1. U.S. Avocado Prices Surge；
2. Point72 Spends $50 Million to Poach Talent；
3. U.S. to Impose 10% Tariff on China Starting Tomorrow；
4. Walgreens Stock Plummets 17% in a Single Day；
5. Manhattan Luxury Condo Values Rise 17%；
6. OpenAI Launches Free Model；
7. U.S. Tariffs Cause Stock Market Decline
1. U.S. Avocado Prices Surge
Starting tomorrow, the U.S. will impose a 25% tariff on Mexico. Given that over 90% of avocados in the U.S. come from Mexico, avocado lovers in the U.S. will likely have to pay higher prices.
According to NielsenIQ, avocado prices have already risen by 14% compared to a year ago, while the costs of other agricultural products have remained relatively stable. The Super Bowl on February 9 is expected to further drive up demand and prices.
Consulting firm Datum FS stated that avocados have become an indispensable part of the American diet.
However, drought conditions have reduced both the yield and average size of Mexican avocados.
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2. Point72 Spends $50 Million to Poach Talent
Sources reveal that the prominent hedge fund Point72 Asset Management has recruited fund manager Kevin Liu from Marshall Wace with a compensation package worth at least $50 million.
Kevin, who resides in New York, will join the company later this year. His package includes a multi-year contract and compensation for the earnings he forfeited by leaving Marshall Wace.
Compensation packages exceeding $50 million are becoming increasingly common in the hedge fund industry. Last year, Balyasny Asset Management spent over $200 million to hire talent from rival firms.
Kevin worked at Marshall Wace for eight years, primarily investing in the global TMT sector.
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3. U.S. to Impose 10% Tariff on China Starting Tomorrow
White House Press Secretary Karoline Leavitt confirmed after meeting with President Trump that the U.S. will impose a 25% tariff on Canada and Mexico and a 10% tariff on China, effective February 1.
She dismissed previous reports claiming Trump would delay the tariffs by a month as false.
Leavitt stated that it is uncertain whether Trump will lower these tariffs in the future, but what is certain is that the tariffs will take effect tomorrow. She did not disclose which categories of goods would be exempted.
Sources indicate that Trump’s border czar, Tom Homan, will meet with Canadian officials today.
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4. Walgreens Stock Plummets 17% in a Single Day
Stefano Pessina, chairman and largest shareholder of Walgreens, merged his Alliance Boots company with Walgreens in 2014. Now 83 years old, he never expected to have to seek financing for this once-dominant giant.
Walgreens’ stock hit an all-time high in 2015 but has been declining for more than nine years.
Today, Walgreens announced the cancellation of its quarterly dividend for the first time in 92 years to conserve its dwindling cash reserves. As a result, the company’s stock plunged 17%.
Shareholders hope a new buyer will take the company private and fix its operations.
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5. Manhattan Luxury Condo Values Rise 17%
GO Partners, the owner of the luxury riverside condominium 685 First Avenue in Manhattan, secured a $240 million refinancing loan from Apollo Global Management.
The property’s valuation in this debt issuance reached $450 million, 16% higher than its 2022 purchase price. That year, GO Partners acquired the building from Soloviev Group for nearly $390 million.
In recent years, investors have been eager to purchase residential buildings in Manhattan due to New York City’s severe housing shortage.
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6. OpenAI Launches Free Model
In response to the free and open-source DeepSeek model, OpenAI today launched the new free model o3-mini, along with the more powerful o3 version. Both models can answer data, programming, and scientific questions.
However, OpenAI had already announced last year that it would release o3-mini by the end of January. The DeepSeek event just happened to take place a few days prior.
OpenAI is currently conducting its latest $40 billion funding round, which could push its valuation to $300 billion.
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7. U.S. Tariffs Cause Stock Market Decline
The U.S. stock market fell overall this afternoon, with auto companies and Chinese firms leading the decline, as Trump confirmed that tariffs would take effect tomorrow as planned.
A group of companies identified by UBS as most impacted by the tariffs collectively dropped 3.7%, while the S&P 500 reversed its earlier gains and closed down 0.5%. The Bloomberg Dollar Index hit a new high following the news. Meanwhile, the stock market’s VIX volatility index surged past 16.
Investors fear that Trump’s tariffs will exacerbate inflation, contradicting the Federal Reserve’s and the public’s objectives.
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This report contains information sourced from Financial Times, Bloomberg, The Real Deal, and other financial news media.