B↑2📆 Markets

Utilities gain big. Financials continue win streak bolstered by positive earnings. While the rest of the world inched upward seemingly given go-ahead from yesterday’s CPI, US Equity indices fell. $BTC reclaimed $100k as Trump inauguration approaches. FactSet says 77% of released earnings beat estimates so far.

B↑2📆 Headline Digest

• SpaceX’s Starship explodes in flight test, forcing airlines to divert

Upper stage communication with the rocket packed with mock satellites failed.

• Yen set for best week in over a month on BOJ rate hike bets

Yen climbed 1.5% against the dollar with bets pricing in 80% chance of rate hike next week.

• Bird feathers, blood found in two engines of Boeing jet that crashed in South Korea -source

• China’s fourth-quarter GDP grows at 5.4%, beating market expectations as stimulus measures kick in

• Apple has worst day since August following reports of China, AI struggles

$AAPL fell 4%, down 12% from its peak in December

• Trump’s Treasury pick Bessent says heavier Russia sanctions coming, no reason for digital currency

Bessent says gov spending is out of control, Trump won’t cause more inflation, Fed should remain independent.

• Nintendo reveals long-awaited Switch 2 console set to launch this year

Slightly taller, otherwise same.

• Duolingo shares climb 7% as users swarm to app to learn Mandarin

$DUOL climbed 7% as RedNote migrators seek to learn the language.

• EV, hybrid sales reached a record 20% of U.S. vehicle sales in 2024

wow

• Meta’s ‘Community Notes’ model will not apply to paid ads

B↑2📆 Markets

Skittish sentiment thawed seeing 2.9% YoY Dec CPI, meeting expectations. Although, the index has been on the rise for three months MoM. Financials rallied on positive earnings. Ceasefire between Israel and Hamas helped. $IXIC +2.45% with large gains from bigtech. $TSLA surged+8%

B↑2📆 Headline Digest

• Israel and Hamas reach Gaza ceasefire and hostage deal

The war has been going on for 15months. Israeli government expected to accept.

• TikTok’s U.S. operations could be worth as much as $50 billion if ByteDance decides to sell

TikTok has 115m monthly users in the US, Instagram has 131m. Kevin O’Leary put in an offer at $20b.

• TikTok prepares to shut down app in US on Sunday, sources say

The Washington Post reportedly says Trump may suspend the enforcement for 60-90days.

• Hindenburg Research founder says he’s closing short-seller research shop

Hindenburg Research is famous for shorting Nikola.

• Apple fourth-quarter iPhone shipments in China drop 25% as Huawei closes in, Canalys data shows

Huawei’s shipment rose 24%, bringing the market shares of the two companies to a tie.

• UK borrowing costs plunge, heading for first daily decline in 2025 as inflation fears ease

Yields fall after seeing softer CPI in the US.

• US inflation relief dents dollar, yen gains ahead of BOJ

Dollar slipped near 1% compared to JPY

• Japan wholesale inflation steady near 4%, keeps alive BOJ rate-hike chance

BOJ governor Ueda may raise rates in the Jan 23-24 meeting.

• Exclusive-Apple in talks with Barclays, Synchrony to replace Goldman in credit card deal, sources say

• Bank of Korea unexpectedly holds policy rate amid won slide

Only 7 out of 34 economists polled by Reuters forecasted rates to stay flat at 3%

• Trump’s US Treasury pick Bessent says dollar must remain world’s reserve currency

• US stock futures steady after Wall St rallies on soft CPI, strong bank earnings

B↑2📆 Markets

PPI rose 3.3% YoY in December, up from 3.0% in November. Trump administration will levy a month-by-month roll-out of tariffs, not all at once. Market mixed. M7 falls. Financials, Utilities, Industrials, Materials in the blue. Energy sector sees rally since mid-December as Trump support domestic oil & gas industries and sanction Russia’s.

B↑2📆 Headline Digest

• Musk accused by SEC of cheating Twitter investors out of millions

SEC claims Musk failed to report a section 13(d) filing which one must after accumulating more than 5% equity.

• December CPI report expected to show sticky inflation as investors recalibrate rate cut bets

Dec CPI is to be released at 8:30am ET Wednesday.

• German economy contracts 0.2% in 2024 in second consecutive annual slowdown

German economy contracted 0.3% in 2023.

• Nvidia-backed AI video platform Synthesia doubles valuation to $2.1 billion

The British firm Synthesia, makes AI generated clips of multilingual human avatars.

• Meta announces 5% cuts in preparation for ‘intense year’ — read the internal memo

Low performers will be let go by Feb 10.

• Oil steadies near $80 as IEA sees smaller surplus this year

• IEA says new US sanctions could significantly disrupt Russian supply

US sanction from last Friday listed 160 tankers, which accounts for 22% of Russian seabourne oil exports.

• China’s Central Bank pumps near-historic level of cash into financial system

PBOC injected $131b of cash in open market operation reverse repurchase agreement

• Tesla to suspend part of new Model Y lines in China for upgrades, Bloomberg News reports

• These Chinese apps have surged in popularity in the U.S. A TikTok ban could ensnare them

The Chinese Lemon8 and RedNote has seen a surge in popularity.

• South Korea’s President Yoon Suk Yeol arrested as agencies probe his short-lived martial law decree

• An ‘unfamiliar’ era for investors has arrived after a 20-year ‘regime’: Morning Brief

Investors are unfamiliar to high interest and inflation.

• November CPI report marks latest test for Fed in fight against inflation

A pretty decent CPI reading would be needed for a Santa Rally, … is what people are saying, but could it just charge on regardless?

• Big banks find many ‘reasons to be optimistic about 2025’ as Trump 2.0 nears

Banks are expecting heightened investment banking fees and trading revenue in Q4, with decent interest income.

• Exclusive: Chinese authorities are considering a weaker yuan as Trump trade risks loom, sources say

The nation will need ample firearm ahead of the proclaimed 60% tariff looming ahead.

• Netflix co-CEO shakes off M&A in 2025: ‘We’re better builders than buyers’

Netflix has acquired the Roald Dahl Story Company before.

• Older workers are the happiest workers, study finds

The Pew Research Center paper on how Americans view their jobs. Two-thirds of people over 65 are highly satisfied.

• Inside Assad’s Ransacked Palace: Anxiety Pills, Graffiti and Shredded Posters

Bashar al-Assad’s palace in Damascus, Syria is occupied by rebel fighters and civilians as the previous ruler flees to Russia. The year-long civil war ended abruptly in two weeks as Russia and Iran couldn’t come to help defeat insurgents. The palace was completed in 1990 under Assad’s father.

• China Economists Ramp Up Expectations for Rate Cuts, Spending

Banks expect rate cuts of 40 to 60bps. 7-day reverse repo rate is currently 150bps. PBOC expected to reduce reserve requirement ratio by 250bps.

• The Fed’s ‘final 5-pound’ issue with inflation points to gradual rate cuts: Morning Brief

3% Inflation is solid progress from 9% in mid-2022. But the last 1%p gap is hard to close.

• TSMC Revenue Jumps 34% in November in Sign of AI Demand

TSMC shares are up 80% this year.

• Apple’s rally is unabated by sluggish growth and tariff risks

Apple shares continue to gain despite slowest revenue growth among Big Tech and lackluster iPhone sales. An analyst says it owns “the chokepoint between AI and the consumer.” Chokepoints are crucial, and could be counter intuitive. In today’s world chip fabs, as much as the designers, are the choke points. Costco’s large distribution is a big enough chokepoint to gradually promote its own brands.

• US finalizes more than $6.1b chips subsidy for Micron Technology

The investment will help “onshore a critical technology relied upon by our defense industry, automotive sector and national security community”

• Many student loan borrowers are in for a big, bad surprise in 2025

Federal government is expected to start collecting on defaulted loans since the collection pause during the pandemic.

• South Korea’s Yoon Survives Impeachment After Martial Law Fiasco

• US-China Tech War Fuels Asia Boomtowns Built on AI, Chips

Tech investments change landscape of Malaysia and Vietnam.

• Apple Plans Three-Year Modem Rollout in Bid to Top Qualcomm

Apple’s half-decade long cell modem will be featured in iPhone SE next spring.

• Trillion-Dollar Gap Shows Diverging Korea, Taiwan Stock Fortunes

Taiwan equities rose 30% this year, dwarfing neighbors.

• Goldman Decides to Leave World’s Top Climate Alliance for Banks

Goldman leaves the Net-Zero Banking Alliance.

• Reviled South Korea Leader Still Likely to Survive Impeachment

• Korea Crisis Has Silver Lining for Markets as Backstops Kick In

Korea’s central bank promised to provide unlimited liquidity if necessary.

• Bitcoin True Believers Bask in I-Told-You-So Glow at $100,000

• Ulta Shares Surge on Strong Sales Despite Discount Fears

• Jane Street, Millennium Settle India Options Trade Secrets Case

Ex-traders of Jane Street took a lucrative trading strategy involving India options that generated $1b for the firm in 2023.

• Lululemon Boost Outlook as Overseas Sales Blunt US Softness

• Aftershocks Rattle Northern California Following Large Quake

• November jobs report expected to show hiring rebound, unemployment holding steady at 4.1%

This is Bloomberg consensus. October figure was impacted by the hurricane.

• Elon Musk’s DOGE benefits from being whatever people want it to be

• Big changes are coming to AI in 2025: Microsoft

AI agents will be able to perform specific tasks.

• Bitcoin price today: hits new high above $103k as Trump picks pro-crypto SEC Chair

• BlackRock sees ’exceptionalism’ powering US stocks higher in 2025

• Crypto is getting the SEC boss it wanted in Paul Atkins

Atkins is against unnecessary oversight.

• Salesforce CEO Marc Benioff: DOGE has a real shot at cutting costs, and new technologies could help

• Nvidia to build AI research, data centres in Vietnam with govt

• Hedge Funds Make MicroStrategy Wall Street’s Hottest Trade

• Elon Musk is getting some (tentative) bipartisan interest as he heads to Capitol Hill

Some Democrats concur with Musk’s notion of DOGE.

• US weekly jobless claims rose more than expected

Rose from 215k to 225k for the week ending Nov 30.

• OPEC+ to delay supply increase by three months, Bloomberg reports

It is the third postponement amid depressed oil price levels.

• South Korea Opposition Seeks to Impeach President for Treason.

• How Citigroup’s Firing of Asia Equity Sales Traders Is Haunting the Bank Years Later

• China Services Expansion Cools Despite Recent Stimulus Push

• China Tech Stumbles in Hunt for Wall Street’s AI Gold Rush

• Asian Stocks Fall as Political Turmoil Hits Korea: Markets Wrap

• Larry Fink Is Making a New Generation of Billionaires Richer Than Him

BlackRock acquires the private-credit firm HPS Investment Partners for $12b. BLK recently acquired Preqin and GIP.

• President Biden’s Growing Worries Spurred Son’s Pardon Without Delay

• Amazon Announces Supercomputer, New Server Powered by Homegrown AI Chips

• SpaceX Weighs Tender Offer at Roughly $350 Billion Valuation

The company was last valued at $210b in a tender offer, by which employees and early investors can sell shares.

• US-China Rivalry Enters a New Arena in Africa

Biden visits Angola. US will finance most of the Lobito Atlantic Railway that connects Angola port to the copper mines of the Democratic Republic of Congo. China has been expanding influence in the region.

• A New Method to Map the Brain: Infect It With a Virus

E11 injects virus into a living mouse’s brain, that will cause neurons to make special, identifiable proteins. Then the mouse brain is dissected, its proteins colored to draw the map.

• Russia’s Seaborne Crude Exports Jump Before Pivotal OPEC+ Talks

• French Lawmakers to Vote Wednesday on Toppling Government

• China Leaders Plan to Discuss GDP Target, Stimulus Next Week

• Vietnam Tycoon Loses Death Penalty Appeal Over Fraud Scandal

• ‘Moana 2’ fuels biggest Thanksgiving box office of all time

Moana 2, Wicked, Gladiator II makes a combined $420m in the week of Thanksgiving.

• How Trump’s mass deportation plan can use AI to extend immigration crackdown

DHS allocated $5 for AI in the 2025 budget. AI usage will likely expand in the execution of Trump’s mass deportation plan.

• The tech support desk at work is one of the first jobs on AI replacement ticket

Palo Alto Network’s CEO said this year that it has reduced IT support staff by 50% and could widen to 80%. “We’ve been able to automate a lot of the tasks and also use gen AI to answer employee’s questions.”

• As retailers enter the holiday season, the winners are pulling away from the pack

Target, Kohl’s, Best Buy: bad results. Walmart, Dick’s Sporting Goods, Abercrombie & Fitch: good results. People are cutting back on visiting weak retailers amid inflation.

• China Skips Politburo Readout as Investors Await Stimulus

The 20th Politburo previously missed a statement in May 2023, and investors look towards the December releases.

• Biden Pardons Son Hunter in Reversal With Weeks Left in Term

Biden had said he will not use his powers to pardon his family.

• US Tightens Curbs on China’s Access to AI Memory and Chips Tools

The expanded sanctions include the sale of HBM and chipmaking gear produced by US firms in foreign locations and a blacklisting of 140 more Chinese entities.

• Milei Touts $50 Billion From Investors Eyeing 30-Year Loopholes in Argentina

Milei’s incentive package, RIGI, aims to lure energy, mining, tech, forestry, steel, tourism companies. A big part is currency stabilization and a consistent policy.

• Europe’s Largest Pension Fund Buys Mortgages Worth $2.8 Billion

Stichting Pensioenfonds ABP acquires $2.8b portfolio of Dutch mortgages

• Trump Demands ‘Commitment’ From BRICS on Using US Dollar

“The idea that the BRICS Countries are trying to move away from the dollar while we stand by and watch is OVER. … will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy.” BRICS countries are Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, UAE.

• Trump Picks Loyalist ‘Deep State’ Critic Patel to Head FBI

Trump has been criticizing FBI for being corrupt. FBI searched Mar-a-Lago in 2022.

• Rush to ‘Value Up’ May Be Asian Stocks’ Best Defense From Trump

The article’s focus is on Japan, Korea, Singapore, China, India’s endeavor to boost stocks through enhanced governance and returns to shareholders. Doesn’t discuss how it would be a defense against Trump.

• JPMorgan Rejects Transition-Finance Trend Gripping Wall Street

JPMorgan’s Linda French deems the allocation of capital to help cut carbon emissions are in the gray zone and that finance will move when it makes economical sense.

• Saudi Arabia’s US Treasury Holdings Hit Highest Since 2020

US Treasuries accounts for 35% of Saudi Central Bank’s foreign assets as of last month, positioning Saudi to be in amicable relations with the US.

• HK Finance Chief Expects 50% Jump in Airport Capacity by 2035

• Korea Official Sees Need to Lift US Energy Imports, Yonhap Says

Korea is expecting pressure from Trump to buy more from US.

• Bond Vigilantes Upend France’s Debt Market: Credit Weekly

The tight-spending budget failing to pass, worries over France’s deficit are weighing on the countries sovereign borrowing cost.

• Baidu Wins First License to Test Self-Driving Car in Hong Kong

10 Baidu vehicles will operate in Lantau area.

COP29, 29th Conference of the Parties, set out a pledge of wealthy nations committing $300b until 2035 for developing countries. Developing countries called for $500b. The agreement in 2009, to provide $100b a year until 2020 to developing countries was met in 2022. Contrary to the flood of articles in response to the news, it took a little while to find the original document. Link below. It’s this item. “New collective quantified goal on climate finance. Draft decision -/CMA.6. Proposal by the President”. Ctrl+f “USD 300 billion”. So many questions about how these resolutions get implemented in the real world and who comes up with these massive figures, how the money is going to be used. But I don’t have time. Probably Trump will scoff at it soon too. My view is that the world acts like a student who only gets working at the last minute. At a point when all clocks dictate that it is high time to take action or else, people will truly get working.

UNFCC link

• Palm Beach, a Democratic Pocket in Florida, Becomes MAGA Central

Trump’s associates and media outlets occupy adjacent real-estate, hotel rooms, restaurants.

• A 12-Year-Old’s Journey Into the World of Ozempic

Compounded weigh-loss drugs increasingly prescribed to adolescents, raising concerns.

• U.N. Reaches $300 Billion Climate Financing Deal as Trump Looms

Wealthy countries pledge $300b annually by 2035 to poorer nations deal with climate crisis and energy transition through public and private finance.

• Welcome to the World of 24-Hour Stock Trading

Robinhood and IBKR introduced overnight trading for stocks last year. NYSE and Charles Schwab also plans to extend hours. It would allow prompt response from live events, but could offer only thin liquidity in some hours.

• Ukraine is being hit with a surge of attacks using North Korean missiles. Western components help make it possible

• Scientists fear Trump will erase public research, here’s what they are doing

• ‘Not trivial’: EV sales could drop nearly 30% if Trump repeals tax credit

Trump plans to scrap the $7,500 EV tax credit

$BTC flirts with $100k. Is such an apt expression.

• Trump Nominates Hedge Fund Chief Bessent to Lead US Treasury

Must previously rooted for Howard Lutnick instead of him.

• US Treasury Pick Bessent ‘Is a Fiscal Hawk’: Wall Street Reacts

• US Business Activity Expands Most Since 2022 as Confidence Builds

S&P Composite PMI rises to 55.3 from 54.1 in November flash report.

• What I Learned About Luxury at the Rolls-Royce School For Chauffeurs

How the driver should rest their arms, open the door, park etc.

• Trump Once Disavowed Project 2025. Now He’s Hiring People Who Worked on It

Even Trump shunned its ideas, including anti-immigrant, anti-reproductive rights, elimination of climate-change rules, less work protections, as extreme. Trump’s side says they hired the people, not Project 2025.

• Musk Ducks Sanction for Choosing Rocket Launch Over SEC Meeting

Judge declined to sanction Musk’s absence.

• Gamblers Are Sinking Billions Into a Leveraged Market Fringe

Leveraged ETF trade volume is surging.

• Texas Raises Pressure on Chinese Investments With Exit Order

One says state level divestment wouldn’t have a material impact, but means an anti-China has become conducive to a political strategy.

• Americans Weigh Golden Visa Options in Aftermath of Trump Win

More Americans who seek lower living costs, relaxed lifestyle, remote working are considering a golden visa in European countries.

• Samsung ordered to pay $118 million for infringing Netlist patents

Netlist, a memory company, formerly won $445m from Micron on infringement of patents. Netlist sued Samsung in 2022.

• Americans Say You Need $5.3 Million to Be Considered a Success

Coupled with an annual salary of $270k. Average US salary in 2023 is $67k.

A conjecture: Either Musk or Ramaswamy will resign from DOGE before fall 2025.

• How Adani’s Indictment Rocked His Empire and What Comes Next

DOJ charge Adani of lying to US investors about anti-bribery practices. Adani Group’s $600m bond raising scrapped.

• Chinese Stocks Slump as Weak Tech Earnings Hurt Sentiment

• Bitcoin Flirts With $100,000 on Optimism Over US Crypto Outlook

Charles Schwab CEO says the firm will trade spot crypto once regulatory conditions are met.

• UK Energy Bills to Rise in Sign of Continuing Inflation Risk

UK CPI rose from 1.7% in September to 2.3% in October, driven by energy bills.

• Trump Picks Pam Bondi for Attorney General After Gaetz Exit

Matt Gaetz backed out Thursday on alleged sexual encounter with a 17-year old.

• Surprise Solar Boom in Pakistan Helps Millions, But Harms Grid

Grid power demand declined notably since 2023, due to Chinese panels generating much energy.

• Musk’s efficiency commission is already overreaching

Musk said on November 1 that DOGE may involve temporary hardship for many.

• Gold Set for Biggest Weekly Jump in 13 Months on Haven Demand

• Crypto Tokens Targeted by US SEC Jump on Gensler’s Planned Exit

XRP by Ripple Labs Inc., ADA by Cardano blockchain, SOL by Solana roar.

• Boeing’s CEO tells staff to stop ‘bitching by the water cooler’ and focus on beating Airbus

• OpenAI considers taking on Google with browser, the Information reports