M360 Roundup - Volume 77
March 3rd - 7th, 2025
Cole LaCour
Market volatility in 2025 underscores the need for diversification, as international developed stocks are up over 10%, emerging markets have gained 4%, while the S&P 500 is down year-to-date
The S&P 500 is down 2.02%, the Nasdaq is down 2.21%, and the Dow Industrials is down 1.57% WTD
The 10-Yr U.S. Treasury yield has increased +0.025% to a current yield of 4.228%, whereas the 30-Yr U.S. Treasury yield increased +0.054% to a current yield of 4.541%
Crude oil prices decreased 4.09% to a current $67.26/bbl while bitcoin decreased 5.00% to a current $89,611.32/coin
President Trump announced a one-month tariff exemption for goods imported from Canada and Mexico under the USMCA trade agreement
Despite inflation and natural disasters, property and casualty insurers saw strong profitability in 2024 due to higher premiums and improved underwriting, with investors optimistic about continued growth in 2025 [WSJ]
The shift in global alliances, rising tariffs, and increasing military spending signal a major economic and geopolitical transformation, potentially driving inflation, reshaping trade, and challenging long-standing international trust [WSJ]
The U.S. recorded a $1.2 trillion goods trade deficit in 2024, driven by major gaps with China, Mexico, and Vietnam, prompting President Trump to implement new tariffs aimed at reducing imports and boosting domestic manufacturing [WSJ]
Argentina's Vaca Muerta shale basin is attracting investment due to pro-business reforms, with potential to reach 1 million barrels per day by 2030, though economic instability and regulatory concerns may temper growth [WSJ]
Airports are increasingly relying on food, beverage, and VIP lounge sales to offset lower airline fees and fund expansions, blending dining with shopping to drive revenue growth [WSJ]
M&A activity continues to remain mixed
UK's regulator cleared chip-design-software maker Synopsys' $35B cash-and-stock acquisition of engineering software firm Ansys
A group led by BlackRock agreed to acquire a 90% stake in Hong Kong's CK Hutchison's Panama Canal port operations and dozens of other global ports in a $22.8B deal
Italy's Banco BPM plans to launch an offer for Italian asset manager Anima this month as part of its defense against UniCredit's $10.48B all-share hostile takeover bid
Saudi Aramco is considering an offer for BP's Castrol lubricant business, valued at ~$10B
PE firm Francisco Partners agreed to acquire O&G software firm Quorum at a $2.4B valuation, including debt
Engineering conglomerate Honeywell International agreed to acquire industrial pump manufacturer Sundyne from PE firm Warburg Pincus for $2.16B cash ahead of a planned three-way split (RT)
Japanese retailer Trial Holdings will acquire Japanese supermarket chain Seiyu from KKR and Walmart for $2.5B, ending foreign ownership
Danish retail giant Salling Group agreed to buy Swedish grocery retailer ICA Baltic subsidiary Rimi Baltic for $1.4B, excluding debt
Insurance firm Arthur J. Gallagher agreed to acquire rival Woodruff Sawyer in a $1.2B deal
Recent developments across four key industries highlight U.S. markets facing uncertainty from trade policies, RFK Jr.’s Health Department reshaping vaccine oversight, and Microsoft’s OpenAI partnership
Energy & Natural Resources
OPEC+’s decision to gradually increase oil output, combined with U.S. trade tariffs, is driving concerns over a supply surplus, weaker demand, and downward pressure on oil prices [WSJ]
Argentina's Vaca Muerta shale basin, boosted by pro-business reforms and superior well productivity, is attracting investment and could exceed 1 million barrels per day by 2030, though economic and regulatory challenges remain [WSJ]
Technology, Media, & Telecommunications
Mistral AI is betting on open-source development to compete with DeepSeek and larger rivals, leveraging collaboration and cost-effective innovation while expanding AI infrastructure in Europe [WSJ]
The U.K. antitrust authority ruled that Microsoft's partnership with OpenAI does not constitute a de facto merger, clearing the deal while global regulators, including the EU and U.S. FTC, continue to monitor AI industry investments [WSJ]
McDonald’s is using AI and edge computing to enhance efficiency, order accuracy, and customer experience [WSJ]
Healthcare & Life Sciences
A federal judge blocked the Trump administration’s NIH funding cap on indirect research costs, citing risks to scientific integrity and patient safety, as universities warn of job losses and halted clinical trials [WSJ]
RFK Jr.’s Health Department is scrutinizing vaccine policies, contracts, and advisory committees, signaling a shift in U.S. immunization oversight while balancing public health priorities [WSJ]
Financial Services
Walgreens' decline, driven by e-commerce competition and missed healthcare mergers, led to its $10 billion sale to private equity firm Sycamore, marking a dramatic fall from its $106 billion peak in 2015 [WSJ]
U.S. stocks declined amid trade policy uncertainty, with tech and consumer stocks hit hardest, as investors fear tariffs, inflation, and economic slowdown will weigh on growth and spending [WSJ]
Tesla's brand appeal and sales have declined amid intensifying competition and CEO Elon Musk's political alignment with Donald Trump, alienating environmentally conscious buyers and shifting consumer sentiment [WSJ]