China’s latest inflation data reveals a clear shift beneath the surface, the AI-driven industrial cycle is now feeding into price pressures , even as consumer demand remains subdued. Key Takeaway China's producer prices rose at the fastest pace in nearly four years, driven by stronger demand for AI-related electronics, computing infrastructure and industrial metals. However, soft consumer inflation suggests domestic demand remains weak, highlighting a growing divergence between industrial activity and consumer spending. AI Demand Is Driving Factory Inflation Producer prices (PPI) rose 3.9% YoY Strong demand from: AI infrastructure buildout Electronics and semiconductors Industrial metals like copper and aluminium The global AI spending wave, especially data centre expansion is now directly influencing China’s upstream pricing power. Consumer Demand Still Lagging CPI grew only 1.2% YoY , below expectations Core inflation softened to 1.1% Weak consumption rem...
Wendel, a French investment firm, has agreed to acquire a 75% stake in Monroe Capital, a US-based private credit manager, for US$1.13 billion. The deal, which includes an additional US$1 billion to grow Monroe’s business and seed new funds, is part of Wendel’s strategy to expand into the lucrative private credit sector.
The transaction also includes an earn-out mechanism worth up to US$255 million and is expected to close in the first half of 2025. Founded in 2004, Monroe Capital manages US$19.5 billion in private credit across the US and Canada. The acquisition will enhance Wendel’s exposure to the US market, which CEO Laurent Mignon sees as more dynamic than Europe’s economy.
Wendel's acquisition aligns with its broader strategy to diversify into private markets and asset management. Monroe Capital is expected to serve as a base for Wendel’s private credit operations in Europe, a market less developed than the US. The deal follows Wendel’s majority stake acquisition in mid-market buyout firm IK Partners earlier this year.
The acquisition comes amid growing interest in the private credit sector, with major firms like Apollo Global Management, BlackRock, and Ares Management expanding their presence through partnerships and acquisitions.
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