Smithfield Foods, a subsidiary of Hong Kong-listed $0288.HK, has completed its initial public offering (IPO), raising $522 million. This milestone marks a significant step for the world’s largest pork producer, even though the shares were priced below the initially expected range. Approximately 26 million shares were sold at $20 each during the offering.
Key Features of Smithfield Foods’ IPO
The IPO of Smithfield Foods stood out for its pricing strategy. Instead of adhering to the initial range of $21-$23 per share, the company opted for a more conservative approach, setting the price at $20. This choice likely aimed to mitigate market volatility and attract a broader base of institutional investors.
Factors Behind the Success of the IPO
Seattle-based coffee giant $SBUX is set to reveal its first-quarter results for the 2025 fiscal year. The highly anticipated data, which will be released on Tuesday after market close, is the first full quarter under the leadership of new CEO Brian Niccol. Niccol, who took the helm on September 9, has brought a wave of expectations to the market regarding the direction the new leader will take.
Key steps expected from Niccol include:
Accelerating digital transformation efforts. Optimizing mobile orders and expanding the Starbucks Rewards loyalty program.
Cost control and operational efficiency improvements. This includes automating cafe operations and revising supply chains.
Focusing on key markets. Prioritizing attention to Asian markets, particularly China, where demand for coffee continues to grow.
Prospects for Starbucks
Robert Kiyosaki, the renowned author of the best-selling book Rich Dad Poor Dad, has once again drawn attention to his long-standing prediction regarding the largest stock market crash in history. In early October 2023, Kiyosaki reaffirmed a forecast he initially made back in 2013, suggesting that February 2025 will witness an unprecedented stock market decline.
Key Points of Kiyosaki's Prediction
According to Kiyosaki, the upcoming crash will trigger a massive shift of capital from traditional stock and bond markets into alternative assets like $BTCUSD, gold, and silver. The highlights of his prediction include:
February 2025: The anticipated timeline for the peak of the market collapse.
Capital Migration: A significant redirection of investor funds into cryptocurrencies and precious metals.
Bitcoin Surge: A substantial increase in Bitcoin's value is expected, with notable returns even from minor investments, such as one satoshi.
Acquiring Assets at a Discount: Kiyosaki views the predicted crash as an opportunity to invest in valuable assets at reduced prices.
In a recent interview, OpenAI CEO Sam Altman praised the new AI model R1 developed by Chinese startup DeepSeek, calling it impressive. However, Altman emphasized that high computing power remains a key success factor for OpenAI.
DeepSeek's Milestones: Reducing AI Training Costs
DeepSeek has garnered public attention with its new model, DeepSeek-V3. A published article revealed that training this model requires less than $6 million in computing power, utilizing less powerful Nvidia H800 chips. These achievements represent a significant step forward in making artificial intelligence more affordable and efficient.
Economic Efficiency of DeepSeek-R1
Recent discussions surrounding Microsoft's $MSFT possible acquisition of TikTok have sparked significant interest across the business and technology sectors. U.S. President Donald Trump revealed that the software giant is negotiating with TikTok over a potential deal, while also suggesting that other bidders might be interested in the popular social media platform.
Trump's Position and Ongoing Negotiations
President Donald Trump stated that Microsoft is exploring a purchase of TikTok, with a decision expected to be finalized within the next 30 days. He also indicated that other parties are vying for TikTok, signaling the possibility of competition over ownership of this major digital platform.
The field of artificial intelligence (AI) has witnessed a significant breakthrough thanks to the achievements of the startup DeepSeek. The company has demonstrated that the development of powerful AI models is possible without relying on expensive computational resources. This news draws attention to the economic aspect of AI development and highlights its impact.
Technological Achievement and Economic Efficiency
DeepSeek, a young tech company, proudly announced that they managed to develop an AI model within two months using less advanced Nvidia H800 chips. The total cost of this project was under $6 million. This data indicates the potential for creating efficient AI systems without multi-million dollar budgets, challenging the conventional belief that substantial investments are necessary in this field.
According to Statistics Canada, wholesale trade volumes in the country increased by 0.1% in December 2023 compared to November. This growth was primarily driven by a rise in sales of motor vehicles, parts, and accessories. Although modest, the data points to a gradual recovery in one of the critical sectors of the economy. Below, we break down the most notable aspects behind this trend.
The Automotive Sector as a Key Growth Driver
The main contributor to the increase in wholesale volumes was the automotive sector, which includes sales of vehicles, components, and accessories. Demand for automobiles is rising due to several factors:
- Gradual recovery of supply chains in the automotive industry following pandemic-related disruptions.
Mercedes-Benz $MBG.DE, a leading manufacturer of luxury cars, has reported optimistic financial forecasts for its passenger car division to its investors. Referring to evaluations from analysts at Bernstein Research and Jefferies, the auto giant anticipates its adjusted operating profit in the fourth quarter of 2024 to outperform projections. This anticipated growth has caught market attention, sparking discussions on how Mercedes-Benz achieved such impressive results.
Financial Prospects for Late 2024
Analysts predict that the adjusted profit for Mercedes-Benz's passenger car division in the fourth quarter of 2024 could exceed the forecasted 6-7%. This outcome reflects the brand's strong position in the premium segment and its ability to adapt effectively to contemporary market conditions.
Amid rapid shifts in global politics and economics, the U.S. defense industry continues to adjust to modern challenges. Against this backdrop, defense contractors are calling on the government to reform procurement processes in order to enhance efficiency and expedite the integration of cutting-edge technologies.
General Atomics' Letter to Elon Musk
General Atomics Aeronautical Systems Inc., a leading military technology manufacturer, sent a letter to Elon Musk on January 24. The letter emphasized the urgent need to reform the government’s defense procurement system.
General Atomics, best known for producing the Predator drone, identified the Department of Operational Guidance and Effectiveness (DOGE) panel as a potential lever for accelerating these reforms. In the letter, General Atomics CEO Linden Blue expressed confidence in Musk’s ability to challenge outdated protocols that hinder the timely sale and deployment of high-tech military equipment.
Following a leadership shake-up and increased state support, shares of China Vanke surged on the Hong Kong Stock Exchange. The state intervention aims to mitigate liquidity risks and ensure the company's steady development amidst economic changes.
Leadership Changes at China Vanke
On Monday, Chinese real estate giant China Vanke $000002.SZ announced significant leadership changes. Chairman Yu Liang and CEO Zhu Jiusheng stepped down from their positions.
The company is forecasting a record net loss of $6.2 billion in 2024. These changes are driven by the necessity to restructure leadership and utilize state support to address current financial challenges.
Last week, global stock markets experienced intense turbulence triggered by unexpected news regarding advancements from the Chinese startup DeepSeek. This event significantly impacted semiconductor manufacturing companies and led to noticeable changes in both Asian and American indices.
Nvidia's Stock Plunge: A Historical Low
One of the most notable events was the 17% drop in Nvidia's $NVDA stock, resulting in a loss of approximately $593 billion in market capitalization. This record surpassed all previous lows set by the company in September of last year.
Nvidia's decline is attributed to the unexpected debut of the competitor, the Chinese startup DeepSeek, which launched an innovative AI assistant. The new model, known for its cost-effectiveness in production and operation, raised concerns among investors about future business models in the supply chain, from chip manufacturers to data centers.
U.S. stock futures stabilized, the dollar posted a slight increase, and technology stocks in Asia declined on Tuesday following a wave of sell-offs. These movements were sparked by the notable progress of a Chinese startup in artificial intelligence, which challenges the dominance of the U.S. and its substantial investments in this high-demand market sector.
Nvidia Stock Plunge and Its Ramifications
One of the most significant reactions came when shares of chipmaker $NVDA plummeted 17% overnight, leading to the largest market capitalization drop in history, nearing around $593 billion. Notably, despite this substantial fall, Nvidia's stock slightly rose in after-hours trading.
