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Market Recap

Last Week’s Headlines

Economy & World News

• U.S. Inflation and Income Growth Meet and Exceed Expectations
  Inflation aligns with forecasts at a 2.3% annual rate, while personal income growth surpasses expectations, suggesting robust economic activity amid steady consumer spending.

• Trump Announces Additional Tariffs in Post-Inauguration Trade Policy
  The President-elect plans to impose a 10% tariff on all Chinese goods, following his earlier announcement of a 25% tariff on products from Mexico and Canada, escalating his protectionist trade measures.

• South Korea Cuts Benchmark Rate to 3%, Lowers GDP Forecasts
  In an unexpected move, the Bank of Korea reduces interest rates for the second consecutive time since 2009 and revises its GDP outlook downward for 2024 and 2025.

• Biden Administration Considers New Tech Restrictions on China
  New curbs on semiconductor equipment and AI memory chips sales to China may soon be announced, aiming to temper Beijing's tech advancements while navigating the concerns of U.S. chip manufacturers and international allies.

• Brazilian Markets Tumble as Spending Cuts Disappoint Investors
  Following the announcement of a $12 billion cut in public spending, the Brazilian real hit a new low, and stocks fell sharply, as investors reacted negatively to measures deemed insufficient to address the country's budget deficit.

• India's Economic Growth Misses Forecasts, Expands 5.4% in Q2
  Falling short of expectations, India's economy grew by 5.4%, underperforming against predictions of 6.5% to 7%, with projections suggesting a slowdown but no collapse in 2025.

• Euro Zone Inflation Hits 2.3%, Exceeding ECB's Target
  The rise, primarily influenced by the energy market, aligns with expectations, positioning the rate slightly above the European Central Bank's 2% goal.

Public Markets

• Intel Receives $7.87 Billion Grant to Revitalize U.S. Chip Manufacturing
  The U.S. government's award under the 2022 Chips Act is part of a broader initiative to counter supply-chain disruptions and reduce reliance on Asian chip production amidst rising geopolitical tensions.

  • Intel Secures $7.86 Billion U.S. Subsidy for Domestic Chip Production
    This funding, part of a broader $90 billion project across four states, aims to revitalize American chip manufacturing, as highlighted by Commerce Secretary Gina Raimondo's emphasis on U.S.-based production and workforce.

  • Qualcomm's Interest in Intel Acquisition Wanes Amid Deal Complexities
    Qualcomm may reevaluate its strategy towards Intel, considering either targeted acquisitions or postponing plans, as challenges overshadow the potential to lead a historic shift in the semiconductor industry.

• Macy’s Postpones Earnings Release Amid $150 Million Expense Scandal
  Macy's uncovered that an employee intentionally hid up to $154 million in delivery expenses, prompting a delayed third-quarter earnings announcement and raising questions about oversight by auditor KPMG.

• Thyssenkrupp to Cut 40% of Steel Jobs Amid Restructuring
  Facing losses due to a global steel surplus and high energy costs, Thyssenkrupp plans to eliminate 5,000 jobs and transfer another 6,000, focusing on higher-margin sectors like engineering and automotive parts.

• FTC Launches Broad Antitrust Probe into Microsoft's Business Practices
  Following extensive preliminary discussions, the FTC demands detailed information from Microsoft, covering sectors from cloud computing to AI, under the approval of FTC Chair Lina Khan.

• Nokia CEO Aims to Refocus Company Amid Loss of $14 Billion AT&T Contract
  Pekka Lundmark is steering Nokia towards new growth sectors like data centers and defense after its equipment is phased out of a major US network, signaling a strategic shift from its past mobile phone dominance to enhancing wireless infrastructure and AI capabilities.

• FTC Launches Broad Antitrust Investigation Into Microsoft Amid Transition Concerns
  The investigation, greenlit by FTC Chair Lina Khan before her expected departure, focuses on Microsoft's software licensing and cloud services, with the future of the probe uncertain under the forthcoming Trump administration.

• Canadian Publishers Sue OpenAI for Copyright Infringement
  Five major news organizations claim OpenAI used their content without permission to train AI products like ChatGPT, seeking undetermined damages in a lawsuit filed in Ontario Superior Court of Justice.

• Meta Plans $10 Billion Global Subsea Cable to Support AI Growth
  Meta, a top driver of internet traffic, is investing in its own 40,000+ kilometer fiber-optic subsea cable, becoming the sole owner and user—a first for the company, as confirmed by TechCrunch sources.

• Trump's Failing Crypto Project Rescued by Justin Sun's $30 Million Investment
  Despite initial industry rejection and a significant sales shortfall, World Liberty Financial's cryptocurrency was revitalized by a $30 million investment from crypto entrepreneur Justin Sun, securing at least $15 million for the Trump family.

• U.S. Credit Card Debt Hits Record $1.17 Trillion
  Despite reaching an all-time high, improved delinquency rates indicate that rising debt burdens remain manageable, according to the Federal Reserve Bank of New York.

Real Estate

•  Renaissance Center Set for Major Redesign in Detroit
  Bedrock and General Motors plan to transform the RenCen by removing parts of its structure to focus on hospitality and housing, while enhancing public access to the riverfront with a new pedestrian promenade.

• Oklahoma National Stockyards Listed for Sale at $27 Million
  A century after establishing livestock as a key industry, the world's largest stocker and feeder cattle market is on the market, including historical sites like the Exchange Pharmacy, with local ownership preferred for future management.

M&A, IPO’s, Bankruptcies

• Blackstone Invests $3.5 Billion in EQT to Boost Mid-Atlantic Gas Pipelines
  This strategic partnership aims to reduce EQT's debt and capitalize on rising demand from data centers, impacting both companies' stock values as detailed in their recent statements.

• University of Michigan Health Plan to Cease Operations by End of 2025
  The insurance arm, acquired last year and serving 64,000 members, will gradually shut down as part of a strategic realignment.

• Qatar Investment Authority Acquires Stake in Audi's Formula One Team
  The $510 billion fund secures a significant minority share in Sauber Holding AG, boosting Audi's resources for its 2026 Formula One entry amidst evolving competition regulations.

Earnings this week

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