JPMorgan pushes into private company coverage as Wall Street eyes growing opportunity
The move comes as more company founders and boards choose to stay private longer. The median age of a private company going public has increased from 6.9 years a decade ago to 10.7 years today, according to Morningstar.
A major factor behind the decline is the surge in funding for companies like OpenAI and SpaceX, fueled by the rise of private equity and venture capital. Pitchbook estimates that there are $18.7 trillion assets in private markets, including venture capital and private equity — a figure that will reach $24 trillion by the end of 2029.
"With approximately 1,200 private companies in the US achieving unicorn status between 2020 and 2023—a notable increase from around 330 between 2016 and 2019—their growing influence on the economy and markets is clear," Malik said in a separate memo to clients.
Malik said understanding the private markets has now become key to properly assessing publicly traded companies.
"Understanding their impact is and will remain crucial for both public and private market investors to make informed investment decisions," he added.
Jamie Dimon has long lamented what he has called "the diminishing role of publicly traded companies in the American financial system." In a 2023 letter to investors, he said the number of US public companies had declined to 4,300 from a peak of 7,300 in 1996.
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New York Post
an hour ago
- New York Post
Transportation Secretary Sean Duffy may deny flights from Mexico over broken aviation agreement
WASHINGTON — Transportation Secretary Sean Duffy warned the Mexican government Saturday that the US could deny flight requests from the country after its southern neighbor forced American cargo carriers out of Mexico City and took away slots for flights from American airlines. The Trump administration official accused Mexico of breaking a bilateral aviation agreement in 2022 when it pulled American flight slots and forced the US carriers out of Benito Juarez International Airport — before ordering its government to disclose all flight schedules with the Department of Transportation. Flights from American, Delta and United Airlines had previously been given slots at the Mexico City airport. 5 Transportation Secretary Sean Duffy warned the Mexican government Saturday that the US reserves the right to deny flight requests. Ron Sachs – CNP for NY Post Duffy also mandated department-level approval for any Mexican large passenger and cargo aircraft coming from and going to the US. 'Joe Biden and Pete Buttigieg deliberately allowed Mexico to break our bilateral aviation agreement,' he said in a statement, with his agency claiming the move 'left American businesses holding the bag for millions in increased costs.' 'That ends today. Let these actions serve as a warning to any country who thinks it can take advantage of the US, our carriers, and our market. America First means fighting for the fundamental principle of fairness.' 5 The construction that prompted the removal of American cargo carriers from Mexico City has yet to begin more than three years later, according to the Department of Transportation. AFP via Getty Images The US cargo carriers were told to relocate from the airport within 108 days — despite being placed there under the US-Mexico Air Transport Agreement signed onto during the Obama administration in 2015. The construction that prompted the removal of American cargo carriers from Mexico City has yet to begin more than three years later, according to the Department of Transportation. Mexico was the top destination for travelers leaving the US, according to statistics from the Department of Commerce's National Travel and Tourism Office compiled in 2019. 5 The Trump administration official accused Mexico of breaking a bilateral aviation agreement in 2022, when it pulled the slots and forced the US carriers out of Benito Juarez International Airport. Bloomberg via Getty Images Additionally, the transportation chief suggested the US would withdraw antitrust immunity from Delta and Aeromexico, citing 'serious concerns about the long-term competitiveness of the U.S.-Mexico market' and saying its government's actions have harmed airlines, consumers and trade. That could end the carriers' joint venture allowing for revenue sharing, common pricing and capacity management — but Delta would be able to hold its equity stake in Aeromexico and continue flying to and from Mexico. 'Mexico lacks a transparent and non-discriminatory slot allocation regime that adheres to international standards and applies consistently across the country's airports,' the department said in an order served to Delta. 5 'Let these actions serve as a warning to any country who thinks it can take advantage of the US, our carriers, and our market,' Duffy said. Getty Images 'The lack of a coherent slot allocation regime and the prospect of arbitrary action looming at any time raises serious concerns about the long-term competitiveness of the U.S.-Mexico market and the ability of the Department to depend upon the air services agreement as a mechanism to ensure adequate competition,' the order read. 'Mexico's actions harm airlines seeking to enter the market, existing competitor airlines, consumers of air travel and products relying on time-sensitive air cargo shipments traded between the two countries, and other stakeholders in the American economy.' The 'tentative proposal' to end the agreement 'would cause significant harm to consumers traveling between the U.S. and Mexico, as well as U.S. jobs, communities, and transborder competition,' Delta said in a statement. 5 A Delta Air Lines spokesperson said in a statement the move 'would cause significant harm to consumers traveling between the U.S. and Mexico, as well as U.S. jobs, communities, and transborder competition.' Christopher Sadowski 'We are reviewing the series of DOT orders regarding Mexico's adherence to the U.S.-Mexico Air Transport Agreement and look forward to working with the Trump Administration to resolve the issues raised in the orders,' the airline rep added. Reps for Mexico's foreign ministry did not immediately respond to a request for comment.
The Hill
an hour ago
- The Hill
South African citrus growers face uncertainty amid proposed 30 percent US tariffs
The winter months in South Africa's Olifants River Valley are cold, wet and green. There are waterfalls in the nearby Cederberg and Winterhoek mountains, and the landscape below is blanketed by citrus orchards. Surrounding the town of Citrusdal, farmhouses and packhouses dot the landscape, defining one of the agricultural jewels of South Africa's Western Cape province. But this winter is very different from previous ones. When I speak to the orchard workers, packhouse managers and various technicians on our family's farm, their concern is clear. I myself, an eighth generation citrus grower, am deeply worried about the future of our community. Storm clouds are on the horizon. On July 7 the U.S. announced a planned 30 percent tariff on South African imports starting Aug. 1. This came after no final trade deal could be reached between South Africa and the U.S. following the Trump administration's reciprocal tariff announcement of April 2. Our valley shows how the tariff turmoil can have extremely disruptive consequences. The local citrus farms have proudly been exporting world-class fresh citrus to the U.S. for decades. Especially the mandarins and oranges produced here finds its way onto many U.S. store shelves. American consumers have started to develop a pronounced taste for South African citrus. Since 2017 our exports have almost doubled. The looming 30 percent tariff now threatens these exports. It would make our citrus completely uncompetitive in the U.S. This would not only wreak economic havoc in our community, it would have negative consequences for the U.S. citrus consumer as well. Organizations such as the Citrus Growers' Association of Southern Africa still believe a mutually beneficial trade deal between the U.S. and South Africa is possible, but time is on nobody's side, with the Aug.1 deadline around the corner. A practical option for consideration by the U.S. would also be to exempt seasonal fresh produce from these tariffs. Seasonal fresh produce holds a unique space within the current trade turmoil, and an exemption makes sense. Seasonal produce is not like a product produced year-round in a factory. Citrus cannot be 'in-sourced.' South Africa, as a counter-seasonal producer, does not threaten U.S. citrus growers or U.S. jobs. In fact, our produce sustains demand when U.S. citrus is out of season, which benefits U.S. growers when we 'hand over' consumers at the end of our season, around October. We also add unique varieties to the U.S. market, significantly increasing consumer choice. These varieties cannot easily be replaced by our competitors, such as Chile, Peru and Australia, even though they are not facing tariffs as high as we are. Disturbing the supply of citrus to the U.S. could also lead to an increase in price for the U.S. consumer. This type of food inflation has consequences. With citrus — a main source of Vitamin C and many other nutrients — there is a health dimension to take into account as well. We help keep America healthy. The middle of the 2025 citrus season has just been reached. Fruit is being picked, packed and shipped on our farm. Our conveyor belts are humming and the trucks are leaving for the Port of Cape Town, 176 kilometers to the south. In total, South Africa planned to send over 7 million 15-kilogram cartons of citrus to the U.S. this season, but if the tariffs are implemented on the Aug. 1, we will have to deal with a devastating new reality. Fruit is usually grown for specific markets — meaning everything, from the choice of variety to sizing, from required plant health protocols to the timing of the picking, is market-specific. Because of this, it is not as simple as diverting citrus to another market. Even if some diversion could be managed, increasing supply to other countries could oversupply those markets and collapse the price, with a knock-on effect on the entire citrus industry. Either way, a 30 percent tariff means hard times ahead for our community. South Africa struggles with high levels of unemployment. The local fear is that a trade setback of this size could tip Citrusdal and the entire Cederberg municipality into extreme poverty and instability. The effect this would have on the already high levels of violent crime in our province is terrible to contemplate. But the effect is, once again, not only local. South African citrus producers have built up relationships and networks in the U.S. over decades. The tariffs would also mean immense uncertainty for stakeholders in the U.S. fresh produce chain, including logistics. While 35,000 jobs are directly dependent on U.S. citrus exports in South Africa, the Citrus Growers' Association of Southern Africa estimates that almost 20,000 jobs up and down the supply chain in the U.S. are in some way connected to the U.S.-South African citrus trade. The Olifants River Valley is staring down a completely disrupted citrus season in the face. We have weathered floods, pests, logistical crisis and even political unrest — always securing a supply of high-quality citrus to the U.S. during their summer months. Unless a trade solution is found soon, this winter's storm could very well be the one we'll not weather.
Newsweek
2 hours ago
- Newsweek
Trump's Tariffs Are Killing Affordable Cars in US: Study
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. President Donald Trump's new tariffs on vehicles and auto parts have contributed to a slowdown in affordable car availability in the United States, according to a study by The findings suggested that the 25 percent auto tariffs imposed in April, alongside the 50 percent metals tariffs targeting the European Union (EU), Mexico, and Canada, have affected new and used car prices, impacting average Americans seeking budget vehicles. Why It Matters The rise in car prices and tightening supply of affordable models present challenges for millions of Americans facing high transportation and insurance costs. Industry analysts, dealership owners, and consumer advocates have warned that tariffs would make new and used vehicles less accessible, further straining surging auto repair bills and insurance premiums. The Trump administration imposed a sweeping 25 percent tariff on imported vehicles and car parts in April. The president also hiked the 25 percent levy on steel and aluminum up to 50 percent last month. However, an earlier executive order prevents tariff "stacking" on auto parts for two years, with firms assembling the vehicles in the U.S. allowed small reimbursements. What To Know reported that cars priced under $30,000—long a staple for cost-conscious buyers—had inventory growth of just 3.9 percent year-over-year during the first half of 2025. The vast majority, 92 percent, of sub-$30,000 models in the U.S. are imports meaning they are especially susceptible to Trump's tariffs. The new study also found imported models dominated the more affordable new car market, with only the Honda Civic and Toyota Corolla being produced domestically for under $30,000—and some trims of those were still imported. Price increases for new cars have been relatively modest, at $97 on average, since the tariffs were announced. However, sharp rises were seen for certain models, especially those from the United Kingdom, which were over $10,000 more expensive, and the EU at about $2,500 more. Many experts believe that most of the auto sales this year have been of inventory that was imported before the duties, meaning their prices would be unaffected. Consultants at AlixPartners has projected that tariffs would ultimately add nearly $2,000 per vehicle and reduce total U.S. car sales by approximately 1 million over three years. Trump's tariffs on metals such as steel and aluminum continued to raise production costs for automakers, compounding pressure on entry-level vehicle affordability. While the average American spends approximately $45,000-$48,000 on a new car, according to J.D. Power and Anderson Economic Group, cars at the lower range are essential for millions of Americans who cannot afford higher purchase prices, or the many budget-focused consumers who prefer a more affordable deal. Hondas are seen at a dealership in Bedford, Ohio, on July 8. Hondas are seen at a dealership in Bedford, Ohio, on July 8. Sue Ogrocki/AP Who People Are Saying said in its July report: "The pace of sales and inventory movement will depend on the scope of tariffs, with automakers likely to adjust production to align with a smaller, more price-sensitive buyer pool." Mark Wakefield, global auto market lead for AlixPartners, told reporters in an online briefing last month, "These tariffs bring a big wall of cost..."Consumers [will be] taking the majority of the hit." President Trump said in April as he unveiled his 25 percent auto tariffs: "You're going to see prices go down." Chris Harto, a senior policy analyst at Consumer Reports, told Inside EVs: "It does not appear like any of the policies will result in people paying less to buy and own vehicles in 2028 or 2029 than they do today." Jessica Caldwell, head of insights at auto-buying resource Edmunds, told Associated Press even repairs could become more expensive due to tariffs: "If you are bringing your car to get repaired, chances are, it's going to have a part that comes from another country. That price that you pay is likely going to be directly affected by the increase [from these tariffs]." What Happens Next? Analysts agreed that most of the early 2025 car sales involved vehicles imported before tariffs took effect, delaying the full impact on prices. However, as pre-tariff inventory dwindles in the second half of the year, both new and used car prices are expected to rise.
