Corporate and Geopolitical Stock Reviews, New Market Targets, Intel, Bluesky, UniCredit
Stock market news
• The US stock market rose slightly yesterday. NVDA, TSLA, NFLX and ORCL were weak, as well as the oil company. Small-cap stocks and developers were the growth leaders. US government bonds experienced rapid growth after Bessent's nomination. And oil fell, removing the war premium in the Middle East.
Markets are neutral in the morning. Only under pressure from stocks in Japan against the backdrop of the rising yen. Bitcoin is already around $94 thousand.
The threat of imposing tariffs led to a drop in Canadian dollar quotes and it is trading at 1.41 per USD.
Futures in the US are neutral in the morning.
• UniCredit is buying its rival Banco BPM for $11 billion. The deal must be approved by the European Central Bank and antitrust authorities.
• MicroStrategy (MSTR) bought another 55,500 bitcoins for $5.4 billion, at an average price of $97,862 per bitcoin. This is the company’s largest purchase in dollar terms. MSTR is becoming an elephant in the room for bitcoin, creating risk for the entire market.
• Aluminum is rising in price on news from RUSAL. The company plans to reduce production due to the rising cost of alumina.
• Arabica coffee prices reached their highest level in 13 years.
• Yuan to Collapse on Trump Policy - Bank of America Bank of America forecasts a 5% drop in emerging market currencies in the first half of 2025 due to underestimation of the risks of a trade war under Donald Trump.
• Investor Warren Buffett has resumed his Thanksgiving tradition, announcing plans Monday to give more than $1.1 billion in Berkshire Hathaway shares to four family foundations and offering new details about who will distribute the rest of his fortune after his death.
• Macy's (M) delays third-quarter earnings report. Macy's delayed its third-quarter earnings report Monday as it conducts an internal investigation into an employee who hid $132 million to $154 million in expenses.
• California could offer state tax credits for electric vehicle purchases if the new Trump administration repeals the federal electric vehicle tax credit, Gov. Gavin Newsom said Monday.
• US government to cut Intel (INTC) grant over concerns about company's capabilities The US government wants to cut Intel's grant from $8.5 billion to less than $8 billion. The decision comes as the company has delayed investments and has been plagued by business problems.
• Oil fell as pre-holiday trading reinforced signs that risks from conflict in the Middle East are easing.
• Tesla earned nearly 34 million metric tons of greenhouse gas emissions credits in the 2023 model year by selling electric vehicles, while the auto industry has accumulated a significant shortfall in those emissions credits.
• The Russell 2000 Index has hit a record high on Trump's policies and optimism about a Fed rate cut. The index has gained more than 8% since the U.S. presidential election on November 5.
• BridgeBio Pharma (BBIO) shares soar after drug wins approval for rare heart condition. The stock jumped the most in 16 months after its drug won approval from U.S. regulators to treat a rare, deadly form of heart disease, paving the way for a major global leader in the field.
• EU says Bluesky breaches disclosure rules Fast-growing Twitter-like Bluesky is breaking EU rules by failing to disclose important details, a European Commission spokesman told reporters.
• Bath & Body Works (BBWI) reports strong third-quarter sales, raises full-year outlook. BBWI shares rise 17%.
Klarna Group nearly breaks even in the first nine months of the year. The European buy-now, pay-later fintech continues to prepare for an initial public offering.
• Citigroup (C) is paying special bonuses to retain dozens of employees. Andy Sieg, who was hired last year by the lender, said the unit's recent performance is beginning to pay off.
• Rail Trends: Grants, real estate key to shortline growth Shortline and regional railroads are honing their entrepreneurial skills by seeking new customers and strengthening ties with Class 1 trains.
• Goldman Sachs' tech ECM chief sees IPOs more than doubling in 2025 - Bloomberg Trump unveils sweeping plan to boost gas exports, oil drilling Trump's transition team is preparing a sweeping energy package to be enacted within days of his taking office that would approve export permits for new liquefied natural gas (LNG) projects and ramp up oil drilling off the U.S. coast and on federal lands, sources say.
• Germany's largest steel company, Thyssenkrupp Steel Europe AG, plans to cut 11,000 jobs in the coming years.
The number of jobs is expected to fall from the current 27,000 to 16,000 over the next six years.
• Qualcomm's (QCOM) interest in buying Intel (INTC) is fading. QCOM shares are down 1% in premarket trading.
• Zoom (ZM) shares fall 5% premarket after earnings report. The company beat expectations, especially in the B2B segment.
• Bath & Body Works forecasts smaller decline in full-year sales due to strong holiday demand.
• TotalEnergies suspends funding to Adani Group after bribery allegations
• Sources say Volkswagen has made a major discount on Northvolt shares.
• Macy's delays third-quarter report on accounting issues, expects weaker sales
• Quikrete to buy Summit Materials for $11.5 billion.
• Barclays raises S&P 500 forecast for 2025 to 6600 from 6500.
• Lilium's fall sheds light on cash crunch in air taxi industry
• Natixis and Generali are in early talks to collaborate in asset management, the FT reports.
• UK regulator fines Barclays $51m after it withdrew appeal over Qatar deals
• Citigroup is paying special bonuses to retain dozens of employees, Bloomberg News reports.
• UniCredit irritates Rome with $11bn purchase of Banco BPM after German backlash
• Beijing state-owned asset manager to sell 33% stake in joint venture with UBS
• TD Bank prepares to hire compliance inspectors as U.S. CEO reassures staff
• HDFC Life in India launches probe after customer data was shared with 'malicious' intent.
• EU not close to deal with China on electric vehicle tariffs, officials say
• EU says Bluesky breaches disclosure rules
Nvidia shows off an AI model that can change voices and generate new sounds.
• Rio Tinto-backed lithium startup prepares to raise second round of funding
• Lilium's fall sheds light on cash crunch in air taxi industry
• Indonesia sees Apple's $100 million investment offer as inadequate.
AI analytics company Pyramid Analytics received $50 million from BlackRock.
• Google's US antitrust trial over online advertising empire nears conclusion
• Corning offers to waive exclusive deals in EU antitrust probe, could avert fine
Fundamental news
• The US should give priority in arms supplies to Ukraine, not Taiwan. Ukrainians need weapons now more than we do, - former Taiwanese President Tsai Ing-wen, quoted by Politico.
• Trump hides who is funding his transition team - NYT. "Trump has yet to sign an agreement with the administration of current President Joe Biden that would allow the president-elect to receive up to $7.2 million in federal funds to fund the work of people who are helping Trump during the transition," the article says.
By avoiding this agreement, Trump can raise an unlimited amount of money from unknown donors.
• A far-right politician has unexpectedly emerged as the leader in the Romanian presidential election. The incumbent prime minister has fallen to third place. In the first round of the presidential election, non-partisan candidate Calin Georgescu, who was previously part of the far-right nationalist Alliance for the Unification of Romanians, received 22.91% of the vote. During the election campaign, Georgescu called for an end to military aid to Ukraine and expressed skepticism about Romania's membership in NATO. The incumbent prime minister of Romania, Ciolacu, resigned after failing to make it to the second round of the presidential election. He received 0.03% fewer votes than his opponent, Lasconi.
• Cyprus has decided to become a member of NATO - Kathimerini, citing informed sources. At the same time, Cyprus has an unresolved conflict with Turkey and a political division of the island into two halves.
• NATO is discussing preventive "precision strikes" against Russia in the event that Russia attacks the Alliance countries, - head of the bloc's military committee, Admiral Bauer. "It is wiser not to sit and wait for us to be attacked, but to hit Russian launchers if they attack. We must strike first."
• Ceasefire deal between Israel and Lebanon's Hezbollah 'very close' - CNN. Regional sources told reporters that while the agreement is "closer than ever", it is not yet fully formed. US and Israeli officials warned that mediators have not yet received the "green light".
• Amid political crisis, economic stagnation and Trump's looming trade tariffs, Germany is considering boosting government spending through bond issuance, Bloomberg
• More than 10% of the workforce in South Korea are already robots. The country has become a world leader in this indicator. According to analysts, there are 1,012 industrial robots for every 10,000 employees. And every year their number grows by an average of 5%.
• Trump has said he will impose an additional 10% tariff on goods from China and a 25% tariff on all goods from Mexico and Canada on his first day in office. The tariffs will remain in place until Canada and Mexico stop the drug trade, especially fentanyl, and stop the trafficking of migrants who cross the border illegally. China is also under pressure for fentanyl. And the U.S. budget simply needs the money.