Happy Wednesday all,
From Bitcoin’s meteoric rise past $108,000 to whispers of a Honda-Nissan merger that could reshape the auto industry, this week has no shortage of groundbreaking developments. Retail sales are surging, fueled by strong vehicle purchases and e-commerce, while Bitcoin’s rally reflects a growing wave of optimism in crypto markets. But it’s not all smooth sailing—industrial production continues to decline, and the Dow’s 9-day losing streak is the longest in decades.
Enjoy this week’s Hump Days!
- Humphrey & Rickie
👀 Eye-Catching Headlines
Luigi Mangione indicted on murder charges for shooting of UnitedHealthcare CEO Brian Thompson (CNBC)
Japan’s Honda and Nissan to reportedly begin merger talks (CNBC)
Dow tumbles in a 9-day losing streak, its longest since 1978 (CNBC)
Salesforce will hire 2,000 people to sell AI products, CEO Marc Benioff says (CNBC)
Tech-Loving Hedge Funds Have a Crush on Utility Stocks (WSJ)
Will the Fed Keep Cutting in 2025? (WSJ)
Deal to Avert Government Shutdown Includes $110 Billion in Disaster, Farm Aid (WSJ)
The Weekly Brief
US Retail Sales Strengthen on Jump in Motor Vehicle Purchases
US retail sales showed strong growth in November, increasing by 0.7% after upward revisions to the previous two months. This growth was primarily driven by a 2.6% surge in auto sales, the strongest in over three years, largely to lower interest rates, year-end discounts, and increased demand for replacement vehicles following Hurricanes Milton and Helene.
E-commerce sales also saw a significant boost of 1.8%, fueled by Black Friday and Cyber Monday promotions on platforms like Amazon and TikTok Shop.
However, growth was not uniform across all sectors, with restaurant and bar sales declining for the first time since March.
While the overall economic picture remains strong, with control-group sales increasing at an annualized 5.6% over the past three months, there are mixed signals from other sectors.
Industrial production unexpectedly declined for the third consecutive month in November, although manufacturing output showed a modest increase.
Bitcoin Rally Takes Breather After Scaling $108,000 for the First Time
Bitcoin reached a new all-time high, briefly touching $108,315 before settling back down. This surge comes amid anticipation of an expected Federal Reserve interest rate cut and optimism fueled by President-elect Donald Trump's pro-crypto stance.
Trump has promised crypto-friendly regulations and even suggested the idea of a national Bitcoin reserve.
The cryptocurrency market's total value approached $4 trillion during the rally, with Bitcoin up over 55% since Trump's election victory on November 5.
Nissan Explores Merger With Honda
Honda and Nissan are reportedly exploring a potential merger, which could create a major rival to Toyota in Japan. The companies are considering various options, including a merger, capital tie-up, or the establishment of a holding company.
This potential consolidation could also involve Mitsubishi, which already has capital ties with Nissan.
Following the news, Nissan's shares surged up 24%, Mitsubishi jumped 17%, while Honda's stock fell by 3.4%.
The proposed merger would effectively consolidate the Japanese auto industry into two main camps: one controlled by Honda, Nissan, and potentially Mitsubishi, and another consisting of Toyota group companies.
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