Weekly Market Update - 30 October 2023

Oil Dealmaking

Chevron Corp.’s proposed $53 billion takeover of Hess Corp. is the second oil industry megadeal this month and makes resoundingly clear a new wave of consolidation is reshaping the energy landscape. US oil and natural gas companies are circling each other for potential match ups to keep investor returns growing as the nation’s prolific shale fields age. Exxon Mobil Corp. announced earlier this month it agreed to buy shale-oil producer Pioneer Natural Resources Co. for $59.5 billion, locking up new drilling sites for years to come and underpinning a bet that oil and gas will remain central to the world’s energy mix for decades ahead. Chevron’s deal, meanwhile, delivers it a 30% stake in Guyana’s Stabroek Block, home to the world’s largest crude discovery of the past decade.

Source: Bloomberg

Apple Overhaul

Apple Inc. is planning an end-to-end overhaul of its AirPods lineup, refreshing a product category that has emerged as one of the company’s biggest sellers. The changes will include a revamped version of Apple’s entry-level AirPods in 2024 and a new Pro model the following year, according to people familiar with the plan. The company is updating the products’ earbud design, the look of the cases and audio quality. A new version of the AirPods Max headphones is coming in 2024 as well, said the people, who asked not to be identified because the information is private.

Source: Bloomberg

Growth Engine

The US economy grew at the fastest pace in nearly two years last quarter on a burst of consumer spending, which will be tested in coming months. Gross domestic product accelerated to a 4.9% annualized rate, more than double the second-quarter pace, according to the government’s preliminary estimate Thursday. The economy’s main growth engine — personal spending — jumped 4%, also the most since 2021.

Source: Bloomberg