FFA Newsletter - 1/5/25
Good Morning,
New Year’s resolutions aren’t just for people—markets have their own aspirations too. Gold is glittering with hopes of its best year this century, the S&P is dreaming of another ‘90s-style rally, and natural diamonds are aiming to recapture their sparkle in the face of lab-grown competition. Meanwhile, OpenAI’s resolution seems to involve raising infinite capital, and Norway is charging ahead with EVs making up 90% of its new car sales. On the flip side, TGI Fridays is resolving to find new life after a pivotal bankruptcy sale.
Here’s to a year of big moves, bold strategies, and maybe even keeping some resolutions.
Let’s dive into the week’s headlines!
Markets
Overview: (data as of 1/4/24)
Dow (DJIA): $42,732.13
S&P 500 (SPX): $5,942.47
Crude Oil (CL): $74.07
Bitcoin (BTCUSD): $97,666
Gold (XAU): $2,640.6
Natural Gas (NG): $3.35
Mortgage Rates: 6.95% ↑
US Markets:
All three major US indexes saw a broad selloff to end the holiday-shortened trading week
Dow snapped a three-week losing streak
S&P is on track for its best back-to-back annual run since 1990s
Dollar surged to a two-year high against euro and an eight-month high against the pound
US stocks edged lower in the new year's first trading session
S&P and Nasdaq notched their fifth-straight daily decline, the longest streak since April
US stock markets will close on Jan 9th in honor of Jimmy Carter's passing
Foreign Markets:
Europe's Stoxx 600 rose 0.7% in its best day in a month
The index snapped a two-week losing streak
France's CAC 40 is down 2% YTD versus the Stoxx 600's 6% gain, putting it on course for its worst year since the Eurozone crisis
India's NIFTY 50 is on track for a record ninth-straight year of gains
Indian rupee fell 0.6% to a record low in its worst day in two years
China's CSI 300 dropped 2.9% in its worst first day since 2016
Ghana's GSE index rose 56% to become Africa's best stock index and the world's second-best
Commodities:
Iron ore fell below $100/ton to a five-week low on China demand woes
Gold is set for its best year this century
Cocoa and coffee closed 2024 as the biggest commodities gainers for a second-straight year amid a global supply deficit.
Headlines
The Finding Finance Association launches its first-ever website → (FFA)
The FFA took a significant step forward by unveiling its inaugural website. This digital milestone aims to enhance communication and provide valuable resources for members.
OpenAI needs 'more capital than imagined' (CNBC)
OpenAI announced it will require significantly more funding to sustain its growth, citing surging costs in AI development. The revelation underscores the financial demands of staying competitive in the AI arms race.
Natural Diamonds Had a Rough Year—Some Hope to Restore Their Shine (WSJ)
Demand for natural diamonds declined significantly this year, as consumers increasingly turn to lab-grown alternatives. Industry leaders hope marketing campaigns can restore their allure.
US Treasury was hacked by China (BBG)
A major cyberattack by Chinese hackers breached the US Treasury, exposing vulnerabilities in critical financial infrastructure. The incident has reignited calls for increased cybersecurity measures in government agencies.
Global corporate borrowing climbed to a record $8T in 2024 (FT)
Corporations worldwide borrowed a staggering $8 trillion this year, setting a new record. The surge was fueled by low interest rates early in the year and expanding business investments.
Options trading hit a record high this year (WSJ)
Options trading volume soared to unprecedented levels in 2024, highlighting a surge in retail investor interest and speculative activity. The trend raises questions about market stability.
Macau sees record bond listings in pivot away from gambling (BBG)
Once reliant on gambling, Macau is pivoting toward finance with record bond listings in 2024. The move reflects efforts to diversify the region’s economy.
The Stock Market Is Like a Fashion Show, and Here’s One of Its Hot Must-Haves (WSJ)
The stock market is increasingly being compared to a fashion show, where trends dictate investor sentiment. This year, AI and clean energy took the spotlight.
US credit card defaults jumped to highest level since 2010 (FT)
Defaults on US credit cards surged to their highest levels since 2010, reflecting mounting financial strain on households. Rising interest rates and inflationary pressures are worsening the situation for consumers.
Big 3 retailers are tightening their grip on US consumers (WSJ)
Dominating the market, the "Big 3" retailers are leveraging economies of scale to outcompete smaller players. Their growing influence is reshaping how Americans shop.
90% of Norway's new car sales last year were EVs (RT)
Electric vehicles dominated Norway’s new car market, accounting for 90% of sales last year. This milestone cements the country as a global leader in EV adoption.
China approves the world’s most expensive infrastructure project (economist)
China has greenlit a groundbreaking infrastructure project, set to be the most expensive globally. This bold move demonstrates the country's commitment to reshaping global trade and connectivity.
What Car Sales Can Tell Us About the U.S. Auto Market Right Now (WSJ)
A deeper look at car sales reveals shifting trends in consumer preferences, with EVs gaining ground and traditional automakers facing new challenges.
Deal Flow
M&A:
Siemens Explores Healthineer Stake Sale: German engineering conglomerate Siemens is reviewing its 75% stake in medical technology subsidiary Siemens Healthineer.
Grupo Elektra Goes Private: Mexican billionaire Ricardo Salinas Pliego will delist $3.9B retail and finance conglomerate Grupo Elektra.
Wilmar Acquires Adani Wilmar Stake: Singaporean foods giant Wilmar will acquire Indian conglomerate Adani Group's 31% stake in their consumer goods JV Adani Wilmar in a $2B deal.
VC:
KoBold Metals Secures $537M Round: Bill Gates-backed KoBold Metals raised a $537M round at a $3B valuation, led by Durable Capital Partners.
Rembrand Raises $23M for Virtual Product Placement: AI platform Rembrand raised a $23M Series A led by super{set}.
Imagoworks Secures $15.6M for AI Dentistry Solutions: Imagoworks, an AI digital dentistry solution provider, raised a $15.6M Series C led by Stick Ventures and K2 Investments.
Fairly Raises $10.1M Pre-Seed Round: Vacation rental management platform Fairly raised $10.1M in its pre-seed funding round.
IPO:
Brookfield Acquires Neoen Stake: Brookfield acquired a 53% stake in French renewables developer Neoen for ~$3.4B, paving the way for a full takeover.
Ashdod Port Plans IPO: Israeli state-owned Ashdod Port Company plans to IPO up to 49% of its shares.
Debt:
Bank of America Buys CRE Loan Portfolio: Bank of America agreed to acquire $990M of multifamily CRE loans from HomeStreet Bank.
Bankruptcy / Restructuring:
Big Lots Bankruptcy Deal Saves Stores: Discount retailer Big Lots reached a bankruptcy deal with Gordon Brothers and Variety Wholesalers to save hundreds of stores and prevent closure.
TGI Fridays Finds Buyer Amid Bankruptcy: Bankrupt restaurant chain TGI Fridays received court approval to sell nine locations to restaurant operator Mera for $34.5M.
Intrum Restructures Debt Amid Creditor Pushback: A US bankruptcy judge approved the debt restructuring plan of Sweden's Intrum despite opposition from a minority group of creditors.
Events & Applications
New York Investment Bear Trek
Tuesday January 7th & Wednesday January 8th
Good luck to all the sophomores attending this coming week!
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.
Spring 2025 WashU Career Expo: All Industries
Tuesday February 11th 3-6pm CST
The Center for Career Engagement hosts local and national organizations for who are recruiting from various industries and job functions.
Open to all WashU undergraduate and graduate students.
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!
