Stocks

Key Points

• Bitcoin ETFs were a hit with investors in 2024, leading to the development of new crypto and derivatives combined products.
• Calamos is launching a structured protection ETF (CBOJ) that offers 100% downside protection with some bitcoin upside.
• The fund combines options exposure on the Cboe Bitcoin U.S. ETF Index with Treasury holdings, designed for a 12-month holding period.
• Other firms like Innovator and First Trust are also planning similar funds, with strategies including covered call funds.
• The SEC under President-elect Donald Trump is expected to be more crypto-friendly, potentially leading to more fund filings in 2025.

Summary

In 2024, Bitcoin ETFs became extremely popular, prompting asset management firms to innovate by combining crypto with derivatives in new exchange-traded products. Calamos, for instance, announced the launch of a structured protection ETF (CBOJ) that aims to provide investors with some of Bitcoin's upside while offering 100% downside protection. This fund will use options on the Cboe Bitcoin U.S. ETF Index alongside Treasury holdings, with a 12-month holding period. The popularity of defined outcome products, like buffer funds, has surged, especially after the 2022 market downturn, as investors seek portfolio diversification. The introduction of spot Bitcoin funds in January 2024 saw unprecedented success, with billions in inflows and Bitcoin reaching over $100,000. Despite this, financial advisors remain cautious due to Bitcoin's volatility, leading to the development of risk-managed funds. Other firms like Innovator and First Trust are also exploring similar strategies, with expectations of a more crypto-friendly SEC under President-elect Donald Trump, potentially leading to more fund filings in 2025.

Key Points

• President-elect Donald Trump is considering a plan to apply tariffs to all nations but narrow the focus to a select set of goods and services.
• The new tariff approach would cause major changes to global commerce, though not as powerful as Trump’s earlier ideas.
• Trump disputed the Washington Post report, claiming his tariff policy would not be pared back.
• Economists are concerned that aggressive tariffs could spike inflation, especially given the current economic conditions.
• The sectors potentially affected include industrial metals, medical supplies, and energy.

Summary

President-elect Donald Trump is reportedly contemplating a revised tariff strategy that would apply to all nations but would focus on specific goods and services, according to a Washington Post report. This approach, while not as broad as his previous tariff proposals, would still significantly impact global trade. Despite the report, Trump refuted claims that his tariff policy would be scaled back, asserting on Truth Social that the information was incorrect. The potential for these tariffs to cause inflation is a concern among economists, especially considering the current economic climate. The sectors under consideration for these tariffs include industrial metals, medical supplies, and energy. This comes at a time when the U.S. is dealing with a substantial trade deficit, which has grown since the Covid-19 pandemic. The implications of these tariff plans could reshape international trade dynamics and domestic economic policies.

Key Points

• Amazon's Ring partners with Kidde to launch connected smoke alarms.
• The new alarms integrate with Ring's home security technology, sending alerts to the Ring app.
• Pricing set at $54.97 for the smoke alarm and $74.97 for the combined smoke and CO alarm.
• Ring introduces a $5/month subscription for professional monitoring and emergency dispatch.

Summary

Amazon's Ring has announced a collaboration with Kidde to introduce smart smoke and carbon monoxide alarms at the Consumer Electronics Show in Las Vegas. These new devices will integrate with Ring's existing home security ecosystem, allowing alerts to be sent directly to the Ring mobile app. The Kidde Smart Smoke Alarm with Ring is priced at $54.97, while the combined smoke and carbon monoxide alarm will cost $74.97, with both products set to ship in April. Additionally, Ring is launching a new subscription service for $5 per month, offering users access to professional monitoring and emergency dispatch services around the clock. This move expands Ring's product offerings beyond its well-known video doorbells into more comprehensive home safety solutions. Despite not disclosing specific sales figures, Ring, along with SimpliSafe, holds a significant share in the U.S. market for professional monitoring systems.

Key Points

• Global semiconductor stocks rose after Foxconn reported record Q4 revenue, driven by AI server demand.
• Nvidia shares surged nearly 5%, nearing a record close, with CEO Jensen Huang set to speak at CES 2025.
• Microsoft's $80 billion investment in AI-capable data centers boosted chip stocks like AMD, Qualcomm, and Broadcom.
• Asian semiconductor companies like TSMC, SK Hynix, and Samsung saw significant share price increases.
• European chip firms ASML, ASMI, Infineon, and STMicroelectronics also experienced notable stock gains.

Summary

Global semiconductor stocks experienced a significant boost following Foxconn's announcement of record fourth-quarter revenue, highlighting the ongoing demand for AI technology. Foxconn, a major supplier to Apple, reported a 15% year-over-year revenue increase, driven by growth in cloud and networking products, including AI servers. This news propelled shares of various semiconductor companies worldwide. In the U.S., Nvidia's stock rose nearly 5%, nearing a record close, with its CEO Jensen Huang scheduled to speak at CES 2025. Microsoft's announcement of an $80 billion investment in AI-capable data centers further fueled the sector's growth, benefiting companies like AMD, Qualcomm, and Broadcom. In Asia, Taiwan Semiconductor Manufacturing Co. (TSMC) hit a record high, while other firms like SK Hynix and Samsung also saw substantial gains. European semiconductor companies such as ASML, ASMI, Infineon, and STMicroelectronics also enjoyed significant share price increases, reflecting the global momentum in the semiconductor industry driven by AI and tech advancements.

Key Points

• Lucid Group reported record quarterly vehicle deliveries for Q4 2024, with 10,241 cars delivered.
• The company met its production target for 2024, producing 9,029 vehicles.
• Despite a 71% increase in deliveries and 7% uptick in production, Lucid's stock declined by 28% in 2023.
• Lucid's first product, the Air sedan, faces increased competition in the EV market.

Summary

Lucid Group, an electric vehicle manufacturer, announced record-breaking quarterly vehicle deliveries for the fourth quarter of 2024, with a total of 10,241 cars delivered. The company also met its production target for the year, manufacturing 9,029 vehicles. Despite these achievements, Lucid's stock experienced a significant decline of approximately 28% in 2023, attributed to slower-than-expected EV adoption and substantial cash burn as the company discounted models and launched a new SUV. Lucid's initial product, the Air sedan, has encountered a more competitive market since its launch in late 2021, leading to slower scaling than anticipated. The company, backed largely by Saudi Arabia’s Public Investment Fund, ended the third quarter with $5.16 billion in liquidity, excluding a $1.75 billion stock offering in October. Lucid is set to announce its fourth-quarter financial results in February.

Key Points

• Bitcoin price surged above $100,000 at the start of the new year, marking a significant increase.
• The crypto market, including Bitcoin, Ether, and Solana, experienced their best weeks in recent months.
• The bullish market sentiment is influenced by the certification of Trump's election and historical January trends.
• Crypto stocks like Coinbase and MicroStrategy saw substantial gains, with MicroStrategy increasing its Bitcoin holdings.
• Expectations are high for Bitcoin's price to potentially double under the new administration, with some predictions reaching up to $250,000.

Summary

The article discusses the significant rise in Bitcoin's price, which crossed the $100,000 mark at the beginning of the new year, reflecting a bullish market sentiment. This surge was part of a broader positive trend in the cryptocurrency market, with Bitcoin, Ether, and Solana all experiencing notable gains in recent weeks. The optimism in the market is attributed to several factors including the certification of Trump's election, which is expected to foster a more supportive regulatory environment for cryptocurrencies. Additionally, January has historically been a bullish month for Bitcoin, contributing to the current upward trend. The article also highlights the performance of crypto-related stocks like Coinbase and MicroStrategy, the latter of which has significantly increased its Bitcoin holdings. Analysts and market observers are predicting a potential doubling of Bitcoin's price under the new administration, with some forecasts even suggesting it could reach $250,000. This bullish outlook is further supported by expectations of political tailwinds and potential growth in stablecoin markets in 2025.

Key Points

• German inflation rose to 2.9% in December, surpassing expectations and the European Central Bank's 2% target.
• Core inflation, excluding food and energy, increased to 3.1% from 3% the previous month.
• Services inflation also rose slightly to 4.1% from 4% in November.
• The increase in inflation was attributed to less favorable energy base effects.
• The data was released amidst political uncertainty in Germany, with federal elections scheduled for February 23, 2025.

Summary

In December 2024, German inflation unexpectedly surged to 2.9%, exceeding both analyst forecasts and the European Central Bank's target of 2%. This rise was reflected in the preliminary consumer price index, which showed a 0.7% monthly increase. Core inflation, which excludes volatile food and energy prices, also edged up to 3.1% from 3% the previous month, while services inflation slightly increased to 4.1%. The uptick in inflation was largely due to less favorable energy base effects, as noted by Carsten Brzeski from ING. This economic data comes at a politically turbulent time for Germany, following the dissolution of the government in November after Chancellor Olaf Scholz sacked Finance Minister Christian Lindner, leading to early elections set for February 23, 2025. The increase in inflation and the political instability highlight the challenges facing Germany as it navigates through economic recovery and political transitions.

Key Points

• Chrysler has experienced an 80% decline in sales over two decades, selling fewer than 125,000 vehicles in 2024 compared to nearly 600,000 in 2005.
• Stellantis, the parent company, has considered selling off unprofitable brands, causing concern for Chrysler's future.
• Frank Rhodes Jr., a descendant of Chrysler's founder, proposed buying the Chrysler and Dodge brands from Stellantis to ensure their survival.
• Despite rumors, Chrysler brand CEO Christine Feuell assures that Chrysler has a bright future within Stellantis, with plans for new models including a refreshed Pacifica minivan, a large SUV, and a coupe or sedan.

Summary

The article discusses the current state of the Chrysler brand, which has seen a significant decline in sales over the past two decades, now offering only two versions of the same minivan. Chrysler, once a diverse brand under the Chrysler Corporation, is now part of the larger Stellantis group following multiple mergers. The brand's future was put into question when Stellantis announced it might divest from unprofitable brands, prompting Frank Rhodes Jr., a descendant of Chrysler's founder, to propose buying the Chrysler and Dodge brands to preserve their legacy. Despite these concerns, Chrysler brand CEO Christine Feuell has reassured that Chrysler is not on the chopping block and has a promising future with new models planned, including a refreshed Pacifica minivan, a large SUV, and potentially a coupe or sedan. The article highlights the ongoing challenges and the potential revival efforts for Chrysler, emphasizing its importance in American automotive heritage.

Key Points

• Smithfield Foods, known for Farmland bacon and Farmer John sausages, has filed for an initial public offering (IPO) in the U.S. after being taken private by WH Group in 2013.
• The IPO is expected to value Smithfield at no less than $5.38 billion, with WH Group selling up to 20% of its shares.
• The company reported a significant turnaround in financial performance, with a net income of $581 million in the recent nine-month period compared to a net loss the previous year.
• Smithfield will list on the Nasdaq under the symbol "SFD," with the IPO proceeds aimed at general corporate purposes including infrastructure and capacity expansion.

Summary

Smithfield Foods, a major producer of packaged meats and pork products, has announced its plans for an initial public offering (IPO) in the United States, marking its return to the public market after over a decade. The company, which was acquired by Hong Kong-based WH Group in 2013 for $4.7 billion, will see WH Group selling some of its shares in the offering. The IPO is anticipated to value Smithfield at a minimum of $5.38 billion, with up to 20% of the shares being offered. This move comes at a time when market conditions are favorable for IPOs due to lower interest rates and a robust lineup of companies looking to go public. Smithfield, which has shown a financial recovery with a net income of $581 million in the recent nine months compared to a loss the year before, plans to use the IPO proceeds for corporate purposes like infrastructure and capacity expansion. The company will list on the Nasdaq under the ticker "SFD," with Morgan Stanley, BofA Securities, and Goldman Sachs as lead underwriters.

Key Points

• Michael Barr, the Federal Reserve’s top banking regulator, will step down from his role as vice chair for supervision on Feb. 28, 2023, but will remain a Fed governor until 2026.
• His resignation aims to avoid potential conflict with President-elect Donald Trump, who might appoint a more bank-friendly successor.
• The announcement led to a rally in bank stocks, with the SPDR S&P Bank ETF gaining over 1%.
• The Fed will not make major regulatory decisions until a new vice chair for supervision is appointed.

Summary

Michael Barr, the Federal Reserve's vice chair for supervision, has announced his resignation from this role effective February 28, 2023, to preempt any potential conflict with incoming President Donald Trump. Barr will continue to serve as a Fed governor until 2026. His decision comes amidst speculation that Trump might replace him with someone more aligned with banking interests. Barr's tenure saw significant events like the early 2023 banking crisis involving Silicon Valley Bank, which necessitated emergency measures from the Fed. His resignation has led to a positive market response, with bank stocks rallying. The Federal Reserve has stated it will hold off on major regulatory decisions until a new vice chair is appointed. This move also reflects the ongoing tension between regulatory oversight and the banking industry's pushback against stringent regulations, particularly with the Basel Endgame rules.

Key Points

• Trump's lawyers seek to block his scheduled sentencing in a New York criminal hush money case.
• They argue that an appeal should automatically stay the sentencing, which is set for Friday.
• Trump was convicted of 34 felony counts related to a 2016 hush money payment to Stormy Daniels.
• Judge Merchan suggested he would not sentence Trump to jail, probation, or a fine.

Summary

Former U.S. President Donald Trump's legal team has filed a motion to block his scheduled sentencing in a New York criminal hush money case. The motion, made public on Monday, argues that an appeal should automatically stay the sentencing, which is set for Friday. Trump was convicted of 34 felony counts of falsifying business records in May, stemming from a 2016 payment to porn star Stormy Daniels. Despite the conviction, Judge Juan Merchan indicated last week that he was not inclined to sentence Trump to jail, probation, or a fine. The motion also references a recent U.S. Supreme Court ruling on presidential immunity and the Constitution's Supremacy Clause, arguing that these legal precedents should lead to the dismissal of the case. Trump's spokesman, Steven Cheung, labeled the case a "Witch Hunt" and emphasized the need for its immediate dismissal based on legal grounds. Trump is set to be sworn in for his second non-consecutive term as president on January 20.

Key Points

• Vail Resorts shares have dropped due to a labor dispute at Park City Mountain Resort, leading to operational issues and customer dissatisfaction.
• The Park City Professional Ski Patrol Association went on strike demanding a wage increase from $21 to $23 per hour, with no counterproposal from Vail.
• The strike has led to social media complaints about long lines, closures, and delays, affecting the resort's reputation and Vail's stock value.
• Vail has increased patrol wages by over 50% in the past four seasons, but the dispute continues, with mediation efforts ongoing.

Summary

Vail Resorts has faced a significant challenge with a labor dispute at Park City Mountain Resort in Utah, where the Park City Professional Ski Patrol Association went on strike in late December. The strike, centered around a demand for a wage increase from $21 to $23 per hour, has led to operational disruptions, with only a fraction of the resort's trails and lifts operational. This has resulted in long lines, closures, and customer frustration, especially during the peak holiday season. The situation has not only affected the resort's operations but also Vail's stock, which has seen a decline. Despite Vail's claims of having increased wages significantly over the past few years, the lack of a counterproposal to the union's demands has kept the dispute alive. The involvement of private equity in Vail's past has also been highlighted by critics questioning the high costs of ski trips. As negotiations continue, Vail has apologized for the inconvenience and is working towards a resolution, while also asking visitors to respect the working employees amidst the ongoing strike.

Key Points

• Elon Musk has publicly criticized the U.K. government, particularly targeting Prime Minister Keir Starmer and Safeguarding Minister Jess Phillips over their handling of child abuse scandals.
• Musk suggested "liberating the people of Britain" from what he described as a "tyrannical government" through a poll on social media.
• U.K. officials, including Starmer and Health Minister Wes Streeting, have defended their records and criticized Musk's comments as misinformation and smear tactics.
• The controversy arises as Musk takes on a role in the incoming Trump administration, potentially affecting U.S.-U.K. relations.

Summary

Elon Musk, now a key advisor to U.S. President-elect Donald Trump, has sparked a significant controversy by criticizing the U.K. government's handling of child abuse scandals. His comments, made via social media, targeted Prime Minister Keir Starmer and Safeguarding Minister Jess Phillips, accusing them of negligence and even suggesting the need for a "liberation" of Britain from its government. Musk's remarks led to a sharp rebuttal from U.K. officials, with Starmer defending his record and condemning Musk's tactics as misinformation. Health Minister Wes Streeting also criticized Musk, urging him to focus on constructive action rather than smear campaigns. This clash occurs as Musk prepares to lead a new office in the Trump administration, raising questions about the future of U.S.-U.K. relations, especially with Trump's upcoming inauguration and the EU's efforts to strengthen ties with the U.K. amidst potential U.S. trade policy changes.

Key Points

• Federal Reserve governor Lisa Cook advocates for a more gradual approach to lowering interest rates due to a resilient job market and persistent inflation.
• The Fed has already reduced short-term rates by a full percentage point since September, aiming to lessen the restrictiveness of monetary policy.
• Inflation, although reduced, remains above the Fed's 2% target, with recent data showing a PCE price index of 2.4% in November.
• Fed officials are cautious about further rate cuts to avoid weakening the job market, with the unemployment rate at 4.2%.

Summary

Federal Reserve Governor Lisa Cook has suggested a cautious approach to further interest rate reductions, citing the resilience of the job market and the stickiness of inflation. Speaking in Ann Arbor, Michigan, Cook noted that the recent rate cuts have significantly reduced the restrictiveness of monetary policy, with short-term rates now at 4.25%-4.50%. Despite these adjustments, inflation remains above the Fed's target, with the latest PCE price index at 2.4% in November, down from a peak of 7.2% in June 2022. Other Fed officials, including Adriana Kugler and Mary Daly, have echoed Cook's sentiments, emphasizing the need to manage inflation without adversely affecting employment. The unemployment rate is expected to remain steady at 4.2%, with a slight cooling in job additions anticipated for December. As the Fed prepares for its next meeting, the focus will be on navigating inflation back to the 2% goal amidst potential policy uncertainties from the incoming Trump administration. Cook highlighted the importance of a gradual approach to rate adjustments to maintain economic stability.

Key Points

• Boeing and the US Justice Department are still working on amending a plea deal rejected by a judge last month.
• The plea deal aims to prevent Boeing from facing a criminal trial over misleading the FAA before two fatal 737 Max crashes.
• The resolution might be delayed until the Trump administration takes over due to leadership changes at the DOJ.
• Boeing has until February 16 to update the court, giving the new administration time to review the case.
• Boeing is also focusing on improving safety and quality control under new CEO Kelly Ortberg.

Summary

Boeing's legal troubles continue into 2024 as it seeks to resolve issues stemming from two fatal 737 Max crashes. The company, along with the US Justice Department, has been attempting to amend a plea deal that was rejected by a Texas federal judge in December. This deal was intended to shield Boeing from criminal prosecution for allegedly misleading the Federal Aviation Administration. The resolution of this matter might be delayed until the Trump administration takes office, due to changes in DOJ leadership. Both parties have asked for an extension until February 16 to update the court, allowing the incoming administration time to review the case. Amidst these legal challenges, Boeing is also focusing on enhancing safety and quality control under the leadership of new CEO Kelly Ortberg, who has introduced measures like surprise factory inspections and expanded training programs. The rejection of the plea deal by Judge Reed O'Connor was influenced by concerns over provisions related to diversity in selecting a corporate monitor, reflecting broader political debates on DEI initiatives.

Key Points

• Sports fans are increasingly using second screens during live broadcasts to engage with friends, check social media, and watch highlights.
• YouTube has seen a 45% increase in sports content viewing in 2024, driven by highlights and exclusive NFL coverage.
• Content creators like Mark Goldbridge provide alternative sports experiences through live watchalongs, attracting large audiences.
• Streaming platforms are becoming lucrative for rights holders, with U.S. streaming sports media rights value nearly doubling since 2015.
• Innovative streaming deals are more common in less developed markets like Brazil, where social media platforms are used for broadcasting.

Summary

The article discusses the evolving landscape of live sports broadcasting, highlighting the trend of fans using multiple screens to enhance their viewing experience. A significant majority of sports fans now engage with second screens during live events, either to discuss the game or to consume additional content like highlights and influencer commentaries. YouTube has capitalized on this trend, witnessing a 45% increase in sports content viewing in 2024, largely due to its exclusive NFL coverage and the popularity of sports highlights. Content creators like Mark Goldbridge have emerged as key players, offering alternative viewing experiences through live watchalongs, which not only engage fans but also help broadcasters reach global audiences. The value of streaming sports media rights in the U.S. has nearly doubled since 2015, driven by competition from major streaming services. However, traditional broadcasters in Europe face challenges, with some markets showing stagnation in media revenues post-Covid. Innovative streaming deals are more prevalent in less developed markets like Brazil, where social media platforms are utilized for broadcasting. Traditional broadcasters are adapting by exploring new content formats and launching their own streaming services to meet the growing demand for live sports content.