1.Japan Stocks Fall on Hawkish BOJ; Eyes on China: Markets Wrap
(Bloomberg) — Japanese government bonds tumbled, and stocks fell on the central bank governor’s hawkish tone. Equities across the rest of Asia were mixed, with Hong Kong extending gains. Japan’s 10-year sovereign yield climbed by the most since December as Governor Kazuo Ueda said Tuesday that certainty for achieving its price goal is rising gradually.
2.Trump Wins New Hampshire Republican Primary Over Haley
(Bloomberg) — Former President Donald Trump won the New Hampshire primary, dealing a blow to his only remaining major rival Nikki Haley and solidifying his status as the Republican party’s likely nominee. The Associated Press called the contest for Trump at 8 p.m. Tuesday. He was leading Haley by about 5.9 percentage points with about 23% of the vote counted.
3. Dotcom History Rhymes for Nasdaq as Fed Cuts Loom: Macro View
(Bloomberg) — History shows that stocks are well poised to gain before the Federal Reserve starts slashing rates, but daunting valuations for technology names suggest that the S&P 500 may outperform the Nasdaq in the first half of the year. Both the S&P 500 and Nasdaq 100 baskets have traditionally rallied in the interregnum between the end of a Fed tightening.
4. US Stocks Buck Concerns the ‘Pivot Party’ Is Over: Markets Wrap
(Bloomberg) — US stocks eked out a gain Tuesday, setting fresh closing highs ahead of an onslaught of company reports that promise insight into the state of the global economy. The S&P 500 and Nasdaq 100 both closed at all-time highs for the second day this week, while the cyclically-oriented Dow Jones Industrial Average slid 0.3%. United Airlines Holdings Inc., Procter & Gamble Co. Verizon Communications Inc. all advanced on upbeat earnings reports while 3M Co. and Johnson & Johnson fell following disappointing guidance.
5. Dealbook: Rising Markets Lift Hedge Funds to Huge Gains
The 20 best-performing hedge funds made $67 billion in gains last year, a big jump from the year before. As stock markets soared in 2023, so did the fortunes of many of the world’s biggest hedge funds. The 20 best-performing hedge funds made $67 billion in gains last year, triple what they reported in 2022, according to according to data released by LCH Investments, a so-called fund of funds that ranks the top 20 firms on lifetime gains, after fees.
6. Sanofi to Buy Inhibrx for $2.2 Billion in Rare-Disease Push
(Bloomberg) — Sanofi agreed to buy the US biotech Inhibrx Inc. for as much as $2.2 billion, giving the French drugmaker a potential therapy for a genetic disorder that affects the lungs and liver. The acquisition is the latest in a string of small- and mid-sized deals as Sanofi looks to double down on innovative medicines and reduce its reliance on the blockbuster asthma medicine Dupixent.
7. Netflix’s great day continues. After inking a $5 billion deal with the WWE for its first major bit of live programming, the streamer had a home-run quarter, adding 13 million subscribers, bringing its total to 260 million worldwide.
On its year-end earnings call Tuesday, Netflix reported booming numbers for its final quarter, making for a promising start to 2024. Revenues were up 12.5% to $8.8 billion and net income was up 160% to $938 million for the fourth quarter of 2023, and Netflix finished the year with $33.7 billion in revenue, up 6.7%, with a 20.4% increase in profits bringing the year-end total to $5.4 bilion.These numbers smashed analyst estimates for financial performance, and investors cheered it on with an 8.6% increase in the stock price in post-trading hours.
8. The near-term focus in SGD markets will be the MAS’s first quarterly meeting, which will take place on 29 January.
We expect the MAS to keep the FX policy unchanged amid an upside surprise in December’s core inflation. There is still a high hurdle for any dovish MAS pivot. The SGD NEER is likely to remain resilient. While a muted CNY outlook could hold back Asian currencies, the fate of USDSGD still hinges on the USD story. We target USDSGD at 1.29 by end-2024
9. EBay to Cut 1,000 Jobs, Reduce Contractors to Sharpen Focus
(Bloomberg) — EBay Inc. will cut about 1,000 jobs, or 9% of its full-time employees, and reduce work for its outside contractors, saying its staffing and expenses have outpaced growth. The e-commerce company said it needs to be “more nimble” in the face of a “challenging” economic environment. “While we are making progress against our strategy, our overall headcount and expenses.
10. FAA May Expand Boeing Probe Beyond Max 9, Agency Chief Says
(Bloomberg) — The Federal Aviation Administration’s top official said the agency may expand its probe of Boeing Co.’s manufacturing practices beyond the 737 Max assembly operations if it finds evidence of problems elsewhere at the plane maker. For now, the agency is focused on the mid-cabin door plugs on Max 9 aircraft like the one that blew off an Alaska Airlines flight.