of the latest rate cut, noted that the bank's quarterly report due at the end of November will update its gross domestic product and inflation forecasts. https://www.reuters.com/world/americas/mexico-annual-inflation-decelerates-october-concerns-persist-2025-11-07/
2025-11-07 14:40
Nov 7 (Reuters) - Peloton Interactive (PTON.O) , opens new tab shares jumped 7% on Friday after the fitness company beat quarterly revenue estimates, buoyed by early traction from its revamped product lineup and price hikes across hardware and subscriptions, reinforcing investor confidence in its turnaround strategy. The upbeat results mark a turning point for Peloton under CEO Peter Stern, who took the helm in January and has focused on restoring profitability, streamlining operations, and repositioning the brand for growth through a refreshed product lineup and pricing strategy. Sign up here. "We are encouraged by Peloton's progress across improving profit, ramping free cash flow, and deleveraging," J.P.Morgan analysts said. "But it remains to be seen whether product and marketing initiatives are significant enough to drive durable revenue growth." Peloton recently re-launched its product portfolio with AI-powered features and raised prices across hardware and subscriptions and its move comes as shoppers pull-back spending on big-ticket discretionary items amid an unsteady economic environment. The company reported revenue of $550.8 million for the quarter, topping analysts' average estimate of $539.82 million, as per data compiled by LSEG. The stock trades at a price-to-earnings ratio of 79.95, reflecting expectations for continued earnings momentum. https://www.reuters.com/business/peloton-shares-jump-turnaround-strategy-gains-traction-2025-11-07/
