Morgan Stanley limits devices for 300 Hong Kong bankers, flags May-June inflation peak
Morgan Stanley has supplied more than 300 Hong Kong investment banking staff with restricted-use iPhones and iPads for mainland China travel, limiting functionality to work emails and meeting apps to comply with tightened Chinese and US data regulations. Chief US economist Michael Gapen warns US inflation will peak in May-June due to unpriced tariffs, energy price spikes from the Iran war and housing inflation lags before entering a period of substantial disinflation weeks later.
1. Restricted Devices for Hong Kong Bankers
Morgan Stanley supplied over 300 Hong Kong-based investment banking employees with dedicated iPhone and iPad devices configured for limited functionality, allowing only work email and virtual meeting applications. The move aims to isolate mainland China data environments and ensure compliance with stricter Chinese cybersecurity and US data export controls when bankers travel to Chinese jurisdictions.
2. Inflation Peak Forecast
Chief US economist Michael Gapen identified unpriced tariffs, energy price surges tied to the Iran conflict and delayed housing inflation metrics as the 'trifecta' driving a projected US inflation peak in May-June. The bank anticipates one or two further high inflation readings followed by several weeks of accelerated disinflation as price pressures ease.