Global Market News
Global Equities Make Gains
Global equities made gains this week. The Dow Jones and S&P 500 rose 1.96% and 1.68%, respectively, while the Nasdaq increased 1.73%. The US 10-year Treasury note retreated to 4.41% over the week while the price of a barrel of West Texas Intermediate crude oil jumped more than 6% to $71.28. Volatility, as measured by the CBOE Volatility Index, declined slightly over the week to 15.24.
ECB Expected To Cut Rates Amid Economic Headwinds
The European Central Bank (ECB) is largely expected to cut rates again by as much as 50 basis points at its December meeting after manufacturing data was released which suggests that the European economy is stagnating. The eurozone manufacturing Purchasing Managers Index (PMI) fell to 45.2 from 46 in October while the services component fell from 51.6 to 49.2. Preliminary PMIs for November contracted more than expected, sending the Euro to a two-year low against the dollar. Markets anticipate the EU will act early to shore up economic growth amid political instability in Germany and France and as potential tariffs from Trump’s second term loom on the horizon.
International Developments
ICC Issues Arrest Warrants for Netanyahu, Gallant, and Hamas’s Deif Over Alleged War Crimes
On November 21st the International Criminal Court (ICC) issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu, Israeli ex-Defense Minister Yoav Gallant, and Hamas military chief Mohammed Deif (who Israel claimed is dead), citing alleged war crimes and crimes against humanity during the Gaza conflict. The charges against Netanyahu and Gallant include “intentionally depriving civilians of necessities for survival” and the war crime of starvation, while Deif is accused of orchestrating the October 7th, 2023, attack on Israel that killed 1,200 people and took 250 hostages. The ICC investigation, initiated in 2021, spans events from the Israel-Hamas war of 2014 to recent hostilities, with the Gaza death toll exceeding 44,000 since October 2023. Both Israel and the United States rejected the court’s jurisdiction, while human rights advocates welcomed the decision as a step toward accountability for atrocities in Gaza.
NATO and Ukraine to Hold Emergency Talks After Russia’s Hypersonic Missile Strike
On November 22nd NATO and Ukraine announced emergency talks set for Tuesday following Russia’s launch of an experimental hypersonic ballistic missile, the Oreshnik, which struck a military facility in Dnipro, Ukraine, escalating the 33-month war. The missile, launched from Russia’s Kapustin Yar test range, carried six warheads with submunitions, traveled at Mach 11, and marked an aggressive retaliation for Kyiv’s use of Western-supplied long-range missiles. President Vladimir Putin framed the attack as a warning to the West, claiming their air defenses were powerless against this weapon, while NATO allies, including the Czech Republic, condemned the strike and pledged additional air defense support to Ukraine. Simultaneously, Russia used Iranian-designed Shahed drones to attack Sumy, killing two civilians and injuring 13, further intensifying fears of Moscow’s increasingly escalatory actions.
COP29 Offers Mixed Results
COP29 began last week in Baku, Azerbaijan, with mixed results, as early agreement on standards for a global carbon market under Article 6.4 of the Paris Agreement was overshadowed by slow progress on the critical “New Collective Quantified Goal on Climate Finance” (NCQG). The United Kingdom (UK) unveiled an ambitious new Nationally Determined Contribution (NDC), pledging an 81% reduction in emissions by 2035, while the US election raised concerns about potential withdrawal from the Paris Agreement, creating uncertainty around international cooperation. The NCQG negotiations remain contentious, with developing nations requiring up to $1.8 trillion annually by 2030, far exceeding the $100 billion target met in 2022, highlighting the need for broader financial contributions, including private sector involvement. COP29 President Mukhtar Babayev had called for courage as participants strive to resolve key issues and secure meaningful climate commitments with Friday being the final day of the summit.
US Social & Political Developments
Trump’s Cabinet Picks: Key Appointments and Developments
On Thursday, former Rep. Matt Gaetz withdrew from consideration as attorney general amid an ethics investigation, leading to President-elect Trump’s swift selection of Pam Bondi, the former attorney general of Florida, as his new nominee. Trump has chosen Sen. Marco Rubio as his secretary of state, a notable shift from their rivalry during the 2016 Republican primaries. For secretary of defense, Trump has selected Pete Hegseth, a former Fox News host and Army combat veteran, while he has tapped former Soros Fund Management chief investment officer Scott Bessent for the position of treasury secretary.
US Bribery Charges Shake Gautam Adani’s Empire and Modi’s India
This week, Gautam Adani, one of India’s richest businessmen, was charged by US federal prosecutors with offering $265 million in bribes to Indian officials and concealing the scheme from Wall Street investors while securing funds for a renewable energy project. Adani’s conglomerate, central to India’s infrastructure development under Prime Minister Narendra Modi, saw its stocks lose over $30 billion in value the following day, forcing the cancellation of a major bond sale. The indictment follows allegations by Hindenburg Research in 2023 of stock manipulation and accounting fraud, which previously wiped $150 billion off Adani’s empire before partial recovery.
Corporate/Sector News
DOJ Seeks Landmark Breakup of Google’s Chrome Amid Antitrust Violations
The US Department of Justice (DOJ), joined by several states, filed a motion on November 20th urging a federal court to mandate the sale of Google’s Chrome browser after the company was found guilty of antitrust violations. The DOJ claims Google’s exclusive agreements with companies like Apple and Samsung, combined with Chrome’s market dominance on billions of devices, stifled competition and violated the Sherman Act. In addition to Chrome’s divestiture, the DOJ proposed separating Google Search from Android and the Google Play store while seeking restrictions on Google’s use of data for AI training, echoing parallels with the historic Microsoft antitrust case of the 1990s. If enacted, these measures would reshape the tech industry, affecting millions of users globally, with a decision expected by 2025.
Bitcoin Surges Toward $100K as SEC Chair Gensler Announces Resignation
Bitcoin hit an all-time high of $98,000 on Thursday before settling at $97,600, marking a 31% surge since Donald Trump’s reelection, fueled by his crypto-friendly policies, including a proposed National Strategic Bitcoin Reserve. This rally coincides with SEC Chairman Gary Gensler’s announcement to resign on January 20, 2025, aligning with Trump’s inauguration and amid tensions over Gensler’s regulatory crackdowns, which included $21 billion in penalties during his tenure. Ether jumped 8%, and other cryptocurrencies like Litecoin and Dogecoin also climbed, while Bitcoin ETFs and options trading—recently introduced by firms like BlackRock—amplified investor activity. As Trump positions the US to become the “crypto capital,” debates around the SEC’s future direction and the volatile nature of crypto investments continue to dominate market conversations.
Target Stock Plunges After Earnings Miss
Target reported disappointing fiscal Q3 earnings this week with earnings per share at $1.85—well below the expected $2.30—and revenue of $25.7 billion, narrowly missing forecasts. The stock tumbled 21% to $122, marking its steepest single-day drop since 2022, as the company slashed its fiscal-year earnings guidance to $8.30–$8.90 per share, down from $9.00–$9.70. CEO Brian Cornell cited challenges like softened discretionary demand, a costly decision to reroute holiday shipments, and inflation-strained consumer budgets, while competitor Walmart reported stronger general merchandise sales. Despite a 2.4% increase in in-store traffic and 10.8% growth in digital sales, analysts remain divided, with some downgrading the stock and others optimistic about Target’s long-term potential.
Corporate Profile
X’s Chief Competitor, Bluesky, and its Visionary Leader are Redefining Social Media
Jay Graber, the 33-year-old CEO of Bluesky, has positioned the platform as a compelling alternative to X, particularly following controversies surrounding the US presidential election. Officially launched in February 2023 as a public benefit corporation with hybrid for-profit and societal impact goals, Bluesky operates on an open protocol that evolves with user contributions and has surged to over 20 million subscribers, gaining a million new users daily in November 2024. Graber, born in Tulsa, Oklahoma, and inspired by her Chinese heritage and the ideals of freedom, took the helm in 2021 after Parag Agrawal offered her the role under the condition of Bluesky’s independence from Twitter. Amid Elon Musk’s polarizing transformation of Twitter into X, Graber has become a rare female leader in Silicon Valley, steering Bluesky with a mission to create a better social ecosystem and embracing her reputation as a disruptor in the male-dominated tech sector.
Recommended Reads
Tom Standage’s ten trends to watch in 2025
How Science Lost America’s Trust and Surrendered Health Policy to Skeptics
China’s ‘hidden debt’ problem bigger than Beijing suggests, analysts say
This week from BlackSummit
Image of the Week
https://www.visualcapitalist.com/breaking-down-the-u-s-governments-2024-fiscal-year
