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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.

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Market Recap

Last Week’s Headlines

Economy & World News

• Iranian Oil Tycoon Implicated in Arms Shipments to Russia
  Hossein Shamkhani, leveraging his position in the Western financial system, has been coordinating arms deliveries to Russia, involving missiles and drone components via the Caspian Sea, as revealed by anonymous officials from the US, UK, and Europe.

• Japanese Insurers Secretly Plan Price Hikes Amid Natural Disasters
  In a clandestine meeting at a Tokyo karaoke bar, Japan's leading insurance companies agreed to coordinate a price hike for a major client, countering a series of financial hits from escalating natural disasters, despite the deflationary expectations of Japanese clients.

• China's Industrial Profits Fall for Fourth Consecutive Month
  In November, industrial profits in China fell by 7.3%, marking a continuous decline influenced by the economic aftermath of Beijing's stimulative measures.

• South Korea's Opposition Seeks Impeachment Over Constitutional Court Stalemate
  Amid stalled court appointments and rising political tensions, South Korea's main opposition party has moved to impeach the acting leader, potentially deepening a crisis that affects diplomacy and financial markets, as they demand the appointment of three Constitutional Court justices.

• Ukraine Risks Losing Key Leverage as Territory Slips Away in Kursk
  Ukrainian forces, after initial gains, are losing ground in Russia's Kursk region, with US officials predicting potential loss of all seized territories, which could weaken Kyiv's position in future ceasefire negotiations. Compounded by manpower shortages and uncertain support from allies, Ukraine faces heightened challenges, including opposition from 12,000 North Korean troops aiding Russian forces.

Public Markets

• FDA Ends Shortage of Eli Lilly's Weight Loss Drug Ingredient
  The FDA's declaration that tirzepatide is no longer in short supply will restrict compounding pharmacies from producing cheaper alternatives, impacting patients who relied on these more affordable versions to manage their weight loss.

• Shift in Activist Investing: Less Confrontation, More Collaboration
  The landscape of activist investing is changing, with figures like Carl Icahn and Nelson Peltz dialing back their aggressive tactics, making way for a newer, subtler generation of activists. Coupled with more proactive corporate boards, this shift has led to fewer proxy battles and increased settlements, signaling a quieter era in shareholder activism.

• FDA Approves Injectable Form of Bristol Myers Squibb's Cancer Drug Opdivo
  The FDA has greenlighted an injectable version of Opdivo, expanding its administration beyond the traditional intravenous drip. This enhancement aligns Opdivo with other PD-1 inhibitors like Merck's Keytruda, boosting the immune system's cancer-fighting capabilities.

• Record Catastrophe-Bond Issuance Hits $50 Billion Amid Climate Challenges
  As insurers shift more risk from severe climate events to investors, catastrophe-bond issuance surged to a record $17.7 billion this year, boosting the market's total to nearly $50 billion. According to Artemis, this growth reflects a diversifying market that now includes cyber-risk and private transactions, underscoring the robust expansion and sustainability of cat-bond investments.

• Trump's Call for Increased Oil Drilling Faces New Challenges
  Despite President-elect Donald Trump's push for renewed fervor in U.S. oil drilling, significant changes in the shale industry—from the exit of wildcatters to the dominance of disciplined oil giants—suggest that the explosive growth seen in his first term is unlikely. With Wall Street's emphasis on profitability and maturing oil fields, industry leaders like Richard Dealy of Exxon Mobil acknowledge the reduced potential for rapid production increases.

• Big Lots Strikes Deal to Save Stores and Jobs Amid Bankruptcy
  Following its bankruptcy filing, Big Lots has partnered with Gordon Brothers Retail Partners to keep hundreds of stores operational, preserving thousands of jobs. The deal includes Variety Wholesalers purchasing up to 400 stores and potentially two distribution centers, maintaining the Big Lots brand and offering continued employment for many Big Lots associates.

Real Estate

• Detroit Faces Controversy Over $1.6 Billion Renaissance Center Revamp
  General Motors and billionaire Daniel Gilbert's ambitious plan to transform Detroit's Renaissance Center into a vibrant mixed-use district, including housing and an entertainment area, is sparking debate over the proposed $350 million in public subsidies. Skeptics in the state legislature are challenging the need for taxpayer funding given the financial stature of the involved parties.

M&A, IPO’s, Bankruptcies

• Xerox Acquires Lexmark in $1.5 Billion Deal
  Xerox Holdings has finalized the acquisition of Lexmark International, valued at $1.5 billion, restoring the printer company to U.S. ownership and leveraging both cash and committed debt financing for the purchase.

• Nordstrom Family Partners with Mexican Retailer in $6.25 Billion Private Takeover
  The Nordstrom family is set to privatize the iconic department store through an all-cash deal worth $6.25 billion, aiming to revitalize the business away from public market pressures after a significant stock decline.

Earnings this week

THE Updates

Netflix NFL Streams Draw Big Numbers, But Trail Traditional Broadcasts
Netflix captured a significant audience with 24 million average viewers for its Christmas Day NFL streams, peaking at 27 million during Beyonce's halftime show. Despite these impressive figures, they still fell short of last year's CBS and Fox broadcasts, highlighting the strength of NBCUniversal's Peacock, which achieved 23 million viewers with fewer subscribers than Netflix or Amazon Prime Video.

China Mobile Poised for Stronger Second-Half Revenue Growth, OCBC Says
According to OCBC, China Mobile (CM) is expected to see an uptick in revenue growth in the latter half of the year, rebounding from weaker first-half results driven by subdued government demand and digital initiatives. The firm remains optimistic about CM and China Telecom, citing them as quality defensive yield plays amidst market volatility and geopolitical tensions. OCBC maintains a buy rating on CM with a fair value estimate of HK$93.10, with shares currently at HK$76.10.

Oil Futures Climb as U.S. Crude Stocks Continue to Decline
EIA reports a fifth week of falling U.S. crude inventories, pushing oil prices up despite mixed fuel data. WTI and Brent rose 1.4% and 1.2% to close at $70.60 and $74.17 a barrel, respectively, with Ritterbusch expecting a potential supply surplus next month to impact prices.

Optimistic Outlook for Malaysia’s Power Sector with Renewable Energy Focus
TA Securities forecasts growth for Malaysia's power and utilities sector, driven by tight market conditions and a significant renewable energy push, targeting a 70% renewable mix by 2050. Key stocks like Tenaga Nasional, Malakoff, YTL Power International, and Samaiden are highlighted as beneficiaries, with Tenaga Nasional shares currently up 3.1% at MYR14.62.

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