Eksentricity

Tech

AI Advancements

• AI Integration Across Industries: Companies are rapidly integrating AI into their products and services, across various sectors like financial services, travel, and healthcare. This trend is driven by the growing demand for AI-powered tools that can deliver personalized experiences, data-backed insights, and operational efficiency.
• AI Chip Market Growth: The demand for AI chips, primarily GPUs, is expected to skyrocket in the next few years. This demand is driven by the rising need for accelerated computing power in data centers and the development of new AI applications.
• Sovereign AI and Data Localization: Data sovereignty is gaining global traction, as countries seek to control and safeguard their citizens’ data. This is leading to a push for localized AI infrastructure, particularly in Europe, where companies are opening more data centers and training AI models using region-specific data.
• AI Safety Concerns: As AI models become more complex, concerns about their potential for misuse and the possibility of catastrophic events are growing. Companies are actively investing in AI safety techniques to mitigate these risks.

Blockchain Developments

• Mainstream Crypto Adoption: Bitcoin’s mainstream acceptance continues to grow, with major institutional players and even governments showing interest in the asset class. This has led to a surge in Bitcoin’s price and a broader rally in the crypto market.
• Increased Use of Ethereum Staking: Investors are increasingly locking up their Ethereum (ETH) tokens for staking rewards, a key driver of growth in the decentralized finance (DeFi) sector.
• Growing Appeal of Alternative Blockchains: Companies and developers are exploring alternative blockchain platforms, such as Solana, which offer potentially faster and cheaper transaction processing compared to Ethereum.

Fintech Innovations

• Buy Now, Pay Later (BNPL): The BNPL market is thriving, with companies like Affirm Holdings (AFRM) leveraging innovative payment technologies to disrupt traditional financial services. The popularity of installment payments is expected to continue growing, driven by consumer preferences for financial flexibility.
• Digital Payments: The global digital payment market is experiencing a rapid shift, driven by growing smartphone penetration and the rise of contactless payment solutions.
• Tokenization of Real-World Assets: BlackRock’s (BLK) tokenized money market fund (BUIDL) is expanding to new blockchains, demonstrating traditional financial institutions’ growing interest in leveraging blockchain technology for asset management and trading.

Emerging Technologies

• Growth in Emerging Technologies: Innovation across diverse sectors is driving growth in emerging technologies like quantum computing, electric vertical takeoff and landing (eVTOL) aircraft, and generative AI.
• Supply Chain Resilience: Companies are investing heavily in solutions to improve supply chain resilience and address ongoing disruptions caused by factors like the pandemic and geopolitical tensions.
• Cloud Computing Dominance: Cloud-based computing continues to be a dominant force, with companies across industries relying on cloud services to scale their operations and manage data efficiently.

Finance

Women and Retirement

• Women Lagging in Retirement Savings: Two million women in the UK do not believe they will ever be able to afford to retire, with 42% facing poverty in retirement compared to 35% of men. The cost of childcare and the motherhood penalty continue to be significant barriers for women’s lifetime earnings, hindering their ability to save for retirement.
• Digital Engagement as a Solution: Pension providers are turning to digital tools, such as TikTok and mobile apps, to engage younger women and encourage early pension saving.
• Policy Calls for Change: Scottish Widows is advocating for lowering the automatic enrollment earnings trigger and increasing mandatory contributions to 12%.

SEC Jury Trial Rights

• OCC Administrative Law Judge Decisions Challenged: The New Civil Liberties Alliance is arguing that the Office of the Comptroller of the Currency’s (OCC) decisions against former Texas bank officers Saul Ortega and David Rogers, Jr. violate the Seventh Amendment’s right to a jury trial.
• Jarkesy Decision as Precedent: NCLA cites the Supreme Court’s Jarkesy decision, which barred Congress from assigning traditional common law causes of action to administrative tribunals, as a precedent for its arguments.
• Violation of Constitutional Guarantees: The brief also asserts that the OCC’s in-house adjudication violates the Article III guarantee of an independent judiciary.

Trump’s Potential Impact on Sustainable Investing

• Policy Changes on the Horizon: A second Trump presidency is expected to lead to policy changes affecting sustainable investing. However, these changes are likely to be more targeted and focused on specific areas.
• Onshoring Incentives: The analyst expects that the domestic content portions of the Inflation Reduction Act, which are supported by both parties, will likely remain intact. This would benefit clean tech companies such as First Solar, SunRun, and Sunnova.
• Hydrogen Tax Credits: The 45V tax credit for clean hydrogen producers is likely to remain due to support from traditional energy companies.
• EV Incentives Under Threat: Subsidies for electric vehicles and charging infrastructure are expected to face reductions or be repealed.

TWFG Q3 2024 Results

• Revenue Growth: Total Written Premium increased 13% to $400.1 million and total revenues rose 14.5% to $54.6 million in Q3 2024.
• Organic Growth: Organic Revenue Growth Rate for the quarter was 7.6%, driven by strong new business growth.
• Branch Expansion: TWFG launched 86 new agency locations in the quarter, expanding its footprint to 13 new states.
• Adjusted EBITDA: Adjusted EBITDA increased 29.7% to $11.7 million, while the Adjusted EBITDA Margin rose to 21.5%.

Healthcare

Pharmaceutical and Biotech Innovations

• Novel Drug Development for Narcolepsy: Nxera Pharma has secured a US$3.5 million milestone payment from Centessa Pharmaceuticals for initiating a Phase 2 trial of ORX750. This investigational drug targets the underlying pathophysiology of orexin neuron loss, offering a potential treatment for narcolepsy.
• Obesity Drug Market Competition: Amgen’s experimental obesity drug, MariTide, has shown a concerning 4% decrease in bone mineral density during early trials. This development could benefit rival Eli Lilly, whose weight loss drugs operate through a different mechanism, potentially giving them an edge in the market.
• Gene Therapy Market Growth for SCID: The global gene therapy for SCID market is projected to reach a value of US$2.0 billion by 2034. This growth is fueled by the increasing prevalence of SCID, a rare genetic disorder, and the growing demand for effective treatment options. Europe is expected to dominate the market share in this sector.
• Microbiome Therapies for Ulcerative Colitis: Microbiotica, a clinical-stage biopharma company, has commenced a Phase 1b trial for MB310, an oral capsule containing eight live gut commensal bacterial strains, for the treatment of ulcerative colitis. This innovative approach utilizes the power of the microbiome to address this debilitating condition.

Healthcare Technology and Innovation

• AI Integration in UK Healthcare: TeleTracking, a leading provider of cloud-based software for hospital management, is expanding its reach into the growing UK healthcare market. Their software helps hospitals optimize patient flow and efficiency, delivering a two-to-one return on investment. The company plans to integrate AI into its platform by early next year, enabling hospitals to predict patient demand and tailor care in real time.
• Global Teleradiology Market Growth: The global teleradiology market is poised for significant growth, projected to reach a CAGR of 15.40% during the forecast period (2024-2031). This surge is driven by the increasing prevalence of target diseases, rising demand for teleradiology services, and the incorporation of artificial intelligence in this field. North America dominates the market due to its technological advancements and shift towards value-based care.
• Digital Health Market Challenges: Teladoc Health, a pioneer in telemedicine, faces growing competition from large hospital systems, healthcare groups, and specialized digital health startups. However, Teladoc’s fundamentals are stabilizing, with a focus on cost control and expanding its international presence.

Healthcare Industry Trends

• Value-Based Care Solutions: Arcadia, a leading data platform for healthcare, has introduced new solutions to help healthcare organizations improve value-based care performance. The company is integrating its recently acquired CareJourney platform with its existing data and analytics tools, providing comprehensive solutions to enhance value-based care delivery.
• Antimicrobial Resistance Solutions: LimmaTech Biologics is developing a tetravalent bioconjugate shigellosis vaccine candidate (S4V2). The first patient has been vaccinated in a Phase 2b controlled human infection model (CHIM) study of S4V2. This study aims to provide initial efficacy data for S4V2, potentially paving the way for further CHIM and Phase 3 studies.
• Precision Medicine Advancement: Myriad Genetics is expanding access to its SneakPeek gender test, now available over the counter in more than 8,800 retail locations nationwide. The company is also rebranding and redesigning the product to focus on the emotional connection between parents and their baby, highlighting the significance of gender discovery.

Market Growth and Trends

• Cell Line Development Market Growth: The global cell line development market is projected to reach USD 15.88 Billion by 2031, with a CAGR of 12.12%. This growth is driven by the increasing demand for biologics, advancements in cell culture techniques, and the growing need for biosimilars and monoclonal antibodies.
• Urology Devices Market Growth: The global urology devices market is expected to reach USD 61.62 Billion by 2031, with a CAGR of 4.8%. The market is driven by the increasing incidence of urological disorders, improvements in minimally invasive surgeries, and the growing geriatric population.
• Global Teleradiology Market Growth: The global Teleradiology Market is expected to grow from USD 9.58 billion in 2023 to USD 30.13 billion by 2031, growing at a CAGR of 15.40% during the forecast period (2024-2031). This growth is driven by the rising prevalence of target diseases, growing demand for teleradiology services, and the incorporation of artificial intelligence in teleradiology.

Economy & Real estate

US Housing Market Trends

• Mortgage Rates Continue to Rise: Mortgage rates continued to increase in the week ending November 9, 2024, reaching 6.86% for 30-year fixed-rate mortgages. This rise was attributed to investors considering the economic impacts of a Trump presidency and higher Treasury yields.
• Refinance Applications Drop: Applications to refinance a home loan dropped 2% for the week, hitting their lowest level since May 2024. However, they remained 43% higher than the same week a year ago.
• Purchase Applications Increase: Applications for a mortgage to purchase a home saw a 2% increase for the week and were 1% higher than the same period last year.
• FHA and VA Loans Drive Purchase Activity: Applications for loans backed by the Federal Housing Administration (FHA) and the U.S. Department of Veterans Affairs (VA) boosted purchase activity, rising 3% and 9%, respectively.

Office Space & Investments

• Hybrid Working Drives Hotel Demand: Hybrid work models are blurring the lines between corporate and leisure travel, leading to longer stays in hotels and resorts. Hotels are adapting to cater to these trends.
• Flexible Real Estate in Demand: Investors are seeking buildings that can adapt to changing market conditions. The Student Hotel (TSH) has successfully navigated the pandemic by offering flexible spaces for various users.
• Mixed-Use Developments Attract Investors: Investments in large mixed-use developments like TSH are attractive to investors seeking diversification and cost reduction.
• Social Impact Focus in Real Estate: TSH is rebranding as The Social Hub, with a renewed focus on social impact through community programs and talent initiatives.

Real Estate Investment Trusts (REITs)

• Sun Belt Focus for Cousins Properties: Cousins Properties (CUZ) is focused on the high-growth Sun Belt markets, benefiting from a population influx and corporate relocations.
• Strong Leasing Activity at CUZ: CUZ has witnessed a rebound in leasing activity, executing 114 leases for 1,557,135 square feet of office space.
• Diversified Tenant Base at CUZ: CUZ has a diversified tenant base across various industries, leading to stable revenues.
• CUZ Maintains Strong Balance Sheet: CUZ maintains a healthy balance sheet with ample liquidity and access to capital markets.

Retail & Development

• Strong Retail Fundamentals for SRU.UN: SmartCentres Real Estate Investment Trust (SRU.UN) is experiencing strong retail fundamentals, including high leasing demand and increased occupancy.
• High Leasing Spreads at SRU.UN: SRU.UN renewed and extended leases at a strong rental growth rate of 6.1%, or 8.9% excluding anchors.
• Robust Mixed-Use Development Pipeline for SRU.UN: SRU.UN has a robust mixed-use development pipeline that includes residential projects, retail spaces, and self-storage facilities.
• Growth Opportunities for SRU.UN: SRU.UN is positioned for continued growth with a focus on developing whole communities through its mixed-use projects.

Global Real Estate Developments

• Neom Leadership Change in Saudi Arabia: Neom, Saudi Arabia’s multi-trillion dollar development project, replaced its CEO amid reports of delays and budget cutbacks.
• Budget Pressures in Saudi Arabia: Saudi Arabia faces financial pressures, with budget deficits and a rising fiscal breakeven oil price.
• Blacklist Capital Expands to Middle East: Blacklist Capital, a New York-based real estate private equity firm, has expanded into the Middle East, acquiring its first asset in the UAE.
• Affordable Housing Focus for Blacklist Capital: Blacklist Capital’s third fund will develop affordable housing in New York City, addressing the city’s high cost of living.

Retail

Fast-Casual Growth

• CAVA’s Strong Q3 Performance: CAVA Group exceeded Q3 earnings expectations, reporting EPS of 15 cents against an analyst estimate of 11 cents. Revenue also surpassed estimates, reaching $243.82 million compared to the anticipated $233.59 million.
• Customer Traffic & Same-Store Sales Growth: The company saw a significant 18.1% increase in same-store sales, driven by a 12.9% rise in customer traffic. This strong performance indicates high consumer demand for CAVA’s Mediterranean-inspired offerings.
• Expansion and New Restaurant Openings: CAVA opened 11 new restaurants in Q3, demonstrating its commitment to expanding its footprint and reaching new markets.
• Revised 2024 Outlook: Based on the positive Q3 performance, CAVA revised its full-year outlook upwards. The company now expects same-store sales growth of 12% to 13% and net new restaurant openings between 56 and 58.

Grocery & Discount Retailing

• Walmart’s Stock Performance and Potential Economic Impacts: Walmart shares reached a new all-time high, driven by investor anticipation of potential economic benefits from Donald Trump’s policy agenda.
• Trade Tensions and Impact on Walmart: Trump’s proposed universal tariff on imports could negatively impact Walmart’s cost structure and pricing strategy.
• Consumer Spending Boost: If implemented, Trump’s tax cuts could potentially lead to increased consumer spending, particularly among Walmart’s core customer base.
• International Operations and Currency Fluctuations: Trump’s policies, which could strengthen the U.S. dollar, might impact Walmart’s international sales, especially in markets sensitive to currency fluctuations.

Specialty Retail

• Kendra Scott and Dolly Parton Collaboration: Kendra Scott has partnered with Dolly Parton to launch a limited-edition jewelry collection inspired by Parton’s iconic song “Love Is Like a Butterfly”.
• Celebrating Diversity and Inclusivity: The collection aims to appeal to a broader audience, reflecting the growing diversity in the jewelry market.
• Multi-Year Partnership and Long-Term Commitment: The collaboration signifies a long-term commitment between Kendra Scott and Dolly Parton, focused on creating unique and impactful collections.
• Community Engagement and Social Causes: Both brands are known for their commitment to giving back to the community, and the partnership will likely include initiatives that support social causes.

Restaurant Chains

• Taco John’s Introduces New Menu Item: Taco John’s is introducing a new menu item combining Potato Olés® and Original FRITOS® corn chips in a unique “taco party in a bag” format.
• Expansion into New Markets: The new offering is currently available in test market locations in Paducah, Ky., Evansville, Ind., and Sioux City, Iowa, with potential for nationwide rollout based on customer response.
• Collaboration with Iconic Brands: The partnership with FRITOS® highlights Taco John’s commitment to creating innovative menu options through collaborations with popular brands.
• Nostalgia and Flavor: The new offering is designed to evoke nostalgia for familiar flavors and create a unique culinary experience for customers.

Luxury Goods & Fashion

• Victoria’s Secret & Co. Updates: Victoria’s Secret & Co. now operates three brands: Victoria’s Secret, Victoria’s Secret PINK, and Adore Me. The company remains committed to empowering women.
• Digital Transformation and Online Focus: Victoria’s Secret is investing in its digital capabilities to cater to online shoppers.
• Global Footprint and Expansion: The company has a global presence with more than 1,370 retail stores in nearly 70 countries.
• Celebrating Diversity: Victoria’s Secret is committed to celebrating the diverse experiences of women.

E-Commerce & Delivery

• Amazon Launches Low-Cost Storefront: Amazon has launched “Haul”, a low-cost shopping storefront designed to compete with discounted retailers like Temu and Shein.
• Price-Competitive Products: Products listed on the storefront are priced to compete with heavily discounted merchandise from Chinese rivals.
• Expanding Customer Reach: The new storefront is available through Amazon’s shopping app, aiming to broaden the company’s customer reach.
• Holiday Season Deals: Amazon is gearing up for the holiday season with Black Friday Week and Cyber Monday deals starting on Nov. 21 and lasting through Dec. 2.

Food & Beverage

• TreeHouse Foods Reports Q3 Results: TreeHouse Foods reported a decline in net sales due to a voluntary recall of frozen griddle products and unfavorable volume/mix performance. The company lowered its 2024 guidance.
• Supply Chain Savings: Despite challenges, TreeHouse Foods achieved supply chain savings, contributing to improved margins and profits within the guided range.
• Commitment to Food Safety: The company’s voluntary recall reflects its commitment to food safety.
• Strategic Growth Initiatives: TreeHouse Foods remains focused on optimizing its operations, including cost-saving efforts and new distribution wins.

Other Retail Trends

• Global Luxury Market Slowdown: Bain & Company forecasts a 2% contraction in the personal luxury goods market in 2024, driven by higher costs, falling customer loyalty, and a slowdown in the Chinese market.
• Shifting Consumer Preferences: Consumers are increasingly prioritizing experiences over material possessions, with growth seen in luxury cars, hospitality, fine wines, and gourmet dining.
• Gen-Z’s Influence on Luxury: Luxury brands need to adapt their strategies to attract younger Gen-Z consumers, who are more discerning and value authentic experiences.
• E-commerce Growth and Impact: E-commerce continues to disrupt traditional retail, with online platforms gaining market share and driving demand for faster and more convenient delivery options.

Infrastructure

Aviation Industry Growth in China

• Chengdu Aviation Cluster Partnership: The Global Aerospace Cluster Partnership (GACP) has recognized Shuangliu District of Chengdu, China, as a friendly city, opening doors for collaboration with GACP member states like France, the UK, and Germany.
• Airbus Chengdu Project Attracts Interest: This full-cycle service project, completed at the end of 2023, attracted global interest, prompting delegates from GACP member states to visit Shuangliu District and explore its aviation industry cluster.
• Opportunities for Chinese Enterprises: Delegates from GACP member states highlighted the innovative capabilities of Chinese companies and expressed their desire to see these enterprises expand internationally.

Electrification Drive

• Nexans Strategic Roadmap: Nexans, a global leader in electrification, unveiled a strategic roadmap for the next four years (2025-2028) focused on amplifying its position in Electrification through new tech solutions, new market segments, and the use of artificial intelligence.
• Nexans Financial Ambitions: The company targets an organic growth of +3-5% CAGR in its existing Electrification portfolio, aiming for an incremental adjusted EBITDA of +€350 million between 2024 and 2028.
• Nexans 2028 Targets: Nexans plans to achieve an Adjusted EBITDA of €1,150 million (+/- €75 million) by 2028 while completing its portfolio rotation towards Electrification.

Renewables Expansion

• Masdar Wind Farm Development in Uzbekistan: Masdar, the UAE’s clean energy powerhouse, and the Ministry of Energy Uzbekistan signed an agreement to develop a 1-gigawatt (GW) wind farm in the Mingbulak region of Uzbekistan.
• Uzbekistan Wind Farm Job Creation: The project is expected to create 1,000 jobs during construction and 60 jobs during operation, boosting the local economy.
• Strategic Partnership in Uzbekistan: The agreement marks the first phase of a broader strategy to establish three wind farms in Uzbekistan, strengthening Masdar’s strategic partnership with the country.

Smart Grid Infrastructure

• First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF (GRID): GRID is a passively managed exchange traded fund seeking to match the performance of the NASDAQ OMX Clean Edge Smart Grid Infrastructure Index.
• GRID ETF Top Holdings: The ETF’s top 10 holdings, including Eaton Corporation Plc (ETN), National Grid Plc (NG/.LN), and Johnson Controls International Plc (JCI), account for about 57.14% of total assets under management.
• GRID Performance: GRID has gained about 20.22% and was up about 39.30% so far this year and in the past one year, respectively.

Bridge Construction and Design in the USA

• Parsons Wins America’s River Crossing Project: Parsons, a leading technology provider in the infrastructure market, secured a contract to serve as lead designer for the proposed America’s River Crossing project in Memphis, Tennessee.
• Parsons’ Mississippi River Crossing Portfolio: With this new project, Parsons strengthens its legacy in the bridge sector, now encompassing 24 Mississippi River crossings, including five currently underway.
• America’s River Crossing Project Benefits: The proposed project will improve mobility and address traffic flow and operations for local and regional motorists and travelers in the tri-state area.

Border Infrastructure Development in the USA

• New Commercial Inspection Port in Douglas, Arizona: Stantec, a global leader in design and engineering, along with partners Hensel Phelps and Jones Studio, were awarded a US$274.7 million contract to build a new commercial inspection port along the Mexico border in Douglas, Arizona.
• IIJA and IRA Funding for Douglas Port: The project will receive $180.3 million in IIJA funding and $92.2 million from the Inflation Reduction Act (IRA).
• Sustainability Goals for Douglas Port: The new port will be all-electric, meeting the Federal Building Performance Standard and include photovoltaic solar panels to generate clean renewable energy.

Commodities

Oil

• OPEC+ Output Cuts: OPEC+ has maintained voluntary output cuts to support oil prices. Some predict a bearish year ahead for crude if OPEC+ unwinds these cuts. A complete unwinding of supply cuts in 2025 could significantly lower crude prices, possibly towards $40 per barrel.
• China’s Slowing Demand: Slowing post-Covid recovery in demand from China, a major oil importer, is pressuring oil prices. OPEC lowered its 2025 global oil demand growth forecast to 1.5 million barrels per day.
• U.S. Production Growth: Producers outside OPEC+, like the U.S., Canada, Guyana, and Brazil, plan to increase supply, potentially leading to an oversupplied market.
• Trump’s Energy Policies: The new administration in the U.S. is expected to encourage domestic oil production, potentially affecting prices. Analysts say oil prices would need to fall below $40 per barrel for retail gasoline prices to be halved.

Natural Gas

• Cold Winter Forecast: The U.S. Energy Information Administration (EIA) anticipates a colder winter across much of the U.S., driving up demand for heating and potentially benefiting natural gas producers like Range Resources, Antero Resources, and Comstock Resources.
• Strong LNG Exports: Europe’s reliance on U.S. LNG due to reduced Russian supplies, coupled with declining domestic production, has tightened the market.

Metals

• Gold Price Decline: Gold prices have fallen to near two-month lows as the dollar strengthens following the election of Donald Trump. Some analysts expect this decline to continue in the short term as equities rally.
• Central Bank Gold Purchases: Central bank demand for gold remains strong due to the U.S. fiscal outlook and rising geopolitical tensions. Central banks purchased a record amount of gold in the first half of 2024.

Meme Coins

• Meme Coin Gains: Dog-themed meme coins, particularly Bonk and Floki, experienced significant price gains, potentially influenced by the bullish sentiment surrounding the election of Donald Trump.

Politics

Trump’s Cabinet Appointments

• Musk and Ramaswamy Head DOGE: President-elect Donald Trump announced the appointment of Tesla Inc CEO Elon Musk and former presidential candidate Vivek Ramaswamy to lead the newly formed Department of Government Efficiency (DOGE). The DOGE, aiming to restructure federal agencies and reduce government spending, is scheduled to complete its work by Jul. 4, 2026. The department plans to address the federal government’s annual $6.5 trillion in spending by eliminating waste and fraud. Trump emphasized the department would operate independently from the government to bring an “entrepreneurial approach” to federal operations.
• Gaetz as Attorney General: President-elect Donald Trump announced his nomination of Republican Rep. Matt Gaetz of Florida as U.S. attorney general. Gaetz, a staunch Trump loyalist, has been a vocal critic of the DOJ investigation and prosecution of Trump by special counsel Jack Smith.
• Hegseth for Defense: President-elect Donald Trump has chosen Pete Hegseth, a co-host on Fox Corp’s “Fox & Friends,” as his Defense Secretary. Hegseth, an Iraq and Afghanistan War veteran, has never held a government position but has been a strong supporter of Trump since 2016.
• Rubio as Secretary of State: Former President Donald Trump has announced his nomination of Senator Marco Rubio (R-Fla.) for the role of United States Secretary of State. Trump praised Rubio as a “highly respected leader” and a “powerful voice for freedom”. He also highlighted Rubio’s dedication to the nation and his unwavering stance against adversaries.

Government Efficiency

• DOGE Funding: The DOGE initiative, compared to “The Manhattan Project,” will focus on dismantling bureaucracy, reducing regulations, and cutting wasteful expenditures. Musk has warned of “temporary hardship” for Americans as he aims to drastically reduce federal spending.
• DOGE Criticism: Sen. Elizabeth Warren (D-Mass.) criticized the DOGE appointment of Musk and Ramaswamy, while Musk defended the newly formed body’s efficiency.
• DOGE Incentives: Sen. Ted Cruz (R-Texas) expressed concern that running the department would be challenging for someone from a private corporation due to the stark differences in incentives between the government and private companies.

Cannabis Policy

• Noem and Cannabis: President-elect Donald Trump announced the selection of South Dakota Governor Kristi Noem to serve as secretary for the Department of Homeland Security. Noem, known for being cautious around cannabis policy change, will also oversee U.S. Customs and Border Protection (CBP), which has often made headlines for marijuana seizures.
• Gaetz and Cannabis: President-elect Donald Trump nominated Rep. Matt Gaetz (R) of Florida as U.S. attorney general. Gaetz, a supporter of cannabis legalization, proposed an amendment in July 2023 that would eliminate cannabis testing for individuals wanting to enlist in the U.S. armed forces.
• Cannabis Stocks: Cannabis stocks reacted positively to the news of Trump’s cabinet appointments. Trulieve Cannabis Corp. TCNNF, Cresco Labs Inc. CRLBF, Curaleaf Holdings, Inc. CURLF, Green Thumb Industries Inc. GTBIF, and The AdvisorShares Pure US Cannabis ETF MSOS experienced notable gains Wednesday.

International Relations

• Ukraine’s Victory Plan: Ukraine has been building on its ‘victory plan’ for Trump’s incoming administration, seeking to win over Trump with natural resources and troop proposals.
• China-LAC Relations: China celebrated the 10th anniversary of President Xi Jinping’s proposal to build a China-Latin America and the Caribbean (LAC) community with a shared future.
• Nauru’s Climate Program: The Republic of Nauru unveiled its Nauru Economic and Climate Resilience Citizenship Program at the 2024 United Nations Climate Change Conference (COP 29) in Baku. The program offers a streamlined path to citizenship, with processing times of just three to four months. Investors can secure Nauruan citizenship through a contribution to the national Treasury Fund, starting at USD 105,000 for a single applicant.

Trade Policy

• U.K. and Tariffs: President-elect Donald Trump’s proposed trade tariffs could prove a boon for the U.K., with analysts pointing to potential exemptions, economic upswings, and the likely resumption of trade deal talks.
• EU and Tariffs: President-elect Donald Trump’s proposed trade tariffs could prove a boon for the U.K., with analysts pointing to potential exemptions, economic upswings, and the likely resumption of trade deal talks.

Other

• Silk Road Case: Ross Ulbricht, the creator of the online illegal drug marketplace Silk Road, thanked those who voted for Donald Trump for his cause, hoping that the President-elect would commute his sentence.
• Trump’s ‘hush money’ case paused: A New York state judge granted a request by the Manhattan District Attorney’s Office for a one-week delay in proceedings in a third criminal case against Trump to give prosecutors time to consider how his electoral victory affects that case.
• Georgian Elections: The Georgian elections plunged the Caucasus country into political uncertainty after the pro-Russian ruling party won amid allegations of Russian meddling. Thousands of pro-European Union (EU) supporters have protested in the capital Tbilisi since the vote on October 26.
• UFOs: During a U.S. House Subcommittee hearing, a new video purportedly showed UFOs surrounding a military jet, moving at incredible speeds. Former director of the Advanced Aerospace Threat Identification Program, Lue Elizondo, told the committee that “UAPs [unidentified aerial phenomenon] are real, advanced technologies not created by our government or any other government are monitoring sensitive military installations around the globe.” Elizondo compared the interaction between the military and UFOs to those of a Russian reconnaissance aircraft.

Stock Picks

Chinese E-Commerce

• JD.com’s AI-Driven Growth: JD.com is leveraging AI to enhance customer experiences, optimize logistics, and manage inventory. This strategy has driven a 92% surge in net income during the last quarter, resulting in significant profit margins.
• Strong Earnings Outlook for JD.com: The company is projected to report a 18.5% year-over-year increase in earnings for the current quarter. JD.com has consistently exceeded consensus EPS estimates in the past four quarters.
• Government Stimulus Impact: The Chinese government’s fiscal stimulus packages are expected to benefit JD.com by boosting economic activity, potentially driving further growth.

Investment Management

• BlackRock’s Outperformance: BlackRock Inc. has outperformed the industry over the past six months, driven by robust assets under management (AUM) and revenue growth.
• Acquisition Strategy for Growth: BlackRock’s planned acquisition of Preqin and investments in Global Infrastructure Partners and SpiderRock are aimed at diversifying and expanding its revenue mix.
• Positive Earnings Outlook for BlackRock: Analysts are bullish on BlackRock’s future prospects, with seven analysts revising their earnings estimates upwards for fiscal 2024. Earnings are anticipated to increase by 14.3% for the current fiscal year.

High-Growth Stocks

• Amazon’s Strong Momentum: Amazon.com Inc. has seen strong growth fueled by Prime and AWS momentum. Its expanding global presence, robust advertising business, and focus on AI contribute to its positive outlook.
• Positive Earnings Revisions for Amazon: Analysts are optimistic about Amazon’s future performance, with a 13.7% average short-term price target increase and positive revisions to earnings estimates.
• KLA Corp’s Semiconductor Expansion: KLA Corp. benefits from strong demand for wafer inspection solutions in the semiconductor industry, driven by rising AI adoption and increasing advanced packaging requirements.
• Newmont Corp’s Gold Growth: Newmont Corp. is leveraging several projects to drive growth, including Tanami expansion and the acquisition of Newcrest. Gold prices are at record highs, benefiting the company’s revenue.

Tech and Telecom

• Uber Technologies’ Delivery Growth: Uber Technologies Inc. is benefitting from robust online order volumes and expansion efforts in its Delivery business. Continued recovery in Mobility operations also contributes to its positive performance.
• S&P Global’s Strong Growth: S&P Global Inc. is benefiting from increased demand for business information services. Its acquisition strategy and dividend payments are supporting growth and investor confidence.
• Price Upside Potential for Uber and S&P Global: Analysts are optimistic about both Uber and S&P Global, with short-term price targets reflecting significant upside potential.

Penny Stocks and US Elections

• Post-Election Opportunities: New policies introduced after elections can create opportunities for penny stocks in sectors aligned with the administration’s priorities.
• Market Sentiment and Penny Stocks: Investor confidence and expectations for economic policy can influence demand for penny stocks, especially in sectors expected to benefit from the new administration.
• Market Stability and Penny Stocks: Stable market conditions following an election can encourage investors to seek growth potential in penny stocks.