Public Markets 8-Hour Briefing
×Market Volatility & Tech Sector
Asian stocks were set to decline as Nvidia's lackluster performance dampened sentiment, despite in-line results and a minor rebound in software companies. Retail traders rushed to buy the dip in beaten-down software stocks as Wall Street dumped them over AI disruption fears. Meanwhile, Dell shares surged on record fourth-quarter results driven by AI server demand, while Core Weave shares fell 4% after missing profit estimates.
Major Corporate Moves
Netflix dropped out of the fight to buy Warner Bros. Discovery, clearing the way for Paramount Skydance Corp.'s $111 billion deal for the historic Hollywood studio. Brink's agreed to acquire NCR Atleos in a $4 billion deal combining two ATM players, adding 78,000 owned-and-operated ATMs to its network. Kratos Defense is seeking to raise $1 billion in a share sale as government defense spending ramps up.
Private Credit Concerns
FS KKR shares tumbled 15% as markdowns highlighted growing strains in debt extended to unlisted companies. Calpers CEO Marcie Frost said the largest US public pension isn't fazed about tremors in the private credit market driven by AI's potential threat to software. The debate over private credit's future intensified, with some calling it an imminent crisis while others labeled it "no big deal."
Regulatory & Policy Shifts
The Trump administration plans to reverse Biden rules on gig workers, making it easier for companies to classify workers as independent contractors. Meanwhile, Fed Vice Chair Bowman said regulators are close to releasing a revised version of the Basel III bank capital proposal. State Farm will pay a record $5 billion dividend to auto-insurance customers after posting strong underwriting profits.
AI & Technology Developments
Anthropic rejected the Pentagon's "best and final offer," with CEO Dario Amodei saying the startup "cannot in good conscience" agree to government terms for military use of its AI. The high-stakes conflict between the Defense Department and Anthropic goes to the heart of how far AI can go in warfare. Sam Altman's "Human Verification" startup is leaning on consumer brands to promote World ID beyond tech and crypto circles.
Energy & Commodities
MP Materials revenue fell 14% after halting rare earth sales to China as part of an agreement with the US government. The company is now lifting output of rare-earth magnets domestically. Meanwhile, Trump's pledge to bring gas prices below $2 a gallon faces reality checks as data shows the goal remains distant.
International Markets
South Korea's KOSPI surge has almost no precedent globally, making it the hottest market in the world. China's yuan hit a 35-month high as the dollar keeps falling amid tariff uncertainty. Europe's biggest port warned of increasing exposure to geopolitical risks related to trade with China.
Consumer & Retail
Monster Beverage posted higher fourth-quarter profit as energy drink sales rose, with net sales in its Monster Energy Drinks segment growing 19%. Flutter Entertainment saw customer growth moderate and market share decline in the fourth quarter due to improved competitor products. Walmart agreed to a $100 million FTC settlement over alleged deception of drivers about earnings.
Defense & Aerospace
Revere Copper Products, America's oldest copper manufacturer, is ramping up US investment as tariffs and surging data center demand lift earnings. RBC is eyeing Canada's expected boom in defense infrastructure and energy spending as a way to deploy capital. Lazard veteran Arif Joshi is joining Bramshill Investments to launch a hedge fund focused on emerging market opportunities.
Legal & Regulatory Battles
Electronic Arts hasn't gained enough support from bondholders to buy back bonds at a steep discount after a key deadline passed. Swiss bank MBaer faces the risk of losing access to the US financial system over alleged links to Iran and Russia. Trafigura secured a $700 million award after a court found Indian tycoon Prateek Gupta had devised "fraud on a grand scale."