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Market Recap

Last Week’s Headlines

Economy & World News

• October CPI Rise Matches Expectations, Shelter Prices Drive Inflation

  The consumer price index rose by 0.2% in October, pushing the annual inflation rate to 2.6%, aligning with forecasts. Core CPI, excluding volatile items, also met expectations, increasing by 0.3% monthly and 3.3% yearly, driven largely by rising shelter costs. Inflation-adjusted hourly earnings saw a modest annual increase of 1.4%.

• Japan's GDP Grows 0.3% Annually in Third Quarter, Reversing Decline

  Japan's economy showed signs of recovery with a 0.3% year-on-year expansion in the third quarter, ending a streak of declines. The GDP also increased by 0.2% from the previous quarter, representing an annualized growth rate of 0.9%.

• U.S. Halts TSMC's Advanced Chip Exports to China

  The U.S. has ordered Taiwan Semiconductor Manufacturing Co to stop shipping advanced chips used in AI applications to China, citing national security concerns with chips of 7 nanometers or more advanced designs.

• Donald Trump Jr. to Join Conservative VC Firm 1789 Capital

  Donald Trump Jr. is set to join 1789 Capital, a venture capital firm focusing on conservative-leaning companies, while opting out of a role in his father's administration.

• Insurance Mogul Greg Lindberg Pleads Guilty in $2 Billion Fraud Scheme

  Greg Lindberg admitted to conspiracy and money-laundering charges related to a $2 billion fraud, agreeing to aid in recovering assets to repay policyholders affected by the misuse of funds meant for insurance entities he controlled.

• Dutch Court Overturns Climate Ruling Against Shell

  A Dutch court has reversed a 2021 decision requiring Shell to cut its greenhouse gas emissions by 45% by 2030, marking a significant turn in a case that could influence future climate litigation globally.

• OPEC Lowers Oil Demand Growth Forecast Amid China's Slowdown

  OPEC has reduced its oil demand growth projections for this and next year, now anticipating a global increase of 1.8 million barrels a day in 2024—107,000 barrels less than earlier estimates—due to weaker consumption data from China, India, and Africa.

• Polymarket Spokesperson Claims Raid is "Political Retribution"

  Polymarket, after its market accurately predicted the 2024 presidential election outcome, describes the FBI raid on CEO Coplan's SoHo apartment as "obvious political retribution by the outgoing administration." Coplan responded humorously on X with "new phone, who dis?" after agents seized his electronic devices.

• Trump Appoints Robert F. Kennedy Jr. as Health Secretary Amid Controversy

  President-elect Donald Trump has appointed Robert F. Kennedy Jr., known for his anti-vaccine stance, as the Secretary of Health and Human Services. Announcing on Truth Social, Trump criticized the "industrial food complex and drug companies" for undermining public health, signaling a controversial shift in health policy direction.

Public Markets

• Bitcoin Hits Record $93,480 as Trump Presidency Fuels Rally

  The world's largest cryptocurrency soared to an all-time high of $93,480, gaining 32% since the November 5th election, driven by optimism that a Trump presidency will benefit the sector.

• Scott Boatwright Appointed as Chipotle's Permanent CEO

  After Brian Niccol's departure to Starbucks, Scott Boatwright steps in as Chipotle's CEO, amidst challenges like weak consumer demand and high menu prices, despite the chain maintaining its annual sales growth targets.

• AbbVie Shares Tumble After Schizophrenia Drug Trials Disappoint

  AbbVie's stock dropped 13%, marking its largest fall since March 2020, after its schizophrenia drug emraclidine failed to meet primary goals in mid-stage trials, casting doubts on its $8.7 billion acquisition of Cerevel Therapeutics.

• Elliott Management Urges Honeywell to Split, Sees 75% Upside

  Elliott Management, holding over $5 billion in Honeywell shares, advocates for dividing the conglomerate into Aerospace and Automation sectors to potentially boost shareholder value by 75% in two years.

• Apple Set to Launch AI-Powered Wall-Mounted Home Display

  Apple is close to unveiling a new product a wall-mounted display designed to control home appliances and facilitate videoconferencing. Codenamed J490, the device will feature the new Apple Intelligence AI platform, targeting a March release as a central home command center.

• SoftBank to Build Japan's Most Powerful AI Supercomputer Using Nvidia's Technology

  SoftBank is set to construct Japan’s most advanced AI supercomputer, utilizing Nvidia Corp’s new Blackwell chip design, marking a significant step in its push to enhance AI capabilities. The initial version will employ Nvidia’s DGX B200, with plans for a more sophisticated model featuring the Grace Blackwell processor.

• Amazon Launches 'Amazon Haul' to Compete with Low-Cost Retailers

  Amazon has introduced a new ecommerce service, Amazon Haul, offering products priced at $20 or less to compete with Chinese firms like Shein and PDD Holdings' Temu. This move aligns with CEO Andy Jassy's August comments on customers opting for cheaper and more essential items.

• Meta Fined $843 Million by European Commission for Anti-Competitive Practices

  The European Commission has imposed a fine of approximately $843 million on Meta Platforms for unfairly linking its classified-ads platform, Marketplace, to its social network, Facebook. This practice has been deemed anti-competitive, giving Meta an undue advantage and imposing unfair conditions on competitors using its advertising services, including on popular platforms like Instagram.

M&A, IPO’s, Bankruptcies

•  Cigna Ends Merger Talks with Humana Despite Antitrust Optimism

  Following President Trump's reelection, Cigna announced it is not pursuing a merger with Humana, despite investor hopes for lenient antitrust reviews under the current administration.

• Vuori Secures $825 Million to Expand Globally and Open 100 Stores by 2026

  Vuori, an American athleisure brand, raised an $825 million investment led by General Atlantic and Stripes, aiming to open 100 stores and expand globally, following successful launches in 18 countries and a flagship store in London.

• Spirit Airlines Nears Bankruptcy, Merger Talks with Frontier Fail

  Spirit Airlines is preparing to file for bankruptcy protection after merger discussions with Frontier Airlines collapsed, with plans to finalize a bankruptcy strategy supported by major creditors amid escalating losses and impending debt deadlines.

• Wonder Acquires Grubhub for $650 Million in Cash and Debt Deal

  Wonder, led by ex-Walmart executive Marc Lore, has agreed to purchase Grubhub for $650 million, including $500 million in assumed debt and $150 million in cash, taking over from Europe’s Just Eat Takeaway which bought Grubhub in 2021 for over $7 billion.

• Justice Department Challenges UnitedHealth's $3.3 Billion Amedisys Acquisition

  The U.S. Justice Department has sued to prevent UnitedHealth Group's acquisition of Amedisys, arguing that the $3.3 billion deal would excessively concentrate market power in home health and hospice services, further expanding UnitedHealth's extensive healthcare and insurance operations.

• Pfizer Considers Selling Hospital Drugs Unit Amid Pressure from Activist Investor

  Pfizer is exploring the sale of its Pfizer Hospital unit, previously established through the $17 billion acquisition of Hospira in 2015, as it seeks to divest non-core assets under the influence of activist investor Starboard Value. Goldman Sachs has been enlisted to attract interest from potential buyers, including private equity and pharmaceutical companies.

• Founder's Son Challenges Couche-Tard’s Bid for 7-Eleven with Higher Offer

  Alimentation Couche-Tard's attempt to acquire 7-Eleven faces new hurdles as the founder's son proposes a $58 billion private takeover of Seven & i, the chain's parent company, surpassing Couche-Tard’s offer by 23%. This strategic move could compel Couche-Tard to increase their bid or reconsider their pursuit, complicating what was anticipated to be a game-changing deal for the Canadian firm.

• Liberty Media to Launch Liberty Live, Spin Off Non-F1 Assets

  Liberty Media is spinning off its non-Formula One assets into a new publicly traded company, Liberty Live, and announced the all-stock acquisition of Liberty Broadband by Charter Communications. CEO Greg Maffei will step down at the end of the year.

• Tapestry and Capri Cancel Merger After FTC Block

  Tapestry and Capri, the parent companies of Coach and Michael Kors respectively, have mutually agreed to terminate their proposed merger following a block by the Federal Trade Commission. Despite Tapestry's initial intention to appeal the ruling in October, the merger will not proceed.

Earnings this week

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