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Market Recap

Last Week’s Headlines

Economy & World News

• South Korean Authorities Raid Airline Offices After Devastating Plane Crash
  South Korean police, investigating a plane crash that killed 179 people, raided Jeju Air and Muan International Airport offices on charges of professional negligence.

• Brazilian Assets Underperform Significantly Amid Fiscal Concerns
  Brazil's real recorded a 21% depreciation against the US dollar this year, the largest drop since 2020, as skepticism grows over President Luiz Inacio Lula da Silva’s ability to address the budget deficit.

• South Korean Court Issues Arrest Warrant for President Yoon Suk Yeol
  President Yoon Suk Yeol faces an arrest warrant over insurrection allegations following his martial law declaration, marking a potential first in South Korea's history for a sitting president to be arrested.

• China's GDP Set to Hit 5% Growth in 2024, President Xi Announces
  President Xi Jinping has stated that China's economy is expected to meet its target of around 5% growth, emphasizing stability and effective risk management in his New Year's address.

• Russian Gas Transit Through Ukraine Halts, Complicating European Energy Security
  Russian gas flows to Europe have ceased as a key transit agreement with Ukraine expired, forcing central European nations to seek more expensive gas sources, exacerbating regional energy supply pressures during high winter demand.

• Major Power Outage Strikes Puerto Rico on New Year’s Eve
  An islandwide power failure has left over 1.2 million Puerto Ricans without electricity since early morning, with Luma Energy predicting restoration could take up to 48 hours.

• Federal Appeals Court Limits FCC's Internet Oversight Authority
  A decision by the Sixth Circuit Court of Appeals has terminated the FCC's longstanding attempt to regulate internet services similarly to traditional telephone services, citing a recent Supreme Court ruling that reduces agency discretion. Outgoing FCC Chairwoman Jessica Rosenworcel emphasized the need for Congressional action to ensure continued "fast, open, and fair" internet access.

• U.S. Surgeon General Calls for Cancer Warnings on Alcoholic Beverages
  Surgeon General Dr. Vivek Murthy has recommended that alcoholic drinks include cancer warnings, noting alcohol's role in 100,000 cancer cases and 20,000 cancer deaths annually in the U.S. This initiative, requiring an act of Congress, aims to heighten public awareness, amidst industry concerns reflected in declining shares of major beverage companies.

• Biden Administration Adjusts Hydrogen Tax Credit Rules to Boost Production
  The Biden administration has modified tax credit guidelines to support hydrogen production, relaxing previous restrictions to aid domestic manufacturing. The updated rules now include a carve-out for nuclear power plants and extend tax credits to hydrogen derived from natural gas, methane, and renewable natural gas, following industry feedback.

• Ukraine Ends Russian Gas Transit to Europe, Shifting Energy Dynamics
  On New Year's Day, Ukraine ceased the flow of Russian gas to Europe, marking the conclusion of a five-year transit agreement and ending Moscow's long-standing energy influence in the region. Despite Austria's preparedness, Slovakia's Prime Minister Robert Fico has threatened retaliatory measures against Ukraine amid ongoing tensions.

• President Biden to Ban New Offshore Oil and Gas Development in Vast U.S. Coastal Areas
  President Joe Biden plans to issue an executive order banning new offshore oil and gas development across approximately 625 million acres, covering Atlantic and Pacific waters and the eastern Gulf of Mexico. This measure aims to protect coastal communities and ecosystems, while still allowing for new leasing in central and western Gulf regions, which account for about 14% of U.S. oil output.

• Yuan Weakens Past Key Level as Economic Concerns Mount
  The onshore yuan has fallen beyond the critical 7.3 per dollar threshold, a level China defended throughout December, signaling potential for further depreciation amidst economic pressures and a growing bond yield gap with the U.S. Despite the central bank's efforts to stabilize the currency, the yuan's drop reflects deeper concerns over China's economic health.

Public Markets

• U.S. Stocks Cap Spectacular Year with Best Run Since Dot-Com Era
  The S&P 500 soared 23% in 2024, hitting 57 record highs, fueled by a healthy economy, lower inflation, and a tech rally driven by AI advancements. This surge has sparked record enthusiasm among investors, with significant gains also noted in gold and bitcoin.

• Sangamo Therapeutics Shares Plunge After Pfizer Ends Gene Therapy Partnership
  Sangamo Therapeutics Inc. saw its shares drop significantly following Pfizer's decision to terminate their collaboration on a gene therapy for hemophilia A, despite the drug's successful late-stage trial results.

• D.E. Shaw to Return Billions After Stellar Hedge Fund Performances
  D.E. Shaw & Co. plans to return billions to investors following an impressive year where its Composite hedge fund gained 18% and Oculus fund surged 36%, marking its best performance in two decades.

• Tesla Reports First Annual Sales Decline in Over a Decade
  Despite a record fourth quarter, Tesla Inc. saw its annual vehicle sales fall to 1.79 million, marking the first decline in more than ten years and falling short of both the previous year's numbers and analysts' expectations.

• Constellation Energy Secures Record $1 Billion U.S. Government Nuclear Power Contract
  Constellation Energy will supply nuclear power to the U.S. government under a decade-long deal worth $1 billion, marking the largest power purchase agreement in U.S. GSA history and bolstering the nation's nuclear industry revival.

• GM and Ford Post Highest U.S. Vehicle Sales Since 2019
  General Motors and Ford Motor announced their best annual U.S. vehicle sales figures since 2019, with GM's sales increasing by 4.3% to over 2.7 million vehicles, and Ford's sales rising to 2.08 million vehicles in 2024.

• Microsoft to Invest $80 Billion in AI Data Centers in Fiscal 2025
  Microsoft plans to allocate $80 billion toward building data centers designed for artificial intelligence applications, with more than half of this investment occurring in the U.S., according to a blog post by Vice Chair and President Brad Smith.

Real Estate

• Fannie Mae and Freddie Mac Set for Release from Government Oversight
  New guidelines aimed at freeing Fannie Mae and Freddie Mac from government supervision have pushed their stock to its highest levels since 2019. These plans, requiring U.S. Treasury approval, aim to ensure an orderly transition from conservatorship, reinstating Treasury's oversight in the process.

M&A, IPO’s, Bankruptcies

• Savvy Sliders Expands Portfolio with Acquisition of BurgerFi
  Michigan's Savvy Sliders has acquired Florida's fast-casual burger chain, BurgerFi, adding 84 locations across 15 states to its growing portfolio.

• Nvidia Completes Acquisition of AI Firm Run:ai After EU Antitrust Approval
  Chipmaker Nvidia has finalized its $700 million acquisition of Israeli AI company Run:ai, following unconditional approval by the European Commission.

• President Biden Blocks Nippon Steel's Bid for U.S. Steel, Citing National Security Concerns
  U.S. President Joe Biden has vetoed Nippon Steel's $14.9 billion acquisition of U.S. Steel, citing potential national security risks, effectively denying a crucial financial lifeline to the struggling American company.

• Hindustan Unilever Nears $350 Million Deal for DTC Startup Minimalist
  Hindustan Unilever is in advanced negotiations to purchase the direct-to-consumer startup Minimalist for up to $350 million, continuing its acquisition streak in India's health and well-being sector.

Earnings this week

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