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Tesla Inc. experienced its first annual decline in vehicle deliveries in 2024, reporting a total of 1,789,226 vehicles delivered, down from 1.81 million in the previous year. The fourth-quarter results, which included 495,570 deliveries, fell short of analyst expectations, leading to a significant drop in Tesla's stock price by up to 7%. This downturn comes after a year where Tesla's stock had seen a 63% increase, buoyed by a late-year rally. CEO Elon Musk's involvement in political activities, including significant financial support for Donald Trump's campaign, has raised concerns about his focus on Tesla's core business. The company is now facing stiff competition in the electric vehicle (EV) market, particularly in Europe where sales dropped by 14% in the first eleven months of 2024, and in China where growth in Tesla's sales lagged behind the overall market. Despite these challenges, Tesla is planning to introduce more affordable and autonomous vehicles in 2025, aiming for a growth rate of 20% to 30% over 2024. However, the immediate future might see Tesla grappling with inventory buildup and the need to maintain its market dominance amidst rising competition.
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Carvana Co., an online auto retailer, has been accused by Hindenburg Research of engaging in questionable business practices. The report claims that Carvana's subprime loan portfolio poses significant risks and that the company's growth model is unsustainable. Hindenburg, after taking a short position on Carvana's stock, highlighted issues like lax loan underwriting and the manipulation of financial results through dealings with DriveTime, a car dealer owned by the CEO's father. Despite these allegations, Carvana's stock had seen a dramatic 284% increase in value the previous year, although it dropped by 1.9% following the report's release. Carvana responded by stating that the accusations were not new and had been made by other short sellers in the past, suggesting that the company has been under scrutiny since its IPO seven years ago. The report also pointed out insider trading by the Garcia family, with significant stock sales during periods of stock price surges.
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In 2024, Citadel, led by billionaire investor Ken Griffin, achieved significant success across its hedge funds, with all strategies posting double-digit returns. The standout was the tactical trading fund, which returned 22.3%, while the flagship Wellington fund, Citadel's largest, saw a 15.1% increase. This performance was driven by positive contributions from commodities, equities, fixed income, credit, and quantitative strategies. Despite the firm's success, Griffin expressed concerns over President-elect Donald Trump's proposed tariffs, warning of potential crony capitalism. Additionally, Griffin indicated that there are no immediate plans to take Citadel Securities, a market maker he founded in 2002, public. Citadel's achievements come in a year where the S&P 500 surged by 23.3%, marking a two-year gain of 53%, the best since the late 1990s.
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CNBC has opened applications for its 2025 Disruptor 50 list, marking its thirteenth year of recognizing innovative venture-backed companies. The list aims to highlight firms that tackle economic and consumer challenges through breakthrough technology. Companies must be independent, privately-owned, and founded post-2010 to be eligible. The application deadline is February 10, 2023. The selection process is comprehensive, involving both quantitative and qualitative assessments, with a focus on scalability, revenue, user growth, and the application of cutting-edge technology. While AI has been pivotal for many past honorees, the list also celebrates disruptions in various other sectors like food, energy, and financial services. The final list, influenced by advisory boards of academics and venture capitalists, will be announced in June across CNBC's platforms, with honorees being notified in April.
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Apple is implementing a strategic discount campaign in China for the upcoming Chinese New Year, offering significant price reductions on its latest iPhone models, including the iPhone 16 Pro and iPhone 16 Pro Max. This move comes as Apple grapples with intensified competition in one of its key markets. Previously, Apple had largely avoided direct discounts through its own retail channels, but recent market dynamics have prompted a shift in strategy. The discounts are part of Apple's response to a challenging environment where its smartphone shipments in China dropped by 6% year-on-year in Q3 2024, and its market share fell from 16% to 14%. Meanwhile, Huawei, a former global leader in smartphones, has seen a resurgence, with its shipments increasing by 24% and its market share rising to 16% from 13% over the same period. Huawei's aggressive product launches, including innovative devices like a trifold phone, have contributed to its market recovery despite U.S. sanctions.
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European markets experienced a slight uptick on Thursday afternoon following a mixed start to 2025 trading. The Stoxx 600 index managed to reverse earlier losses, hovering just above the flatline by early afternoon. Gains were led by oil and gas stocks, which rose by 1.6%, and utilities, up by 1.3%. However, banking and auto sectors saw declines, with banking stocks like BBVA and Banco Santander losing over 4% due to uncertainties related to the economic outlook and potential U.S. tariffs. Political instability was highlighted by French President Emmanuel Macron's admission that his decision to call snap elections had caused more division than solutions. Manufacturing data indicated a downturn in Germany and France, with Italy also showing a slowdown, while Spain continued its economic expansion. Currency markets saw both the pound and euro weaken against a strengthening dollar, with the pound hitting its lowest level since April 2024. Meanwhile, U.K. house prices rose, and Asian markets were mixed with China leading losses.
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Equinor, a Norwegian energy company, has announced securing a financing package exceeding $3 billion for its Empire Wind 1 offshore wind project in the United States. The project, which will supply power to approximately 500,000 homes in New York, is set to commence commercial operations by 2027. The total investment for the project is estimated at $5 billion, which includes costs for using the South Brooklyn Marine Terminal and benefits from future tax credits. Additionally, Equinor plans to mitigate its risk and enhance project value by seeking a new partner to share the investment burden. This strategic move not only helps in managing financial exposure but also aligns with Equinor's broader strategy to expand its renewable energy portfolio in the U.S. market.
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The first trading day of 2025 saw an uptick in stock futures, with the Dow Jones, S&P 500, and Nasdaq-100 all posting gains, although the traditional "Santa Claus rally" did not materialize. The restaurant industry faced significant challenges in 2024, with numerous companies filing for bankruptcy and chains like Wendy’s, Denny’s, and Applebee’s reducing their footprints due to inflation and changing consumer habits. The U.S. housing market, while showing an increase in active listings, is struggling with properties staying on the market longer, indicating a surplus of less desirable inventory. Apple is encountering fierce competition from Huawei in China, prompting the company to offer substantial discounts on its products. Meanwhile, a tragic event unfolded in New Orleans on New Year's Day, where a man drove into a crowd and opened fire, leading to multiple casualties and injuries, with the FBI probing the incident as potential terrorism.
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On the first trading day of the new year, U.S. Treasury yields experienced a decline, reflecting investor caution about future economic conditions. The yield on the 10-year Treasury dropped to 4.523%, while the 2-year Treasury yield fell to 4.219%. This movement comes after a volatile year for Treasurys, which saw yields fluctuate significantly, starting below 3.9% and ending above 4.5%. The bond markets, closed for New Year's, reopened with investors focusing on upcoming economic data releases. Key indicators like weekly initial jobless claims and manufacturing sector insights are anticipated to provide clues on the economy's direction. Moreover, the Federal Reserve's recent indication of fewer rate cuts, coupled with expectations of steady rates in January, adds to the cautious outlook among investors as they navigate through the holiday-shortened week.
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Asian stock markets experienced mixed performances on Thursday, with China leading the losses as trading resumed after the New Year holiday. China's manufacturing PMI for December was reported at 50.5, lower than expected, signaling a slowdown in growth due to weaker export demand amid global economic uncertainties. Despite President Xi Jinping's promises of supportive economic policies, the CSI 300 index in mainland China fell by nearly 3% before closing down 2.91%. In Hong Kong, the Hang Seng Index saw a significant drop of 2.37%, exacerbated by a sharp decline in Sun Art Retail Group shares following Alibaba's announcement to divest its majority stake. South Korea's markets had a mixed day with the Kospi slightly down and the Kosdaq up by 1.24%. Meanwhile, Australia's S&P/ASX 200 managed a modest gain of 0.52%. The offshore yuan also saw a slight recovery against the dollar. This market activity comes as traders also digest Singapore's GDP growth figures for Q4 2024, which showed a year-on-year expansion of 4.3%.
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On January 1, 2025, a horrific incident unfolded in New Orleans when Shamsud-Din Jabbar, a 42-year-old U.S. Army veteran, drove a white Ford F-150 into a crowd celebrating New Year's in the French Quarter, resulting in 15 deaths and 30 injuries. Jabbar, who had served in Afghanistan, was killed in a subsequent shootout with police. The FBI is investigating the motives behind the attack, focusing on Jabbar's possible links to terrorism, evidenced by an ISIS flag found on his truck. The investigation also explores any connections to a separate event where a Tesla Cybertruck exploded outside the Trump International Hotel in Las Vegas. The attack has not only shocked the community but also raised security concerns as New Orleans prepares to host the NFL Super Bowl. Among the victims were diverse individuals, including a mother, a student-athlete, and an aspiring nurse. The city's response included a thorough search for additional threats, leading to the rescheduling of the Sugar Bowl. President Joe Biden condemned the act, and authorities continue to search for any accomplices or further evidence linking Jabbar to terrorist organizations.
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The US Treasury market concluded 2024 with a modest gain, driven by a decline in inflation and three Federal Reserve rate cuts. Initially, the market faced potential losses as yields approached 2023 highs due to persistent inflation, but a shift occurred in mid-September when inflation trends improved, prompting the Fed to cut rates by a total of one percentage point over three instances. This adjustment brought the US overnight interest rate target range to 4.25%-4.5%. Despite these gains, the market's performance was less robust compared to 2023, with the Bloomberg US Treasury Index showing a 0.6% return. The year was marked by significant fluctuations, with the best performance in July and May, and the worst in October and April. Factors like oil prices, economic data, and the US presidential election influenced market dynamics, with expectations for future rate changes shifting dramatically throughout the year.
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The article discusses the economic and political challenges facing Germany and France, the euro zone's largest economies, as they navigate through a period of significant turbulence without a budget for 2025. Both countries are dealing with different fiscal issues; France with a high budget deficit and debt, and Germany with overly restrictive fiscal policies leading to economic stagnation. The absence of a budget reflects deeper problems like political infighting, which has led to government collapses and upcoming elections. Economists are concerned that without fundamental reforms, Europe could face ongoing economic decline, exacerbated by external factors like the war in Ukraine, rising energy prices, and global trade tensions. The European Central Bank has attempted to mitigate these issues by reducing interest rates, but the outlook remains cautious with potential for further economic challenges. The article highlights the need for both countries to focus on growth-oriented policies to counteract these trends, although structural problems and external pressures continue to pose significant hurdles.
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U.S. exchange-traded funds (ETFs) experienced a record-breaking year in 2024, with inflows reaching $1.1 trillion, nearly doubling the previous year's total. This surge was driven by a bull market, innovative products like cryptocurrency and options-based ETFs, and a shift towards lower-cost, liquid investment options. However, looking ahead to 2025, the industry faces potential hurdles. Analysts like Bryan Armour from Morningstar suggest that the rapid development of new, complex ETFs might not align with investor interest, predicting a record number of fund closures due to insufficient uniqueness or appeal. The average lifespan of ETFs has already begun to decline, pushing asset managers to be more agile in managing their product lines. Despite these challenges, the ETF sector remains optimistic, with global assets under management growing significantly and new product launches, including spot bitcoin ETFs, indicating continued innovation and investor interest.
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The article discusses the end-of-year market trends and significant events in 2024. U.S. stocks concluded the year with a slight downturn on the last trading day but still managed to close higher overall. In contrast, Asia-Pacific markets experienced a decline, with China's CSI 300 ending the year up by 15% despite a daily loss. Bitcoin saw a significant milestone, surpassing $100,000, fueled by optimism following Donald Trump's election win, with expectations of reaching $200,000 in the near future. Nippon Steel's proposed acquisition of U.S. Steel hangs in the balance, with the company offering the U.S. government veto power over production cuts to sway President Biden's decision. Meanwhile, Alibaba made a strategic move by slashing prices on its AI model, Qwen-VL, by up to 85%, intensifying competition in the AI sector. The S&P 500 had a volatile year, starting strong but ending with a modest gain, influenced by AI stocks like Nvidia and Broadcom, which saw substantial increases. However, uncertainties loom with the incoming Trump administration and potential economic policy changes.
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In 2024, air travel demand saw a significant increase, particularly in international travel, with revenue-passenger miles up nearly 11% from the previous year. Airlines responded by increasing flight offerings and enhancing premium seating options to boost revenue, especially on long-haul routes. Despite facing challenges such as aircraft shortages and financial issues, many airlines managed to avoid the severe disruptions seen during the staffing shortages post-COVID. Delta Air Lines, despite a major operational setback due to a CrowdStrike outage in July, led North American airlines in on-time performance. Globally, Aeromexico and Saudia Airlines were among the top performers in punctuality. The aviation industry's recovery and adaptation strategies highlight a robust bounce back, with expectations of further growth in 2025.
