US PPI, a measure of inflation at the producer level, rose to 6% year on year in April, the highest since December 2022 and well above market expectations. Energy price inflation also rose sharply since March. The data suggest that the war in the Middle East is beginning to feed into the real economy through higher input costs for companies, raising the risk that these costs may be passed on to consumers.
Chairman and CEO Mike Freno joined Bloomberg’s Romaine Bostick and Katie Greifeld at the Milken Institute Global Conference for a discussion on market volatility, private credit and how Barings is positioned as client needs continue to evolve.
Emerging Markets (EM) entered Q2 2026 facing heightened geopolitical and macro uncertainty, driven by rising oil prices, shifting inflation dynamics and increased volatility in local markets. Despite these near-term challenges, resilient fundamentals, disciplined policy frameworks and attractive valuations continue to support EM’s longer-term income and diversification potential.