September 9th - 13th, 2024
Daily market volatility has returned as investors navigate the shifting economic and political landscape
The S&P 500 is up 1.61%, the Nasdaq is up 2.52%, and the Dow Industrials is up 0.83% WTD
The 10-Yr U.S. Treasury yield has decreased -0.096% to a current yield of 3.648%, whereas the 30-Yr U.S. Treasury yield decreased -0.068% to a current yield of 3.977%
Crude oil prices increased 1.55% to a current $68.88/bbl while bitcoin decreased 6.24% to a current $58,311.20/coin
The yield curve's recent uninversion, driven by expected Federal Reserve rate cuts, raises concerns of a potential recession, as historically both inverted and uninverted curves often signal economic downturns, though some hope remains for a rare soft landing [WSJ]
The S&P 500 fell 4.2% last week amid concerns about the U.S. economy, with weak jobs data and declining manufacturing performance contributing to the downturn [WSJ]
The Russell 2000 small-cap index benefited early this year from large gains in two companies, Super Micro Computer and MicroStrategy, but avoided significant losses when they graduated to the Russell 1000 before Super Micro's stock plunged [WSJ]
Investors are shifting to defensive assets like real estate, utilities, consumer staples, and gold ahead of the Federal Reserve's interest-rate decision, driven by concerns over the U.S. economy, inflation, and the upcoming presidential election [WSJ]
Inflation easing, declining investment in China, and reduced cotton yields due to drought highlight economic shifts, with the Federal Reserve poised for rate cuts
Inflation eased to a three-year low in August, setting the stage for the Federal Reserve to begin gradually cutting interest rates, though concerns remain about a cooling labor market and future rate cut sizes [WSJ]
Chinese engineers successfully overcame the challenges of processing low-grade nickel and cobalt ore using High Pressure Acid Leach (HPAL) technology, a method that had previously caused repeated failures for Western companies [WSJ]
Fed Chair Jerome Powell must decide whether to cut rates by 0.25 or 0.5 points next week, as the central bank navigates economic data and labor market risks [WSJ]
Global businesses are cutting investment in China due to slower growth and rising competition, while shifting operations to India and Vietnam, though many still maintain a presence [WSJ]
The USDA cut its cotton yield forecast to the lowest since 2015 due to Southwest drought, but overall harvests are expected to increase despite weak demand and potential storm damage [WSJ]
M&A activity continues to show improvement, with developments within chemicals, healthcare, and energy prove to be encouraging
Abu Dhabi’s ADNOC is expected to make a formal offer for German chemicals group Covestro at a $15.9B valuation, including debt [FT]
Danish logistics firm DSV won the race to acquire Deutsche Bahn’s logistics unit Schenker in a potential $15.4B deal [RT]
PE firm GTCR is in advanced talks to acquire German generic drugmaker Stada Arzneimittel at a potential $11B valuation [BBG]
UK property listing group Rightmove rebuffed an initial $7.3B takeover approach from Australian peer REA [WSJ]
Australian property listings firm REA made a preliminary offer to acquire UK peer Rightmove for $7.2B [FT]
AngloGold Ashanti agreed to take over rival gold miner Centamin for $2.5B [FT]
Taiwan financial conglomerate Taishin raised its takeover offer for peer Shin Kong to ~$7B in what could be Taiwan’s biggest-ever financial services merger [RT]
French dairy companies Groupe Lactalis and Sodiaal agreed to acquire General Mills' North American yogurt business for $2.1B cash [BBG]
Mastercard agreed to buy cyber-defense firm Recorded Future for $2.65B [BBG]
New Zealand's Contact Energy agreed to acquire renewable energy firm Manawa Energy for over $1.1B [RT]
O&G producer APA will sell non-core Permian Basin drilling properties to an undisclosed buyer for ~$950M [RT]
Recent developments across four key industries highlight U.S. crude inventories rising as Hurricane Francine impacted production, the UAE's MGX potential investment in OpenAI, and JPMorgan warns of declining net interest income
Energy & Natural Resources
Mitsubishi is in talks to acquire a stake in Exxon Mobil's Baytown, Texas, project, which aims to be the world's largest low-carbon ammonia facility, with production expected to start in 2029, supplying various industries in Japan [WSJ]
U.S. crude oil inventories rose for the first time in four weeks, while gasoline and distillate stocks increased amid lower demand, as Hurricane Francine curtailed Gulf of Mexico production [WSJ]
Technology, Media, & Telecommunications
The UAE's state-backed MGX is in talks to invest in OpenAI as part of a multibillion-dollar fundraising round, potentially boosting the Middle Eastern nation's ties to one of the world's leading AI companies [WSJ]
Italy's competition regulator has launched an in-depth investigation into Swisscom's $8.81 billion acquisition of Vodafone Italia to assess antitrust compliance, potentially reshaping the country's telecom market [WSJ]
Healthcare & Life Sciences
Two U.S. senators have proposed bipartisan legislation to empower the FDA to crack down on deceptive online promotion of prescription drugs by telehealth firms and influencers, imposing fines for false or misleading posts that omit safety risks [WSJ]
A Kentucky organ-procurement group is under investigation for allegedly pressuring staff to retrieve organs from a conscious patient, raising concerns about misconduct in the U.S. organ-transplant system [WSJ]
Financial Services
JPMorgan has warned of declining net interest income due to falling interest rates, impacting its stock, while smaller banks may benefit more from cheaper funding as rates drop [WSJ]
A potential UniCredit-Commerzbank merger raises hopes for larger European banks, but it's unlikely to create significant competition for Wall Street or reshape European capital markets [WSJ]
Cole LaCour
Sep 13, 2024
