Wall Street Week | Rerouting Global Trade, Private Equity Tested, Realizing Cuba’s Potential

AI Summary

Rising inflation and higher interest rates are creating uncertainty for markets as Mexico develops a new land-based trade corridor to offer alternatives to traditional shipping routes. Meanwhile, private equity returns face pressure amid slower exits and increased borrowing costs, and Cuba hints at significant market reforms though investor skepticism remains.

This week, inflation may be edging lower, but as markets push rates higher, the Fed’s 2% inflation target might be a long way off. And, Mexico is building a land-based trade corridor that could give shipping companies more options when traditional channels are disrupted. Plus, as exits slow and borrowing costs rise, the ability of private equity investments to generate returns that beat public markets is less certain. Later, Cuba is promising its biggest market reforms in decades, but investors remain skeptical that the state will truly give up control. (Source: Bloomberg)