—— $21 Billion Flows into China Stocks; Trafigura Defrauded of $577 Million; U.S. Jobless Claims Rise; Disney Lays Off 7,000 as Stock Surges; Credit Suisse Reports Record Loss; Toshiba Gets $15 Billion Buyout Offer; Calorie Restriction Slows Aging
1. $21 Billion Flows into China Stocks
According to the latest data, global investors have poured $21 billion into China’s stock market since the start of 2023—more than double the amount during the same period last year—boosted by strong economic indicators and signs of recovery.
China’s stock market has seen a significant rally since last year. From the end of October to the present, the CSI 300 Index—which tracks major Chinese companies—has risen over 13%.
Frank Benzimra, Head of Asia Equity Strategy at Société Générale, said overseas investors had been waiting for clear signs of China’s recovery, and the current trajectory looks promising.
On Tuesday, Fitch Ratings upgraded its forecast for China’s economic growth from 4.1% to 5%.
Recent Chinese economic data has been strong, prompting international investors to ramp up their exposure to China stocks.
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2. Trafigura Defrauded of $577 Million
According to sources familiar with the matter, metals trading giant Trafigura Group has spent the past two months investigating missing nickel cargoes.
The company believes it was the target of a systematic fraud and has filed a lawsuit against Indian businessman Prateek Gupta and several other associated metal trading firms.
Over the past decade, Trafigura has become one of the industry’s leading players. This nickel-related fraud has dealt the firm a significant blow—Trafigura has already written down a $577 million loss, though that figure may be reduced if any compensation is recovered.
Socrates Economou, head of nickel and cobalt trading at Trafigura, will leave the company. However, Trafigura stated there is no indication that internal staff were involved in the scheme.
Trafigura discovered that a shipment arriving just before Christmas contained low-grade materials instead of the nickel it had purchased.
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3. U.S. Jobless Claims Rise
According to data released today by the U.S. Department of Labor, initial jobless claims rose for the first time in six weeks, increasing by 13,000 to 196,000 for the week ending February 4—slightly above the economist forecast of 190,000.
Continuing claims also rose to 1.69 million for the week ending January 28.
Over the past few months, the Federal Reserve’s aggressive rate hikes have not significantly impacted the job market. Although major tech companies have made large layoffs recently, smaller firms are still struggling to hire and must offer higher wages to retain staff.
Currently, the four-week moving average of initial claims has fallen to 189,000, the lowest since late April 2022, indicating continued labor market strength.
While jobless claims have risen slightly, the low moving average suggests the labor market remains “too” healthy.
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4. Disney Lays Off 7,000 as Stock Surges
This week, Walt Disney CEO Bob Iger announced that the company will cut 7,000 jobs and aim to save $5.5 billion over the next few years through restructuring. The company also plans to accelerate profitability at its streaming business through innovative content.
Following the announcement of the restructuring plan, Disney’s share price surged by 9%.
Last year, Disney+ posted a quarterly loss of $1.5 billion, leading to the dismissal of former CEO Bob Chapek by the board.
According to the earnings report released Wednesday, Disney+ losses narrowed to $1.1 billion in the last quarter, exceeding expectations.
In the same quarter, Disney’s revenue rose 8% to $23.5 billion, and net profit rose 11% to $1.3 billion, both well above analyst forecasts.
Disney’s revenue increased last quarter while costs came in lower than expected, driving a strong stock rally.
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5. Credit Suisse Reports Record Loss
According to Credit Suisse’s quarterly earnings report released today, the bank posted a $1.5 billion loss—its largest since the 2008 financial crisis—driven by falling investment banking revenue and reduced assets under wealth management.
Credit Suisse also warned this morning that it expects to incur another large loss in 2023.
In Q4, clients withdrew $120.7 billion from the bank, with two-thirds of the outflow occurring in October amid panic fueled by social media rumors about the bank’s instability.
The stock plunged 10% this morning and is down 60% over the past year.
Fears over Credit Suisse’s operational health prompted clients to withdraw funds en masse.
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6. Toshiba Gets $15 Billion Buyout Offer
Today, Japanese conglomerate Toshiba announced that it has received a $15 billion buyout offer from a consortium led by Japan Industrial Partners (JIP). The group includes Orix, Chubu Electric, chipmaker Rohm, and other Japanese firms.
The 147-year-old company nearly collapsed over the past eight years due to accounting scandals and other financial turmoil.
Toshiba said its board will evaluate the offer and make a decision in the best interest of shareholders and other stakeholders. The prospect of privatizing one of Japan’s most iconic companies has drawn interest from global private equity firms such as Bain Capital and CVC. In October, Toshiba named the JIP-led group as the preferred bidder.
Although Toshiba’s management appears to support the deal, it has been delayed for months due to funding issues on the buyer’s side.
Toshiba was hit by financial scandals in 2015, and its U.S. nuclear subsidiary once triggered a financial crisis.
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7. Calorie Restriction Slows Aging
A new study by Columbia University has found that reducing caloric intake by 25% can significantly slow the aging process in humans and lower the risk of death.
The study showed that participants who followed a strict calorie-reduction diet experienced a 2–3% slowdown in aging, along with a 10–15% reduction in mortality risk—an effect comparable to quitting smoking.
However, co-director of the Columbia research team, Calen Ryan, noted that long-term calorie restriction is likely impractical for most people. The most important takeaway is that slowing the aging process is scientifically achievable. The study also supported the effectiveness of intermittent fasting.
The research team is continuing to monitor the subjects’ biomarkers in hopes of identifying additional long-term health benefits.
The Columbia study found that managing caloric intake and eating windows can effectively slow biological aging.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.