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Market Recap

Last Week’s Headlines

Economy & World News

• Trump Defeats Harris in Presidential Comeback 

  Donald J. Trump has defeated Vice President Kamala Harris, marking a major political resurgence on pledges to boost the economy and implement mass deportations of undocumented immigrants.

  • Trump's Election Victory Boosts His Media Company's Shares 

    • Following Donald Trump's presidential win, Trump Media & Technology Group's shares surged, increasing Trump's wealth by nearly $300 million as he secured his second term.

• Florida Rejects Recreational Marijuana, DeSantis and Griffin Claim Victory 

  Despite receiving 55.9% of the vote, Florida's Amendment 3 to legalize recreational marijuana failed to meet the state's 60% threshold, marking a significant win for Governor Ron DeSantis and financier Ken Griffin, leading opponents of the measure.

• Howell Voters Reject Marijuana Sales Initiative 

  In a significant setback for cannabis real estate developer Jeffrey Yatooma, over 52% of Howell voters rejected a ballot measure to permit two adult-use marijuana retail stores, leaving one of Southeast Michigan's last coveted locations off-limits for cannabis sales.

• Exports Surge 12.7% in October, Highest Increase Since March 2023 

  In contrast to a dip in imports by 2.3%, exports from the world's second-largest economy soared by 12.7% to $309.06 billion in October, marking the most significant rise since March 2023 and highlighting exports as a key strength amidst ongoing domestic challenges.

• Bank of England Cuts Key Rate in Response to Global Economic Uncertainty 

  Amid concerns over potential trade barriers after Donald Trump's U.S. election win and rising energy prices due to Middle East conflicts, the Bank of England has reduced its key interest rate to 4.75% from 5%. This marks its second rate cut in three meetings, as it aims to meet its inflation target by early 2027.

• Detroit to Accept Cryptocurrency for City Payments Starting 2025 

  Detroit announces it will begin accepting cryptocurrency for tax and fee payments in 2025, becoming the largest U.S. city to adopt digital currency for municipal transactions. Managed through a PayPal platform, this initiative aims to modernize payment options and enhance accessibility, especially for the unbanked, according to City Treasurer Nikhil Patel.

• Alaska Seafood Industry Faces $1.8 Billion Loss Amid National Impact 

  The Alaska seafood industry has experienced a significant downturn, resulting in a $1.8 billion loss from 2022 to 2023, and a 50% drop in profitability over two years, according to NOAA Fisheries. This decline has led to over 38,000 job losses nationwide and a $4.3 billion reduction in total U.S. output, affecting state and local tax revenues by $191 million across key states including Alaska, Washington, Oregon, and California. The crisis threatens not only economic stability but also the cultural and social fabric of local communities dependent on fishing.

• Australia to Ban Social Media Access for Under 16s Citing Health Risks 

  Prime Minister Anthony Albanese announced plans for an Australian law to ban children under 16 from social media platforms like Instagram, TikTok, Facebook, and X, starting as early as next year. The proposed legislation, part of a package described as world-leading, includes implementing an age-verification system to enforce the ban, marking one of the strictest controls globally on social media access.

• Federal Reserve Cuts Rates to Support Employment, Balancing Inflation Concerns 

  The Federal Open Market Committee unanimously decided to reduce its benchmark overnight borrowing rate by 25 basis points to a range of 4.50%-4.75%. This adjustment reflects a shift in priorities, with the Fed emphasizing support for employment alongside its ongoing efforts to manage inflation.

• China Unveils $1.4 Trillion Plan to Address Local Government Debt 

  China has launched a five-year initiative valued at 10 trillion yuan ($1.4 trillion) aimed at mitigating local government debt issues, with indications of additional economic support in the coming year. Despite this substantial package, the debt swap program has not met investor expectations for more direct fiscal intervention.

Public Markets

• Stocks Soar to Record Highs as Trump Wins Election 

  Following Donald Trump's presidential election victory, the Dow Jones, S&P 500, and Nasdaq Composite surged to record highs, with the Dow posting a significant 1,508.05 point gain (3.57%), its largest one-day increase since November 2022. The S&P and Nasdaq also reached all-time highs, reflecting robust market optimism.

• Renewable Energy Stock Plunge Nets $1.3 Billion for Short Sellers After Election 

  Short sellers have gained approximately $1.3 billion from the sharp decline in renewable energy stocks, triggered by the Republican Party's sweeping victory in the recent election. This downturn in major renewable stocks provided substantial paper gains, as reported by Bloomberg based on the shares loaned out across a global portfolio of clean energy companies.

• OpenAI Considers Shift from Non-Profit to For-Profit Structure 

  OpenAI is engaging in preliminary discussions with the California attorney general to explore transitioning from a non-profit to a for-profit entity, a move that will involve close regulatory scrutiny of its valuable intellectual property assets, including the ChatGPT app.

• Apple's Project Atlas Eyes Entry into Smart Glasses Market 

  Apple Inc. has launched an internal project, codenamed Atlas, to explore the smart glasses sector, currently dominated by companies like Meta Platforms Inc. This initiative involves gathering employee feedback and conducting focus groups, spearheaded by the company's Product Systems Quality team.

• Aramco Reports 15.4% Profit Decline Amid Lower Oil Prices 

  Despite a 15.4% decrease in net profit due to falling crude oil prices and refining margins, Saudi Aramco has sustained its $31.05 billion dividend, comprising a base of $20.3 billion and a performance-linked $10.8 billion, amid ongoing global market challenges.

• Boeing Machinists Approve New Contract, Ending Strike 

  Following a strike initiated on September 13th, Boeing's 32,000 unionized machinists voted 59% in favor of a new contract offering a 38% pay raise over four years, effectively ending the dispute.

  • Boeing Considers Selling Jeppesen Navigation Unit for Over $6 Billion 

    Boeing is reportedly exploring the sale of its Jeppesen navigation unit, potentially valued at more than $6 billion. The company is consulting with an advisor to facilitate the sale of this unit, known for its interactive flight plans. Interest from private equity and other firms is already mounting.

• Nissan Announces Urgent Business Model Overhaul Amid Declining Sales 

  Following a decrease in global sales and net revenue in the first half of Fiscal Year 2024, Nissan Motor Company revealed plans for urgent measures to revamp its business model, as it grapples with a slim operating profit margin of only 0.5%.

• ESG Assets Drop Post-Election, Seen as Buying Opportunity by Hedge Funds 

  In the days post Donald Trump's election victory, ESG-related assets have experienced significant declines. Viewing the indiscriminate selloff as a strategic buying opportunity, recommending purchases within a week.

• Sony Boosts Revenue Forecast and Reports Strong Quarterly Profit 

  Sony has increased its fiscal 2025 revenue target to 12.7 trillion yen ($83 billion) following a robust September quarter where operating income surged 73% year-over-year, driven by strong performance in its game and network services division, particularly the PlayStation brand.

• Baidu to Launch AI-Powered Glasses, Competing with Meta Ray-Bans 

  Baidu Inc. is poised to introduce a new pair of AI-assisted glasses, featuring built-in cameras and voice interaction capabilities, at its upcoming Baidu World event in Shanghai. Designed to rival Meta's successful Ray-Bans, these glasses leverage Baidu's Ernie foundation model for enhanced functionality.

• Bill Ackman Proposes Delisting from Amsterdam Exchange Following Antisemitic Attacks 

  Billionaire hedge fund manager Bill Ackman intends to terminate the Amsterdam listings of Pershing Square Holdings and Universal Music Group due to recent antisemitic attacks in the city. Ackman, who owns a 23% stake in Pershing Square, announced plans to seek board approval to focus the company's listing solely on the London Stock Exchange, citing that over 90% of its trading already occurs there. Responses from Pershing Square and Euronext are pending.

• Carl Icahn’s Fund Slashes Dividend to Increase CVR Energy Stake 

  Carl Icahn's Icahn Enterprises LP has halved its dividend to $0.50 per unit this quarter, reallocating funds to expand its ownership in CVR Energy Inc. from 66% to approximately 81%. The firm will initiate a tender offer for up to 15 million CVR shares at $17.50 each, a 5.9% premium over the recent closing price.

Real Estate

•  Fortress Investment Group Wins Legal Battle Against Cohen Realty Enterprises 

  Fortress Investment Group emerged victorious from a monthslong legal conflict with Charles Cohen by securing Cohen Realty Enterprises’ equity interests in a rapid 22-minute auction attended by a single bidder. Utilizing credit bids worth $148.7 million, Fortress acquired stakes in properties across New York, Florida, and a U.K movie chain, stemming from Cohen's default on a $534 million loan and over $187 million in personal guarantees.

M&A, IPO’s, Bankruptcies

•  Hygieia Inc. Files for Bankruptcy Amidst Financial Struggles 

  Ann Arbor-based diabetes startup, once supported by Blue Cross, has declared bankruptcy, facing severe financial difficulties.

• Antenna Group in Preliminary Talks to Acquire Time Magazine 

  Greek media conglomerate Antenna Group is currently negotiating the potential acquisition of Time magazine from owner Marc Benioff, who purchased it in 2018 for $190 million. However, the outcome of these early discussions remains uncertain.

Earnings this week

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