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Jim Lake, a retiree from Washington state, has shifted his investment strategy to align with his Christian faith, moving his portfolio to faith-friendly funds like GuideStone Funds. This firm, managing $24 billion, primarily serves Southern Baptist retirees but is now attracting a broader base of faith-based investors. GuideStone is part of a growing coalition of conservative Christian investors who are using their financial influence to oppose corporate policies they view as contrary to their beliefs, such as funding for Pride parades or abortion-related travel expenses. This group, which includes significant players like Inspire Investing and state pension funds, has amassed considerable financial power, with investments potentially reaching half a trillion dollars. Their efforts, though met with limited success so far, are focused on influencing corporate behavior through shareholder proposals and direct engagement with company executives. The movement reflects a broader trend of religious investing, traditionally focused on liberal issues, now shifting towards conservative causes, driven by a rightward political shift in the U.S.
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Foreign-branded smartphone shipments to China, including Apple's iPhone, experienced a significant decline of 47.4% in November compared to the previous year, marking the fourth consecutive month of decline. This downturn is attributed to a slowing economy and increased competition from domestic manufacturers like Huawei, which has made a strong comeback in the premium segment with locally-made chipsets. Apple, despite its dominance in the foreign smartphone market in China, has seen its market share decrease, prompting the company to launch a rare promotional event to boost sales. The economic environment in China, characterized by falling consumer prices and deflation concerns, has further impacted household spending on electronics. Meanwhile, Huawei's sales surged by 42% in the third quarter, highlighting the shifting dynamics in the world's largest smartphone market.
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Recent developments have fueled speculation that X, formerly known as Twitter, might soon launch its payment system, X Money. A leaked screenshot of the platform's latest software code, shared by MacRumors contributing researcher Aaron Perris, includes a line indicating that X Money might not be available in all states, suggesting a possible imminent launch in the 39 states where X has already obtained money transmitter licenses. This follows X CEO Linda Yaccarino's confirmation that X Money is slated for a 2025 launch. The speculation around X Money's features includes the potential integration of cryptocurrencies, with Dogecoin being a likely candidate due to Elon Musk's known affinity for the memecoin. Musk's other ventures, like Tesla, already support Dogecoin for merchant purchases, and the company holds a significant amount of Bitcoin. While the legitimacy of the leaked code remains unconfirmed by X, the anticipation around X Money's launch and its potential crypto support continues to grow.
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Celsius, a collapsed crypto lending platform, has filed an appeal against a court decision that disallowed its claims for damages against FTX as part of its bankruptcy proceedings. Initially, Celsius sought $2 billion in damages, alleging that disparaging statements from FTX officers contributed to its downfall. This claim was later adjusted to $444 million, focusing on preferential transfers that allegedly favored some creditors over others. However, Judge John T. Dorsey dismissed both claims in December, citing procedural shortcomings and inadequate detail in Celsius' original filings. The court found that Celsius' amended claims were improperly filed without seeking leave to amend and were not sufficiently related to the original claims. Despite Celsius' argument that their initial filings should have put FTX on notice, the court ruled against them. This legal battle comes amidst Celsius' efforts to recover funds for its creditors, having already repaid about $2.53 billion and planning further distributions from litigation recoveries. Meanwhile, Celsius' native token, CEL, experienced significant volatility, reflecting the ongoing financial and legal turmoil surrounding the company.
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Meta Platforms Inc. announced that Nick Clegg, who has been the company's president of global affairs since joining in 2018, will step down. His role will be taken over by Joel Kaplan, a long-time Meta executive known for his Republican affiliations, especially significant as Donald Trump prepares for his second term as US president. Clegg, who previously served as the UK's deputy prime minister, led Meta's lobbying efforts during a time when the company faced increased regulatory scrutiny and criticism over its social media platforms' societal impacts. Kaplan, who has been with Meta since 2011, has advocated for broader political speech on the platform. Kevin Martin, another former Republican official, will assume Kaplan's previous role. These changes come at a time when Meta is attempting to mend its relationship with Trump, who has accused the company of censoring conservative voices, especially after his account was reinstated in 2023 following a ban related to the January 6 Capitol riot.
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Nvidia's stock performance has been a focal point among the "Magnificent Seven" tech stocks at the start of the new year. After experiencing a group-wide sell-off towards the end of 2024, Nvidia shares rebounded with a 3% increase on Thursday. Despite a dip of 4% during the holiday period, Nvidia ended the year with a significant gain of over 44% from the previous year. Wall Street analysts are optimistic about Nvidia's future, with projections suggesting the stock could climb to $173 within the next year. Bank of America's Vivek Arya highlighted that the sell-off was influenced by broader market shifts and company-specific issues, including delays in new product shipments. However, he views these as short-term hurdles and maintains a Buy rating, predicting a rise to $190 over the next 12 months. This optimism is fueled by Nvidia's strong earnings growth and the broader market's enthusiasm for AI technology, although there are concerns about potential overvaluation and market bubbles.
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Eli Lilly has moved to intervene in a lawsuit against the U.S. Food and Drug Administration (FDA) concerning the agency's decision that there is no longer a shortage of Lilly’s weight-loss and diabetes drugs, Zepbound and Mounjaro. The lawsuit, initiated by compounding pharmacies and the Outsourcing Facilities Association, challenges the FDA's October decision, which restricts the production of cheaper, compounded versions of these drugs. Despite the FDA's initial reconsideration and subsequent reaffirmation of no shortage, the compounding industry seeks a court order to reverse this decision. Lilly's involvement stems from its need to protect its interests, as it believes the FDA might not appeal an unfavorable court ruling. Additionally, Lilly has concerns about the legality of compounded drug production by smaller pharmacies even during shortages, a stance potentially at odds with the FDA's views. Meanwhile, the market for compounded versions of similar drugs like Wegovy remains significant, driven by cost considerations for patients not covered by insurance for weight-loss treatments.
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Elon Musk and Vivek Ramaswamy, appointed by President-elect Donald Trump to lead a new Department of Government Efficiency, have expressed their intent to bring federal workers back to the office full-time, viewing remote work as a temporary measure from the Covid-19 era. However, labor economists and data from WFH Research indicate that remote work has become a permanent fixture in the U.S. job market, with over 25% of workdays still being conducted remotely. Despite this, several major corporations like Amazon, The Washington Post, and others have curtailed remote work options, citing cultural and productivity benefits. Yet, research suggests that remote work, particularly in a hybrid model, is profitable for companies due to lower employee turnover and maintained productivity levels. There's also speculation that some companies might be using return-to-office mandates as a subtle way to reduce their workforce, although this is often denied by company leaders who emphasize cultural enhancement as the primary motive.
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In early December 2024, Chinese state-sponsored hackers reportedly breached the U.S. Treasury Department, specifically targeting the Office of Foreign Assets Control, the Office of Financial Research, and the office of Treasury Secretary Janet Yellen. The Washington Post, citing unnamed U.S. officials, revealed that the hackers stole unclassified documents in what was described as a "major incident." The Treasury Department had previously disclosed the breach in a letter to lawmakers but did not specify which departments were affected. Liu Pengyu, a spokesperson for the Chinese Embassy in Washington, dismissed the allegations as "irrational" and lacking factual basis, asserting China's stance against all forms of cyberattacks. The breach also involved compromising a third-party cybersecurity service provider, BeyondTrust. This incident comes at a time when U.S.-China relations are strained, with the U.S. frequently using financial sanctions as a tool against Chinese entities, and considering further sanctions on Chinese banks to limit Russia's oil revenue and support for its war in Ukraine.
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The recent establishment of a new debt ceiling has sparked a debate on how to prevent a government default, a situation that has left President-elect Donald Trump visibly frustrated. Trump's concern stems from the potential distraction this issue could pose to his broader economic agenda for 2025, which includes border measures, energy policy, and tax cuts. Treasury Secretary Janet Yellen has indicated that the government might need to resort to "extraordinary measures" to manage cash flow and avoid default, with these measures possibly starting within days. The political landscape is further complicated by House Speaker Mike Johnson's strategy to link a $1.5 trillion debt ceiling increase with $2.5 trillion in spending cuts, a move likely to face opposition from Democrats and some Republicans. This situation is exacerbated by internal GOP dynamics, with figures like Chip Roy potentially influencing the outcome through rule changes or committee assignments. The looming deadline, possibly as early as mid-June, adds urgency to resolving this contentious issue.
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In a significant leadership change at Meta, Nick Clegg, the company's president of global affairs and former British deputy prime minister, is stepping down. He will be succeeded by Joel Kaplan, who currently serves as Meta's policy vice president and has a background in Republican politics, having worked under President George W. Bush. This transition is timed closely with the upcoming inauguration of President-elect Donald Trump, indicating a strategic alignment with the new U.S. administration. Clegg, who joined Meta in 2018, has been instrumental in navigating the company through various controversies, including the Cambridge Analytica scandal and issues related to election influence and content control. He plans to spend the first quarter of the year transitioning his responsibilities and representing Meta at international events. Kevin Martin, a former Federal Communications Commission chairman, will replace Kaplan as the vice president of global policy. Mark Zuckerberg expressed gratitude for Clegg's contributions and confidence in Kaplan's ability to lead the global affairs team forward.
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On January 1, 2025, a Tesla Cybertruck rented by Matthew Alan Livelsberger, an active-duty member of the U.S. Army Special Forces, exploded outside the Trump International Hotel in Las Vegas. The incident, which resulted in the death of the person inside the vehicle and minor injuries to seven bystanders, is under investigation as a potential terrorist attack. Federal agents are currently searching a residence in Colorado Springs linked to the case. The explosion happened just hours after a separate attack in New Orleans where a driver, identified as a U.S. Army veteran, killed 14 people by driving into a crowd. Although both vehicles were rented from the same company, Turo, authorities have not confirmed any connection between the two incidents. Tesla CEO Elon Musk confirmed that the explosion was caused by fireworks or a bomb in the truck's bed, not by the vehicle itself. The investigation continues with no established motive, and local law enforcement has been commended for their swift response.
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President-elect Donald Trump and his allies in Congress have seized upon a deadly truck attack in New Orleans to criticize President Joe Biden's border policies, despite the attacker, Shamsud-Din Jabbar, being a U.S. citizen and Army veteran. Trump, in posts on Truth Social, linked the attack to what he described as a surge in crime due to lax border control, even after Fox News corrected its initial report that the suspect had recently crossed the border from Mexico. The FBI confirmed Jabbar acted alone, inspired by ISIS, and was not a migrant. Despite these clarifications, Trump and other Republicans, including House Speaker Mike Johnson, continued to use the incident to argue for enhanced border security, portraying the attack as a consequence of Biden's policies. This narrative was echoed by several GOP members, who emphasized the need for stricter immigration controls to prevent such incidents, despite statistics showing a very low percentage of migrants on the terrorist watchlist.
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In December 2024, Ether ETFs experienced significant net inflows, totaling $2.6 billion, although they still trailed behind Bitcoin ETFs, which ended the year with over $35 billion in net inflows. Ether ETFs saw eight consecutive weeks of net inflows, with a record-breaking $2.2 billion in the week of November 26. BlackRock’s iShares Ethereum Trust led the pack with $3.5 billion in net inflows for the year, while Fidelity's Ethereum Fund came in second with $1.5 billion. However, Grayscale Ethereum Trust saw net outflows of $3.6 billion. Analysts suggest that Ether ETFs could potentially outperform Bitcoin ETFs in 2025, driven by factors like improved ETH price performance and the possibility of generating yields from staking. Additionally, Ethereum's network activity, particularly in AI applications, could further boost its performance, with predictions from asset manager VanEck estimating Ether's spot price to reach $6,000 by Q4 2025.
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As President Joe Biden prepares to leave office, federal student loan borrowers are bracing for potential changes under President-elect Donald Trump. Trump's skepticism towards student loan forgiveness could mean the end for Biden's SAVE repayment plan, according to Betsy Mayotte from The Institute of Student Loan Advisors. However, not all relief options are at risk; the Public Service Loan Forgiveness (PSLF) program, established by President George W. Bush, is expected to remain intact due to its legal foundation and bipartisan support. Additionally, the U.S. Department of Education has reopened enrollment for two other income-driven repayment plans, Pay As You Earn and Income-Contingent Repayment, offering alternatives for borrowers. These plans adjust monthly payments based on income and family size, leading to eventual debt forgiveness. Borrowers are advised to keep their loan records updated and stay informed about their repayment status, especially those pursuing forgiveness under income-driven plans or PSLF, to navigate any potential changes smoothly.
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Hindenburg Research has taken a short position against Carvana, an online used-car retailer, alleging that the company's recent financial turnaround is misleading. The report, titled "Carvana: A Father-Son Accounting Grift For The Ages," focuses on Carvana's loan sales practices and the business ties between CEO Ernie Garcia III and his father, Ernest Garcia II, who is the company's largest shareholder. Carvana's stock, which had surged nearly 400% in 2023, closed below $200 for the first time since October following the report. Carvana dismissed the allegations as misleading, emphasizing their focus on executing plans for 2025. Hindenburg's investigation suggests that Carvana has engaged in questionable financial practices, including $800 million in loan sales to potentially related parties and manipulating accounting to show temporary income growth. Additionally, the report highlights how Carvana's loan servicer, linked to DriveTime (run by Garcia II), might be enabling higher borrower extensions to avoid reporting delinquencies. Despite these claims, CNBC could not immediately verify the allegations, and this isn't the first time the Garcia family's control over Carvana has been scrutinized.
