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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

• China to Boost Consumption with Looser Policies in 2023
  China's leadership has announced plans for “more proactive” fiscal measures and a “moderately” looser monetary policy next year to stimulate domestic consumption, with GDP growth targets expected to remain at around 5%.

• South Korean President Yoon Fights Impeachment, Constitutional Court to Decide Fate
  After facing impeachment over an attempt to impose martial law, President Yoon Suk Yeol has vowed to continue fighting for his political future, with the Constitutional Court set to rule on his removal within six months.

• China's Export Growth Slows, Imports See Sharp Decline
  China's exports grew by 6.7% in November, missing forecasts, while imports fell 3.9%, marking the steepest drop since September 2023, though analysts say the export boom is not over despite potential U.S. tariff impacts.

• Brazil's President Lula Undergoes Successful Second Brain Procedure
  Following a fall in October, Brazil's President Luiz Inácio Lula da Silva had a second surgery to address ongoing bleeding in his brain, performed successfully with no neurological damage. Lula is reported to be in good condition and plans to return to official duties in Brasilia next week.

• CPI Data Aligns with Market Expectations, Points to Likely Rate Cut
  The latest consumer price index indicates a steady inflation rate of 2.7% annually, with core CPI (excluding food and energy) at 3.3%. These figures, matching forecasts, have led traders to anticipate a near-certain interest rate cut, with odds now at 99% according to the CME Group’s FedWatch.

• OPEC Slashes Oil Demand Growth Forecast, Extends Supply Curbs
  OPEC has made significant cuts to its oil demand growth projections for 2024, reducing them by 210,000 barrels a day to 1.6 million, marking a 27% reduction since July. This adjustment follows the decision to extend supply curbs amidst a deteriorating market outlook.

• Russia's Role Pivotal as Syrian Opposition Closes in on Damascus
  As Syrian opposition forces advance toward Damascus, President Bashar al-Assad's survival increasingly depends on Russia, despite its diminishing ability to support his regime. Amidst concerns reminiscent of the 2011 Libyan crisis, President Vladimir Putin is scrutinizing why intelligence failed to anticipate the escalating threat to Assad's rule.

• New Bipartisan Bill Aims to Break Up Pharmacy-Benefit Managers
  Lawmakers have introduced legislation to dismantle pharmacy-benefit managers (PBMs), which have been under scrutiny for their business practices. The proposed Senate bill, led by Senators Elizabeth Warren and Josh Hawley, would require companies owning health insurers or PBMs to divest their pharmacy businesses within three years, marking a significant shift in the industry's structure.

• Canada Considers Export Taxes on Key Commodities in Response to Trump's Tariff Threats
  Canada is exploring the imposition of export taxes on uranium, oil, and potash to the US as a potential countermeasure if President-elect Donald Trump follows through with his tariff threats. According to officials, while export taxes would be a last resort, Canada may prioritize retaliatory tariffs on US goods and export controls on specific products.

• China to Increase Public Spending and Focus on Consumption in 2025
  In response to potential US tariffs and economic challenges, China plans to enhance public borrowing and spending to boost consumption. Following a meeting led by President Xi Jinping, top officials announced a higher fiscal deficit target for 2025, prioritizing domestic demand and consumption as key economic drivers, a significant shift reported by Xinhua News Agency.

• ECB Plans Further Rate Cuts Amid Stabilizing Inflation and Slow Growth
  European Central Bank officials are gearing up for a quarter-point interest rate cut in January, with another likely in March, as inflation meets the 2% target and economic growth lags. Sources suggest a cautious approach to rate reductions, emphasizing that while a half-point cut remains on the table for emergencies, it could mistakenly signal excessive urgency.

• Macron Appoints François Bayrou as Prime Minister Amidst Political Turmoil
  In response to France's recent government crisis, President Emmanuel Macron has appointed François Bayrou, a longstanding centrist ally, as prime minister. This move comes after former Prime Minister Michel Barnier resigned following a no-confidence vote, aiming to stabilize the government as no party currently holds a majority in the National Assembly.

• McKinsey Settles Federal Probe with $650 Million Payment
  McKinsey & Company has agreed to pay $650 million in a deferred prosecution agreement, concluding a federal investigation into its consulting role with Purdue Pharma regarding OxyContin sales strategies. Additionally, a former top partner at McKinsey will plead guilty to obstruction of justice related to the case, as detailed in recent court filings.

Public Markets

• Nvidia Faces Antitrust Probe in China Amidst Tensions Over AI Chip Sales
  China's State Administration for Market Regulation is investigating Nvidia for potential antimonopoly law violations related to its Mellanox acquisition, amidst U.S. restrictions on advanced AI chip sales to China.

• Apple Integrates ChatGPT with Siri in Latest Software Update
  Apple has updated its iPhone, iPad, and Mac software to include ChatGPT integration with Siri, a move expected to enhance iPhone sales and position Apple as a frontrunner in consumer AI. This development also represents a significant win for OpenAI, extending ChatGPT's reach to millions of iPhone users.

• GM Ends Cruise Robotaxi Program, Shifts Focus to Advanced Driver Assistance
  After investing $10 billion over nearly a decade, General Motors has discontinued its Cruise robotaxi initiative due to scaling challenges and increased competition. GM will now prioritize the development of advanced driver assistance systems and continue enhancing its Super Cruise technology for personal vehicles.

• Tim Kuniskis Returns to Lead Ram Trucks After Stellantis CEO Resigns
  Following the unexpected resignation of Stellantis CEO Carlos Tavares amid North American market issues, Tim Kuniskis, who retired in May, will rejoin the company to lead its Ram Trucks brand.

• Macy's Cuts Profit Forecast Following Expense Scandal
  After an internal investigation revealed that an employee concealed millions in expenses, Macy's has revised its earnings outlook downward, expecting a full-year impact of $79 million on gross margin and adjusted EPS. The retailer now anticipates earnings of $2.25 to $2.50 per share, down from previous estimates reaching $2.90.

• SpaceX Valuation Soars to $350 Billion in Latest Share Purchase
  SpaceX, along with its investors, plans to buy up to $1.25 billion in insider shares, pushing the company's valuation to approximately $350 billion, as revealed in an internal email. The share price has increased to $185 from $112 in less than three months, with SpaceX itself aiming to acquire up to $500 million of common stock.

• Amazon and Meta to Donate $1 Million Each to Trump's Inauguration
  Amazon plans to contribute $1 million to President-elect Donald Trump's inaugural fund, aligning with efforts by tech leaders, including Meta's Mark Zuckerberg, to strengthen ties with the new administration. Jeff Bezos is scheduled to meet Trump next week, amid ongoing criticisms of tech companies by Trump and his allies.

• Trafigura's Profits Plunge Amidst Mongolian Market Scandal
  Trafigura, a major Swiss commodities trader, reported a significant drop in profits from $7.3 billion in 2023 to $2.8 billion in 2024, largely due to less volatile commodity markets. Additionally, the firm faced a $358 million reduction in profits after uncovering serious misconduct in its Mongolian petroleum-product business, contributing to an anticipated total loss of $1.1 billion from the scandal.

• Broadcom Joins $1 Trillion Club with Record Stock Surge
  Broadcom's market cap hit $1 trillion on Friday, making it the eighth U.S. tech company to reach this milestone. The stock soared 24%—its best day ever—following a profit beat and positive future guidance. Analyst Harsh Kumar of Piper Sandler noted the exclusive market for Broadcom's chips, likening its necessity to major players like Google, Meta, Microsoft, and Oracle.

Real Estate

•  Barington Capital Urges Macy's to Create Real-Estate Subsidiary to Boost Stock
  Activist investor Barington Capital, in partnership with Thor Equities, has revealed a stake in Macy's and is advocating for the creation of a real-estate unit to enhance the value of its significantly undervalued shares, with the potential real estate worth estimated between $5 billion and $9 billion.

• London Approves New Tallest Skyscraper in Financial District
  The City of London Corporation has greenlit the construction of a new 74-story skyscraper at One Undershaft, set to be the tallest in London's ancient financial district. Positioned between the iconic Gherkin and Cheesegrater buildings, the tower will reach 309.6 meters, surpassing the current tallest at 22 Bishopsgate. Despite economic uncertainties, demand remains strong for high-end office spaces, prompting this ambitious development.

M&A, IPO’s, Bankruptcies

• Arthur J. Gallagher to Acquire AssuredPartners in $13.45 Billion Deal
  In a move to expand its property and casualty and employee benefits coverage in the U.S., Arthur J. Gallagher will purchase AssuredPartners, marking the third major insurance broker transaction above $5 billion in the past year, with no bankers involved in the deal.

• Hershey Trust Rejects Mondelez's Takeover Bid as Too Low
  Hershey's main controlling owner, Hershey Trust Company, has turned down Mondelez International's preliminary acquisition offer, deeming it insufficient. This decision is pivotal as the Trust holds voting control, which is crucial for any takeover of the renowned chocolate maker.

• Walgreens in Potential Buyout Talks with Sycamore Partners
  Walgreens may soon exit the public market, as it negotiates a buyout with private equity firm Sycamore Partners, following a nearly 70% decline in its stock value this year. The deal, aimed to address pressures on its pharmacy and retail operations, could finalize early next year if discussions continue smoothly.

• Federal Judge Halts Kroger's Acquisition of Albertsons Citing Antitrust Concerns
  A federal judge has blocked Kroger's proposed $20 billion merger with Albertsons, supporting the Biden administration's stance that the deal would reduce competition and potentially raise prices. Despite Kroger's plan to sell 579 stores to mitigate monopoly concerns, the court ruled the measure insufficient to maintain competitive balance.

  • Albertsons Ends $20 Billion Merger with Kroger, Files Lawsuit for Breach of Contract
    Following a judge's decision to block their merger, Albertsons has officially terminated its $20 billion agreement with Kroger and is now suing for contract violations, alleging Kroger failed to fulfill commitments necessary for regulatory approval.

• Saudi Public Investment Fund Close to Acquiring Stake in PGA Tour Enterprises
  Saudi Arabia's Public Investment Fund is finalizing negotiations to purchase approximately a 6% stake in the PGA Tour’s commercial arm. This potential agreement follows earlier investments, including a significant deal with Strategic Sports Group involving up to $3 billion in PGA Tour Enterprises.

• ServiceTitan Launches IPO, Pricing Shares at $71 Each
  ServiceTitan has announced an IPO, offering 8.8 million shares at $71 each, marking a notable event in the tech sector where IPOs have been scarce. This move follows terms that encouraged the company to go public swiftly to avoid dilution, signaling a potential revival in tech IPOs as investors look towards 2025.

• Blackstone and Bain Capital in Final Bids for Mitsubishi Tanabe Pharma
  Blackstone and Bain Capital are key contenders in the final bidding for Mitsubishi Tanabe Pharma, a subsidiary of Mitsubishi Chemical Group, with the deal potentially valuing the company between $3 billion and $3.5 billion. Mitsubishi Chemical has enlisted Goldman Sachs to manage the sale, with binding bids due by December 24. Japan Industrial Partners is also competing in the bidding process.

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