$TSLA shares have consistently captured investor attention, reflecting dramatic shifts amid political changes. Following the elections, the company's stock experienced an impressive 65% surge. However, recent developments raise questions about the potential for this trend to resume.
Post-Election Dynamics of Tesla's Stock
In the months following the elections, Tesla's market activity unfolded rapidly, marked by several key phases that have significantly shaped the current landscape:
Rise Amid Post-Election Expectations: Tesla's shares began to climb soon after the elections, driven by the anticipation of continued government support for electric vehicles and the transition to clean energy solutions.
Pause in the Rally: A correction followed the sharp rise as investors grew cautious, questioning the sustainability of strong consumer demand and government subsidy policies for electric vehicles.
Decline Amid Political Changes: The introduction of Donald Trump as President of the United States added a layer of uncertainty, leading to a 4% drop in the first week, ultimately culminating in a monthly decline of 12%.
In December 2024, sales of new single-family homes in the United States exceeded expectations, signaling a recovery in housing market activity by the end of the year. However, rising mortgage rates remain a limiting factor. According to a report published on Monday by the Department of Commerce, home sales in November were stronger than initially estimated. This aligns with other data showing that December witnessed increases in building permits for single-family homes and housing starts, reaching a 10-month high. Additionally, sales of previously owned homes rose to their highest level since February.
The Housing Market: Recent Developments
Throughout December, the US housing market experienced the following key highlights:
On Monday, the Japanese yen and Swiss franc strengthened against major currencies amidst a massive sell-off in technology stocks. This movement came as markets assessed the impact of a new open-source artificial intelligence model launched by the Chinese startup DeepSeek.
DeepSeek introduced a free AI assistant that employs cheaper chips and a reduced amount of data. This technology challenges the dominance of current market players reliant on heavy tech investments.
1. Use of Cheaper Chips: DeepSeek's technology could reduce dependence on high-end chips, complicating expectations for growth in demand among leading manufacturers.
The European Central Bank (ECB) has intensified discussions around creating a digital version of the euro (CBDC), spurred by evolving changes in the global financial landscape. A significant catalyst for this move is the recent decision by former US President Donald Trump regarding the backing of stablecoins.
US Decision: How Stablecoins Are Shifting the Financial Landscape
On January 23rd, through an executive order, Donald Trump announced support for stablecoins pegged to the dollar, aiming to boost their global presence. This decision, as noted by ECB board member Piero Cipollone, fundamentally alters the role of traditional banks:
- Banks’ commission-based revenues are decreasing.
In recent times, intellectual property rights have become a focal point of intense global disputes. Within this context, the lawsuit filed by Indian book publishers and their international counterparts against OpenAI in New Delhi stands out. This case is part of a broader trend aimed at countering the use of proprietary content in training artificial intelligence, making it highly significant for the entire publishing sector.
Key Players in the Case
International Coalition
American startup Perplexity AI, specializing in search engine development, has proposed a revised merger structure with Chinese company ByteDance, owner of TikTok. According to sources familiar with the proposal, this strategic union could significantly reshape the technology and social media landscape in the United States.
Key Aspects of the Proposal
The proposal by Perplexity AI includes the creation of a new American holding company named "NewCo". This entity would oversee TikTok operations in the U.S., while the core recommendation algorithm remains with ByteDance in China.
The introduction of the new model influenced the dynamics of Asian stock futures and US equity indices:
1. Nasdaq Composite Futures: $NDAQ futures dropped by 1.8%. This reflects investors' concerns over competition in the high-tech sector.
2. S&P 500 Futures: $^SPX futures also declined by 0.9%. This downward trend mirrors the market's overall reaction, influenced by news and expectations of investment risks.
US Sanctions and Their Influence
In the face of global economic instability, the need for financial rehabilitation within the banking system remains critical. The central bank of Bangladesh is taking steps to address significant financial losses. Based on information from the Financial Times, we can examine the measures being implemented to stabilize the country's economy.
Challenges in the Banking Sector
Financial Losses
The central bank of Bangladesh reported a financial loss of $17 billion, attributed to businessmen close to the regime of former leader Sheikh Hasina. These financial misdeeds necessitate thorough audits and investigations by authorities to prevent further losses.
The UK Chancellor of the Exchequer, Rachel Reeves, is set to announce a significant reform in the management of corporate pension funds, aiming to free up tens of billions of pounds for reinvestment. This initiative seeks to revitalize the stagnating British economy and support Prime Minister Keir Starmer's ambitious plans to improve living standards and restore the nation's aging infrastructure.
Economic Context and Strategic Goals
Amid slowing economic growth, the UK is actively exploring new investment sources to boost the economy. Rachel Reeves' proposal addresses several key objectives:
1. Improving living standards — allocating investments toward social programs and essential infrastructure projects.
The CEO of Coinbase, one of the world's largest cryptocurrency platforms, has highlighted the need to rethink the approach to listing and evaluating new digital assets. According to the company's leader, Brian Armstrong, the surge in the number of tokens being created is pushing traditional analysis methods to their limits.
"About one million tokens are being created each week, and the number continues to grow", Armstrong stated in a post on X. This rapid increase presents new challenges for the industry, emphasizing the necessity to adapt to the ever-changing cryptocurrency ecosystem.
Why is Token Evaluation Becoming a Daunting Task?
Let’s explore key factors impacting the complexity of analyzing new digital assets:
As 2024 draws to a close, the U.S. economy is ending the year on a stable and high note, showcasing a solid foundation and a confident consumer sector. These factors provide the Federal Reserve with a robust rationale to maintain interest rates at their current levels. Strong consumer spending continues to support economic growth, which stands out amid global economic weaknesses.
Impressive Economic Growth
According to the latest economic forecasts, the United States' Gross Domestic Product (GDP), which measures the total value of goods and services produced, is expected to grow by 2.7% on an annualized basis in the fourth quarter. This forecast follows several consecutive quarters of growth around 3%. These figures are a testament to the economy's resilience despite international instability and domestic challenges.
Factors Supporting the Economy
Just a few months ago, India captivated the attention of global fund managers, as its stock market seemed poised to overshadow China in emerging market indices. However, the situation is rapidly changing amid economic cooling and the withdrawal of foreign capital.
India's Rise: Path to Success
For a long time, the Indian economy showed robust growth, which attracted global funds. With an impressive $2 trillion rally, the Indian market became a key player among emerging countries. However, the current economic slowdown and the rupee's fall to record lows present significant challenges.
