M360 Roundup - Volume 59
October 14th - 18th, 2024

Cole LaCour
U.S. retail sales exceeded expectations in September, while Treasury yields continue to rise
The S&P 500 is up 1.15%, the Nasdaq is up 0.86%, and the Dow Industrials is up 1.72% WTD
The 10-Yr U.S. Treasury yield has increased +0.029% to a current yield of 4.104%, whereas the 30-Yr U.S. Treasury yield increased +0.017% to a current yield of 4.405%
Crude oil prices decreased 5.66% to a current $69.81/bbl while bitcoin decreased 7.90% to a current $67,850.68/coin
Tech giants like Microsoft, Amazon, Google, Meta, and Apple are heavily increasing capital expenditures, primarily for AI infrastructure, despite unclear immediate returns and concerns over rising costs, regulatory challenges, and mixed demand for AI products [WSJ]

Platinum's price lags behind gold and silver, but rising demand and supply deficits are expected to boost it, with ETFs offering better liquidity than physical bars [WSJ]

Low-rated corporate loans are thriving, with new CLO ETFs offering higher yields to individual investors, despite default risks in a downturn [WSJ]

If re-elected, Donald Trump plans to implement significantly higher tariffs, potentially reshaping the global trading system and risking trade wars, contrasting with the more incremental approach expected from Democrats [WSJ]

Global markets are experiencing mixed reactions, U.S. economists are optimistic about growth amid Fed rate cuts, and savers are adjusting to reduced yields
China's stock market has surged due to Beijing's stimulus measures, but investors remain cautious as uncertainty over the scale and effectiveness of the plans persists, and recovery is expected to be gradual [WSJ]

Economists are optimistic about the U.S. economy, expecting steady job growth, moderate unemployment, improved GDP growth, and continued cooling inflation following recent Fed rate cuts [WSJ]

As the Federal Reserve lowers interest rates, savers are seeing reduced yields on savings accounts and CDs, prompting some to adjust their spending or shift to riskier investments like REITs for higher returns [WSJ]

LVMH's sales have dropped due to reduced Chinese consumer spending, rising tariffs, and global economic pressures, posing challenges for the luxury industry, including competitors like Gucci and Burberry [WSJ]

M&A activity continues to remain mixed
PE firm PAI Partners submitted an improved offer for Sanofi’s ~$16B consumer health business Opella
Uber explored a possible bid for $20B-listed Expedia
PE firm Advent International is preparing a takeover offer for $4.1B UK-listed food company Tate & Lyle
MasOrange, the Spanish unit of French telecom group Orange, is seeking to sell its 50% stake in its Vodafone Spain fiber JV, which may fetch $3.1B-$4.3B
PE firm General Atlantic agreed to buy a minority stake in treasury-management software firm Kyriba from Bridgepoint Group at $3B+ valuation
KKR will launch a sale of Singaporean logistics firm Goodpack at a ~$1.8B valuation
PE firm Silver Lake and Singapore SWF GIC agreed to acquire billing software firm Zuora for $1.7B
Spanish power company Acciona Energia is considering a sale of its $1.1B hydroelectric business
Schneider Electric will acquire a controlling stake in data center cooling firm Motivair for ~$850M cash
Recent developments across four key industries highlight Amazon developing nuclear reactors
Energy & Natural Resources
Amazon has partnered with Dominion Energy and X-energy to develop small modular nuclear reactors (SMRs) in the U.S. to meet rising energy demands and support AI development, joining other tech giants like Microsoft and Google in backing nuclear power projects [WSJ]

Crude oil prices fell below $74 due to Israel's assurance on Iran, China's economic concerns, and a lowered demand forecast, with potential conflict possibly pushing prices to $120 [WSJ]

Technology, Media, & Telecommunications
Apple's Vision Pro is struggling to attract major software developers, leading to a slowdown in new apps and posing challenges for the device's growth, while developers await more incentives and a cheaper version expected next year [WSJ]

Healthcare & Life Sciences
Elevance Health's missed earnings projections due to rising medical costs in its Medicaid business, leading to a sharp stock decline and highlighting ongoing challenges in managing government health programs amid policy and eligibility changes [WSJ]
A study shows Novo Nordisk's GLP-1 drugs like Ozempic can reduce opioid and alcohol abuse by up to 50%, highlighting their potential for broader health benefits beyond diabetes and weight loss [WSJ]
Financial Services
China's economy slowed in Q3 despite stimulus measures, casting doubt on Beijing's ability to meet its 5% growth target, as investors remain uncertain about the effectiveness and specifics of future fiscal support amid ongoing property and financial challenges [WSJ]
Trump's odds of winning the 2024 election have surged on Polymarket, driven by large, coordinated crypto bets, raising questions about whether the activity is genuine support or an influence campaign [WSJ]