Ariel Levin

@aboutmedeh Google, you never cease to amaze! 478MW from wind farms in the Netherlands? That's colossal! 😱 Keep surprising us with these game-changing initiatives.

Google has signed its largest-ever power purchase agreement (PPA) for offshore wind projects off the coast of the Netherlands, marking a significant step in its commitment to sustainable energy and climate goals. In this deal, Google will obtain 478 megawatts (MW) of power from two new wind farms developed by Crosswind & Ecowende Consortia, joint ventures involving Shell and Dutch utility Eneco. The tech giant also secured smaller renewable PPAs in Italy, Poland, and Belgium. Unlike many companies that match renewable energy purchases annually, Google aims to align each hour of electricity usage with an equivalent hour of clean power production, reflecting a more accurate representation of its energy consumption.

@GeoEdilene The 27% boost in retail business is fascinating. How did Nomura navigate challenges to achieve this growth? Looking forward to insights on their resilient strategy.

Nomura, Japan's largest brokerage, showed signs of improvement in its third-quarter earnings, aligning with CEO Kentaro Okuda's 2025 targets. The bank's mainstay divisions reported better pre-tax earnings, with a focus on sustaining and enhancing the 6.2% return on equity. The boost in net revenue for Nomura's retail business (up 27%) and the record revenue from its investment bank contributed significantly. Despite a softer performance in the investment management sector, overall recovery was broad-based. Efforts to control expenses were evident, with the wholesale unit's cost-to-income ratio improving to 89%, although still higher than major Wall Street counterparts. Nomura's stock rose 5%, trading at 0.7 times estimated book value, indicating investor confidence in the sustainability of the improved annualized return on equity. While Nomura faced historical challenges, including economic struggles and the 2021 Archegos fiasco, the current domestic market rebound, fueled by Tokyo Stock Exchange initiatives, bodes well for the bank's performance. A substantial share buyback and potential cost-cutting measures are additional positive moves. Nomura's reported net income for Q4 2023 was ¥50.5 billion ($344 million), showing improvement from previous quarters but down from the year-ago period. Quarterly pre-tax profit from core divisions surged by 58%, and the annualized return on equity increased to 6.2% from 4.3% in the preceding quarter. The bank also announced a buyback of up to $677 million, its largest since 2019.

@aboutmedeh BYD's success and CATL's strides make the EV world vibrant! Exciting times for innovation and market evolution. Cheers to the dynamics of progress!

China's leading electric vehicle (EV) battery manufacturer, CATL, anticipates a subdued net profit growth of up to 48.1% in 2023, significantly lower than the previous year. This projection reflects challenges stemming from heightened competition and reduced demand in the world's largest EV market, China. CATL's expected net profit for 2023 ranges from 42.5 billion to 45.5 billion yuan ($5.92-6.34 billion), marking a 38.3-48.1% increase from the previous year, in contrast to the 92.89% gain observed in 2022. Meanwhile, rival BYD, which surpassed Tesla in EV sales, forecasts a more modest 86.5% net profit growth for 2023, compared to the remarkable 446% surge in 2022. In 2023, CATL's share of the domestic market declined to 43.11%, down from 48.2% in 2022, as reported by the China Automotive Battery Innovation Alliance (CABIA). In contrast, BYD and CALB jointly increased their market share to 35.7% from 29.98% in the prior year. Notably, CATL's partnership with Ford Motor has faced criticism from U.S. lawmakers regarding the planned Michigan battery plant's technology sourced from CATL.

@GeoEdilene Toyota owners getting all the attention with their recalls. Meanwhile, my car just sits there being perfectly average.

Toyota has issued a warning to 50,000 owners of older U.S. vehicles, urging immediate recall repairs due to a potentially lethal defect in Takata air bag inflators. The affected models include certain 2003-2004 Corolla, 2003-2004 Corolla Matrix, and 2004-2005 RAV4s. The recall is in response to over 30 deaths worldwide, with 26 in the U.S., and numerous injuries linked to Takata air bag inflators exploding since 2009. This marks a part of a broader recall effort involving more than 67 million Takata air bag inflators in the U.S. and over 100 million globally, making it the largest auto safety callback in history. Toyota specifies that the RAV4 recall concerns the driver's airbag, while other recalls pertain to the front passenger airbag. Some Corolla and Corolla Matrix models are also subject to a second recall that can cause airbags to deploy without a crash. The "Do Not Drive" advisory follows similar warnings from other automakers and is prompted by the potential danger of airbag inflator explosions. The National Highway Traffic Safety Administration has not commented on the matter.

@Rebeccanians Canceling the IPO might hinder potential growth. In a competitive market, is Renault missing out on crucial investments and partnerships? Tough call, especially with global challenges.

Renault's CEO, Luca de Meo, has scrapped plans for an IPO of its electric-vehicle division, Ampere, citing unfavorable market conditions. Initially targeting a valuation of up to 10 billion euros, de Meo reversed the decision due to market volatility and investor skepticism about the electric vehicle (EV) market's future. Despite this setback, it is considered a positive move as Renault, under de Meo's leadership, has exceeded cash-generation targets for the past two years, with around 4 billion euros in net liquidity, enough to fund Ampere's development until it breaks even in 2025. In the competitive European green car industry facing challenges from cheaper Chinese alternatives and wavering government subsidies, de Meo remains confident in EV growth, driven by EU regulations like the 50 grams per kilometer per car CO2 targets by 2030. Despite ambitious goals for Ampere's revenue and cost reduction, an IPO is deemed a distraction in the current tough market. Additionally, a listing would complicate Renault's holding company structure, already divided into five businesses, including Ampere, and holding a 40% stake in Nissan. The cancellation affects potential investments from Japanese partners Nissan and Mitsubishi, who planned an 800 million euro investment in Ampere. However, they express interest in an industrial cooperation for Renault's electric cars. De Meo also envisions a deal with Volkswagen for a joint platform on mid-size urban vehicles to reduce costs. While the IPO plan might be revisited in the future based on Ampere's performance, de Meo prioritizes focusing on Ampere's customers over investors for now. The recent decision to cancel the listing does not alter Ampere's business targets, including breaking even by 2025 with 10 billion euros in revenue. Renault is confident in its ability to generate sustainable cash flow for future development, reinforcing the pragmatic nature of the decision.

@aboutmedeh The bid rejection is a plot twist in Macy's story. Intrigued to witness how this retail narrative evolves.

Macy's, a department store, has become the latest target of bargain-shoppers seeking to acquire retail properties. An unsolicited bid of $21 per share, totaling about $5.8 billion, was received from Arkhouse Management and Brigade Capital Management. Macy's CEO, Jeff Gennette, rejected the proposal, citing doubts about the bidders' financing capabilities. The suitors, however, expressed willingness to offer more after a closer examination of Macy's financials, backed by a "highly confident letter" from Jefferies bank. The potential value of Macy's property is estimated at $7.5 billion, but unlocking this without incurring significant costs is challenging. Previous attempts by Kohl's and Bed, Bath & Beyond faced similar obstacles. The idea of separating online and physical stores, suggested in the past, is considered outdated. Macy's has outperformed some competitors, with its shares gaining over 40% in the past three years. Despite opportunities for improvement, relying on traditional financial strategies may not be the solution, but finding a willing and capable buyer remains a timeless approach.

@GeoEdilene I wonder how this will impact tourism dynamics. Will it be an instant surge, or a gradual uptick? Exciting times for travelers and the tourism industry!

China and Thailand have signed agreements to mutually waive visa requirements for their nationals, aiming to boost travel and tourism between the two countries affected by COVID-19. The visa exemption, signed by Thai Foreign Minister Parnpree Bahiddha-nukara and Chinese Foreign Minister Wang Yi, will be effective from March 1. China was a key source of tourism for Thailand before the pandemic, but the return of Chinese tourists has been slow. The agreement is expected to lead to a significant increase in Chinese tourists visiting Thailand. Additionally, both countries have committed to expediting the construction of the China-Thailand railway and collaborating on combating transnational crimes.

@Rebeccanians This investment in semiconductor companies is a game-changer for the U.S. tech industry! Exciting times ahead.

President Biden's administration is set to unveil significant subsidies, totaling billions of dollars, for leading semiconductor companies such as Intel and Taiwan Semiconductor Manufacturing Co (TSMC). The aim is to support the construction of new semiconductor factories in the U.S., particularly focusing on advanced chips used in smartphones, artificial intelligence, and weapons systems. Industry insiders anticipate these announcements before President Biden's State of the Union address on March 7. Intel has projects in Arizona, Ohio, New Mexico, and Oregon, costing over $43.5 billion, while TSMC is investing $40 billion in two plants near Phoenix. Other contenders include Samsung Electronics, Micron Technology, Texas Instruments, and GlobalFoundries. The U.S. Department of Commerce emphasizes a merit-based selection process, prioritizing projects that advance economic and national security. In December, Commerce Secretary Gina Raimondo announced the first award of over $35 million to BAE Systems as part of the $39 billion "Chips for America" subsidy program approved by Congress in 2022.

@aboutmedeh Fascinating times for Tesla! Elon Musk's vision for an affordable EV in 2025 is thrilling. The market dip might be a temporary hurdle. Exciting future ahead!

Tesla's stock plummeted over 12% after CEO Elon Musk warned of a slowdown in sales growth this year, despite previous price cuts impacting margins. Musk highlighted plans for a cheaper next-gen electric vehicle in late 2025, triggering concerns about production challenges with advanced technologies. The stock's sharpest intraday loss in over a year led to an $80 billion market value drop, totaling $210 billion for the month. The EV industry's overall demand slowdown worsened with Tesla's price cuts, affecting other companies like Rivian, Lucid, and Fisker. Analysts downgraded Tesla, emphasizing increased competition and challenges in maintaining margins. Short sellers profited $3.45 billion in 2024, making Tesla the most lucrative U.S. short trade. Despite a "hold" rating, the median price target is $225, 23% higher than the Thursday closing price of $182.63. Some analysts question Tesla's premium valuation, suggesting it resembles a traditional auto company if sales and margins continue to weaken.

@GeoEdilene Great news on US wage growth! A 4% annual increase is promising for economic stability. Let's hope this positive trend continues!

Recent data suggests that US wage growth is supporting a soft landing for the economy. With wages increasing at a 4% annual rate, the pace is slowing but remains above the 3% level deemed consistent with the 2% inflation target. Despite this, labor costs per unit of output fell in the third quarter due to improved productivity and fewer hours worked. The rise in worker pay, along with an increase in the labor supply, is aiding economic growth without fueling inflation. The Fed hopes that demand moderates enough to slow inflation without causing a recession. Despite a recent drop in consumer borrowing, ongoing job creation and higher pay are keeping money in people's pockets, supporting spending. Analysts predict a slowdown in spending as pandemic-related savings are depleted, but a sudden collapse seems unlikely. Some skeptics argue that the pace of wage growth may still require higher unemployment for inflation to decrease, but the Fed currently sees the situation positively, with strong job creation and rising wages sustaining spending and economic growth. The key question is how long this positive dynamic can continue.

@Rebeccanians Exciting times for Dubai's property market! With Indian investors stepping in, the slowdown might just be a temporary hiccup. More growth ahead...

Dubai's property boom, marked by cranes and record luxury home sales, is showing signs of slowing down. Concerns arise about a possible correction similar to the 2008 slump. The city's reliance on foreign capital, particularly from China and Russia, makes it vulnerable. While Russian and Chinese investments are decreasing, interest from Indian investors may mitigate a swift downturn. In 2023, Dubai witnessed a record 431 homes sold for over $10 million, making it the world's largest such market. Prime residential areas are expected to see a more modest 5% price increase in 2024, compared to the previous year's 15.9%. Some experts express worries about a potential 10-15% drop in house prices over the next few years, driven by a supply-demand imbalance, especially in luxury segments. Memories of the 2008 crash linger, but analysts believe the market is better prepared. Economic indicators, like a strong S&P Global survey, suggest non-oil businesses are expanding. Dubai plans to deliver 13,000 homes annually for the next six years, below the previous 30,000 run-rate, potentially creating a demand underpin. While major banks reduced exposure to real estate, smaller industry players, like brokerages, remain vulnerable. Threats include unexpected inflation spikes, global interest rate policy changes, and regional impacts from geopolitical events. Despite uncertainties, some believe Dubai could benefit from chaos, as seen during past geopolitical turmoil.

India's Prime Minister, Narendra Modi, will lead a religious ceremony on Monday to inaugurate the opening of a grand Hindu temple dedicated to Lord Ram in Ayodhya, believed by millions to be his birthplace. This event, a central promise of Modi's Bharatiya Janata Party (BJP) for 35 years, is seen as a symbolic moment of Hindu resurgence after centuries of perceived subjugation. It also serves as a potential launch for Modi's re-election campaign. The temple's construction was a contentious political issue, as both Hindus and Muslims claimed the site. In 2019, the Supreme Court awarded the land to Hindus, with a separate plot allotted to Muslims. The temple inauguration is a significant occasion, with thousands expected to gather, including BJP members, religious leaders, and devotees from across the country. Top business leaders, actors, and athletes have also been invited. The temple, funded entirely by domestic donations, is situated on a 2.67-acre site within a larger 70-acre complex. While the first phase is ready, the final phase is expected to be completed in December 2025 at an estimated cost of 15 billion rupees ($181 million). The event has generated emotional enthusiasm among Hindus, marked by special prayers, flag displays, and live telecast screenings. However, it has also stirred political controversy, with major opposition parties declining invitations, citing concerns about it being turned into a political event by Modi. The Muslim community, though initially discontent with the 2019 court verdict, has expressed acceptance and indicated a willingness to move forward. The Indo-Islamic Cultural Foundation is concurrently building a new mosque in Ayodhya, about 25 km from the temple site.

China's 2023 GDP grew by 5.2%, slightly surpassing the official target. However, the economic recovery was less robust than anticipated, marked by a deepening property crisis, rising deflationary risks, and subdued demand. Despite government support measures, weak consumer and business confidence, mounting local government debts, and global economic slowdown weighed on jobs, activity, and investment. The recovery from COVID is considered over, requiring a significant global upside surprise or proactive government policies for any acceleration. In the last quarter of 2023, GDP grew 5.2%, missing a forecast of 5.3%. Quarter-on-quarter growth slowed to 1.0%. December indicators revealed a worsening property crisis, with declining new home prices and a slump in property sales and construction starts. Retail sales growth slowed, investment remained tepid, and only industrial output showed improvement. Analysts expect Beijing to maintain a growth target of around 5% for 2024, but structural issues like over-reliance on debt-fueled investment and infrastructure pose challenges. China's head of NBS acknowledged the hard-won growth in 2023 but highlighted a complex external environment and insufficient demand in 2024. Stock markets reacted negatively to the disappointing data, with Chinese stocks hitting five-year lows. Concerns over real estate data, including falling home prices and construction delays, led to market unease. Youth unemployment rose to 14.9%, and China's population declined for the second consecutive year in 2023, raising concerns about long-term growth prospects. Despite low government debt and inflation rates, market expectations for interest rate cuts and additional support measures have increased. Policymakers may need to consider targeted measures, as broad-based rate cuts may not address the underlying issues in the property market. The central bank's decision to keep the policy rate unchanged, and weak December bank lending, signals the need for extra stimulus to revive the economy. However, achieving a 2024 GDP growth pace similar to 2023 may prove challenging.

The wealth of the world's five richest individuals has more than doubled to $869 billion since 2020, while five billion people became poorer, according to Oxfam. The anti-poverty group, ahead of the World Economic Forum in Davos, calls for governments to curb corporate power by breaking up monopolies, implementing taxes on excess profits and wealth, and encouraging alternative ownership structures like employee ownership. Oxfam's report reveals that 7 out of 10 of the world's largest companies are now run or mainly owned by billionaires. The organization estimates that the top 148 corporations made $1.8 trillion in profits, resulting in hefty payouts to shareholders amidst a cost-of-living crisis for millions of workers. Oxfam criticizes the current system of shareholder capitalism, emphasizing the widening wealth gap. The top five billionaires, including Elon Musk and Jeff Bezos, saw an inflation-adjusted surge in wealth, while 800 million workers experienced wage stagnation over the past two years. Oxfam highlights the failure of corporations to commit to paying workers a living wage, with only 0.4% of the world's largest firms making such public commitments.

Microsoft has overtaken Apple as the world's most valuable publicly traded company. Microsoft's market cap reached $2.89 trillion, boosted by a 3% increase in shares for the week. In contrast, Apple's stock dropped over 3%, lowering its valuation to $2.87 trillion. Analysts downgraded Apple due to limited iPhone growth prospects. Former Vice President Al Gore is retiring from Apple's board. Microsoft received positive feedback on its artificial intelligence capabilities, with analysts expressing confidence in its mature AI products and noting increased GitHub traffic. Apple had held the top position for over a year before this shift.

SEC's official Twitter account hacked, falsely claiming approval of a Bitcoin ETF, leading to a brief cryptocurrency market rally before clarification. Ethereum saw a 9.3% intraday peak and a 73% spike in volume to $22 billion on the fake news, indicating potential positive impact on ETH from future Bitcoin ETF approvals. Crypto analyst Scott Melker suggests traders may rotate into Ethereum upon actual Bitcoin ETF approval, as seen in the market's reaction to the fake tweet. Awaiting the SEC's decision on the long-anticipated Bitcoin ETF, with growing optimism for approval, potentially making Bitcoin more accessible and positively affecting Ethereum and other major coins. Ethereum's upcoming Dencun upgrade generates excitement, expected to enhance functionality, security, and capabilities, potentially serving as a catalyst for a bullish ETH price surge. The industry anticipates the SEC's decision, as a positive outcome could propel the entire asset class higher, especially with traders eyeing potential Ethereum ETF approval after Bitcoin's.

Bitcoin ETF applicants, seeking approval from the SEC, faced rapid comments after disclosing revised fee structures. Speculation arose within the crypto community about a potential delay in Bitcoin ETF approvals. Chamber of Digital Commerce CEO Perianne Boring labeled the SEC comments as a "delay signal," triggering concerns among crypto investors. However, Bloomberg Intelligence ETF analyst James Seyffart disagreed, stating that the quick turnaround of comments indicated the SEC's efficiency, not a delay. Finance lawyer Scott Johnsson clarified that S-1 forms, which were revised, do not need approval before 19b-4, the spot Bitcoin ETF application forms. This quick feedback suggests the SEC's effort to expedite approvals, contrasting with past delays in futures ETFs. Fox Business journalist Eleanor Terrett confirmed from sources that the SEC doesn't plan to change the schedule, easing concerns. Meanwhile, unveiled S-1 forms revealed varying Bitcoin ETF fees, with Bitwise at 0.24%, VanEck and ARK Invest at 0.25%, Invesco offering a fee waiver, and Grayscale having the highest fee at 1.5%. Despite the fees, Grayscale's Bitcoin Trust demonstrated substantial trading volume, exceeding many ETFs on Jan. 8.

Coinbase, a major player in the cryptocurrency market for a decade, plans to expand its presence in the European Union by acquiring a holding company with a MiFID II license. MiFID II, an EU financial regulation updated in 2017, prompted Coinbase's move into derivatives to better serve professional and institutional customers. The acquisition, pending regulatory approval, would mark Coinbase's entry into EU derivatives trading. With the MiFID II license, Coinbase aims to offer regulated derivatives, such as futures and options, to customers in select EU countries. Currently focused on spot trading, this expansion aligns with Coinbase's ambition to cater to a broader market. Derivatives are crucial for Coinbase, constituting 75% of the overall crypto trading volumes. Despite competition from larger platforms like Binance, Coinbase seeks a niche in the derivatives market. Notably, regulatory restrictions in the UK prevent Coinbase from offering crypto derivatives products there. Derivatives, like futures, derive their value from an underlying asset's performance, allowing investors to speculate on future values. Coinbase acknowledges the inherent risks in derivatives trading, particularly in the volatile crypto market. Coinbase's move into derivatives follows its international expansion efforts amid regulatory challenges in the United States. Facing a lawsuit from the SEC, Coinbase has chosen Ireland as its primary EU regulatory base, applied for a MiCA license, and obtained a virtual asset service provider license in France. In late September, the exchange received regulatory approval for perpetual futures trading services outside the United States, with additional approval from the Bermuda Monetary Authority.

Bitcoin's recent price drop to $43,000 (a 4.50% decrease) has triggered significant developments in the cryptocurrency market. Major financial institutions like JPMorgan and Goldman Sachs are in talks with Grayscale about participating in a Bitcoin Exchange-Traded Fund (ETF). This institutional involvement mirrors BlackRock's selection of JPMorgan Securities for its own Bitcoin ETF, signaling a potential shift in how cryptocurrencies are integrated into mainstream finance. Tuttle Capital Management is proposing six new ETFs designed to enhance returns compared to a standard spot Bitcoin ETF. These leveraged ETFs, set for a March 18, 2024 effective date, could introduce heightened volatility in Bitcoin's price. Cipher Mining has acquired 16,700 miners to bolster its operations ahead of Bitcoin's anticipated April halving. The purchase aims to increase Cipher's mining capacity to 8.4 EH/s, reflecting a broader trend in the crypto mining sector to expand infrastructure. As of January 4th, Bitcoin is trading at $42,950, following a recent 5% drop. Key technical indicators suggest potential buying opportunities above $42,000, but the market is sensitive to regulatory and economic influences, requiring investor vigilance for clearer market direction.

Matrixport Analysis: SEC Likely to Reject Bitcoin ETF in January, Final Approval Delayed to Q2 2024 Cryptocurrency services firm Matrixport anticipates the rejection of spot Bitcoin (BTC) ETF applications in January, projecting final approval in Q2 2024. The report cites regulatory hurdles, including the influence of SEC Chair Gary Gensler and Democratic leadership, as reasons for the expected delay. Gensler's cautious stance on crypto and his emphasis on regulatory compliance, highlighted in December, contribute to the skepticism regarding ETF approval this month. A potential approval in Q2 could boost market sentiment, while a denial might trigger a -20% price correction, according to Matrixport. Last year's optimism surrounding a spot ETF led to significant institutional investments, with Bitcoin institutional products attracting $1.6 billion in inflows and surpassing $36 billion in assets under management. Matrixport, previously bullish, now warns of potential liquidations and a rapid -20% decline in Bitcoin prices if the SEC denies the ETF applications.