Welcome to Read Sunday, your essential source for a concise and impactful weekly Business & Finance recap. Dive into the pivotal market highlights from the week, distilled for your convenience, and stay tuned for the thought-provoking editor's piece that rounds off your Sunday with insightful perspectives.

Market Recap

This Week’s Headlines

Public Markets

• On Monday, the co-working space startup WeWork declared bankruptcy, marking a significant downfall from its pinnacle valuation of $47 billion in 2019, when it stood as one of the United States' most valuable startups. (FORB)

• Microsoft's strong performance has propelled a remarkable $1.5 trillion surge on the Nasdaq. The software giant's impressive results have sparked optimism among analysts who are bullish on the robust fundamentals of the tech industry and the stock's potential. (BBN)

• In the ongoing Big Pharma competition to combat obesity, Novo Nordisk initially took the lead, but Eli Lilly is rapidly closing the gap. This Wednesday, the Indianapolis-based company secured FDA approval for its GIP/GLP-1 compound, tirzepatide, as a treatment for obesity, paving the way for broader access to this treatment in the United States.

  Known as Zepbound, Lilly's new product employs the same formula as the immensely popular Type 2 diabetes medication, Mounjaro. Since receiving FDA endorsement in May 2022, Mounjaro has seen widespread, off-label usage for treating obesity. (FPH)

• Meta is making it more convenient for users to make impromptu Amazon purchases without leaving its popular mobile apps. The company has introduced a new feature that enables users to connect their Facebook and Instagram accounts to Amazon, allowing them to purchase products by simply clicking on promotions within their feeds. (CNBC)

• Berkshire Hathaway, on Saturday, reported a significant increase in its third-quarter operating earnings, all while holding a record amount of cash due to Warren Buffett's limited opportunities for dealmaking.

  The conglomerate, based in Omaha, posted operating earnings of $10.761 billion for the last quarter. This represents a substantial 40.6% rise compared to the $7.651 billion earned in the same quarter the previous year.

  Berkshire Hathaway ended September with a record cash reserve of $157.2 billion, surpassing the previous high of $149.2 billion set in the third quarter of 2021. (CNBC)

Economy

• In September, the U.S. trade deficit increased by nearly 5% to reach $61.5 billion. However, it still remained close to a three-year low and was on course to register the smallest increase since 2020.

  Reduced trade deficits contribute positively to the gross domestic product (GDP), which serves as the official measure of the U.S. economy's performance. The GDP expanded at a rapid pace of 4.9% in the third quarter. (MW)

• Oil prices experienced a roughly 2% increase on Friday, with Iraq expressing support for OPEC+'s oil production cuts ahead of an upcoming meeting in two weeks. Additionally, some speculators decided to cover significant short positions in anticipation of potential weekend uncertainties.

  Despite this Friday's gain, oil prices concluded the week with a 4% loss, marking their third consecutive weekly decline. (RET)

• American wheat shipments have reached an all-time low, primarily due to several factors including a shrinking Mississippi River and competition from abundant global grain supplies. These challenges have impacted the country's ability to export wheat effectively. (BBN)

Mergers & Acquisitions

• Caisse de Depot et Placement du Quebec, Canada's second-largest pension manager, is currently considering the possibility of selling up to $2 billion worth of its private equity assets in the secondary market. This move is intended to generate additional liquidity for other investment opportunities, as reported by sources familiar with the matter.

  The pension manager is actively exploring the market and may ultimately decide to sell a smaller portion of its assets or opt not to sell at all, contingent on the price offered. Evercore Inc. is said to be providing advisory services for this potential sale, according to the same sources, who requested anonymity due to the confidential nature of the discussions. (BBN)

• Germany is reportedly close to finalizing a deal to acquire its largest power grid from the state-owned Dutch operator Tennet Holding BV for a sum exceeding €22 billion ($23.6 billion), as indicated by individuals familiar with the matter. The government is currently engaged in advanced negotiations to establish the terms of this potential purchase and may potentially make an official announcement regarding the agreement as early as Friday. These details come from sources who have requested anonymity due to the confidential nature of the information. (BBN)

Read Sunday - Opinion

Lost in the Pyramids

Egypt, a country rich in history and culture, is currently facing a series of significant challenges and opportunities that are shaping its future. This essay will delve into various aspects of Egypt's current situation, including the struggles of its new capital building, the economic implications of the second Suez Canal development, the importance of the Nile River and Delta, the Grand Ethiopian Renaissance Dam, the upcoming presidential election, and the role of the Egyptian General Petroleum Corporation.

Read More

Earnings

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