Symax Fintech Daily Market Insights 24.01.24

Former US President Donald Trump won the New Hampshire primary, dealing a blow to his only remaining major rival Nikki Haley and solidifying his status as the Republican party’s likely nominee. His New Hampshire victory comes after a decisive win in Iowa and delivers a setback to Haley, ahead of the Feb. 24 primary in her home state of South Carolina. Trump currently leads Haley by about 30 points there, according to a RealClearPolitics polling average. BB

Netflix rose after signing up 13.1 million customers in 2023’s final three months, its best quarter of growth since early in the pandemic. 

• The tally beat estimatesin every regionof the world, including more than 5 million new signups in Europe and the Middle East. Sales also topped forecasts at $8.83 billion.
• The streaming giantearlier agreed to pay $5 billionfor exclusive rights to Raw and other WWE programming—and a documentary may follow. BB

The crisis in the Red Sea is also showing few signs of abating after the US and UK unleashed fresh strikes on Yemen’s Houthis. Shipping delays and supply-chain strain are starting to hit company profits, and plans for the world’s most ambitious trade route are also at risk.BB

Nikki Haley and Donald Trump are facing off in today’s New Hampshire primary, as she tries to slow her former boss’ momentum. Already there are some meme-like rallies in stocks tied to his candidacy. On the Democratic side, Joe Biden only appears as a write-in candidate. BB

United Airlines is no longer counting on Boeing’s largest 737 Max model as the planemaker’s manufacturing miscues threaten further delay of an aircraft already years behind schedule. While the carrier hasn’t canceled its order for the Max 10, United has removed it from its internal plans, Chief Executive Officer Scott Kirby said Tuesday. The company will “be working on what that means exactly with Boeing,” he said. The comments highlight the expanding fallout of the 737 crisis after a safety accident involving another version of the plane led to the grounding of all Max 9 jets this month and inspections of an earlier model. Analysts have said the heightened scrutiny from US safety regulators could delay the certification of the Max 10 and another yet-to-debut variant, the smaller Max 7. —David E. Rovella BB

India’s stock market capitalization has overtaken Hong Kong’s for the first time as the former’s growth prospects and policy reforms make it an investor darling just as global capital pours out of China. The combined value of shares listed on Indian exchanges reached $4.33 trillion as of Monday’s close, versus $4.29 trillion for Hong Kong, according to data compiled by Bloomberg. That makes India the fourth-biggest equity market globally.  BB

China’s boldest plan yet to stem the current stock market rout is facing a lot of skepticism as disillusioned investors say any rebound will prove fleeting without a fundamental fix to the economy. A rare mix of positive news including a stabilization fund in the works and Premier Li Qiang’s order to calm markets sent equity benchmarks rallying Tuesday. However, China’s history of botched market rescue efforts, the grim state of its economy and uncertainties over Beijing’s long-term policy roadmap are keeping investors skeptical about the sustainability of those gains.  BB

Toyota Motor Corp. Chairman Akio Toyoda says he believes battery electric vehicles will reach at most 30% market share, with the rest taken up by hybrids, hydrogen fuel cell and fuel-burning cars. With a billion people in the world living without electricity, limiting their choices and ability to travel by making expensive cars isn’t the answer, he said. “Customers—not regulations or politics—should make that decision,” Toyoda said. BB

The Biden administration is preparing an executive order that seeks to prevent foreign adversaries from accessing troves of highly sensitive personal data about Americans and people connected to the US government, according to a document obtained by Bloomberg News. The White House sees the exploitation of such data by other countries as an “unusual and extraordinary threat” to national security and foreign policy. By accessing Americans’ highly sensitive data, “countries of concern” can engage in malicious activities, such as espionage, cyberattacks and blackmail, providing a strategic advantage over the US, the document said. BB

A far-reaching plan to channel Europe-Asia trade through the Middle East is at risk of stalling before it even gets started. The Israel-Hamas war has halted progress on what’s known as the India-Middle East-Europe Economic Corridor—a project touted last year by Washington and key allies that envisages building new rail links across the Arabian peninsula. As Houthi attacks disrupt Red Sea shipping and turmoil spreads across the region, IMEC is effectively on ice. That’s a big setback for US strategy. BB