Market Beats | New York Fed President Says There’s Room for Another Rate Cut Soon; EQT to Acquire Majority Stake in Desotec; US Consumer Sentiment Drops in November to One of Lowest Levels on Record; Eli Lilly Becomes First Health-Care Company to Hit $1 Trillion Market Value; Figma Shares Briefly Fall Below IPO Price; Tesla Sued Over Deadly Washington Crash; BLS Cancels October CPI Report

—— New York Fed President Says There’s Room for Another Rate Cut Soon; EQT to Acquire Majority Stake in Desotec; US Consumer Sentiment Drops in November to One of Lowest Levels on Record; Eli Lilly Becomes First Health-Care Company to Hit $1 Trillion Market Value; Figma Shares Briefly Fall Below IPO Price; Tesla Sued Over Deadly Washington Crash; BLS Cancels October CPI Report

1. New York Fed President Says There’s Room for Another Rate Cut Soon

Federal Reserve Bank of New York President John Williams said the US central bank still has room to cut interest rates again in the near term as the labor market softens.

In the text of a speech delivered Friday in Santiago, Chile, Williams said downside risks to employment have increased while upside risks to inflation have eased. “I view monetary policy as being modestly restrictive, although somewhat less so than before our recent actions,” he said. “Therefore, I still see room for a further adjustment in the near term to the target range for the federal funds rate to move the stance of policy closer to the range of neutral, thereby maintaining the balance between the achievement of our two goals.”

His remarks suggest another rate cut remains possible as Chair Jerome Powell seeks to build consensus in a divided committee ahead of the Dec. 9–10 meeting. After two consecutive rate cuts, several Fed officials have publicly questioned whether they would support another move in December.

In an interview with Bloomberg’s Odd Lots, Boston Fed President Susan Collins said keeping rates steady is “appropriate for now.”

Following Williams’ comments, investors increased their expectations for a December cut, with futures showing about a 65% probability of a reduction, up from around 45% before the speech.

The New York Fed president has historically been closely aligned with the Fed chair. Powell is not scheduled to speak again before the next policy meeting.

______

2. EQT to Acquire Majority Stake in Desotec

EQT AB agreed to acquire a majority stake in European environmental services company Desotec from Blackstone Inc., four years after originally selling the business to the US private equity firm.

EQT Future is partnering with German family offices Athos and Merckle, which will co-invest in the transaction, according to a Friday statement confirming an earlier Bloomberg News report. Blackstone will remain a minority shareholder.

Financial terms weren’t disclosed, but people familiar with the matter said the deal values Roeselare, Belgium-based Desotec at about €2 billion ($2.3 billion), including debt. The transaction is expected to close in the first half of next year. The majority stake sale represents roughly a 20% annual internal rate of return on Blackstone’s investment, the people said.

Founded in 1990, Desotec provides mobile filtration solutions using activated carbon to purify water, gases and air. Blackstone purchased the company from EQT in 2021 for an undisclosed amount.

EQT and Blackstone plan to support Desotec’s continued growth across Europe and accelerate its expansion in North America, where the company established operations two years ago.

______

3. US Consumer Sentiment Drops in November to One of Lowest Levels on Record

US consumer sentiment fell in November to one of the lowest readings on record as Americans grew more pessimistic about their personal finances.

The final November sentiment index declined to 51 from 53.6 in October, according to the University of Michigan — only slightly higher than the preliminary estimate.

The current conditions gauge slid 7.5 points to a record low of 51.1. Assessments of personal finances were the weakest since 2009. “Consumers remain frustrated about the persistence of high prices and weakening incomes,” said Joanne Hsu, director of the survey.

Consumers expect prices to rise at an annual rate of 4.5% over the next year, easing for a third month. Long-term inflation expectations fell to 3.4% from 3.9% in October.

Despite the moderation in inflation concerns, anxiety about the high cost of living and job security persists. The report showed the perceived probability of job loss climbed to the highest since July 2020.

Continuing unemployment insurance claims — a proxy for the number of people receiving benefits — rose earlier this month to the highest level in four years, indicating job seekers are finding it increasingly difficult to secure new employment.

______

4. Eli Lilly Becomes First Health-Care Company to Hit $1 Trillion Market Value

Eli Lilly & Co., the world’s largest drugmaker, has crossed a major milestone: it is now the first health-care company ever to reach a $1 trillion valuation, powered by investor enthusiasm for its weight-loss medicines.

Lilly shares rose as much as 1.7% Friday, sending its market value to about $1 trillion, according to Bloomberg data. That makes it the first pharmaceutical company — and the second US non-tech firm — to reach the threshold. Lilly became the world’s most valuable health-care company in 2023, fueled by soaring demand for its class of GLP-1 drugs for obesity and diabetes, and expectations that its next-generation weight-loss pill could help drive a market projected to hit $95 billion by 2030.

“At a trillion, it’s twice the size of the next largest company in health care,” said Mizuho strategist Jared Holz. “That’s an incredible situation for them.”

Despite headwinds this year — tariff threats, political pressure on drug pricing, and setbacks for its obesity franchise — Lilly has surged. Shares dipped in May when CVS Health dropped Zepbound from its preferred list in favor of Novo Nordisk’s Wegovy, but have since rallied on strong Q3 results, a raised outlook and an agreement with the Trump administration.

The stock has climbed 37% so far this year, following a 32% rally in 2024. Investors are doubling down on the view that Lilly will remain among the top beneficiaries of the global obesity-drug boom. High demand for weight-loss treatments, stronger-than-expected Zepbound sales, and progress in expanding manufacturing and its drug pipeline have helped Lilly overtake Novo in the obesity market.

A head-to-head study in May showed Zepbound reduced belly fat more effectively than Wegovy, and Lilly’s experimental pill matched Ozempic in weight-loss and blood-sugar control. Meanwhile, Novo has cut its annual forecast four times amid softer sales.

______

5. Figma Shares Briefly Fall Below IPO Price

Figma Inc. shares briefly fell below their initial public offering price for the first time Friday, becoming the latest of this year’s high-flying IPOs to unwind much of their early gains.

The stock dropped to as low as $32.83 — under its $33 July IPO price — before recovering to $34.12 as of early afternoon in New York.

Figma had one of the most spectacular US IPO debuts in decades: the stock surged 250% to $115.50 on July 31, the biggest first-day pop for a $1 billion-plus IPO in at least 30 years. It hit $142.92 the following day.
But amid concerns that AI-related tech spending is entering bubble territory, many recent blockbuster listings — including Figma, Circle Internet Group and CoreWeave — have given back massive gains.

Figma recently issued better-than-expected revenue and profit guidance, highlighting strong adoption of new AI-powered tools. CEO Dylan Field said Figma Make — which can create app interfaces and code from prompts — “has seen a ton of adoption.”

The weighted average return for this year’s US IPO cohort (excluding SPACs) has fallen to just 0.3%, Bloomberg data show.

______

6. Tesla Sued Over Deadly Washington Crash

Tesla Inc. is facing a new lawsuit over a fiery crash in Washington state that left one person dead and another severely injured after rescuers allegedly couldn’t open the vehicle’s doors due to its electronic handle design.

The January 2023 accident occurred when Jeffery Dennis and his wife, Wendy, were driving their Model 3. The vehicle “suddenly and rapidly accelerated out of control,” struck a utility pole and burst into flames, according to the lawsuit filed Friday. The complaint alleges Tesla’s “unique and defective door handle design” made the doors inoperable and impeded rescue efforts. Wendy died at the scene, while Jeffery suffered severe injuries, including burns.

“Several bystanders ran to help, but the Model 3’s door handles wouldn’t operate,” the lawsuit states. “Some even tried using a baseball bat to break the windows.”

Electric door controls have come under renewed scrutiny after a Bloomberg News investigation revealed incidents where occupants were unable to escape after a crash due to loss of power.
The lawsuit follows another case in Wisconsin, where five occupants of a crashed Model S allegedly became trapped in a fast-moving fire. Additionally, Tesla was sued in October over claims that defective Cybertruck doors prevented three college students from escaping before dying of smoke inhalation.

______

7. BLS Cancels October CPI Report

The Bureau of Labor Statistics has canceled its October consumer price index report, saying it was unable to retroactively obtain key data that weren’t collected during the US government shutdown.

The agency said it can retrieve some components of October pricing and will publish them “where possible” within the November CPI release, now rescheduled for Dec. 18 — after the Federal Reserve’s final policy meeting of the year.

The announcement follows BLS’s decision to cancel the October jobs report due to similar data-collection gaps. Economists had flagged the CPI as particularly vulnerable because roughly 60% of the index relies on in-person price collection.
BLS said it cannot release October’s “all-items” or “core” CPI. “The number of indexes composed of nonsurvey data is very limited,” said Emily Liddel, BLS associate commissioner.

This marks the first time in decades — going back to at least 1994 — that a monthly CPI report will not be published. The White House previously said the October jobs and CPI data would “likely never” be released.

The November CPI report will also omit any one-month percent changes involving missing October data.

CPI is a major US inflation gauge influencing the incomes of over 100 million people. Much of its data comes from in-person visits to retail and service locations, supplemented by phone, online and third-party sources.

During the shutdown, no data collectors worked, though BLS recalled staff temporarily to publish the September CPI so the Social Security Administration could calculate cost-of-living adjustments.

Paramount remains the only party The Nasdaq-100 fell 2.4%, extending its drop from the Oct. 29 record to 7.9%.
BLS was already strained by staffing shortages before the shutdown, forcing it to suspend parts of the CPI sample and rely more heavily on imputation. It has lacked a permanent commissioner since President Donald Trump dismissed the previous one in August, and about one-third of senior leadership roles remain vacant.

______