Financial markets are steady at the moment, despite geopolitical tensions

Summary

Marketplace Morning Report: Financial Markets Steady Amid Geopolitical Tensions Released on June 18, 2025

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1. Market Overview: Calm Amidst Conflict

Timestamp: [01:32]

Host David Brancaccio opens the episode by highlighting the surprising steadiness of financial markets despite escalating geopolitical tensions, particularly the ongoing military actions between Israel and Iran. Early trading indicators show modest gains:

• Dow Jones Industrial Average: Up by 66 points (0.10%)
• S&P 500: Up by 0.10%
• NASDAQ: Up by 2.10%

Brancaccio notes the absence of definitive statements from the White House regarding potential U.S. military actions against Iranian nuclear facilities, adding to the market's unexpected stability.

2. Expert Insights: Interview with Ben Kumar

Timestamp: [02:14]

David Brancaccio welcomes Ben Kumar, Head of Equity Strategy at Seven Investment Management in London, to discuss the market's reaction to geopolitical events.

Key Discussions:

• Market Calmness: Kumar expresses surprise at the market's tranquil response to the Iran-Israel situation, stating, “I am very surprised to see that markets have been taking it so calmly” ([02:24]).

• Federal Reserve’s Stance: Anticipates the Fed's upcoming briefing, suggesting they will likely continue their data-dependent approach without immediate interest rate changes. Kumar remarks, “I don't think it is the Federal Reserve's job to really play much of a part in geopolitics” ([03:05]).

• U.S. Economy Resilience: Emphasizes the unexpected robustness of the U.S. economy, noting, “The US is an entrepreneurial system... it doesn't mean the US equity market is always going to be a good investment. But that engine of growth the US delivers is just so, so solid” ([03:53]).

Kumar underscores the difficulty in unseating the U.S. economic engine, attributing it to consistent entrepreneurial activity and spending.

3. Tech Industry Update: AI Talent Competition

Timestamp: [04:41]

Brancaccio shifts focus to the technology sector, discussing remarks by Sam Altman, CEO of OpenAI. Altman revealed that Meta (formerly Facebook) is aggressively attempting to poach top AI experts by offering substantial bonuses, reportedly around $100 million. However, Altman asserts that none of his team members have been swayed by these offers, stating, “We all” ([05:15]).

This segment highlights the intense competition for AI talent among leading tech companies and underscores OpenAI's strong retention of its elite experts.

4. Exploring Financial Barriers in Religious Life: "Marketplace Uncomfortable"

Timestamp: [06:16]

In a special segment from the "Marketplace Uncomfortable" series, host Rima Krais delves into the intersection of personal finance and religious vocations. The discussion centers around Sister Monica Clare, Sister Superior at the Community of St. John the Baptist in New Jersey, who shares her experience with debt and its impact on her path to becoming a nun.

Key Insights:

• Debt as a Barrier: Sister Clare reveals that she was required to eliminate over $100,000 in debt before entering her vocation, highlighting financial constraints that deter many from pursuing religious life. “I spent more than a decade paying off my debt before I could take the first steps towards becoming a nun” ([07:22]).

• Decline in Nun Population: Citing a study, Krais mentions a 76% decline in the number of nuns in America over the past 50 years, with student debt being a significant deterrent.

• Financial Independence of Convents: Sister Clare clarifies misconceptions about convent funding, explaining, “There's this misconception that we're supported by the church but we're not. We're totally self-supporting” ([07:42]). She elaborates on the financial challenges, noting that nonprofits often struggle to break even.

• Vow of Poverty: The segment explores how nuns manage financial independence through a vow of poverty. Sister Clare explains, “Poverty doesn't mean deprivation... it just means you take really good care of what you have and you only buy what you absolutely need” ([08:07]). This involves relinquishing personal ownership and sharing resources within the community.

• Elder Care for Nuns: Addressing concerns about aging, Krais learns that nuns typically do not retire. Instead, their roles may evolve based on physical capabilities, and they receive care through donations and community support. “Most convents will care for them with the help of donations and the support of the broader religious community” ([08:46]).

This segment sheds light on the financial hardships and systemic challenges faced by individuals pursuing religious vocations, emphasizing the broader implications of debt and economic policies on personal life choices.

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Conclusion

In this episode of the Marketplace Morning Report, David Brancaccio provides a comprehensive overview of the current financial landscape, emphasizing market resilience in the face of geopolitical tensions. Insights from Ben Kumar highlight the steadfastness of the U.S. economy, while Sam Altman's comments bring attention to the fierce competition for AI talent in the tech industry. The special "Marketplace Uncomfortable" segment poignantly explores the financial barriers within religious life, offering a nuanced perspective on how debt influences personal and spiritual decisions.

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For those interested in the detailed discussions and analyses, tuning into the full episode of Marketplace Morning Report is highly recommended.

Transcript

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[David Brancaccio]

Financial markets are steady at the moment, despite geopolitical tensions. I'm David Brancaccio in Los Angeles. Let's start with financial markets strangely calm so far this morning given, among other things, continued military action between Israel and Iran. In early trading, The Dow is up 66 points, a tenth of a percent. The S and P also up a 10th percent. The NASDAQ is up 2, 2, 10%. So not a lot, but up for the indicators as the trading day opens. There's been no sign from the White House whether the US Would take the watershed step of military action against nuclear facilities in Iran. Let's turn to London, where we find Ben Kumar, head of Equity strategy at Seven Investment Management. Hey Ben.

[Ben Kumar]

Hello. How you doing?

[David Brancaccio]

You know how they say when it comes to this investment thing, you should Stay calm and not react to every headline. I guess people are doing what we're taught.

[Ben Kumar]

It does feel like that. And you know, I absolutely think most of the time, most news does not need you to go and mess around with your portfolio. But of all the things not to react to, this feels like actually one that I would have expected people to be more concerned about. When it comes to Iran and Israel, I am very surprised to see that markets have been taking it so calmly.

[David Brancaccio]

We also have the US Central bank considering some of the same factors. They're expected to brief the media later this afternoon, U.S. time. You're not expecting interest rates to actually move here?

[Ben Kumar]

No, I don't think so. I suspect what we'll probably see is the return to the phrase data dependent and acting cautiously. Yes, the oil price has risen a lot in the last couple of days. But what back to a level that we've been at really for the past two or three years, it's not going to be impacting inflation in the way that we've seen big oil prices move in the past. And I don't think it is the Federal Reserve's job to really play much of a part in geopolitics.

[David Brancaccio]

It will be interesting to see how they assess the economy because we're at this possible inflection point yet there's still resilience in the U.S. economy. And you know, they supposedly have state of the art information on how we're doing.

[Ben Kumar]

The number of times the resilience of the U.S. economy has surprised economists. Right. The U.S. is far more resilient than I think people give it credit for. Lots of people are constantly waiting for things to fall apart. But you know what? The US is an entrepreneurial system in which lots of people go out each day, go to work, make money, spend the money, and it doesn't matter who's the president, it doesn't matter what's going on in Iran or Israel. It doesn't mean the US equity market is always going to be a good investment. But that engine of growth the US delivers is just so, so solid. It's very difficult to knock off course.

[David Brancaccio]

All right, getting a sense of the market Zeitgeist from Ben Kumar, head of equity strategy at Seven Investment Management. He's based in London. Ben, always good to catch up.

[Ben Kumar]

Thank you.

[David Brancaccio]

And the ChatGPT CEO Sam Altman of OpenAI, says one of his rivals, meta Facebook, is trying to poach his elite AI experts big time. Altman says $100 million bonuses are on offer, but that none of his People have gone for it Foreign.

[Ben Kumar]

We all.

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[David Brancaccio]

Cast the net of our beat widely. What subject does money not touch? Someone once suggested to me religion. Well, au contraire. The Marketplace podcast called this is Uncomfortable has been talking to nuns about personal finance. This includes Monica Clare, who is Sister Superior at the community of St. John the Baptist, an Episcopal convent in New Jersey. Sister Claire was required to pay off over $100,000 in debt before she could enter that vocation. Our host, Rima Krase, joins us. Hey.

[Rima Krais]

Hey, David.

[David Brancaccio]

Owing money debt can get in the way of a person following a religious calling.

[Rima Krais]

Yeah, many Catholic and Episcopal convents have strict policies. If you have debt, you can't join. And it comes down to the fact that it is hard to make timely debt payments when you've taken a vow of poverty. Sister Monica Claire, she told me that she spent more than a decade paying off her debt before she could take the first steps towards becoming a nun. And this is holding back a lot of people. There is this. There was a study from a few years back that found that the number of nuns in America has declined 76% over the last 50 years. And student debt is one of the biggest barriers.

[David Brancaccio]

Student debt. Now, Catholic Church has tens of billions of dollars. The Episcopal Church has at least a couple billion. The wider hierarchies can't help out with this debt.

[Rima Krais]

That brings me to another interesting fact about convents. They are actually financially independent from the larger church. Sister Monica Clare explained it to me this way.

[Sister Monica Clare]

There's this misconception that we're supported by the church but we're not. We're totally self supporting. And that becomes very difficult sometimes because nonprofits are always struggling to break even. It's really, as you know, it's very difficult.

[David Brancaccio]

All right, now, at a personal level, vow of poverty, how does Sister Monica process that?

[Rima Krais]

When I talked with her about it, she explained it to me like, poverty doesn't mean deprivation.

[Sister Monica Clare]

I thought it did, but it just means you take really good care of what you have and you only buy what you absolutely need.

[Rima Krais]

So in practice, that means giving up personal ownership. They give away material belongings, any savings go to the church, they give over their car, donate their clothes, and everything becomes shared. But that doesn't mean they live with nothing. The sisters do get a small monthly allowance, about $50.

[David Brancaccio]

Now, my wife has two aunts who are Catholic nuns, Franciscans, who really. Yeah. Who've taken vows of poverty, and their order is caring for them now that they're elderly. What about the golden years for Sister Monica?

[Rima Krais]

You know, I asked her, and it turns out nuns don't really retire. Their work might change based on their physical ability. But most of them entered religious life with the intention of spending all of their days in this community. And most convents will care for them with the help of donations and the support of the broader religious community.

[David Brancaccio]

All right, Fascinating. Rima Krais is host of the Marketplace podcast. This is uncomfortable. The episode we've been talking about, new Nun Syndrome, is out now and available wherever you get your podcasts. Rima, always good to catch up.

[Rima Krais]

So great. Thanks, David.

[David Brancaccio]

And in Los Angeles, I'm David Brancaccio. It's the Marketplace Morning report from APM American Public Media.

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