Market Beats | Xiaohongshu’s Profit Surpasses $1 Billion; China Increases Fiscal Spending to Boost Consumption; U.S. Jobless Claims Exceed Expectations; Trump to Meet Bezos Next Week; U.S. Household Net Worth Hits Record High

1. China Increases Fiscal Spending to Boost Consumption

2. U.S. Jobless Claims Exceed Expectations

3. Soros Acquires Popular YouTube Interview Show

4. Adobe Stock Plunges 12%

5. Xiaohongshu’s Profit Surpasses $1 Billion

6. Trump to Meet Bezos Next Week

7. U.S. Household Net Worth Hits Record High

1. China Increases Fiscal Spending to Boost Consumption

According to CCTV, two senior Chinese officials pledged at the Central Economic Work Conference in Beijing to increase fiscal spending in 2025 to stimulate consumption and economic growth.

Additionally, policymakers indicated that they would lower the benchmark interest rate and banks’ reserve requirement ratio at an appropriate time.

China’s primary economic objective for 2025 is aggressive economic expansion, supported by policies designed to stimulate domestic consumption.

Several domestic and international economists predict that China may lower interest rates by at least 40 basis points in 2025.

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2. U.S. Jobless Claims Exceed Expectations

According to the latest data from the U.S. Department of Labor, the number of initial jobless claims rose by 17,000 to 242,000 for the week ending December 7, surpassing the economists’ median forecast of 220,000. The four-week moving average also increased, with a rising trend across most states.

The number of continuing jobless claims climbed to 1.89 million, hovering near a three-year high for nearly two months, suggesting that finding new jobs is becoming more difficult for the unemployed.

California led the rise in jobless claims, followed by Texas and New York.

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3. Soros Acquires Popular YouTube Interview Show

The well-known YouTube food interview show First We Feast announced that its parent company, BuzzFeed, has sold it for $82.5 million to a consortium of investors, including Soros Fund Management, Crooked Media, and Mythical Entertainment.

BuzzFeed had been actively trying to sell First We Feast in recent months to raise cash to repay a $120 million loan.

Following the acquisition, First We Feast will retain its senior management team. Founder Chris Schonberger will become CEO, and host Sean Evans will serve as Chief Creative Officer.

The show features Sean Evans interviewing guests on various topics while tasting chicken wings with increasingly spicy sauces.

BuzzFeed has been struggling financially in recent years, with its market value plunging from $1.5 billion to $163 million.

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4. Adobe Stock Plunges 12%

On Thursday, creative software company Adobe projected revenue of $23.4 billion and adjusted earnings per share of $20.2 to $20.5 for the next fiscal year ending in November 2025, both of which fell short of economists’ expectations.

Adobe recently launched several generative AI features, including an AI video generation tool introduced in October, which has been integrated into its Premiere editing software and may soon be available to the public.

Following the announcement, Adobe’s stock plummeted 12% to $482.2, marking its biggest single-day decline in nine months.

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5. Xiaohongshu’s Profit Surpasses $1 Billion

Insiders revealed that the Instagram-like Chinese social media platform Xiaohongshu is expected to double its net profit this year, exceeding $1 billion, driven by strong user growth.

In 2021, Xiaohongshu was valued at $20 billion in a financing round. The platform’s users share posts on travel, food, and life hacks, which are highly engaging and retain a strong user base. Currently, Xiaohongshu has 300 million monthly active users.

As a private company, Xiaohongshu is not required to disclose financial data but shares its figures with potential investors.

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6. Trump to Meet Bezos Next Week

In an interview with CNBC, former U.S. President Donald Trump revealed that he has invited Amazon founder Jeff Bezos to meet with him next week.

Facebook founder Mark Zuckerberg has already met with Trump, and Tesla CEO Elon Musk maintains close ties with him.

Bezos has multiple business dealings with the federal government. His space venture, Blue Origin, has contracts with NASA, while Amazon Web Services (AWS) is a key contractor for the Department of Defense and intelligence agencies.

Bezos has expressed optimism about Trump’s potential new term and hopes to assist in easing regulatory policies.

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7. U.S. Household Net Worth Hits Record High

The latest survey from the Federal Reserve shows that U.S. household net worth increased by 2.9% in the third quarter to a record $168.8 trillion, driven by a booming stock market.

The value of U.S. households’ stock holdings rose by $3.8 trillion, although real estate values declined by $200 billion.

For years, household consumption has been a major driver of the U.S. economy, fueled by strong wage growth. However, with high loan interest rates and living costs, economists predict that consumer spending may slow down.

Consumer non-mortgage debt increased by 2.5%, while mortgage debt grew by 3.1%.

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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.