Consulting, Newsletter, Tech

Weekly Market Recap | Dec 30 – Jan 05

Posted on by Ali

Key Takeaways

  1. Microsoft to Invest $80 Billion in AI Data Centers: Microsoft plans to invest $80 billion in AI data centers this fiscal year, with over half allocated to the U.S., reflecting growing demand for AI computing capacity.
  2. Nvidia Acquires Israeli Startup Run:ai for $700 Million: Nvidia has acquired Israeli startup Run:ai for $700 million, with plans to open-source the software to broaden its use across the AI ecosystem.
  3. Alibaba Sells 70% Stake in Sun Art Retail for $1.6 Billion: Alibaba has agreed to sell its 70% stake in Sun Art Retail to DCP Capital for up to $1.6 billion, as part of its strategy to focus on its core online business.
  4. MicroStrategy Buys $209 Million in Bitcoin: MicroStrategy Inc. bought $209 million in Bitcoin, marking its eighth consecutive week of purchases, boosting its holdings and $80 billion market cap.
  5. Biden to Ban New Offshore Drilling Across 625 Million Acres: Biden will ban new offshore drilling across 625 million acres while allowing leases in parts of the Gulf that produce 14% of U.S. output, in a move to address environmental concerns.

IPO’s in the week

  • INLIF Ltd., a leading developer of injection molding machine-dedicated manipulator arms, has launched its initial public offering (IPO) on the Nasdaq stock exchange under the ticker symbol INLF, offering 2,000,000 shares at $4.00 per share, effective January 1, 2025.
  • One Group, a UK-based holding company, has announced its initial public offering (IPO) with 1,750,000 shares priced at $4.00, effective December 31, 2024. As a leading player in the construction and freight industries, One Group’s subsidiaries serve government departments, private sector organizations, and the general public through its retail businesses.

Markets this week

  1. The S&P 500 index gained 21.80 points (+0.37%) during the week.
  2. The Russell 1000 index gained 2.35 points (+0.73%) during the week.
  3. The Russell 2000 index gained 37.58 points (+1.68%) during the week.
  4. The CBOE Volatility Index (VIX) dropped 1.08 points (-6.27%) during the week.
  5. Bitcoin (BTC-USD) rose $4,580.23 (+4.90%) from Dec 30 to Jan 03.
  6. Ethereum (ETH-USD) gained $255.42 (+7.63%) from Dec 30 to Jan 03.
  7. Gold gained $32.00 (+1.22%) during the week.
  8. Silver rose $0.44 (+1.48%) during the week.
  9. WTI (West Texas Intermediate) gained $3.65 (+5.18%) during the week.
  10. Brent Crude Oil rose $2.36 (+3.18%) during the week.
  • Microsoft plans to invest $80 billion in AI data centers this fiscal year, with over half allocated to the U.S., reflecting growing demand for AI computing capacity.
  • German power prices turned negative on the year’s first trading day as wind energy surged to 40 gigawatts, exceeding demand.
  • Biden blocked Nippon Steel’s $14.1 billion takeover of US Steel, citing a security threat. Both companies plan to pursue legal action to advance the sale.
  • Shares of mortgage giants Fannie Mae and Freddie Mac hit a five-year high after regulators outlined a plan for their eventual release from government control, requiring Treasury approval.
  • Risky companies defaulted at a record rate in 2024, with 35% being repeat offenders, as leveraged loan defaults surged due to high interest rates.
  • Getty Images is exploring a merger with Shutterstock, potentially uniting two major U.S. visual content providers amid AI-driven industry changes.
  • Zero-day options dominated S&P 500 trading, making up 51% of volume, as daily expiries surged to 1.5 million contracts per day.
  • Canadian ETFs surpassed C$500 billion in assets in 2024, driven by strong market returns and C$76 billion in inflows. US stock funds saw nearly C$22 billion in new capital.
  • FalconX is finalizing a deal to acquire Arbelos Markets, a crypto derivatives startup founded in 2023. The transaction will be funded through cash and stock.
  • Crypto altcoins are outperforming Bitcoin in 2025 as investors shift toward more speculative assets.
  • Hutchmed China Ltd. is selling a 45% stake in a joint venture for $608 million to focus on cancer therapies.
  • Abu Dhabi’s Mubadala Investment Co. was the most active sovereign wealth fund in 2024, increasing deal-making in areas from private credit to AI.
  • Alibaba has agreed to sell its 70% stake in Sun Art Retail to DCP Capital for up to $1.6 billion, as part of its strategy to focus on its core online business.
  • World Wide Technology will acquire Softchoice Corp. for $1.3 billion and plans to delist the company from the Toronto Stock Exchange.
  • Lionel Messi listed his €223 million real estate portfolio through Edificio Rostower Socimi, a Spain-listed trust owning hotels, commercial properties, and homes.
  • Mobvista is contemplating the sale of its mobile advertising platform Mintegral, with Bain Capital expressing interest.
  • The Cheng family’s Hong Kong-based CTF Services Ltd. is looking to sell a $2 billion road portfolio in China, with talks ongoing with Yuexiu Group and other buyers.
  • Nvidia has acquired Israeli startup Run:ai for $700 million. The software, initially for Nvidia systems, will be open-sourced to broaden its use across the AI ecosystem.
  • China Three Gorges Corp. has agreed to purchase the 494-megawatt Mula solar plant in Spain from Canada’s Northleaf Capital Partners, which holds an 81% stake, for $449 million.
  • MicroStrategy Inc. bought $209 million in Bitcoin, marking its eighth consecutive week of purchases, boosting its holdings and $80 billion market cap.

Politics Weekly

  • A New York judge denied Trump’s request to dismiss his hush money conviction, ruling that presidential immunity doesn’t apply. Sentencing is set for Jan. 10, but prison time is unlikely.
  • Biden will ban new offshore drilling across 625 million acres while allowing leases in parts of the Gulf that produce 14% of U.S. output.
  • The DOJ urged the Supreme Court to reject Trump’s bid to delay a law requiring TikTok to sell or face a ban.
  • Austrian Chancellor Karl Nehammer resigned after failing to form a coalition following September’s elections.
  • Russia vowed retaliation after Ukraine used US-supplied ATACMS missiles to strike Belgorod. The Russian defense ministry claimed to have downed eight missiles and numerous drones.
  • Trump criticized the UK’s windfall tax on oil and gas producers, calling it a “very big mistake” and raising concerns about the UK-US relationship.
  • The FBI warned Islamic State may exploit the New Orleans attack, where suspect Shamsud-Din Jabbar, who pledged allegiance to the group, killed 15 people.
  • Canada’s Conservative leader Pierre Poilievre pitched a “great deal” to Trump, promising to boost LNG and electricity exports despite Trump’s trade complaints.
  • Trump named Ken Kies as assistant secretary for tax policy at the Treasury, positioning him to help drive planned 2025 tax cuts.
  • The U.S. is considering a rule to limit or ban Chinese drones over security concerns, with a final decision left to the incoming Trump administration.

Technology Advancements this week

  • A surge in scams has led to a disturbing trend of bank insiders leaking sensitive client account information, with prosecutions across the US revealing that stolen data is being sold on social media and the dark web. Despite these alarming developments, the banking industry has successfully lobbied against legislation that could increase liability and hold them accountable for these breaches.
  • India Aims to Join Elite Space Club with Historic Docking Attempt. The country is gearing up for its first space docking experiment, scheduled to take place by January 7, in a bid to join the exclusive group of US, Russia, and China that have mastered this complex technology.
  • Alibaba Group Holding Ltd. has been selling assets over the holiday season, taking losses in the process. The company sold its stake in Sun Art Retail Group Ltd. at a significant discount. It also agreed to sell Intime Retail Group Co. for a loss of $1.3 billion.
  • The US Treasury has been breached in a series of hacking incidents, with officials blaming China for the attacks. The breaches also targeted telecommunications and email systems. Beijing has denied any involvement in the cyberattacks.
  • Alibaba Group is set to sell its majority stake in Chinese hypermarket chain Sun Art Retail Group to a buyout firm at a significant discount, potentially incurring a substantial loss. The move is part of Alibaba’s strategy to divest its physical assets and concentrate on its core e-commerce business.
  • Elon Musk’s Starlink will provide space-based mobile services in Ukraine. Kyivstar will offer text messages via Starlink by late 2025. Starlink terminals play a critical role in Ukraine’s ongoing war effort.
  • Ibiden, an Nvidia supplier, is considering accelerating its expansion to meet growing demand for AI-related components. The company is seeing increased orders for chip package substrates from AI customers. Ibiden’s growth is now tied to its partnerships with other chipmakers, including Nvidia, rather than just longtime partner Intel.

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