FirstFT: Market Uncertainty Causes Longest Drought in US Tech IPO in Over 20 Years

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good morning. The stock market’s slump since the start of the year has caused the longest drought on US tech listings this century, with experts cautious about the pace of recovery even after signs of life in other sectors.

Wednesday will mark 238 days without a technology initial public offering worth more than $50 million, beating previous records set in the wake of the 2008 financial crisis and the crash of the internet in the early 2000s, according to research by the tech capital markets team at Morgan Stanley.

The US stock market has been shaken this year by the Federal Reserve’s battle to cut inflation through sharp interest rate increases. The higher rates have affected stock valuations by driving down future earnings, and raised fears of pushing the economy into recession.

High-growth technology stocks dominated the record-breaking IPO market last year and enjoyed some of the biggest gains during the stock market boom, but they have also been disproportionately hit by a massive sell-off this year.

The tech-dominated Nasdaq Composite is down nearly 28 percent so far this year compared to a drop of just over 19 percent in the S&P 500, while the IPO Renaissance Index, which tracks US listed companies in the past two years, is down more. than 45 per cent.

“There is a tremendous amount of uncertainty in the market right now, and uncertainty is the enemy of the IPO market,” said Matt Walsh, head of technology capital markets at SVB Securities.

“I think we will need to see some stability in the outlook and investors pull back to buy existing public securities before they are ready to go further down the risk curve and buy technical IPOs.”

Do you have any feedback on today’s newsletter? Let us know at firstft@ft.com. Thank you for reading FirstFT Asia and have a great week. – “Sofia”

1. Typhoon Nanmadol hit Japan as millions were asked to leave The storm made landfall yesterday near the city of Kagoshima on the southern island of Kyushu, with winds of up to 100 miles per hour destroying buildings and drowning more than 200,000 households in power outages. Local authorities have issued non-mandatory eviction orders to millions of people.

2. Central banks tend to peak rates faster After the world’s major central banks strengthened their determination to tackle price hikes, investors began pricing in a sharp rise in interest rates over the coming months. Market expectations for interest rates rose toward the end of the year, as policymakers became concerned that without significant rate increases, high inflation would prove difficult to change.

3. UBS hires Chinese “content reviewers” to screen research reports The Swiss bank is assigning a team to ensure that Chinese research publications by its analysts are free of “sensitivities”. The move comes three years after a senior economist at UBS was suspended over a row over comments about pigs in China that were seen as a racial insult.

4. The European Union is preparing to withdraw 7.5 billion euros from Hungary due to violations of the rule of law Yesterday, the European Commission recommended that member states vote to suspend about a third of Hungarian coherent funding in response to Budapest’s lack of transparency in awarding public contracts, shortcomings in Hungary’s efforts to tackle corruption, and weaknesses in prosecuting those who misused European funds.

5. China’s cooling economy affects emerging companies in the hot foil sector With the country’s Covid-devastated economic climate wrecked, workers have been looking to turn their jobs into an industry that Beijing prioritizes – only to find that it, too, is in a downturn and job prospects are dim.

next day

Queen’s funeral The state funeral of Queen Elizabeth II will take place today at Westminster Abbey. 500 heads of state and foreign dignitaries are expected to attend.

UK dock workers strike More than 560 port workers and maintenance engineers at Liverpool docks will begin a two-week strike over wages from Monday evening.

corporate profits Haleon’s spin-off GSK announced its first batch of earnings today since it listed on the London Stock Exchange in July.

Join C Suite board members and executives in person or online for the Cyber ​​Resilience Summit September 21-23 to hear feedback from speakers including Bill Clinton. Register for your pass today.

What else are we reading

Xi and Modi’s criticism of Putin points to a shift in the Ukraine war Western officials said Russian President Vladimir Putin’s public warnings by China and India signal a shift in global perceptions of the war, amid efforts by Europe and the United States to undermine international support for the Kremlin.

The race to reinvent the space station US companies, including Jeff Bezos’s Blue Origin and Lockheed Martin, have been incentivized by a NASA-funded competition to design privately owned replacements for the International Space Station when it is decommissioned by the end of the decade.

The strange death of the company phone number An increasing number of organizations have quietly dispensed with customer support phone numbers, so much so that some governments are looking to enforce their availability over the phone. Those companies that still provide phone support are taking advantage of a competitive advantage.

What do we misunderstand about inflation When things get more expensive, that’s inflation — which is bad, apparently. But an alternative view is that Milton Friedman “Inflation is always and everywhere a monetary phenomenon.” Tim Harford argues that this distinction is important.

Chief of Staff Liz Truss ‘dealing’ with the FBI in a bribery investigation Mark Fullbrook, the new UK prime minister’s chief of staff, says he is cooperating with US authorities as a witness in their investigation of a Conservative donor accused over allegations he made illegal campaign donations to a former governor of Puerto Rico.

sports

Roger Federer, one of the most famous tennis players in the history of the sport, has announced his retirement. He won 20 Grand Slam titles in nearly two decades at the top of the game, making him one of the best players in the sport.

  • from the archive: In 2019, Federer met Simon Cooper to talk about his career, being a father and what he has in common with Lionel Messi.

Roger Federer

Roger Federer posted a message on social media on Thursday explaining his “bittersweet” decision © Neil Hall / EPA-EFE / Shutterstock

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