M360 Roundup - Volume 75
January 10th - 21st, 2025
Cole LaCour
Jobless claims rose to 219,000 but remain below the 2024 average, signaling a stable labor market with strong wages and consumer spending
The S&P 500 is down 0.16%, the Nasdaq is down 0.01%, and the Dow Industrials is up 2.02% WTD
The 10-Yr U.S. Treasury yield has decreased -0.012% to a current yield of 4.464%, whereas the 30-Yr U.S. Treasury yield decreased -0.006% to a current yield of 4.703%
Crude oil prices increased 0.42% to a current $71.62/bbl while bitcoin increased 2.81% to a current $98,942.69/coin
Despite market shocks from Chinese AI and tariffs, the S&P 500 remains stable while individual stocks swing wildly, creating a risky imbalance that could unwind suddenly [WSJ]
Tariffs on key trade partners and raw materials could drive up transformer prices, worsening shortages and delaying critical power grid investments amid rising electricity demand [WSJ]
Warren Buffett's Berkshire Hathaway is hoarding a record $300 billion in cash, largely due to high stock valuations, limited attractive investment opportunities, and recent sales of equities like Apple, as Buffett waits for better deals [WSJ]
Apple's iPhone 16e starts at $599, significantly reducing its price gap with other iPhones, as the company prioritizes profit margins and R&D investments over appealing to budget-conscious consumers [WSJ]
Coinbase’s accounting change removes customer crypto assets from its balance sheet, but legal uncertainty remains over ownership in bankruptcy, leaving investors cautious [WSJ]
Investors worry that rising speculation in options, meme stocks, and crypto amid a long bull market could create market imbalances and lead to a sharp correction [WSJ]
M&A activity continues to remain mixed although developments within energy and technology prove to be encouraging
Musk's X is in talks to raise capital at a $44B valuation [BB]
PE firm Silver Lake is in exclusive talks to acquire a majority stake in Intel's programmable chips unit Altera, which Intel acquired for $17B in 2015 [RT]
BP is weighing a $10B sale of its lubricants business amid pressure from Elliott [MBI]
Equipment rental firm Herc Rentals agreed to acquire H&E Equipment Services in a $5.3B deal that was deemed superior to United Rentals' $3.4B offer
Diamondback Energy agreed to acquire subsidiaries Double Eagle IV Midco for $4.1B in cash and stock to expand in the Permian Basin [RZ]
Payments processor Shift4 Payments agreed to acquire tax-free shopping services provider Global Blue for $1.5B
Auto retailer Asbury Automotive will acquire automotive dealerships owned by Herb Chambers Companies for $1.35B
Occidental Petroleum will divest some upstream assets to undisclosed buyers in two deals for a total $1.2B [OE]
Bill Ackman's Pershing Square revised its offer to buy real estate firm Howard Hughes Holdings to provide a $900M equity infusion
Recent developments across four key industries highlight the U.S. planning to expand LNG exports, FTC probing tech firms' censorship practices, and scientists warning H5N1 bird flu mutations could spark a human pandemic
Energy & Natural Resources
The EPA seeks to cancel California's emissions waivers granted under Biden, sending them to Congress for review, challenging state-led regulations on zero-emission vehicles and heavy-duty emissions [RZ]
The U.S. aims to expand LNG exports with lifted permitting restrictions, but faces challenges from rising costs, market uncertainties, and competition from Qatar, despite strong global demand for natural gas [WSJ]
Oil and gas hiring in 2025 will be shaped by M&A-driven layoffs, retirements, increased deepwater projects, growing natural gas demand, and a push to recruit young talent to fill skill gaps [RZ]
Technology, Media, & Telecommunications
The FTC is investigating tech companies' censorship practices, questioning their legality and impact on consumers, and seeking public input on content restrictions [WSJ]
AI-driven underwater systems enhance seabed surveillance, protecting vital cables and pipelines through real-time threat detection [WSJ]
Lenovo sees AI startup DeepSeek’s breakthrough as a major growth driver for its AI-enabled devices, expecting AI PCs to make up 25% of global shipments in 2025, while analysts identify Lenovo as a key beneficiary of shifting AI investments [WSJ]
Healthcare & Life Sciences
With H5N1 bird flu spreading among cows, birds, and even cats, scientists warn that a few mutations could enable human-to-human transmission, raising pandemic concerns [WSJ]
Hospitals and doctors are increasingly testing drones for faster, cost-effective delivery of medications, medical supplies, lab samples, and even organs, with expanding regulatory support and technological advancements [WSJ]
Financial Services
With U.S. aluminum production unable to meet demand, buyers are scrambling to secure imports before Trump's tariff hike to 25%, driving up delivery costs and reshaping global supply routes [WSJ]
The ECB is closely monitoring the Trump administration’s financial deregulation plans with concern, warning of potential risks to the EU financial sector [WSJ]
Outside of standard macroeconomic updates and M&A developments, DOGE, Nikola, and James Bond have led news cycles
DOGE claims $55 billion in savings by targeting fraud and inefficiencies, but critics argue its focus on improper payments and workforce cuts won’t significantly reduce federal spending [WSJ]
Amazon MGM Studios has gained creative control of the James Bond franchise from the Broccoli family, ending a years-long stalemate and allowing Amazon to decide the next Bond, script, and production timeline [WSJ]
Once a green-investment favorite, electric truck maker Nikola filed for bankruptcy after struggling with high costs, lack of hydrogen infrastructure, and fallout from its founder's fraud conviction [WSJ]
Elon Musk’s Department of Government Efficiency (DOGE) seeks access to IRS taxpayer data, sparking privacy concerns and legal challenges as the Trump administration pushes for government spending cuts [WSJ]
Canada defeated Team USA 3-2 in an intense overtime thriller to win the inaugural 4 Nations Face-Off, a heated yet thrilling tournament blending world-class hockey, national pride, and geopolitical tensions [WSJ]
Airbus's new A321XLR is winning over major airlines, exploiting Boeing’s manufacturing struggles and product gaps, further widening Airbus’s lead in the aviation market [WSJ]