Consulting, Newsletter, Tech

Weekly Market Recap | Oct 14 – Oct 20

Posted on by Ali

Key Takeaways

  1. The European Central Bank has lowered its key interest rate to 3.25%, its second consecutive cut, to stimulate weak economic growth. ECB President Christine Lagarde acknowledged sluggish manufacturing and consumer spending but played down recession concerns.

  2. Apple’s iPhone 16 has achieved remarkable sales in China, surging 20% within its first three weeks. The top-end Pro and Pro Max models have driven growth, with demand increasing by 44% in the world’s largest smartphone market.

  3. Netflix has exceeded Wall Street expectations, reporting strong quarterly results across all key metrics. The streaming giant added over 5 million new subscribers, surpassing estimates, and beat revenue and earnings projections. Netflix anticipates further growth in the fourth quarter.

  4. Dutch equipment maker ASML, a crucial supplier of advanced chip manufacturing equipment, has missed Wall Street expectations for third-quarter orders. The company reported €2.6 billion ($2.8 billion) in net bookings.

  5. Amazon Web Services (AWS), the world’s largest cloud-computing provider, has postponed the rollout of its cutting-edge Nvidia Blackwell chip-powered systems to early 2025. This schedule change deviates from Nvidia’s earlier projection that partner companies, including AWS, would introduce Blackwell-based solutions by the end of 2024, effectively delaying the deployment of these innovative systems until next year.

IPO’s in the week

  • PTL Enterprises Ltd. (PTLE) began trading on Nasdaq on October 16, 2024, at $4.00 per share, offering 1,250,000 shares. This India-based leasing company, with a long-term tire manufacturing facility lease to Apollo Tyres, expands its global presence through this listing.

  • Springview Holdings Ltd. (SPHL) began trading on Nasdaq on October 17, 2024, at $4.00 per share, offering 1,250,000 shares. The Cayman Islands-based holding company, through its Singapore subsidiary, designs and constructs residential and commercial buildings, providing services including new construction, reconstruction, additions and alterations, and general contracting.

  • Oriental Rise Holdings Limited (ORIS) debuted on Nasdaq on October 17, 2024, at $4.00 per share, offering 2,000,000 shares. The China-based company specializes in cultivating, processing, and selling various tea products, including white tea, black tea, and refined teas, to wholesalers and retail customers in Mainland China.

  • Samfine Creation Holdings Group (SFHG) listed on Nasdaq on October 15, 2024, at $4.00 per share, offering 2,000,000 shares. The company will use the proceeds to expand its printing business in Hong Kong and internationally, upgrade equipment, and provide additional working capital.

Markets this week

  • Prabhakar Raghavan is stepping down as Google’s head of search and ads to become chief technologist. The leadership shift is aimed at addressing growing competition from AI products and a shrinking U.S. search ad market share.

  • The European Central Bank lowered its key interest rate to 3.25%, marking a second consecutive cut to boost weak economic growth. President Christine Lagarde cited sluggish manufacturing and consumer spending but downplayed recession fears.

  • Taiwan Semiconductor Manufacturing Co. (TSMC) reported strong third-quarter results, with AI chip revenue projected to triple this year.

  • Dutch equipment maker ASML, a key supplier of critical lithography equipment for advanced chip manufacturing, missed Wall Street expectations for third-quarter orders, reporting net bookings of €2.6 billion ($2.8 billion).

  • OpenAI and Microsoft are negotiating how Microsoft’s $14 billion investment will convert to equity as OpenAI transitions from a nonprofit to a for-profit company.

  • Hyundai Motor India will raise over $3 billion in the largest-ever Indian IPO, surpassing the previous $2.5 billion record. 

  • Consulting giants McKinsey & Co. and Boston Consulting Group (BCG) are expanding in the Gulf region as governments invest trillions in infrastructure and nation-building projects.

  • Oil prices dropped as West Texas Intermediate (WTI) fell over 2% to around $69 per barrel, while Brent crude settled near $73.Chinese stocks rallied as President Xi Jinping highlighted tech development and the PBOC launched liquidity measures. The CSI 300 Index rose 3.6%, led by a 20% jump in semiconductor firms.

  • Gold reached a record high of $2,696.78 amid rising Middle East tensions and U.S. economic data, closing 0.7% higher at $2,692.71 per ounce.

  • The dollar surged to its highest level since early August, fueled by former President Donald Trump’s proposals to significantly increase tariffs on imports.

Politics Weekly

  • A second Trump presidency could raise tariffs to their highest levels since the 1930s, including a proposed 60% tariff on Chinese goods, potentially triggering a global trade war.

  • Israeli forces have killed Hamas leader Yahya Sinwar, a key figure behind the Oct. 7 attack, dealing a major blow to the group.

  • Kamala Harris and Donald Trump appeared on Fox News, highlighting their contrasting strategies. Harris aimed to appeal to undecided voters, distancing herself from Biden and criticizing Trump, while Trump focused on energizing his base at a supportive town hall, emphasizing issues like abortion and immigration.

  • The IMF has warned that global public debt will reach $100 trillion, urging governments to reduce debt and rebuild fiscal buffers to address the challenges of low growth and high debt in the future. 

  • Hezbollah launched a drone attack on the weekend home of Israeli Prime Minister Benjamin Netanyahu, who was not present at the time.

  • Ireland’s Prime Minister Simon Harris announced that he expects the country’s general election to be held in 2024.

  • Ukraine claimed drone strikes on a defense plant in Dzerzhinsk, Russia, targeting ammunition production and the Lipetsk-2 military air base.

  • Moldova cleared a key hurdle in its EU bid, with 42% voter participation in a referendum exceeding the required threshold.

Technology Advancements this week

  • Amazon Web Services (AWS), the largest cloud computing provider, has announced a delay in the rollout of its new systems utilizing Nvidia’s Blackwell chips. Initially expected to launch sooner, these advanced systems are now anticipated to go live in early 2025.

  • An Alabama man has been charged for hacking the US Securities and Exchange Commission’s (SEC) X account in January, falsely announcing approval of Bitcoin ETFs, causing market fluctuations.

  • Elon Musk has responded to criticism surrounding Tesla’s robotic ambitions by releasing a video showcasing the Optimus robot’s advancements on the factory floor. This move aims to counter concerns raised during the company’s recent AI Day event, where the robotaxi demonstration was revealed to be partially human-assisted.

  • Nokia has unveiled plans to significantly reduce its workforce in response to the challenging telecommunications landscape. As part of its broad cost-reduction program, the company will eliminate approximately 2,000 jobs in China, along with 350 positions in Europe, including 48 roles in its home country of Finland.

  • Apple’s iPhone 16 sales in China have surged 20% in its first three weeks, outpacing its predecessor. Demand for the top-end Pro and Pro Max models has jumped 44%, driving growth in the world’s largest smartphone market.

  • Netflix has reported impressive quarterly results, exceeding Wall Street expectations across all major metrics. The streaming giant added over 5 million new subscribers, surpassing estimates, and also beat projections for revenue and earnings. Furthermore, Netflix anticipates that subscriber growth in the fourth quarter will outpace the third quarter, indicating continued momentum.

  • Amazon Web Services (AWS), the largest cloud-computing provider, has delayed the launch of its Nvidia Blackwell chip-based systems until early 2025. This revised timeline contradicts Nvidia’s initial statement in March, which expected partner companies like AWS to have Blackwell-based products available by the end of 2024. The delay pushes the deployment of these advanced systems to next year

  • An Alabama man, Eric Council, 25, has been arrested for allegedly hacking the SEC’s X account using a “SIM swap” technique. He falsely announced a Bitcoin ETF approval, causing Bitcoin prices to surge $1,000. Council faces charges of conspiracy, identity theft, and access device fraud.

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