China Plans Record Bond Issue | Apple Closes To $4 Trillion Cap | Starbucks Union Strike

December 24, 2024

Market Update

  • Nasdaq 100 rebalance reduces index weighting for Meta, Broadcom and Tesla.

  • American Airline grounds all flights amid technical issues.

  • Bank of America settles over compliance issues.

  • Coffee’s rally forces traders to seek alternative hedging plans.

  • MicroStrategy buys more Bitcoin for seventh consecutive week.

China plans record $411 billion special treasury bond issuance next year

Record Issuance: China plans to issue 3 trillion yuan ($411 billion) worth of special treasury bonds in 2025, the highest on record.

Economic Stimulus: The proceeds will be used to boost consumption, support business equipment upgrades, and fund investments in advanced sectors.

Bank Recapitalization: Part of the funds will be used to recapitalize large state banks struggling with shrinking margins and rising bad loans.

Response to Tariffs: The move is aimed at countering the economic impact of expected U.S. tariffs under the incoming Trump administration. [Learn more]

Apple approaches $4 trillion valuation as investors bet on AI momentum

Valuation Milestone: Apple is nearing a $4 trillion stock market valuation, driven by investor enthusiasm for its AI advancements.

Share Surge: Apple's shares have surged 16% since early November, adding about $500 billion to its market capitalization.

AI Integration: Apple has started integrating OpenAI's ChatGPT into its devices, following plans announced in June to incorporate generative AI across its app suite.

Analyst Expectations: Analysts expect iPhone sales to rebound in 2025, despite muted demand in the near term. [Learn more]

Starbucks strike to expand to more than 300 stores, union says

Strike Expansion: Starbucks Workers United announced that the strike will expand to over 300 U.S. stores on Christmas Eve, with more than 5,000 workers expected to participate.

Major Cities Affected: The strike will impact stores in 12 major cities, including New York, Los Angeles, Boston, and Seattle.

Unresolved Issues: The strike is due to unresolved disputes over wages, staffing, and schedules, with workers demanding better pay and working conditions.

Company Response: Starbucks stated that the majority of its stores will remain open and operational, with minimal impact on overall operations. [Learn more]

Joke of the Day!

What kind of tea is hard to swallow?

Reality!

Generative AI Photo of the Day!

Credit: DALL-E 3

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