Weekly Market Recap | Oct 28 – Nov 03

IPO’s in the week

• Newbury Street Acquisition II, a blank check company, has recently gone public, offering 15,000,000 shares at $10.00 on the Nasdaq exchange, as listed on November 1, 2024. As a blank check company, Newbury Street Acquisition II is focused on effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses, without being limited to a specific industry.

• Bleichroeder Acquisition Corp. I, a blank check company, began trading on Nasdaq on November 1, 2024, offering 25,000,000 shares at $10.00. The company seeks to acquire businesses and assets across various sectors through mergers, acquisitions, and reorganizations. 

• Gelteq (GELS), a Melbourne-based biotech company, debuted on Nasdaq on Oct 29, 2024, with an IPO of 1,300,000 shares at $4.00. Its innovative ingestible gel platform for nutrient and drug delivery drew strong investor interest, positioning it for potential long-term success.

• Thumzup Media (TZUP) launched its IPO on Nasdaq on October 29, 2024, offering 1,250,000 shares at $5.00. The company’s platform enables businesses to reward customers via Venmo and PayPal for social media posts.

Markets this week

• BlackRock is seeking SEC approval to replicate Vanguard’s tax-saving fund strategy, now that Vanguard’s patent on its innovative fund design has expired. This move would allow BlackRock to offer clients similar tax benefits, potentially shaking up the investment landscape and increasing competition in the financial sector.

• The SEC is investigating Freeport McMoRan over allegations it failed to adequately disclose earthquake risks at its $3.7 billion Indonesian copper plant to investors. The probe stems from an anonymous complaint, which Freeport has denied, maintaining its disclosures were sufficient.

• Currency traders anticipate a global volatility surge, driving up dollar hedging costs to the highest since March 2020. The yuan and Mexican peso are particularly vulnerable to election outcomes, signaling increased market uncertainty.

• Ukraine’s central bank kept its benchmark rate steady at 13% for the third consecutive meeting, citing potential US election impact on the currency and prices. The decision aims to maintain economic stability amid ongoing geopolitical tensions.

• Hong Kong’s underwater mortgages have reached a 22-year high, with 14,616 loans in negative equity, valued at HK$207.5 billion ($27 billion). Rising borrowing costs and a property market glut are driving this trend, sparking concerns about a potential housing market bubble.

• Despite record-breaking stock prices and a dodged recession, Wall Street traders are on high alert this Halloween for ominous market signals that could foretell trouble ahead.

• Uber’s shares dropped sharply, despite reporting a record $1 billion operating profit, due to sluggish rideshare bookings and currency headwinds impacting its ride-hailing division.

• Europe’s profits face growing pressure from China’s slowdown, with industrials and tech sectors warning of weakness. Stocks heavily exposed to China are lagging behind the benchmark index, amid trade tensions and decreased demand.

• European natural gas prices plummet as buyers near deal with Azerbaijan to secure supplies after Russia-Ukraine transit agreement expires year-end, diversifying Europe’s energy sources.

• BlackRock’s Bitcoin ETF sees record $872 million inflow ahead of the US election, positioning Bitcoin for a potential all-time high as investors seek a hedge against market volatility.

• UK bond markets seesaw after government unveils highly anticipated budget, prompting traders to scale back expectations for Bank of England interest rate cuts.

• Election-related violence concerns threaten the US dollar’s global dominance, potentially eroding confidence in its stability and fueling “de-dollarization” trends.

• Oil prices rebound as US crude, gasoline, and distillate stockpiles drop, despite ongoing Middle East tensions from Israel’s airstrikes.

• Oil Prices Rise as US Stockpiles Decline and Middle East Tensions Escalate. US crude, gasoline, and distillate inventories fell last week, fueling the price increase. The rebound comes after Monday’s sharp drop, as ongoing airstrikes by Israel in the region keep market concerns elevated.

• Berkshire Hathaway’s cash reserves hit a record $325.2 billion in the third quarter as Warren Buffett avoided major acquisitions. The company also cut its Apple holdings by 25%, reducing its stake to $69.9 billion from $84.2 billion in the previous quarter.

• Ahead of the U.S. election, bond traders are reducing positions amid uncertainty. A Federal Reserve rate cut is expected, but future bond market moves depend on election outcomes and policy shifts.

• Trafigura faces a potential $1.1 billion loss in Mongolia due to suspected employee fraud involving hidden debts. Though Mongolia is a small part of its oil business, the loss has triggered an internal investigation.