Market Beats | Founder of iFinD Sees Wealth Triple; Bitcoin Finally Breaks $100K; Insurers Face $100 Billion in Disaster Payouts; Goldman Sachs’ Marcus Savings Rate Drops Below 5%

1. Founder of iFinD Sees Wealth Triple

2. Bitcoin Finally Breaks $100K

3. Insurers Face $100 Billion in Disaster Payouts

4. McDonald’s Tries to Win Back Customers

5. Goldman Sachs’ Marcus Savings Rate Drops Below 5%

6. U.S. Trade Deficit Narrows

7. Eli Lilly Invests $3 Billion to Expand Production

1. Founder of iFinD Sees Wealth Triple

China’s stock market surged after a series of stimulus policies were announced in September. According to HSBC data, new A-share accounts in October reached 6.85 million, far exceeding the 1.5 million monthly average for the first nine months of 2024.

iFinD, a popular A-share trading platform founded by billionaire Yi Zheng, was one of the biggest beneficiaries. Since the policy announcement, iFinD’s stock price has skyrocketed, boosting Yi Zheng’s net worth by 190% to $9.2 billion, as he holds a 36% stake in the company.

Over the past two months, the 30-day volatility of China’s CSI 300 Index has reached its highest level since 2015, a period when China’s economy was growing rapidly but the stock market underperformed.

iFinD has over 19 million weekly active users and reported revenue of 3.6 billion yuan ($500 million) in 2023.

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2. Bitcoin Finally Breaks $100K

Last night, Bitcoin finally broke the historic $100,000 mark after multiple failed attempts, following Donald Trump’s appointment of pro-crypto advocate Paul Atkins as the new chairman of the SEC.

Dan Gallagher, Robinhood Markets’ chief legal officer who withdrew from consideration for the SEC chairmanship in November, commented that Paul is well-suited for the role and is expected to make a statement on cryptocurrency regulation on his first day in office.

Bitcoin’s market cap has now surpassed $2 trillion, making it smaller only than companies like Nvidia and Apple.

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3. Insurers Face $100 Billion in Disaster Payouts

A new study from Swiss Re Institute estimates that global insurance companies will pay out $135 billion in claims for natural disasters in 2024, a 17% increase from the previous year. The U.S. alone is expected to account for at least two-thirds of the total due to a surge in severe thunderstorms.

For the past five years, insurance payouts have exceeded $100 billion annually. The increased frequency of natural disasters, driven by climate change, along with urban development, has heightened financial risks.

This year, hurricanes Helene and Milton in the U.S. are projected to cause nearly $50 billion in damages. Meanwhile, Storm Boris in Central Europe and heavy rains in Spain are expected to result in $10 billion in losses.

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4. McDonald’s Tries to Win Back Customers

McDonald’s Chairman Joe Erlinger told Bloomberg that since the E. coli outbreak on October 22, most customers have continued dining at McDonald’s, though a small percentage have reduced or paused their visits.

To regain customer trust and business, McDonald’s is rolling out new advertisements, discounts, and meal deals.

In October, McDonald’s temporarily removed its Quarter Pounder burger from the menu. On Tuesday, the U.S. CDC announced that after an investigation, the E. coli outbreak has officially ended.

Earlier this year, McDonald’s introduced a $5 meal deal, which successfully attracted customers and reversed declining revenue.

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5. Goldman Sachs’ Marcus Savings Rate Drops Below 5%

Goldman Sachs’ consumer banking unit, Marcus, has lowered its savings account interest rate from 4.1% to 3.9%, marking the fourth rate cut this year. The Federal Reserve is expected to cut rates again this month.

In recent years, savings account interest rates had surged above 5%, providing stable returns for depositors.

However, as the Fed cuts rates and the stock market remains strong, consumers are shifting more cash into high-risk assets.

This year, the Fed has already implemented two rate cuts, and a third cut is expected to be more cautious and conservative.

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6. U.S. Trade Deficit Narrows

The U.S. Department of Commerce reported today that the U.S. trade deficit narrowed by 12% in October to $73.8 billion, retreating from a two-year high as businesses reduced imports of consumer goods and corporate equipment.

Total imports declined by 4% to $339.6 billion, marking a four-month low and exceeding the 1.6% drop in exports, leading to a smaller trade gap.

Over the past few months, U.S. businesses have ramped up imports to prepare for the holiday shopping season. However, with inventories now well-stocked and port strikes occurring in some regions, additional imports are no longer necessary.

Some companies may accelerate purchases before January in anticipation of higher tariffs if Trump is re-elected and imposes stricter trade policies.

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7. Eli Lilly Invests $3 Billion to Expand Production

Pharmaceutical giant Eli Lilly has announced an additional $3 billion investment to expand its U.S. production capacity for weight-loss and diabetes drugs.

Recently, Lilly acquired a manufacturing plant in Wisconsin, and the new investment will fund its expansion, with construction expected to begin early next year.

The company has already committed $4 billion in investments in Wisconsin, and since 2020, it has announced a total of $23 billion in global manufacturing expansions.

Fueled by strong demand for its weight-loss drug Zepbound, Eli Lilly has become the world’s most valuable pharmaceutical company.

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