FFA Newsletter - 12/29/24
Good Morning,
It is one of the rare occasions when even the markets take a holiday, Christmas Day—though Santa’s IPO would probably break records if his operation ever went public. After all, he's the only one who successfully "delivers" to every market around the globe in a single night: no supply chain issues, no missed earnings, just pure magic.
Even with the holiday spirit in the air, there’s plenty happening in finance. Bitcoin stumbled slightly after a historic rally, while Amazon and Starbucks workers expanded their strike efforts, putting labor issues front and center. Meanwhile, elite colleges are bracing for a looming financial crunch, Lego continues to defy market trends with record-breaking success, and Honda and Nissan are exploring a $58 billion merger that could reshape the auto industry.
As we close out 2024, take a moment to stay ahead of the news and step into 2025 prepared for what’s next.
Happy New Year!
Markets
US Markets:
US stocks rebounded late last week as investors digested positive inflation data.
Stocks closed flat in light trading on Tuesday, wrapping up a strong holiday week.
Foreign Markets:
UK 30Y yield climbed to 5.16%, reaching its highest level since 1998.
China 10Y yield pushed further into record lows, dropping to 1.7%.
China 1Y yield fell by 17 bps to 0.85%, the lowest level since 2003.
Japanese startup stocks are down 11% YTD, set for their fourth consecutive annual loss.
Yen-hedged US 10Y notes yielded positive returns for the first time in two years.
Crypto:
Bitcoin recorded its first weekly decline since the last election results, breaking its rally.
Commodities:
The Rolex watch price index hit its lowest level since November 2020, down 31% from its March 2022 peak.
Gold climbed to a three-week high, supported by a weaker dollar and renewed safe-haven demand. ($2,636 as of 12/29/24)
Headlines
Raids Find Luxury Handbags Being Made by Exploited Workers in Italy(WSJ)
Italian authorities uncovered luxury handbag production operations employing exploited workers under harsh conditions. The revelations have raised questions about ethical practices within high-end fashion supply chains.
UAE buys McLaren after carmaker suffers record loss (yahoo)
The UAE acquired a majority stake in McLaren following the carmaker’s record financial loss. The deal signals the UAE's continued push into luxury automotive and high-performance engineering industries.
Elite colleges have a looming money problem (WSJ)
Elite U.S. colleges face financial pressure as rising costs and changing demographics challenge their funding models. Many are rethinking tuition strategies and endowment spending to sustain their competitive edge.
India is witnessing a roaring 90s-style stock boom (BBG)
India's stock market is experiencing a boom reminiscent of the 1990s, driven by surging retail participation and foreign investment. Analysts warn of potential volatility as valuations reach historical highs.
Startups like OpenAI and SpaceX are staying private longer (BBG)
High-profile startups like OpenAI and SpaceX are opting to delay IPOs, leveraging private funding to sustain growth. This trend reflects the increasing availability of capital in private markets and founders’ desire to maintain control.
Lego is defying the toy market slowdown (CNBC)
Lego continues to thrive, posting strong growth even as the broader toy market slows. Its strategy of innovation, licensing, and experiential retail has kept the brand resilient against economic challenges.
Spotify execs cash in as stock soars (FT)
Spotify executives have sold significant stock holdings as the company’s shares hit new highs. The sales follow strong performance in user growth and profitability fueled by its podcast expansion strategy.
Amazon and Starbucks workers expanded their strike (AP)
Amazon and Starbucks workers expanded their strike efforts, demanding better wages and working conditions. The coordinated action highlights growing labor movements in the retail and service sectors.
China battery exports to US jumped to a record $1.9B (BBG)
Chinese battery exports to the U.S. surged to a record $1.9 billion, reflecting robust demand for electric vehicles and renewable energy products. The trade volume underscores ongoing reliance on Chinese battery technology despite geopolitical tensions.
US middle class cut back on holiday spending (WP)
Middle-class households in the U.S. are scaling back holiday spending amid economic uncertainty and inflationary pressures. Retailers are adjusting their strategies to cater to value-conscious consumers.
Unemployment continuing claims hit a three-year high (RT)
Continuing unemployment claims in the U.S. rose to their highest level in three years. The increase signals potential softening in the labor market as economic pressures mount.
Argentina sold the most FX reserves since 2019 on importer demand(BBG)
Argentina sold $1.9 billion in FX reserves, the highest since 2019, to meet surging importer demand. The move highlights the country’s ongoing struggles with currency stability and trade imbalances.
Deal Flow
M&A:
Honda and Nissan Explore $58B Merger: The automakers signed a memorandum of understanding to discuss a potential $58 billion merger, aiming to create a global automotive powerhouse.
Nordstrom Goes Private: Nordstrom's founding family and Mexican retailer El Puerto de Liverpool agreed to take the upscale department store private in a $6.25 billion cash deal.
Hyatt Targets Playa Hotels & Resorts: Hyatt Hotels is in exclusive talks to acquire $1.5B-listed Playa Hotels & Resorts, signaling a continued expansion in leisure travel.
Credit Agricole Regains Full Control of Caceis: Credit Agricole will buy back Santander's 30.5% stake in asset servicing bank Caceis, returning to 100% ownership.
VC:
xAI Raises $6B Series C: Elon Musk’s AI startup xAI raised $6 billion at a $45 billion valuation, with participation from major investors including BlackRock, Nvidia, and Sequoia.
1KOMMA5° Raises $150M Pre-IPO Round: German home electrification startup 1KOMMA5° secured $150 million to scale operations before its planned IPO.
Bluenote Raises $10M for GenAI in Biotech: AI platform Bluenote secured $10 million in funding to optimize drug discovery and development processes for biotech firms.
IPO:
Greaves Electric Mobility Plans $118M IPO: The Indian EV maker is preparing to raise $118 million to expand its clean energy vehicle lineup and infrastructure.
Tether Invests $775M in Rumble: Stablecoin issuer Tether agreed to invest in Rumble as part of the video platform’s $3 billion market expansion strategy.
Bankruptcy / Restructuring:
The Container Store Files for Bankruptcy: Struggling under mounting debt, the Container Store filed for Chapter 11 bankruptcy, placing the future of its iconic brand in question.
Fundraising
Founders Fund Seeks $3B Growth Equity Fund: Peter Thiel’s VC firm Founders Fund is raising $3 billion to invest in scaling innovative startups.
Events & Applications
While events may be slowing down, make sure to register early for the events when we get back to campus.
Guggenheim, Securities Investment Banking Sophomore Networking reception
Thursday, January 23rd, 5-7 PM CST - In Person off campus
Open to all Sophomores
Join Guggenheim Securities for a networking reception to explore internship opportunities and connect with the WashU team. Open to second-year students interested in investment banking.
Guggenheim Securities Investment Banking Sophomore FOCUS Program
Thursday February 6th & Friday February 7th
Sophomore program
Applications open January 3rd and are due January 8th @5pm EST
The Guggenheim Sophomore FOCUS Program offers career insights, networking, and mentorship in investment banking. Participants are guaranteed an interview for the 2026 Summer Analyst Program on February 13.
Resources
Navigating finance recruiting can feel like solving a puzzle—but with the right resources, the pieces fall into place. Here are a few tools to guide you:
Join the FFA GroupMe: Stay informed and connected with peers, as well as real-time updates on on-campus events.
Check Handshake: Explore regularly updated events, workshops, and job opportunities tailored to your career goals.
Microsoft Teams | Business Career Community | General Tab: Find study materials and interview prep under the “Finance” tab—your go-to spot for structured support.
Visit the Center for Career Engagement Webpage: A reliable resource for career advice, opportunities, and professional development.
If you have any questions or need assistance, feel free to contact the FFA Team at findingfinanceassociation@gmail.com. We're here to support your success—one step at a time!
