Consulting, Newsletter, Tech

Weekly Market Recap | Sep 09 – Sep 15

Posted on by Ali

Key Takeaways

  1. China’s stock market has lost $6.5 trillion since 2021, with the CSI 300 Index nearing its lowest point since early 2019, due to the ongoing property crisis and lack of government stimulus.

  2. Kamala Harris outmaneuvered Donald Trump in their debate, focusing on his controversies and unfit behavior, which boosted her electoral odds.
  3. OpenAI is reportedly in discussions to raise $6.5 billion in equity financing, which could boost the startup’s valuation to a staggering $150 billion.
  4. Global markets anticipate a Federal Reserve rate cut, while China’s economic struggles and energy transition lead to a decline in oil demand, and Russia shares nuclear technology with Iran, raising concerns for the US and UK.

IPO’s This Week:

  • Bicara Therapeutics, a clinical-stage biotechnology company, commenced trading on the Nasdaq stock exchange under the ticker symbol BCAX on September 13, 2024. The company focuses on developing innovative, first-in-class biologics that combine tumor-targeting antibodies with tumor micro environment modulators. Bicara Therapeutics’ initial public offering priced 14,705,882 shares at $18.00, with the stock surging 30.06% on its first day of trading.

  • MBX Biosciences, a biopharmaceutical company developing precision peptide therapies for endocrine and metabolic disorders, started trading on Nasdaq (MBX) on September 13, 2024. The IPO priced 8,500,000 shares at $16.00, with a first-day gain of 47.81%.

  • Zenas BioPharma, a clinical-stage bio pharmaceutical company, commenced trading on Nasdaq (ZBIO) on September 13, 2024. The company focuses on developing immunology-based therapies for autoimmune diseases, with a portfolio of therapeutics in clinical development. The IPO priced 11,760,000 shares at $17.00, with a first-day gain of 6.76%.

  • Future Vision II Acquisition, a blank check company, began trading on Nasdaq (FVNNU) on September 12, 2024. The company aims to merge with or acquire one or more businesses. The IPO priced 5,000,000 units at $10.00, with a first-day gain of 0.10%.

  • Galaxy Payroll Group, a Hong Kong-based provider of payroll outsourcing and employment services, commenced trading on Nasdaq (GLXG) on September 12, 2024. The company has extensive experience in the Asian human capital market. The IPO priced 2,000,000 shares at $4.00, with no change on the first day.

  • Trident Digital Tech Holdings, a Singapore-based holding company, began trading on Nasdaq (TDTH) on September 10, 2024. The company, through its subsidiaries, offers business consulting services and IT customization solutions. The IPO priced 1,800,000 shares at $5.00, with a first-day decline of 1.33%.

  • XCharge, a leading global provider of integrated EV charging solutions, began trading on Nasdaq (XCH) on September 10, 2024. The company offers a range of EV charging solutions, including DC fast chargers and battery-integrated chargers, along with accompanying services. The IPO priced 3,333,335 shares at $6.20, with a first-day decline of 8.88%.

Markets this week

  • China’s stock market has lost $6.5 trillion since 2021, with the CSI 300 Index nearing its lowest point since early 2019. The ongoing property crisis and lack of aggressive government stimulus have deepened market pessimism.

  • China’s exports surged nearly 9% in August to a two-year high of $309 billion, while imports grew only 0.5%, resulting in a $91 billion trade surplus.

  • Trading platform eToro has agreed to a settlement with the SEC, resolving allegations of unregistered broker-dealer and clearing agency activities. As a result, U.S. customers will be restricted to trading Bitcoin, Bitcoin Cash, and Ether.

  • Issuers are expected to pay $420 billion in coupon payments this year, an 18% increase. Rising interest costs, even for high-grade companies, are impacting corporate profits.

  • Investors in Turkey are flocking to niche bonds offering a staggering 50% yield, seemingly ignoring other investment options. Despite government efforts to curb inflation, the political landscape, particularly influenced by the upcoming U.S. election, remains a significant risk factor for the Turkish market.

  • China’s economic struggles and energy transition are leading to a decline in its oil demand. This shift has significant implications for the global oil market.

  • BlackRock, in partnership with other firms, is introducing a new platform designed to provide retail investors with a one-stop solution for accessing various markets. This move aligns with a broader trend among investment managers to expand their offerings to retail investors.

  • Global oil demand growth is slowing, and a surplus may emerge even with OPEC+ production cuts. China’s economic slowdown and rising non-OPEC+ supply are contributing factors.

  • Global markets anticipate a Federal Reserve rate cut and await the Bank of Japan’s decision, the Bank of England’s bond plans, Brazil’s rate hike, and South Africa’s rate cut.

  • Temasek is nearing a stake purchase in Blackstone-owned VFS Global, valuing the company at around $7 billion, including debt. The deal is in its final stages.

  • LG is preparing a $1.5 billion IPO for its Indian unit and has selected banks including BofA, Citi, JPMorgan, and Morgan Stanley to manage the listing. India remains a key market, attracting strong investor interest.

  • Intel has secured a $3.5 billion deal to produce chips for the military, aiming to enhance its manufacturing capabilities.

  • Alcoa will receive $1.1 billion for its stakes in Saudi aluminum plants, with Maaden gaining full ownership of its aluminum business.

Politics Weekly

  • Israeli forces admitted they likely killed Aysenur Ezgi Eygi, an American-Turkish citizen, by mistake during a West Bank protest. The U.S. has called on Israel to change its rules of engagement.

  • Kamala Harris outmaneuvered Donald Trump in their debate by focusing on his controversies and unfit behavior, while Trump diverted attention with unfounded claims. Harris’s approach shifted the debate’s focus and boosted her electoral odds.

  • U.S. Secretary of State Antony Blinken and U.K. Foreign Secretary James Cleverly are in Kyiv to address Ukraine’s requests for approval to strike Russia. No immediate decision is expected.

  • Marine Le Pen leads in polling for France’s 2027 presidential election, capturing 34-35% of the vote in a first-round scenario. Former Prime Minister Édouard Philippe follows with 27%, while Gabriel Attal trails at 24%.

  • Russia is reportedly sharing nuclear technology with Iran in exchange for missiles, raising concerns for the US and UK despite Tehran’s assurances it does not seek nuclear weapons.

Technology Advancements this week

  • Apple’s new AirPods hearing-aid feature and other health capabilities highlighted the iPhone 16 launch, which was otherwise considered dull.

  • Microsoft’s applications and cloud services are beginning to recover after experiencing disruptions caused by an AT&T network outage.

  • OpenAI is reportedly in discussions to raise $6.5 billion in equity financing, which could boost the startup’s valuation to a staggering $150 billion. Additionally, banks are exploring providing OpenAI with a $5 billion credit line

  • Google was reportedly on the verge of reducing its fees for the Ad Exchange, its advertising technology platform, before facing increased antitrust scrutiny. The company’s 20% fee is the highest in the industry, according to witnesses who testified at a Justice Department trial involving former Google executives.

  • The Irish data protection regulator is investigating Google’s AI data privacy practices to determine if the company has complied with European Union privacy laws. In addition, the media regulator has launched a separate review of social media firms.

  • Microsoft is announcing another round of layoffs within its Xbox division, impacting 650 jobs. The cuts are primarily in marketing and human resources, and no game studios will be closing. This latest round of layoffs is part of Microsoft’s efforts to streamline its operations following the acquisition of Activision.

  • A leading European tech stock has finally captured the attention of US investors, with its shares surging 42% this year. The company’s valuation has now surpassed that of its peers, and its US investor base has reached a near-record high.

  • SpaceX has announced that the launch license for its Starship rocket has been delayed until November. The company criticized the FAA’s lengthy approval process, emphasizing the importance of Starship for future missions to the moon and beyond.

  • Amazon has announced plans to invest £8 billion in the UK, primarily focused on expanding its cloud computing division, Amazon Web Services (AWS). This follows similar investments made in Spain and Germany. Chancellor Reeves hailed the decision as a “start of economic revival” for the UK.

  • Merck’s Keytruda, a top-selling drug, has significantly improved survival rates for women with hard-to-treat triple-negative breast cancer, marking a major advance in treatment.

Don’t miss out on next week’s market insights and updates!

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