This report is from today’s TNC’s Daily Open, our international markets update. TNC Daily Open keeps investors informed on everything they need to know, no matter where they are.
The rapid-fire assault on bureaucracy, economic policy, and geopolitical affairs by U.S. President Donald Trump is not ending. During high-level conversations with top U.S. officials and their Russian counterparts, Trump implied to reporters that Ukraine was somehow to blame for provoking Moscow’s invasion of the nation.
However, Trump is ignoring the situation on other fronts. His administration maintained strict regulations governing corporate mergers established during the tenure of former US President Joe Biden. Wall Street, which had anticipated a surge in transactions due to hopes that the Trump administration would be pro-business and less hostile to mergers and acquisitions, may be disappointed.
However, investors weren’t very disappointed. On Tuesday, the S&P 500 established a new closing record. In addition, the European Stoxx 600 reached a new high away from Trump.
What To Note Today
New S&P 500 Record
The S&P 500 closed Tuesday at a new high of 6,129.58, up 0.24%. The Nasdaq Composite increased by 0.07%, while the Dow Jones Industrial Average remained unchanged. Nevertheless, Meta’s stock ended its 20-day gaining run. Markets in Asia-Pacific had a mixed day on Wednesday. While South Korea’s Kospi Index increased by more than 1.7%, Japan’s Nikkei 225 dipped by almost 0.3%. The Reserve Bank of New Zealand lowered interest rates by 50 basis points to 3.75%.
Deal-Making Activity In China Accelerates
As Beijing’s stimulus plans pay off, merger and acquisition agreements in China will increase again. Industry consolidation is also being fueled by pressure from Donald Trump’s tariffs. According to Dealogic data, the value of M&A deals in China increased by 78.5% in the fourth quarter of 2024, contributing to the first increase in full-year activity in five years.
HSBC Declares A Buyback Of Its Shares
On Wednesday, HSBC released its full-year earnings, which fell short of the LSEG-compiled analyst projections. The biggest lender in Europe made $65.85 billion in 2024, a decrease from $66.1 billion the year before. Although it increased 6.5% year over year, the bank’s pre-tax profit of $32.31 billion fell short of the $32.63 billion LSEG expectation. HSBC also announced a $2 billion share buyback.
Strict Merger Regulations Were Maintained
On Tuesday, the Trump administration announced that it will continue to evaluate proposed corporate mergers using stringent standards that were implemented during the tenure of former US President Joe Biden. The decision was a setback for Wall Street, which had been expecting more acquisitions under a relaxed framework for analyzing proposed mergers. Still, it was a success for the anticorporate faction of the Trump administration, represented by Vice President JD Vance.
Russia And The US Meet In Saudi Arabia
The first official meeting between top U.S. and Russian diplomats since January 2022 took place Tuesday morning in Saudi Arabia when U.S. Secretary of State Marco Rubio met Russian Foreign Minister Sergei Lavrov. Both parties stressed that the discussions were preliminary. About Russia’s 2022 invasion of Ukraine, U.S. President Donald Trump stated that Ukraine “should never have started it” on the same day.
Split Over Europe’s Superior Performance Over The U.S
In January, the Stoxx 600 index increased 6.3%, significantly more than the S&P 500’s 2.7% rise. Up higher than the U.S. broad-based index month, the former’s superior performance continued into February. Although some analysts hope the trend will continue, others caution that due to a single market driver, “European investors may need to enjoy it while it lasts.”
Bottom Line
The team behind DeepSeek, an artificial intelligence business that has risen to international fame, is not well-known outside of China. Some Western media outlets have referred to Liang Wenfeng, the creator of DeepSeek, as China’s Sam Altman. However, unlike his counterpart in Silicon Valley, Liang has kept a quiet presence in the public eye.
Little is known about Liang’s team, which consists of recent graduates from some of the nation’s top universities. Chinese official media claim that the team has fewer than 140 members, yet a research article on its most recent R1 reasoning model counts about 200 contributors. Here is a summary of the individuals who created the AI craze and the history of the startup.
