Webinar Replay: An Evolving World Order: Cost of Capital in the Current Environment

Global financial markets are getting used to an environment where uncertainty and volatility is the name of the game. While quick to react to far-reaching announcements on economic indicators, monetary policy, or tariffs and trade policies, investors also pivot rapidly when new regulations come along that can improve or alter future earnings projections. Businesses, on the other hand, do not have the flexibility to instantly reflect new developments in strategic planning decisions.

In 2025, the global economy has been facing a variety of events that pull in different directions: new trade agreements, debt-driven fiscal spending by various governments and large corporate investments in AI add to mixed economic signals that include slowing real economic growth, cooling labor markets and still persistent inflationary pressures. This makes monetary policy more challenging for the Fed and other central banks.

Kroll’s managing director Carla Nunes and director James Harrington discussed the latest economic and financial market developments that have an impact on valuations and cost of capital estimates.

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Topics Discussed:

• Discuss the latest trends in real GDP growth and inflation forecasts for the U.S. and other geographies and how economic activity is being impacted by the current uncertain trade environment.
• Identify major policies by the U.S. administration that could have a significant impact on the global economy and valuations in general.
• Understand the impact of monetary policies by the Fed other major central banks on financial markets and what this means for the U.S. and the global economy, as well as for cost of capital estimates.
• Identify economic indicators and financial market risk factors that impact Kroll’s U.S. and eurozone equity risk premium recommendations.
• Review country risk trends, with a focus on some of the countries most impacted by global trade uncertainty.