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Last Week’s Headlines

Economy & World News

• OPEC+ to Pause Output Hikes After December Increase
  OPEC+ will implement a small output boost in December but pause further hikes through March as members balance production amid signs of an oil surplus. Saudi Arabia led the decision, reflecting concern over weaker demand heading into winter months.

• Soaring Drug Costs Push Patients to the Brink
  The price of multiple sclerosis drug Rebif has skyrocketed from $17,500 in 2003 to over $140,000 annually, forcing patients like Jean Kay into financial strain. The case underscores growing outrage over U.S. drug inflation and insurer retreat from coverage on long-approved treatments.

• Private Payrolls Rose 42,000 in October, Beating Expectations
  Private employers added 42,000 jobs last month, surpassing the Dow Jones estimate of 22,000 and offsetting September’s decline. Most gains came from large companies, while small businesses continued to shed jobs amid the ongoing government shutdown.

• China Launches $470 Billion Oil and Gas Expansion
  China has kicked off a $470 billion investment to boost domestic oil and gas production, aiming to reduce reliance on foreign imports. The multiyear project underscores Beijing’s push for energy security as geopolitical tensions and supply risks remain high.

• FAA to Cut Flights by 10% Amid Government Shutdown
  The FAA announced a 10% reduction in flight capacity at 40 major U.S. airports as the government shutdown continues to delay paychecks for air traffic controllers. The move is expected to create widespread travel disruptions heading into the holiday season.

• UPS Cargo Plane Crash Kills Nine in Louisville
  A UPS cargo jet crashed shortly after takeoff in Louisville, Kentucky, killing at least nine people and injuring several others. The FAA and NTSB are investigating the accident, which also damaged nearby businesses and temporarily knocked out power to a Ford plant.

• Bank of England Holds Rates Steady Ahead of Autumn Budget
  The Bank of England voted narrowly to keep rates unchanged, aligning with economist expectations. Officials hinted a rate cut could arrive as early as December or February, depending on inflation and fiscal outcomes from the November 26 budget.

• Job Cuts Hit Highest October Level in 22 Years
  October saw 153,000 job cuts, a 183% surge from September and the most for the month since 2003. Technology firms led the losses with nearly 33,000 layoffs, reflecting growing strain from slower growth and tighter financing conditions.

• Pelosi Announces Retirement After Decades in Congress
  Former House Speaker Nancy Pelosi said she won’t seek re-election, ending a storied political career that included passage of landmark legislation like the Affordable Care Act and multiple presidential impeachments. Pelosi cited gratitude and optimism as she prepares to step down after her current term.

Public Markets

• Apple Partners with Google to Power Next Siri with Gemini AI
  Apple is teaming up with Google to integrate the Gemini AI model into a new version of Siri, set for release in March 2026. The system will run on Apple’s private cloud servers, enhancing Siri’s intelligence and web search capabilities while keeping Apple’s branding front and center.

• Amazon and Microsoft Announce Massive AI Spending Surge
  Both Amazon and Microsoft inked multibillion-dollar deals this week signaling a new AI infrastructure race. Amazon’s $38 billion agreement with OpenAI and Microsoft’s $9.7 billion contract with Australia’s IREN highlight escalating cloud investments to secure Nvidia chip access.

• SoftBank Loses $32 Billion in Market Cap as AI Stocks Tumble
  Asian markets fell sharply after investors grew wary of overinflated AI valuations, wiping out roughly $32 billion from SoftBank’s market cap. Palantir dropped 8% despite strong earnings, while analysts warned of a potential correction across the sector.

• Pinterest Shares Plunge 20% on Weak Outlook
  Pinterest stock sank after the company missed earnings expectations and issued a muted revenue forecast between $1.31 and $1.34 billion for Q4. The decline highlights investor concerns as digital ad growth slows, despite strong results from peers like Meta and Alphabet.

• E.l.f. Beauty Stock Drops 29% on Tariff Impact and Weak Guidance
  E.l.f. Beauty plunged nearly 30% after issuing lower guidance for the year and warning of tariff headwinds. The company beat earnings but missed on revenue, though CEO Tarang Amin noted Hailey Bieber’s Rhode partnership could add $200 million in sales this year.

• Snap Shares Surge 15% on Strong Forecast and Perplexity AI Deal
  Snap’s stock jumped 15% following upbeat earnings and news of a $400 million partnership with Perplexity AI to integrate its search capabilities into Snapchat. The company also launched a $500 million buyback, signaling growing optimism in its turnaround strategy.

• Apple to Pay $1 Billion Annually for Google’s AI Model
  Apple is finalizing a deal with Alphabet to use its 1.2 trillion-parameter AI model for Siri’s overhaul. The agreement, worth roughly $1 billion per year, will serve as a bridge until Apple launches its own trillion-parameter model expected next year.

• Duolingo Shares Fall 27% on Light Guidance
  Duolingo’s stock plunged after issuing weaker-than-expected forecasts despite strong revenue growth. The company said it is prioritizing user expansion over short-term profits, shifting its strategy toward long-term growth initiatives.

• DoorDash Drops 9% on Earnings Miss and Rising Costs
  DoorDash stock tumbled after the company missed analyst targets and warned of heavy spending in 2026. The delivery giant plans to invest hundreds of millions in new products, following its recent acquisition of Deliveroo.

• Shein Forecasts $2 Billion Profit Despite Tariffs
  Shein projected $2 billion in net income for 2025, nearly doubling last year’s figure, aided by higher margins and cost-cutting. The e-commerce company continues to face IPO uncertainty as it battles tariffs and global regulatory challenges.

• Eli Lilly and Novo Nordisk Strike Deal with Trump Administration
  The two pharmaceutical giants reached agreements with the White House to lower prices for weight-loss drugs like Wegovy and Zepbound in exchange for tariff relief. Medicare and Medicaid patients could see monthly costs drop from over $1,000 to under $300.

Real Estate & Private Equity

• Starbucks Sells 60% of China Unit to Boyu at $4 Billion Value
  Starbucks is selling a majority stake in its China business to private equity firm Boyu Capital, valuing the unit at $4 billion. The deal gives Boyu 60% ownership, allowing Starbucks to streamline its struggling Chinese operations while retaining a 40% stake.

• Hooters Founders Reacquire Chain After Bankruptcy
  The original founders of Hooters have regained control of the brand following its bankruptcy earlier this year. The group plans a “re-Hooterization,” simplifying menus and reviving the brand’s classic beach-style image to reconnect with its roots.

• Yum Brands Considers Strategic Options for Pizza Hut
  Yum Brands is reviewing strategic alternatives for Pizza Hut, including a potential sale or joint venture, after years of declining market share. The chain’s U.S. presence has shrunk from 22.6% in 2019 to 18.7% in 2024, according to Barclays.

• Point72 to Raise $1 Billion for Private Credit Fund
  Steve Cohen’s Point72 is preparing to launch a new private credit strategy, seeking at least $1 billion from outside investors. The evergreen fund, led by Todd Hirsch, marks the firm’s expansion beyond traditional liquid markets.

• Charles Schwab to Acquire Forge Global for $660 Million
  Schwab announced plans to buy Forge Global, a platform for trading pre-IPO shares, in a $660 million deal. The acquisition expands Schwab’s reach into private markets as investor appetite for alternative assets continues to rise.

M&A, IPO’s, Bankruptcies

• Kimberly-Clark Strikes $40 Billion Deal for Tylenol Maker Kenvue
  Kimberly-Clark agreed to acquire Kenvue, the maker of Tylenol, in a $40+ billion deal creating a global health-and-wellness powerhouse. The merger strengthens Kimberly-Clark’s consumer health lineup to rival Procter & Gamble and Unilever, with Kenvue shares soaring nearly 19% after the announcement.

• Microsoft and Amazon Secure Nvidia Chip Access in AI Deals
  Microsoft’s five-year $9.7 billion cloud deal with IREN and Amazon’s $38 billion OpenAI partnership collectively deepen their AI infrastructure dominance. These moves ensure both companies long-term access to high-performance Nvidia GPUs, a key advantage as AI demand accelerates.

• Warner Bros. Discovery Targets Christmas Deadline for Potential Split or Sale
  Warner Bros. Discovery plans to decide by Christmas whether to sell or split the company following multiple unsolicited takeover offers. Paramount has reportedly lobbied WBD’s board to merge instead, suggesting an increasingly competitive race for consolidation in media.