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.

Estate planning doesn’t have to be complicated.

With Trust & Will, you can create a legally valid, state-specific estate plan in minutes, from the comfort of your home. Get started for just $199 and protect what matters most.

Start today and get your plan ready in 30 minutes.

Discover more about our sister corporation and alternative investment firm, Peridot Co., and its high-performing flagship fund, THE Fund L.P.

Market Recap

Last Week’s Headlines

Economy & World News

• Musk's Team Gains Unprecedented Access at the Department of Education
  Elon Musk's aides have obtained "administrator" email accounts, raising concerns among officials as they potentially access sensitive information amidst a government worker purge.

• Kennedy's HHS Nomination Advances with Republican Support
  After intense lobbying and key concessions, including upholding vaccine policies, Robert F. Kennedy Jr.'s nomination moves forward with pivotal Republican backing in the Senate Finance Committee.

• First Migrant Flight Lands at Guantanamo Under Trump's Expansion Plan
  The Trump administration's plan to expand Guantanamo's detention capacity is underway, with the first flight transporting detained migrants from Texas landing at the U.S. naval base in Cuba.

• Trump to Sign Executive Order Banning Transgender Athletes from Female Sports
  President Trump is set to issue an executive order titled "Keeping Men Out of Women's Sports," aimed at excluding transgender girls and women from school and college sports, aligning with his campaign promises and sparking significant policy changes under Title IX interpretations.

• Over 50,000 Federal Employees Accept Resignation Offer Amid Workforce Reduction Efforts
  As the Trump administration intensifies its initiative to downsize government staffing, agencies are directed to identify employees with subpar performance for potential termination, following new performance metrics aligned with recent executive directives.

• Swift Cuts at USAID Disrupt Operations and Global Projects
  In under two weeks, the Trump administration has dramatically reduced USAID's operations, closing its main building, shutting down its website, and preparing to place nearly all remaining 1,400 staffers on administrative leave, following the dismantling of the agency's $40 billion foreign-assistance efforts.

• U.S. Lawmakers Propose Ban on DeepSeek's Chatbot on Government Devices

  In response to security concerns, U.S. Representatives Darin LaHood and Josh Gottheimer plan to introduce legislation to ban the Chinese AI company DeepSeek's chatbot from government-owned devices, mirroring previous actions taken against TikTok. The bill aims to prevent potential information leaks to the Chinese government, fueled by DeepSeek's rapid rise to prominence in the U.S. market.

• Bank of England Cuts Rates to 19-Month Low, Markets Anticipate Further Easing

  The Bank of England has reduced its benchmark rate to 4.5%, marking the third cut since August and setting interest rates at their lowest in 19 months. While Governor Andrew Bailey and the majority opted for a quarter-point reduction, committee members Swati Dhingra and Catherine Mann advocated for a more aggressive half-point cut, signaling potential for further monetary easing.

• Reserve Bank of India Cuts Rates, First Time in Nearly Five Years

  In response to declining inflation, the Reserve Bank of India has lowered its key interest rate, aiming to boost the slowing economy. The central bank projects a real GDP growth of 6.7% and an inflation rate of 4.2% for the next fiscal year.

• U.S. Job Growth Slows in January, Wages Rise More Than Expected

  January's nonfarm payrolls increased by 143,000, a decrease from December's 307,000 and below the anticipated 169,000, though the unemployment rate edged down to 4%. Notable job gains were seen in health care, retail, and government sectors. Meanwhile, wage growth exceeded expectations, with average hourly earnings rising 0.5% for the month and 4.1% year-over-year, surpassing forecasts.

Public Markets

• Palantir's Record Surge Driven by Strong AI Performance
  After reporting a 24% increase to a record high, driven by robust AI-enhanced fourth-quarter results, Palantir sees unprecedented growth in both commercial and government sectors.

• Elliott Investment Management Takes "Significant" Stake in BP
  Activist investor Elliott has acquired a stake in BP, with details undisclosed, amid efforts to enhance shareholder value through transformative measures.

• Alphabet Plans $75 Billion Capital Investment This Year
  Amid its fourth-quarter earnings report, CEO Sundar Pichai revealed plans for a $75 billion investment, contrasting with Meta's $60 to $65 billion AI-focused expenditure.

• Novo Nordisk Shares Climb on Strong Earnings and Optimistic 2025 Outlook
  After surpassing Wall Street's estimates in the fourth quarter, Novo Nordisk's stock rose, with CEO Lars Fruergaard Jorgensen announcing improvements in Wegovy supply and unveiling promising details on next-generation weight loss drugs, CagriSema and amycretin.

• Pimco's Shift from Intense Oversight to a More Relaxed Culture Raises Concerns
  Veterans of Pimco still recount tales of former leader Bill Gross's intense scrutiny, notably questioning even minor positions in his massive fund. Under the current leadership of CIO Dan Ivascyn, the firm has adopted a less demanding culture, but some staff worry this has cost the innovative bond giant its competitive edge.

• Honeywell to Split into Separate Entities Amid Pressure from Activist Investor

  Honeywell International is set to divide its aerospace and automation divisions and spin off its advanced-materials arm, a strategic shift spurred by pressure from Elliott Investment Management and inspired by General Electric's successful split in 2024. Despite an initial stock rise, Honeywell's shares dipped by 5% following a 2025 revenue and profit forecast that fell short of Wall Street expectations.

• Roblox Shares Tumble 20% After User Growth Disappoints

  Roblox Corp. experienced its largest intraday drop since May, plummeting 20% as its fourth-quarter daily active users and bookings fell below analyst expectations. The video-game platform reported a 4% decline in users to 85.3 million and a 9.7% decrease in player engagement hours, influenced partly by a ban in Turkey over child safety concerns.

• Bill Ackman Acquires $2.3 Billion Stake in Uber, Cites "Massive" Discount

  Bill Ackman of Pershing Square has purchased 30.3 million shares of Uber, valued at $2.3 billion, emphasizing the company's strong management and significant undervaluation. Following this announcement, Uber's stock surged over 8%, despite a recent dip due to disappointing earnings and guidance.

• Crypto.com Launches Sports Prediction Trading in the US

  Amid the holiday season, Crypto.com introduced a new feature allowing U.S. users to trade predictions on sports events, such as the Super Bowl, through swaps contracts. This innovative platform offers "yes" or "no" positions on outcomes, with pricing reflecting the dynamic nature of sports betting, explained CEO Kris Marszalek.

M&A, IPO’s, Bankruptcies

• Nissan Set to Reject Honda's Acquisition Offer Amid Merger Talks
  Nissan Motor Co. is poised to decline Honda Motor Co.'s proposal to acquire and make it a subsidiary, potentially disrupting ongoing merger discussions despite the significant valuation disparity, with Honda's $47 billion valuation nearly five times that of Nissan.

• Apollo Eyes Creation of First Modern Marketplace for Private Assets
  Apollo Global Management Inc. plans to pioneer a marketplace for trading high-grade private assets, partnering with banks and fintech firms to offer real-time data and intraday pricing, aiming to transform the traditionally opaque private markets.

• SoftBank Nears Deal to Acquire Chipmaker Ampere Computing for $6.5 Billion
  SoftBank Group Corp. is in advanced discussions to purchase Ampere Computing LLC, potentially valuing the Oracle-backed chip designer at $6.5 billion, with a deal announcement possible in the near future. However, negotiations may still face delays or fall through.

• Wall Street Buys Into Musk's X Corp. Amidst Return of Major Advertisers and Political Clout

  Wall Street is eagerly investing in Elon Musk's X Corp., with banks recently selling $5.5 billion in debt, upsized from an initial $3 billion due to high demand. The debt, purchased by notable investors like Pimco and Citadel at 97 cents on the dollar, carries a hefty 11% interest rate. This surge in investor confidence reflects Musk's growing influence in Washington and the partial return of key advertisers to X, despite its financial struggles since Musk's acquisition in 2022.

• Gemini Eyes IPO Amid Growing Crypto Market Enthusiasm

  Gemini, the cryptocurrency exchange founded by the Winklevoss twins, is exploring an initial public offering this year, with ongoing talks to secure advisors. While plans are still in the preliminary stages, the move comes as the crypto industry sees increased public market interest, partly fueled by President Donald Trump's support for the sector.

Earnings this week

Interested in writing for Read Sunday or one of our new newsletters soon to be launched? Send an email to [email protected] 

Any suggestions please feel free to reply back to this email.

Thanks for reading, see you next week!