Citigroup's radical overhaul

Citi to lay off 20,000 employees in overhaul, IMF warns AI to hit almost 40% of jobs worldwide, US economy set for another cash boost if Congress backs tax deal, Microsoft expands AI Copilot to consumers, and Hertz selling 20,000 EV’s switching back to gas-powered cars…

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Market Briefing
January 16, 2024

☕️ Good morning.

The Fast Five → Citi to lay off 20,000 employees in overhaul, IMF warns AI to hit almost 40% of jobs worldwide, US economy set for another cash boost if Congress backs tax deal, Microsoft expands AI Copilot to consumers, and Hertz selling 20,000 EV’s switching back to gas-powered cars…

Your 5-minute briefing for Tuesday, January 16:

BEFORE THE OPEN

As of market close 1/12/2024. Bitcoin as of 1/15/2024.

PRE-MARKET:

MARKETS:

  • Dow slipped Friday 0.31% to 37,592.98 as Q4 earnings and inflation data weighed.

  • S&P 500 inches up 0.08% to 4,783.83, Nasdaq rises 0.02% to 14,972.76.

  • UnitedHealth and Delta stocks decline despite strong earnings.

  • Major banks report mixed results: Bank of America down 1.1%, Wells Fargo -3.3%, JPMorgan -0.7%, Citigroup up 1%.

  • Inflation report shows wholesale prices down 0.1% in December.

  • Weekly gains: Dow +0.34%, S&P 500 +1.84%, Nasdaq +3.09%.

EARNINGS

What we’re watching this week:

  • Today: Morgan Stanley (MS)

    • Goldman Sachs (GS) - expected: $3.11 per share (-6.3% YoY) on $9.8 billion revenue (-7.1% YoY)

  • Wednesday: Charles Schwab (SCHW)

  • Friday:

    • Travelers (TRV) - expected: $5.00 per share (+47% YoY) on $10 billion revenue (+13.1% YoY)

Full earnings calendar here

HEADLINES

The layoffs will save about $2.5 billion this year, according to the bank, which is trying to cut more than $50 billion of expenses.

IMF chief Kristalina Georgieva urged policymakers to tackle this “troubling trend” and proactively take steps “to prevent the technology from further stoking social tensions.”

  • US economy set for another cash boost if Congress backs tax deal (more)

  • Interest rate cuts aren't good news for profit forecasts, history shows (more)

  • Bank valuations could rise by $7 trillion in five years, study finds (more)

  • Oil edges lower despite Middle East conflict (more)

  • China holds key rate as economy prepares for ‘difficult year’ (more)

  • Venezuela boosts minimum wage by 43% to quell protests (more)

  • Norway Wealth Fund CEO Tangen warns on low returns ahead (more)

  • Apple news:

    • Apple to shutter 121-person San Diego AI team in reorganization (more)

    • Redesigned Apple watches not subject to import ban, U.S. Customs says (more)

    • Apple offers iPhone 15 at rare discount in China as competition intensifies (more)

  • Boeing adding additional quality inspections for 737 Max (more)

  • Google’s latest layoffs are just the beginning (more)

  • Hertz makes ‘agile’ decision to shift strategy and sell EVs, Teslas (more)

  • Microsoft expands Office AI Copilot to consumers, smaller companies (more)

  • De Beers cuts diamond prices to revive sales (more)

  • Larry Fink just kicked off the last chapter of his BlackRock reign (more)

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M & A | INVESTMENTS

  • EQT, KKR are among suitors for $5 Billion Broadcom asset (more)

  • Deutsche Bank analyzing deals with Commerzbank, ABN Amro, others (more)

  • PAI exploring options for $10 Billion Nestle Ice Cream JV (more)

  • Starwood Capital Group agreed to buy a portfolio of hotels in London's West End from Edwardian Hotels (more)

  • Bain Capital and Hellman & Friedman are in talks to acquire Nasdaq-listed contract life cycle software company DocuSign (more)

  • Hillhouse and Mitsui & Company are both in talks to buy Eu Yan Sang, a pharmaceutical company, for approx. $700M (more)

  • TPG made a strategic investment in asset manager The Visualize Group (more)

  • China's BYD in talks with Brazil's Sigma Lithium on supply deal (more)

  • Japan's Fuji Soft has received buyout proposals from multiple PE firms as the company explores a potential sale as part of a strategic review by its largest shareholder, 3D Investment Partners (more)

  • Commerzbank merger talk resurfaces as Germany mulls company sales (more)

  • Xos buys ElectraMeccanica (more)

  • Corsair acquires MJM (more)

  • Crest Rock Partners invests in Specialty Pipe & Tube (more)

  • TA-backed Riskonnect buys Ventiv Technology (more)

  • JMI Equity invests in Safe Software (more)

VC

  • Silver Rock Group today announced that it plans to invest $300 million in equity financing in Doc.com (more)

  • Rune Labs, a precision neurology software and data company, has announced a strategic round of $12M, increasing the total amount raised by the company to over $42M (more)

  • Neocis, a global leader in robot-assisted dental implant surgery, announced that the company has raised $20M in additional funding (more)

  • GolfForever has closed a $10M Series A funding round (more)

  • Shimmer, an innovative online coaching platform designed for adults with ADHD today announces it has raised $2.2M in seed funding (more)

  • KlariVis, a trailblazer in data analytics solutions for community banks and credit unions, closed its Series B capital round led by Blueprint Equity (more)

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CRYPTO

  • Bitcoin’s ETF hangover saddles the token with its worst streak in a month (more)

  • Bitcoin's technicals suggests deeper pullback to $38K (more)

  • Coinbase at the center of Bitcoin ETF draws envy and risks (more)

  • JPMorgan sees significant capital from existing crypto products pouring into new spot Bitcoin ETFs (more)

BULLISH BITES

🌎 Davos insider: Heading to Davos, here’s what was overheard on connecting trains from Zurich to WEF // lnside the Davos cash machine.

🚘 Futuristic: All the future of transportation tech that stood out at CES 2024.

🚀 Trending: WhatsApp is finally catching on in the US growing 80% among daily business users in 2023.

😎 Buzzworthy: You may wonder why people pay over $150,000 for a Mercedes G-Wagon. Now, you know.

📈 See what the buzz is about! Try TradingView — the supercharged, super-charting platform and social network for traders and investors. Take TradingView for a test-drive here »

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