Market Beats | BlackRock Acquires HPS for $12 Billion; China Bans Export of Superhard Materials to U.S.; U.S. Stock Market Surge Forces Short Sellers to Surrender; U.S. Job Openings Reach 7.7 Million; SpaceX Considers Internal Share Sale

1. BlackRock Acquires HPS for $12 Billion

2. China Bans Export of Superhard Materials to U.S.

3. U.S. Stock Market Surge Forces Short Sellers to Surrender

4. U.S. Job Openings Reach 7.7 Million

5. SpaceX Considers Internal Share Sale

6. Amazon Launches Data Center Efficiency Components

7. U.S. Thanksgiving Shopping Numbers Decline

1. BlackRock Acquires HPS for $12 Billion

BlackRock announced the acquisition of HPS Investment Partners for approximately $12 billion in an all-stock deal, positioning the world’s largest asset manager as a leading player in private credit.

As part of the transaction, HPS founders Scott Kapnick, Scott French, and Michael Patterson will lead BlackRock’s newly created private financing solutions unit. BlackRock stated that the move aims to offer clients comprehensive services, including public fixed-income and alternative credit funds.

BlackRock CEO Larry Fink emphasized the importance of integrating public and private market strategies in an analyst call, highlighting HPS’s strong position in the rapidly growing private credit industry.

After the acquisition, BlackRock’s private credit assets are expected to reach around $220 billion, making it one of the top five private credit firms globally.

Following the announcement, BlackRock’s stock rose 0.9% in early New York trading to $1,029.02.

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2. China Bans Export of Superhard Materials to U.S.

China’s Ministry of Commerce announced today that it will ban the export of several key materials with high-tech and military applications to the U.S.

According to the ministry’s statement, the banned materials include gallium, germanium, antimony, and superhard materials, along with tighter sales controls on graphite. These metals are widely used in semiconductor manufacturing, satellites, and night vision technology.

This move is a response to the Biden administration’s recent tightening of technology restrictions. On Monday, the U.S. imposed new limitations on the sale of high-bandwidth memory chips to China, aiming to slow China’s progress in advanced semiconductors and AI systems.

China is the world’s largest supplier of many critical minerals. Since China began restricting exports of gallium and germanium last year, Washington has grown increasingly concerned about China’s dominance in these resources.

These export restrictions have caused prices to surge and severely disrupted trade flows, forcing U.S. manufacturers to seek alternative suppliers.

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3. U.S. Stock Market Surge Forces Short Sellers to Surrender

According to Citigroup strategists, with the S&P 500 reaching all-time highs and on track for its best annual performance since 2021, many short sellers are capitulating.

The strong rally has pushed the S&P 500 up 27% this year. Additionally, investors are optimistic about Trump’s potential return to office, expecting tax cuts and deregulation that could further boost markets.

In contrast, investor sentiment toward European equities remains significantly more bearish. Euro Stoxx 50 futures currently hold a net short position, and ETF outflows from European markets are accelerating. Slower economic and corporate earnings growth, coupled with political instability in France and Germany, have led investors to avoid European stocks.

Despite this, Citigroup strategists noted that all long futures positions in European markets are currently unprofitable. However, market sell-offs have been moderate, and the risk of liquidation remains low.

Some investors are beginning to buy into DAX and FTSE 100 futures, potentially signaling a return to European markets.

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4. U.S. Job Openings Reach 7.7 Million

The U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey (JOLTS) reported that the U.S. labor market remained stable in October, with job openings rising while layoffs declined.

Job openings increased from a revised 7.37 million in September to 7.74 million in October, surpassing economists’ median forecast of 7.52 million.

The largest job gains were seen in professional and business services, as well as accommodation and food services. The report also noted that layoffs fell to their lowest level since June, while the number of voluntary resignations rose to the highest level since May, suggesting increased worker confidence in finding new jobs.

Leading Wall Street firm Goldman Sachs earned $901 million in equity underwriting fees in the first nine months of the year.

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5. SpaceX Considers Internal Share Sale

Sources revealed that SpaceX is considering an internal share sale, valuing the company at approximately $350 billion. This potential transaction would cement SpaceX’s position as the world’s most valuable startup, putting its market cap on par with some of the largest publicly traded companies.

SpaceX has established itself as the leading provider of rocket launch services, delivering satellites, cargo, and astronauts to space for NASA, the Pentagon, and commercial clients. The company is also building the Starlink satellite network to provide global internet coverage.

Since the U.S. election, Musk’s businesses have gained momentum, and investors are optimistic about his growing ties with President-elect Trump.

According to Bloomberg’s Billionaires Index, Musk’s net worth has surged to approximately $353 billion.

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6. Amazon Launches Data Center Efficiency Components

Amazon’s cloud computing division is introducing new components designed to improve data center efficiency, a move that could help mitigate the immense power consumption of server farms.

Amazon Web Services (AWS) has incorporated more efficient cooling systems, backup generators powered by renewable diesel, and optimized server rack layouts into its latest data center designs.

Some of these components are already in place, while others will be deployed in upcoming data centers. AWS is also introducing liquid cooling systems to accommodate high-performance chips from companies like Nvidia, which cannot be effectively cooled with traditional fans.

Amazon has committed $75 billion in capital expenditures, with most of the funds allocated to AWS servers, chips, and cooling systems.

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7. U.S. Thanksgiving Shopping Numbers Decline

According to estimates from the National Retail Federation (NRF) and Prosper Insights & Analytics, approximately 197 million shoppers made purchases between Thanksgiving and Cyber Monday, including both online and in-store sales. This represents a 1.7% decline from last year’s record 200.4 million shoppers.

However, the number of in-store shoppers rose by 3.8% to 126 million, while online shoppers decreased by 7.4% to 124.3 million.

The NRF stated that although overall shopper numbers declined from last year, they still exceeded initial projections. NRF CEO Matthew Shay noted in a Tuesday press call that consumers have become more deliberate in their spending, prioritizing gifts and holiday essentials while opting for in-store experiences.

During the pandemic, consumers shifted spending from services to goods, but this trend is now reversing.

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