Weekly Market Update - 29 January 2024

China Woes

Skepticism over Chinese assets is spreading beyond stocks, with investors expecting the yuan and government bonds to underperform in a year when the Federal Reserve’s dovish pivot is set to buoy emerging markets. Latest data confirmed the world’s second largest economy remains in the doldrums and investors say the monetary authority has less room to cut than other major economies. As China falls out of favor, traders see multiple reasons to be more positive toward its emerging market peers.

Source: Bloomberg

Alphabet’s Lab ‘X’

Alphabet’s lab for pioneering technology is laying off dozens of employees. Launched by Google co-founders Larry Page and Sergey Brin, the division, known as X, has in recent months ramped up discussions on funding with venture capitalists and other investors. The lab is adopting a new structure that’ll enable its projects to more easily spin out of X as independent startups. As part of the restructuring, X is laying off staff. This comes after Google last month eliminated hundreds of jobs.

Source: Bloomberg

Netflix Announcement

Netflix has acquired the exclusive rights to Raw as well as other programming from World Wrestling Entertainment, marking its first big move into live events. The streaming giant, which reported its biggest gain in customers since the pandemic for the final three months of 2023, has agreed to pay $5 billion over the course of the 10-year deal. Raw will air on Netflix in the US, Canada, Latin America and other markets starting in January 2025. The stock has gained more than 40% since Netflix’s October earnings report.

Source: Bloomberg