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

• HHS Layoffs Hit Major Health Agencies – The Department of Health and Human Services laid off employees across CMS, FDA, and CDC, with cuts also affecting NIH and child care programs. Around 1,000 termination notices were issued, but the full scope remains unclear as officials have not commented.

• RBA Cuts Rates for First Time Since 2020 – Australia’s central bank lowered rates but remains cautious about further easing, warning that inflation is still a concern. The move offers relief to borrowers and could benefit Prime Minister Albanese ahead of a tough election.

• USPS Board Prepares to Fight Trump Administration Takeover – The Postal Service Board has retained outside counsel to resist any executive order aiming to fold USPS into the Department of Commerce, following the confirmation of Howard Lutnick as commerce secretary.

• UK Inflation Hits 10-Month High at 3% – Inflation surged past forecasts, driven by higher airfare costs, private school VAT hikes, and rising food prices. Core inflation also climbed to 3.7%, posing challenges for the Bank of England amid economic weakness.

• Japan’s Inflation Hits Two-Year High at 4% – Headline inflation rose from 3.6% to 4% in January, staying above the Bank of Japan’s 2% target for 34 consecutive months. Meanwhile, core inflation climbed to 3.2%, its highest since June 2023.

• Wuhan Lab Identifies New Coronavirus in Bats – Researchers found a virus that uses the same cell entry mechanism as Covid-19, though it hasn’t been detected in humans. The news sent vaccine stocks soaring, with Moderna, Novavax, and BioNTech seeing notable gains.

Public Markets

• Apple and Meta Enter the Humanoid Robot Race – As the tech giants compete in mixed-reality headsets, they are now eyeing the next frontier: humanoid robots. Meta has launched a new unit within Reality Labs to develop robotics software, aiming to be the Android of the space, while Apple explores its own advancements in the field.

• Ryan Cohen Expands Alibaba Stake to $1B – The meme-stock king has grown his Alibaba holdings to 7 million shares, betting on China’s long-term growth. Cohen previously pushed for a share buyback, seeing the stock as deeply undervalued.

• DOJ Investigates UnitedHealth Over Medicare Billing – The Justice Department has launched a civil fraud probe into UnitedHealth’s Medicare Advantage billing practices, following reports of billions in questionable payments. Investigators recently interviewed medical providers tied to the case.

• Coinbase CEO Rejects SEC Fine Over Charges – Brian Armstrong stated that Coinbase will not pay a fine related to the SEC’s 2023 charges of operating an unregistered securities exchange. Meanwhile, Trump has openly embraced crypto, attending the 2024 Bitcoin Conference and securing industry donations.

• Apple Removes Advanced Data Protection in the UK – Apple has discontinued its Advanced Data Protection feature in the UK following government pressure to create a backdoor for user data access. The feature, which offered end-to-end encryption for iCloud data and other services, is now unavailable to new users in the region.

Private Markets & Real Estate

•  7-Eleven’s Cultlike Loyalty in Japan – With over 21,000 locations, 7-Eleven Japan has become a hub for on-the-go comfort foods, far beyond its U.S. roots of Slurpees and self-serve fuel pumps. Its success in Japan transformed the brand into a global convenience leader.

M&A, IPO’s, Bankruptcies

• Diamondback Energy Expands in the Permian Basin – The top independent oil producer is acquiring Double Eagle IV subsidiaries for $4.1 billion, with plans to fund the deal through $3 billion in cash and 6.9 million shares. The move follows a wave of Permian acquisitions as companies scale up for efficiency.

• Bill Ackman Raises Howard Hughes Takeover Offer – Pershing Square has proposed acquiring 10 million newly issued shares of Howard Hughes Holdings at $90 per share, increasing its bid for the company.

• Shift4 Payments to Acquire Global Blue for $1.5B – The payments processor will pay $7.50 per share in cash, a 15% premium, valuing Global Blue at $1.5 billion ($2.5 billion including debt). The deal aims to expand Shift4’s reach among major retailers like Prada, Nike, and IKEA.

• Niantic in Talks to Sell Pokémon Go Business for $3.5B – Niantic Inc. is negotiating a sale of its video-game division to Saudi-owned Scopely for around $3.5 billion, potentially including Pokémon Go and other mobile titles. The company has struggled to replicate its 2016 success, leading to staff cuts and game cancellations.

• Nikola Files for Bankruptcy After Failing to Secure Funds – The electric and fuel cell truck maker collapsed after struggling to find a buyer or raise capital. Once valued at $30 billion—surpassing Ford—Nikola’s downfall marks the end of its meteoric rise in the auto startup world.

• Elon Musk’s X Seeks Funding at $44B Valuation – X is in talks to raise funds to support payments and video initiatives while reducing its debt load. If successful, the funding would restore Twitter’s original acquisition value, marking a turnaround after advertiser losses.

• HSBC to Incur $1.8B in Restructuring Charges – The bank's global overhaul aims to cut $3 billion in expenses, with half reinvested into growth areas as it focuses on Asia and the Middle East. The plan includes business closures and management cuts.

• Forever 21 Weighs Second Bankruptcy Amid Buyer Struggles – The fast fashion retailer is in talks with liquidators as it struggles to compete with Shein and Temu. It remains unclear whether it will proceed with liquidation or seek other options.

• Celsius Buys Alani Nu for $1.8B to Boost Growth – The energy-drink maker is acquiring Alani Nu, a social media-driven brand, in its largest deal yet. As Celsius’s growth slows, the move aims to tap into rising beverage trends and strengthen its market position.

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