Ed’s World Market Insights (Week 23) – Feuds, Fizz, and the Fine Art of Brunch
June 08, 2025•5 min read
Pour yourself my favourite drink, a double espresso, and settle in for another week of market drama. For those nonagenarians among us who know how to take brunch in style, consider pairing your espresso with a grappa and a splash of water, no ice. (Yes, it’s a thing, and yes, it’s a heck of a lot better than it sounds.)
Week 23 was as eventful as a Sunday brunch with too many guests: markets swung on geopolitical feuds, tech titans traded barbs, and central bankers kept everyone guessing. As always, I’ll reflect on what changed, what didn’t, and what it all means for your portfolio—with a few extra thoughts on how to navigate the chaos with a dash of humour and a splash of perspective.
Recap: Where We Left Off (Week 22)
Last week, we saw markets bounce back from a brief pause, with tech and gold both staging comebacks. The mood swung back into “Greed” territory, and central banks stayed the course on rates. Meanwhile, Beaufort’s Private Equity Masterclass set the stage for a deep dive into exit strategies.
Markets are like brunch: just when you think you’ve seen it all, someone orders a mimosa with a side of avocado toast. Last week’s rebound was a reminder that sentiment can turn on a dime—just like the mood at a crowded brunch table when the last plate of pancakes arrives.
This Week: Feuds, Fizz, and a Touch of Chaos
US & Global Equities
- S&P 500 and Nasdaq wobbled midweek on the Trump-Musk feud but found their footing by Friday, with tech stocks showing surprising resilience.
- FTSE 100 edged higher, buoyed by a weaker pound and hopes for further BoE easing.
- DAX (Germany) held steady near record highs, while European markets kept a watchful eye on US-China trade talks.
- Gold dipped slightly as risk appetite returned but remained elevated as a hedge against ongoing volatility.
- Bitcoin consolidated near record highs, proving once again that digital gold can be as unpredictable as a brunch guest who insists on ordering dessert first.
Macro & Policy
- US Treasury yields remained elevated, with the 30-year above 5% as deficit worries persisted.
- Fed officials reiterated a cautious “higher for longer” stance, while the Bank of England hinted at further rate cuts if inflation cools.
- China’s manufacturing PMI remained in contraction, but hopes for a tariff thaw kept sentiment from souring further.
- Europe & UK: UK inflation remains stubborn, but the FTSE is supported by a risk-on mood. The euro area is showing slow but positive momentum.
Economic Analysis: The Trump–Musk Feud
The week’s most dramatic storyline was the public falling-out between Donald Trump and Elon Musk.
What began as a policy disagreement over a major tax bill quickly escalated into a full-blown feud, with Trump threatening to cut government contracts and subsidies for Musk’s companies, and Musk responding with calls for impeachment and a dramatic halt to SpaceX’s Dragon spacecraft operations (later retracted).
Market Impact:
- Tesla’s stock plunged over 14% in a single day, its largest drop ever, erasing around $150 billion in market value and dragging down the broader tech sector.
- The fallout rippled through markets, with the S&P 500, Dow, and Nasdaq all taking a hit before recovering.
- The feud cast a shadow over the future of US space ambitions and the EV sector, as Trump’s bill threatens to eliminate billions in EV tax credits and subsidies.
Ed’s thoughts:
The Trump-Musk feud was like watching two titans argue over the last croissant at brunch—except the croissant in question was worth billions. The lesson? In today’s world, even the most mundane policy debate can turn into a market-moving spectacle.
What’s Pertinent This Week?
- Trump-Musk Feud: Dominated headlines and drove tech volatility.
- Policy Uncertainty: Raised questions around government support for key sectors.
- Central Bank Watch: Fed and BoE remain cautious, rates staying higher for longer.
- Global Growth Outlook: China weak, but sentiment holding. Europe and UK slowly improving.
Equity’s Macro Insights
The Exit Wave: A Glimmer of Light on the Horizon
We continue to reflect on exit opportunities in private equity, and things are shifting:
- Interest rates are starting to fall.
- The Fed now sees two rate cuts by year-end, possibly down to 3.75–4.00%.
- The ECB has already cut, optimistic on inflation and growth.
- Liquidity is on the rise.
- US M2 money supply hit a record $22 trillion in April, a signal that expansion is underway again.
- The result?
- Despite shocks like the Trump-Musk drama, PE firms are eyeing windows of opportunity to execute exits, including IPOs, mergers, and secondaries.
Ed’s thoughts:
With liquidity up, rates down, and central banks easing, PE exits could accelerate quickly. For the nimble and prepared, this could be the start of a fruitful few quarters.
Gold: The Timeless Hedge in a Modern Portfolio
Gold dipped slightly this week as risk appetite returned, but remains a strategic hedge.
Think of gold like the grappa at brunch—you don’t always reach for it, but when you need something strong to cut through the noise, it’s indispensable.
Ed’s Final Word
Week 23 was a reminder that markets are never dull, especially when egos, algorithms, and economic agendas collide.
For private equity and risk investors, the message is clear:
Stay nimble, stay diversified, and maybe… add a splash of grappa to your espresso. You might be surprised what it unlocks.
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As always, these are the thoughts and opinions of mine and no one else’s—not even Beaufort Private Equity Limited. Please do your own research before making investment decisions and reach out to your Beaufort relationship manager if you have any queries or follow-ups.
Further Reading:
- CNN Fear & Greed Index (Live)
- McKinsey – Global Private Markets Report 2025
- Reuters – Trump-Musk Feud
- NY Times – Trump-Musk Spat
- CNBC – Tesla’s Big Problems
- DW – Trump-Musk Feud
Week 23, 2025: In markets, the only constant is change—so keep your wits, your watchlist, and your breakfast close at hand. And if you’re feeling adventurous, try that double espresso with a splash of grappa. You might just like it.
#PrivateEquity#InvestmentStrategy#CentralBanks#ExitStrategy#GoldInvesting#Beaufortprivateequity
– Practicing Chartered Accountant; experienced (25+ years) finance professional for regulated financial services organisations – Director and co-owner of Gibraltar FSC regulated Company & Trust Management Company – Strong financial modelling and financial planning and analysis for FTSE listed financial conglomerate – Treasurer (£1BN of AUM and £250M of regulatory capital) for regulated financial services organisation – Board experienced (both Group and subsidiary) along with leadership chairing committees – Experienced at running large multi located departments and teams – Corporate Finance experience in both technology, private equity and banking M&A – International audit experience UK GAAP, US GAAP, IFRS and Gibraltar GAAP – Strong managerial finance, financial accounting and financial internal control including Sarbanes Oxley audits – ERP implementation experience in Oracle and NetSuite and online accounting systems – Big 4 ACA qualification with treasury, finance, corporate finance and consultancy experience – Cambridge university education
