Markets
Markets took a breather last week. Even the European market rally continued since year start came to a halt. US equities were also impacted with the biggest decline on Friday, due to further confirmation on inflation impacting the economy. Or investors just began climbing out of the ship from ever-high valuation. $KOSPI and $HSI were notable exceptions. The former continued rebounding from depressed levels, the latter on the back of rate cuts and the new AI focus. $Gold continued to gain, pushing past $2,950/ounce.
Headlines
• Nvidia earnings and the Fed’s preferred inflation gauge: What to know this week
$NVDA to report earnings on Wednesday. Core PCE release on Friday, second estimate of 4Q GDP on Thursday.
• Why Trump’s immigration policy ‘deserves more attention’ from investors
The US received an average of 3m people during 2022-2024. The numbers are expected to fall below 1m in 2025 and could contribute to an higher inflation.
• How Trump’s federal worker layoffs will hit beyond Washington
75k federal employees took the buyout offer. The layoff of 200k people with less tenure and employment protection are rolling out.
• The industry hit hardest by DOGE cuts so far (hint: it’s not the media)
Development and consulting firms.
• Germany’s conservatives win election, as far-right AfD leaps to second place, exit polls show
The alliance between Christian Democratic Union and Christian Social Union won 28.5% of votes. AfD won 20%, Scholz’s Social Democratic Party won 16.5%
• Ukraine’s Zelenskyy says he’d be ready to give up presidency if it brought peace and NATO membership
• Israel sends tanks into West Bank for first time in decades, says fleeing Palestinians can’t return
• Pope Francis remains critical and has ‘slight’ kidney issue, Vatican says
• Warren Buffett amasses more cash and sells more stock, but doesn’t explain why in annual letter
“Berkshire shareholders can rest assured that we will forever deploy a substantial majority of their money in equities – mostly American equities although many of these will have international operations of significance,”
• Zelensky: U.S. Aid to Ukraine is a Grant, Not Debt
• Israeli Jets Over Nasrallah’s Funeral in Beirut
The funeral of Hezbollah leader Hassan Nasrallah was held in Beirut, Lebanon.
