1. China Approves AstraZeneca RSV Vaccine;
2. Japan Airlines Plane Catches Fire;
3. Barclays Downgrades Apple Stock;
4. Tesla Trails BYD in Sales;
5. Harvard President Claudine Gay Resigns;
6. Private Equity Firms Face Exit Challenges;
7. Nasdaq Tumbles as Investors Take Profits.
1. China Approves AstraZeneca RSV Vaccine
Today, pharmaceutical company AstraZeneca announced that China’s National Medical Products Administration has approved its RSV vaccine Beyfortus, co-developed with Sanofi.
However, the vaccine may not be available until the 2024–2025 RSV season. China’s market demand for RSV vaccines is currently very high, valued at $1.5 billion, second only to the U.S. Minsheng Securities estimates China’s share of global RSV vaccine sales could reach 10% by 2030.
Infants infected with RSV risk serious breathing issues or even death. Beyfortus is one of the first vaccines available for large-scale prevention of RSV.
RSV poses the greatest risk to children under two, but adults can be affected as well.
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2. Japan Airlines Plane Catches Fire
A Japan Airlines Airbus A350-900 caught fire after colliding with a small aircraft. Fortunately, all 379 passengers and crew were evacuated before the fire engulfed the plane.
The JL517 flight, in service for only two years, took off from Chitose Airport at 4:27 p.m. and landed at Haneda Airport at 5:47 p.m.
Airbus stated it has contacted Japan Airlines but had no further details. The airline operates 16 A350-900s and has orders for the larger A350-1000. The JL517 may be the first A350 ever to be completely destroyed.
After the incident, Haneda Airport shut down, with over 110 flights canceled or diverted.
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3. Barclays Downgrades Apple Stock
Barclays analyst Tim Long and his team downgraded Apple stock today and lowered their price target to $160, implying a potential 17% drop over the next year.
The analysts noted weaker-than-expected iPhone sales last quarter and predicted continued weakness in iPhone 15 sales. They also expressed skepticism that the iPhone 16 will offer compelling upgrades.
Despite weak economic conditions, Apple’s stock surged 50% last year to a record high, pushing its market cap above $3 trillion. However, growing competition from Huawei may pose additional pressure.
Wall Street consensus expects Apple shares to rise 3.6% over the next year.
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4. Tesla Trails BYD in Sales
Tesla’s latest report shows it delivered 484,507 electric vehicles in Q4, beating analysts’ forecast of 483,173. However, Chinese automaker BYD sold 526,409 EVs, becoming the global leader thanks to more competitive pricing and wider model options.
Tesla did surpass its 1.8 million annual delivery goal but fell short of the more ambitious target set by Elon Musk last year. Multiple rounds of price cuts failed to spur demand.
Tesla’s stock jumped over 102% last year, recovering from losses tied to its Twitter acquisition.
In 2023, China surpassed Japan as the world’s largest exporter of passenger vehicles.
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5. Harvard President Claudine Gay Resigns
Today, Claudine Gay resigned as president of Harvard University.
She was appointed in July as Harvard’s first Black president. Her tenure lasted only a few months, cut short by intense criticism over past academic plagiarism and her response to antisemitism on campus. Facing mounting pressure, she stepped down but will remain on staff.
Previously, over 30 Harvard students protested Israeli violence, prompting former president Larry Summers to condemn the university’s inaction.
In academia, plagiarism is a serious offense—Stanford’s president Marc Tessier-Lavigne resigned after retracting two papers.
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6. Private Equity Firms Face Exit Challenges
According to S&P Global Market Intelligence, private equity firms held $2.59 trillion in undeployed capital as of December 15. The top 25 firms, including Blackstone, KKR, Apollo, and CVC Capital, account for 25% of this total.
PE executives say 2024 will be tough for successfully exiting existing investments while finding new opportunities.
With IPO and M&A markets still sluggish, exit deals hit a 10-year low last quarter. PE firms currently hold $2.8 trillion in unsold investments. Bain Capital warned of a market “logjam.”
Many institutional investors haven’t recovered their original capital in the past five years.
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7. Nasdaq Tumbles as Investors Take Profits
The Nasdaq 100 fell more than 2% today, marking its largest one-day drop in two months, as investors took profits after a strong rally. U.S. stocks added $8 trillion in market value in 2023.
Fundstrat Global Advisors analyst Tom Lee said the first five trading days of the year often set the tone. If performance stays weak, he may scale back his bullish outlook. Lee still expects U.S. stocks to reach new highs in January and stay in a range for the first half of the year.
The CBOE VIX volatility index rose 8% today, though it remains at relatively low levels.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.