Good Morning!
On Friday, January 10, the S&P 500 closed at 5,827, down 1.54%. The NASDAQ fell 1.63% to finish at 19,161, while the Dow Jones Industrial Average declined 1.63% to close at 41,938.
Crypto Highlights
Bitcoin (BTC): Currently trading at $91,927, down 2.91% over the past 24 hours.
Ethereum (ETH): Slid 6.51%, now trading at $3,054 per coin.
Solana (SOL): Down 6.39% in the last day, currently at $176.47.
Ripple (XRP): Down 1.99% over the last 24 hours, currently at $2.45 per coin.
In the last 24 hours, the crypto market has liquidated $420 billion causing a widespread selloff.
Upcoming Earnings
ServiceTitan (TTAN): Market Cap $9.07B (After hours).
Marks & Spencer Group Plc (MAKSY): Market Cap $8.16B.
KB Home (KBH): EPS 2.47, Revenue $4.61B, Market Cap $1.99B (After hours).
WaFd Inc (WAFD): EPS 0.6508, Revenue $2.51B, Market Cap $187.37M.
Headlines
Biden and Netanyahu Discuss Gaza Ceasefire Talks as Momentum Builds
In his final week in office, U.S. President Joe Biden held a phone call with Israeli Prime Minister Benjamin Netanyahu to discuss progress toward a Gaza ceasefire and a potential hostage release deal. This comes as Israel and Hamas reportedly make strides in negotiations, mediated by officials from Qatar, the U.S., and Egypt. Biden emphasized the urgency of a ceasefire and increased humanitarian aid, urging action before the inauguration of President-elect Donald Trump on January 20. Meanwhile, Netanyahu has been working to unify his cabinet, addressing opposition from members reluctant to support a ceasefire agreement.
The proposed deal faces uncertainties, including the duration of a truce and the future presence of Israeli forces in Gaza. Biden’s administration has pursued a resolution based on proposals introduced in May, with U.S. Secretary of State Antony Blinken noting that an agreement is “very close.” Observers remain cautious, however, citing historical challenges in reaching lasting peace. The war, which began in October 2023 following Hamas’s attack on southern Israel, has claimed tens of thousands of lives and left unresolved tensions between the parties.
China’s Trade Surplus Hits Record $1 Trillion in 2024
China's trade surplus surged to an unprecedented $990 billion in 2024, driven by a massive outflow of exports and subdued domestic demand for imports. Adjusted for inflation, this figure represents the largest trade surplus recorded globally in the past century. Chinese factories, producing everything from cars to solar panels, have solidified their dominance in global manufacturing, echoing the scale of U.S. industrial power after World War II.
This export boom has intensified trade tensions, with many countries imposing tariffs to counteract China’s dominance, prompting retaliatory measures and raising fears of a global trade war. With President-elect Donald Trump poised to take office and threatening further aggressive trade policies against China, economic relations may face heightened challenges in the coming year.
AfD Embraces Radical Policies as German Election Nears
Germany’s far-right Alternative für Deutschland (AfD) party has adopted increasingly radical positions ahead of the federal election on 23 February, including advocating for mass deportations under the term “remigration.” At its party conference in Riesa, leader Alice Weidel pledged large-scale "repatriations," border closures, and the dismantling of wind farms. The manifesto also calls for Germany to exit the EU, the Euro currency, and the Paris climate agreement. These controversial stances have drawn widespread protests, with thousands demonstrating outside the conference venue.
Two Nuclear Microreactors Reach Milestone
Westinghouse and Radiant Industries are advancing nuclear microreactor technology, securing $3 million and $2 million, respectively, from the U.S. Department of Energy (DOE) for their eVinci and Kaleidos reactors. These compact nuclear reactors, designed to provide reliable power to remote areas, will undergo testing at the DOE’s Demonstration of Microreactor Experiments (DOME) in Idaho, set for completion in 2026. Both reactors use uranium-based TRISO fuel, recognized for its robust design and resistance to extreme temperatures. They differ in cooling systems, with Westinghouse utilizing heat pipes and Radiant employing helium gas.
Microreactors, smaller than traditional nuclear reactors, produce up to 50 megawatts of power and are designed for portability, rapid deployment, and minimal maintenance. Their compact size and modular design make them ideal for remote sites, disaster recovery, and even lunar installations. Unlike diesel generators, they provide zero-carbon energy with longer fuel cycles. For instance, the eVinci can deliver 5 MW of power for eight years without refueling, showcasing its potential in scenarios like the 2012 fuel crisis in Nome, Alaska.
The eVinci reactor, cooled by a passive heat pipe system, recently achieved milestones in regulatory approval and manufacturing tests. Westinghouse demonstrated its assembly and transport process with a prototype unit and secured its first customer, Canada’s Saskatchewan Research Council. Looking ahead, Westinghouse and Radiant aim to commercialize their microreactors by 2030.
Blue Origin Scrubs Debut Launch of New Glenn Rocket Due to Technical Issues
Blue Origin postponed the highly anticipated first launch of its massive New Glenn rocket on Monday, citing technical trouble during the final minutes of the countdown. The 320-foot (98-meter) rocket, named after astronaut John Glenn, was set to carry a prototype satellite from Florida’s Cape Canaveral Space Force Station but was halted due to an unspecified issue. Launch controllers quickly began draining the rocket’s fuel, and no new launch date has been announced as the team works to resolve the problem.
The test flight had already faced delays due to rough seas, which complicated plans to land the first-stage booster on a floating platform in the Atlantic. New Glenn, significantly larger than Blue Origin's New Shepard suborbital rocket, represents a major step for the company founded by Jeff Bezos 25 years ago. Bezos, who participated in the countdown from Mission Control near NASA’s Kennedy Space Center, remained optimistic, stating, “We’re going to pick ourselves up and keep going.”
Boeing’s 2024 Aircraft Production Falls Short of Airbus by Wide Margin
Boeing is expected to confirm a production output of just 340 aircraft in 2024, less than half of the 766 planes delivered by its rival Airbus, according to Flight Plan analysis. This marks a sharp decline from Boeing’s 528 deliveries in 2023 and its peak of 806 in 2018, before the 737 Max crisis and the COVID-19 pandemic. The year was marred by a series of challenges, including a catastrophic crash in South Korea, a worker strike, and lingering production issues. Despite new leadership under CEO Kelly Ortberg and plans to ramp up 737 Max production to 38 planes per month by May 2025, analysts remain skeptical about Boeing’s ability to meet this goal, citing supply chain hurdles and safety concerns.
Airbus, while facing its own supply chain struggles, maintained a commanding lead in the market. Although narrowly missing its adjusted target of 770 planes, the European planemaker delivered within its planned range and expressed confidence in surpassing its 2019 record of 863 deliveries in the near future. Airbus CEO Christian Scherer acknowledged the challenges but described 2024 as a “good year” overall, underscoring the company’s relative stability compared to Boeing’s ongoing turbulence.
Moderna Cuts 2025 Sales Forecast Amid Weak Vaccine Demand
Moderna slashed its 2025 sales forecast by $1 billion on Monday, citing slow adoption of its respiratory syncytial virus (RSV) vaccine and declining demand for COVID-19 shots. The company now expects annual revenue of $1.5 billion to $2.5 billion, below its previous forecast of $2.5 billion to $3.5 billion and market expectations of $2.95 billion. This announcement sent Moderna’s shares plunging over 18% in premarket trading.
Sonos CEO Patrick Spence Resigns Amid App Controversy
Patrick Spence has stepped down as CEO of Sonos, effective immediately, following the fallout from last year’s disastrous app launch. The release of the overhauled app in May, which was riddled with bugs and missing key features, sparked widespread customer outrage, a decline in employee morale, and significant damage to the company’s reputation. The misstep overshadowed the debut of the Sonos Ace headphones, and despite months of bug fixes and feature updates, customer dissatisfaction persists. Tom Conrad, a board member and former chief technology officer at Pandora, will serve as interim CEO.
Spence, who joined Sonos in 2012 and became CEO in 2017, oversaw the launch of several successful products, including the Arc Ultra soundbar and the Era 300 spatial audio speaker. However, his handling of the app debacle, particularly his delayed public apology, eroded trust among loyal customers. As the company moves forward, it remains committed to the new app and plans to continue with its product pipeline, including a rumored streaming video player. Spence will stay on as a strategic advisor until June, receiving a substantial severance package.
TSMC May Secure Approval for 2nm Chip Production in the US
The Taiwan Semiconductor Manufacturing Company (TSMC) appears to have gained approval from the Taiwanese government to manufacture 2-nanometer chips in the United States, according to a report from UDN. This marks a significant policy shift, as Taiwan previously required domestic facilities to remain at least one or two generations ahead of overseas production. TSMC’s Arizona facility, established with subsidies under the CHIPS and Science Act, could house 2nm chip production at Fab 3 by the decade’s end. However, the high costs of overseas expansion—estimated at $30 billion—may influence TSMC's decision-making.
Despite concerns about losing its technological edge, Taiwan’s Minister of Science and Technology, Wu Cheng-wen, has emphasized that TSMC’s research and development will remain headquartered in Taiwan. Wu also noted that the US maintains a global lead in chip design and intellectual property, complementing TSMC's manufacturing capabilities. As TSMC prepares to enter 2nm mass production in Taiwan this year, trial production at its Kaohsiung facility may begin sooner than anticipated.
CoreWeave Opens First International Data Centers in the UK
CoreWeave, a $19 billion AI compute provider, has officially launched its first two international data centers in the U.K., marking its expansion beyond the U.S. market. The company’s U.K. data centers, located in Crawley and London Docklands, became operational in October and December 2024, respectively. These centers are equipped with Nvidia’s advanced Hopper GPUs, optimized for AI workloads. This move is part of CoreWeave’s £1 billion ($1.25 billion) investment in the U.K., following the opening of its European headquarters in London last May.
The launch aligns with the U.K. government’s five-year plan to enhance AI infrastructure, including AI Growth Zones and government-owned computing resources. CoreWeave, initially founded in 2017 for crypto mining, has pivoted to focus on AI compute, a rapidly growing industry. With 28 data centers now operational globally and plans for 10 more in 2025, including new sites in Norway, Sweden, and Spain, CoreWeave is positioning itself as a major player
AMD Witnesses Record Growth in CPU Market Share
AMD has achieved significant growth in client and workstation CPU market share, with a 20% rise in the client segment over the past year, according to Puget Systems’ “Hardware Trends of 2024.” This surge was driven by the success of AMD's Ryzen 9000 series and 3D V-Cache models, which outperformed Intel in both performance and efficiency. Intel’s struggles, including instability issues with its 13th and 14th Gen CPUs and the disappointing release of Arrow Lake-S processors, further cemented AMD’s position as a market leader.
In the workstation market, AMD's Threadripper CPUs have dominated, capturing the majority of orders, while Intel's Xeon processors hold only a 10% share. AMD’s aggressive product innovation and ability to capitalize on Intel’s missteps have reshaped the market dynamics. With its strong momentum, AMD appears poised to maintain its upward trajectory in 2025.
