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Friday, December 19

Noteworthy macro moves today: Bitcoin +3.0%. Ethereum +4.8%. Copper +2.0%.

Global equity markets are trading higher following yesterdays' release of softer-than-expected U.S. inflation data, which has bolstered expectations for further Federal Reserve interest rate cuts in the upcoming year. The Consumer Price Index (CPI) showed an annual increase of only 2.7% for November, down from previous highs and contributing to renewed investor confidence.

In Japan, the Bank of Japan raised its key short-term interest rate by a quarter percentage point to its highest level since September 1995 amid persistent inflation concerns. This decision aligns with market expectations and reflects ongoing adjustments in monetary policy as the central bank aims to stabilize economic conditions.

European markets are experiencing mixed movements as investors digest recent hawkish signals from both the European Central Bank and the Bank of England regarding their future rate paths. Additionally, disappointing retail sales data from the UK has raised concerns about consumer spending ahead of the holiday season, impacting overall market sentiment in the region.

USD/JPY (USD/JPY) [+1.1%]
The Bank of Japan raised its key policy rate by 25 basis points to 0.75%, marking the highest level since September 1995. This significant shift in monetary policy comes amid rising uncertainties regarding the U.S. economy and trade policies. The decision is expected to affect market dynamics influencing USD/JPY trading conditions today. Concurrently, Asian stock markets advanced on expectations of looser U.S. monetary policy next year due to signs of cooling inflation in November. Social media discussions highlight the BoJ's interest rate decision, confirming the rate at 0.75%, which aligns with expectations and is an increase from the previous rate of 0.50%.

Ethereum (ETH/USD) [+4.6%]
Ethereum (ETH/USD) has seen an increase of 2.3% since the previous close. This rise coincides with a positive shift in global equity markets, driven by renewed optimism regarding interest rates following tamer-than-expected U.S. inflation data released today. Such developments have bolstered expectations that the Federal Reserve may continue to cut interest rates next year. Concurrently, Asian stock markets are mostly trading higher, reflecting similar cues from Wall Street and anticipation of adjustments in monetary policy by central banks like the Bank of Japan and the Fed. Additionally, Bitcoin (BTC/USD) has increased, aligning with Ethereum's performance due to their strong correlation.

NKE | -11.9% | -10.4B
Nike Inc | Footwear
Nike Inc. has encountered significant challenges, as management has issued a cautious outlook projecting a low single-digit decline in Q3 revenue and a contraction of gross margins by approximately 175 to 225 basis points. The company reported a steep rise in product costs attributed to tariffs, potentially resulting in an annualized headwind of $1.5 billion. In Q2, revenue in Greater China fell sharply by 16%, with digital sales declining by 36%. Although total revenue increased slightly to $12.43 billion, net income plummeted by 32% year-over-year, underscoring ongoing margin pressures. Social media discussions highlighted the company’s earnings per share of $0.53, surpassing expectations, yet the stock experienced a notable drop of over 10% in after-hours trading due to weak sales forecasts and disappointing performance in China. The CEO described the company as being "in the middle innings" of its recovery, a sentiment met with skepticism from investors.

FDX | -2.4% | -1.6B
FedEx Corp | Air Freight & Logistics
FedEx Corp reported its second-quarter financial results, revealing an adjusted earnings per share (EPS) of 4.82, exceeding analyst expectations of 4.11, and revenue of 23.5 billion, surpassing the consensus of 22.79 billion. The company narrowed its fiscal year 2026 EPS guidance to a range of 17.80 to 19.00 from a previous estimate of 17.20 to 19.00 and raised its revenue growth outlook to 5%-6% from 4%-6%. FedEx is advancing plans to spin off its Freight segment into a new publicly traded entity, expected on June 1, 2026, which incurred one-time costs of 152 million during the quarter. The Express segment saw improvements due to higher domestic yields and increased package volume, while the Freight segment faced challenges from lower shipments and rising wage rates.

ORCL | +4.5% | +23.2B
Oracle Corp | Systems Software
Oracle Corp's stock has risen significantly in pre-market trading, reflecting the recent announcement of a binding agreement involving TikTok to establish a U.S.-based joint venture. This deal includes Oracle as a key investor alongside Silver Lake and MGX, with each investor acquiring a 15% stake. ByteDance will retain a 19.9% interest. The agreement aims to ensure that U.S. user data is stored domestically and that content moderation is overseen by American directors. The deal is set to close on January 22, 2026. Following the announcement, Oracle's stock reportedly increased by approximately 6.4% in after-hours trading, with pre-market activity showing an additional rise of 5.6%. TikTok's CEO confirmed the binding agreements, emphasizing Oracle's role in managing U.S. data security and algorithm governance, which has generated substantial interest in the market.

BMRN | +2.2% | +221.2M
Biomarin Pharmaceutical Inc | Biotechnology
BioMarin Pharmaceutical Inc. has announced its acquisition of Amicus Therapeutics for approximately $4.8 billion, translating to $14.50 per share, which represents a 33% premium over Amicus' last closing price. This all-cash transaction, approved by both companies' boards, is expected to close in the second quarter of 2026, pending regulatory approvals and stockholder consent. The acquisition will enhance BioMarin's rare disease treatment portfolio by adding Galafold and Pombiliti plus Opfolda, which collectively generated $599 million in net revenues over the past year. BioMarin intends to finance the deal using available cash and around $3.7 billion in non-convertible debt financing, with the expectation that the acquisition will be accretive to non-GAAP diluted earnings per share within the first year post-close. Concurrently, shares of Amicus Therapeutics have surged significantly, which may be influencing the movement of BioMarin's stock.

PANW | +2.0% | +1.2B
Palo Alto Networks Inc | Systems Software
Palo Alto Networks Inc. (PANW) has seen a notable price increase in pre-market trading, rising by approximately 2.0%. This movement coincides with the announcement of a significant expansion of its strategic partnership with Google Cloud. The collaboration, aimed at enhancing AI security solutions for enterprise customers, includes a multibillion-dollar agreement for Palo Alto Networks to migrate its internal workloads to Google Cloud. This partnership will also bundle AI security for Google's AI workloads with Palo Alto's Prisma AIRS, VM-Series, and Prisma SASE integrations. Social media discussions have highlighted this deal as Google's largest security services contract, with Palo Alto reportedly committing to pay nearly $10 billion to Google Cloud over several years. The partnership has already yielded over 75 joint integrations and $2 billion in sales through the Google Cloud Marketplace.

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