Inflation Accelerates, SpaceX’s $350B Valuation, Google’s Quantum Leap, and FTC Halts Another Merger

In partnership with

👆 To keep Money Masters free, please support us by clicking on the ad! 🙏

Dear Money Master,

In today’s newsletter, we cover SpaceX’s remarkable $350 billion valuation and Google’s new quantum chip, which marks a significant leap in computing power. We also explore Stellantis’ plan to expand EV battery production in Spain 🔋 and China’s latest trade data 📉, revealing challenges in its economic recovery.

Finally, the FTC’s move to block yet another major merger 🛑 highlights its ongoing scrutiny of M&A activity, which we unpack in this week’s Deep Dive.

📰 Your Daily Financial Digest - December 11th, 2024

🌍 Economics & Finance:

1. Annual Inflation Rate Accelerates to 2.7% in November 📊
   The Consumer Price Index showed a 2.7% annual increase in November, slightly up from October’s 2.6%, as shelter and vehicle costs drove inflation higher. While core inflation remained stable at 3.3%, the data bolsters expectations of a Federal Reserve rate cut next week, marking the fourth reduction since September. Read More

2. EU-Mercosur Trade Agreement Hinges on Lithium and Strategic Materials 🚗🔋
   The European Union has finalized a landmark trade deal with Mercosur countries, emphasizing access to lithium—a critical resource for electric vehicles and renewable energy. Latin America holds over half of the world’s lithium reserves, a key to reducing Europe’s dependence on China. The deal awaits ratification but faces opposition from countries like France due to concerns over agricultural competition. Read More

3. China’s Trade Data Signals Economic Challenges Amid Rare Earth Exports Surge 📉🔧
   China’s exports grew 6.7% in November, but imports fell sharply by 3.9%, raising concerns about domestic demand and the broader economy. Rare earth exports, critical for EVs and electronics, rose nearly 5%, reflecting China’s continued dominance in this sector. Read More

4. Walgreens Stock Up Amid Take-Private Deal Discussions 📈🏥
   Reports of ongoing talks with Sycamore Partners to take Walgreens private have buoyed the company’s stock. Facing challenges like store closures and opioid liabilities, Walgreens continues to explore strategic alternatives. Read More

5. U.S. Court Blocks $25 Billion Kroger-Albertsons Merger 🛒❌
   A federal judge has halted the merger of grocery giants Kroger and Albertsons, siding with the FTC’s claims that the deal would harm competition and raise prices. Kroger argued the merger would lower costs, but the court found these claims speculative, jeopardizing the union of over 5,000 stores. Read More

💻 Technology:

1. Stellantis and CATL to Build $4.3 Billion EV Battery Plant in Spain 🌍🔋
   Automaker Stellantis and Chinese battery maker CATL will construct a lithium iron phosphate battery plant in Zaragoza, Spain. The plant, expected to be operational by 2026, will bolster Europe’s EV production capabilities, addressing affordability and sustainability challenges. Read More

2. Google Unveils Breakthrough Quantum Chip, Lifting Alphabet Shares 🧮🚀
   Alphabet revealed “Willow,” a quantum chip with 100 qubits, marking a significant leap in computing power. The chip outperformed its predecessor and is part of Google’s roadmap to develop commercially relevant quantum computers for applications in drug discovery and energy. Read More

3. GM Ends Funding for Robotaxi Development, Focuses on Autonomous Systems 🚘🤖
   General Motors is halting its $10 billion investment in Cruise’s driverless ride-hailing services. Instead, the division will be integrated into GM’s broader tech team, with a renewed focus on autonomous features for personal vehicles. ReadMore

4. SpaceX Hits $350 Billion Valuation in Insider Share Sale 🚀💰
   SpaceX’s valuation surged as it launched a tender offer for insider shares at $185 per share, up significantly from earlier valuations. This move reinforces SpaceX’s position as the world’s most valuable private startup. Read More

💹Earnings:

1. Oracle’s Cloud Revenue Booms Despite Earnings Miss ☁️📊
   Oracle reported a 52% growth in cloud infrastructure revenue, driven by AI demand, yet missed overall earnings expectations. Its strategic partnership with Meta for AI projects highlights its growing footprint in generative AI. ReadMore

🔍 Deep Dive: Understanding the FTC and Its Role in Market Regulation

The Federal Trade Commission (FTC) is a U.S. government agency tasked with protecting consumers and ensuring fair competition. Established in 1914, the FTC enforces antitrust laws to prevent monopolistic practices, deceptive business strategies, and harmful mergers that could stifle innovation or raise consumer costs.⚖️

How does the FTC block mergers? The agency reviews proposed deals and evaluates whether they would harm competition, lead to higher prices, or reduce consumer choices. If deemed problematic, the FTC challenges these deals in court, as seen in the recent Kroger-Albertsons ruling.❌

Recent examples of blocked deals:

• Adobe’s Acquisition of Figma: The FTC raised concerns about reduced competition in design software, leading Adobe to abandon its $20 billion bid for Figma.💻

• NVIDIA’s Arm Deal Collapse: The FTC played a pivotal role in stopping NVIDIA’s $40 billion acquisition of Arm, citing fears it would harm competition in the semiconductor industry. This marked one of the largest tech deal blockages in recent years.💾

• Microsoft-Activision Blizzard Merger (Initial Opposition): While the deal eventually progressed, the FTC’s challenge highlighted concerns about reduced competition in gaming.🎮⚔️

The FTC’s scrutiny of these high-profile mergers showcases its commitment to protecting market competition. For investors, these actions emphasize both the challenges in M&A activity and the agency's growing influence in shaping global industries.

Invest Alongside Top Politicians And Famous Hedge Fund Managers

• Over $380 million invested and 9M trades, on Autopilot.

• Join the 900,000+ investors who love Autopilot.

• More than $1.3 billion in trade volume since launching last year.

Join Autopilot Today

To your financial empowerment, The Money Masters Team

P.S. Stay connected! Don't forget to follow us on social media! 📱🌐

Disclaimer: This information is for educational purposes only and should not be construed as financial advice. Always conduct your own research or consult with a financial advisor before making investment decisions.