M360 Roundup - Volume 74
January 10th - 14th, 2025
Cole LaCour
Producer price index inflation stayed at 3.5% in January, defying expectations of a decline, driven by a 1.7% monthly rise in energy prices.
The S&P 500 is up 0.53%, the Nasdaq is up 0.86%, and the Dow Industrials is down 0.11% WTD
The 10-Yr U.S. Treasury yield has increased +0.040% to a current yield of 4.535%, whereas the 30-Yr U.S. Treasury yield decreased +0.041% to a current yield of 4.735%
Crude oil prices increased 0.20% to a current $71.28/bbl while bitcoin increased 0.27% to a current $96,666.19/coin
The Dow Jones, an outdated price-weighted index, increasingly diverges from the S&P 500, distorting market trends, especially with Big Tech dominance driving the broader market [WSJ]
Fearing U.S. tariffs, gold dealers are flying bullion from London to New York to profit from record-high prices, as a price gap between the two markets sparks a surge in trans-Atlantic gold shipments [WSJ]
Intel's stock surged 22% on hopes of U.S. government support and a potential partnership with TSMC, but the company still faces significant manufacturing challenges and financial hurdles [WSJ]
A sharp rise in delisted homes, weak demand, and unsold new home inventory in December 2024 signal a softening U.S. housing market and potential pressure on home prices [WSJ]
President Trump’s plan to stop minting pennies aims to reduce costs, but critics warn it could raise prices for consumers and increase reliance on the even costlier nickel [WSJ]
M&A activity continues to remain mixed
Bain Capital, Advent International, KKR, and EQT are competing to acquire $8B-listed Japanese cybersecurity firm Trend Micro
OpenAI will reject an Elon Musk-led $97.4B takeover offer [YF]
PE firms Advent, Apollo, and Lone Star Funds are bidding for package of home-care assets being sold by UK consumer goods giant Reckitt for $6.2B
Novartis agreed to acquire blood clot treatment developer Anthos Therapeutics from Blackstone in an up to $3.1B deal
French grocer Carrefour is exploring a take-private of its $2.6B-listed Brazilian subsidiary Atacadao
TE Connectivity agreed to buy Richards Manufacturing, a provider of utility grid products, in a $2.3B cash deal
Italian lender Banco BPM raised its takeover offer for asset manager Anima to a $2.3B valuation as it seeks to fend off a takeover attempt by peer UniCredit
Temasek-backed Cuscaden Peak offered to take retail-focused Paragon REIT private for $2.1B
Novonesis agreed to buy the stake of its partner, chemical manufacturer DSM-Firmenich, in its enzymes JV for $1.6B
Indian conglomerate Bajaj Group earmarked $1.1B in an initial investment to establish a hospital chain in India
PE firm Warburg Pincus agreed to acquire Vermont Information Processing, which makes software for beverage distributors, for $1B, including debt
Recent developments across four key industries highlight U.S. crude inventories rising for a third week, Musk’s $97.4B bid for OpenAI, and health insurers denying millions of claims
Energy & Natural Resources
The IEA slightly raised its 2025 oil-demand growth forecast to 1.1 million barrels a day, noting a narrowing supply surplus due to improved OPEC+ compliance and stable global supply despite new U.S. sanctions on Russia and Iran [WSJ]
OPEC maintained its oil-demand forecast but warned that U.S. trade policies could create supply-demand imbalances and market volatility, while reaffirming plans to gradually raise output from April [WSJ]
U.S. crude oil inventories rose for a third straight week by 4.1 million barrels, surpassing expectations, while gasoline stocks fell for the first time in three months amid increased demand [WSJ]
Technology, Media, & Telecommunications
Elon Musk offered $97.4 billion to take over OpenAI, citing concerns over its shift to for-profit, sparking legal battles with Sam Altman, who rejected the bid, complicating OpenAI’s future plans and its ties with Microsoft [WSJ]
The EU unveiled a $206 billion InvestAI plan, including a 20 billion-euro fund for AI gigafactories, to boost competitiveness with the U.S. and China in the global AI race [WSJ]
Baidu shares surged 12% after announcing its Ernie AI chatbot and deep search function will be free starting April 1, aiming to boost user traction amid rising competition in China’s AI market [WSJ]
Healthcare & Life Sciences
Health insurers deny 850 million claims annually, yet fewer than 1% appeal, despite studies showing up to 75% of appeals succeed, often making a life-saving difference for patients [WSJ]
While bird flu risk to the general public remains low, health officials urge caution, especially for those exposed to infected animals, as new strains spread among livestock and wild birds [WSJ]
Financial Services
Inflation, which helped Trump win the presidency, now challenges his administration as tariffs and tax cuts risk keeping inflation above target, complicating efforts to lower interest rates & fulfill campaign promises [WSJ]
Honda and Nissan ended merger talks, prompting Nissan to seek new partnerships, with Foxconn expressing interest in collaboration as Nissan faces financial struggles and aims to develop new technology [WSJ]
Outside of standard macroeconomic updates and M&A developments, RFK, spending cuts, and Israel & Hamas have led news cycles
Robert F. Kennedy Jr. was confirmed as Health Secretary, sparking controversy with his vaccine skepticism and plans to tackle obesity, chronic disease, and health bureaucracy reforms [WSJ]
Israel and Hamas resolved a cease-fire dispute, agreeing to a hostages-for-prisoners exchange after Hamas received assurances of humanitarian aid entry into Gaza [WSJ]
House Republicans secured deeper spending cuts tied to tax reductions, advancing a budget plan that targets $2 trillion in cuts, while balancing Medicaid savings and tax policy faces internal and Senate challenges [WSJ]
An Afghan refugee drove into a crowd in Munich, injuring over 30 in a suspected attack, intensifying Germany's immigration debate ahead of the election and sparking calls for stricter policies [WSJ]
The Lakers' trade for Luka Doncic sparked immediate excitement with his promising debut alongside LeBron James, while the Mavericks face criticism for trading a rising MVP contender for an injury-prone veteran [WSJ]