Market Beats | Zelenskiy to Speak with Trump Today; Pfizer Sold All Remaining Stakes in Haleon; Morgan Stanley to Cut 2,000 Jobs; Global Music Revenue Growth Slows; Earth CO2 Concentration Hits New High in 800k Years; Fed Holds Rate Steady While Stock Continues Rebound

—— Zelenskiy to Speak with Trump Today; Pfizer Sold All Remaining Stakes in Haleon; Morgan Stanley to Cut 2,000 Jobs; Global Music Revenue Growth Slows; Earth CO2 Concentration Hits New High in 800k Years; Fed Holds Rate Steady While Stock Continues Rebound

1. Zelenskiy to Speak with Trump Today

Volodymyr Zelenskiy, Ukraine’s President, announced that he will have a phone conversation with Donald Trump on Wednesday. This follows a day after Trump’s dialogue with Vladimir Putin, which did not secure Russia’s agreement for a 30-day ceasefire in Ukraine.

During a press conference in Helsinki, Zelenskiy expressed a resolute stance, asserting that Ukraine will never acknowledge the territories currently under Russian occupation as part of Russia. He further emphasized that the size of the Ukrainian military should not be a topic for discussion with Putin.

In a lengthy phone call on Tuesday, lasting two and a half hours, Putin consented to limit assaults on Ukraine’s energy facilities but did not agree to the ceasefire that Trump’s administration had hoped would contribute to ending Putin’s invasion, now in its third year.

The discussion instead led to commitments from both parties to commence talks on a maritime ceasefire in the Black Sea and towards a “full ceasefire and permanent peace,” according to a statement from the White House.

Zelenskiy responded to these developments by stating that mere promises from Putin regarding the cessation of attacks on Ukraine’s energy infrastructure are insufficient for Ukraine to stop its offensives against Russian oil assets.

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2. Pfizer Sold All Remaining Stakes in Haleon

Pfizer Inc. successfully raised approximately £2.55 billion ($3.3 billion) by selling off its remaining 7.3% stake in Haleon Plc, marking the completion of its long-term plan to divest from the consumer health company known for products like Sensodyne toothpaste.

The sale involved approximately 618 million shares, which were offered to investors at a price of £3.85 each, representing a 1.6% discount to Haleon’s closing price on Tuesday, as detailed in a statement released Wednesday. The offering attracted significant interest, with investor demand multiple times the size of the offering.

In addition to the public sale, Pfizer engaged in a direct transaction with Haleon, selling about £170 million worth of shares back to Haleon through an off-market share repurchase. Following these transactions, Haleon’s shares experienced a slight decrease of 0.2% in early trading in London on Wednesday.

Pfizer has been systematically reducing its stake in Haleon, having previously raised £2.5 billion in a block trade in January. The New York-based pharmaceutical giant has indicated for several years its intention to completely divest its interest in Haleon. Similarly, GSK has also sold its holdings in Haleon, finalizing its separation from the company last year.

Haleon has reported strong financial results for the fourth quarter of 2024, and while it anticipates further improvements in the current year, it expects these gains to be more pronounced in the second half.

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3. Morgan Stanley to Cut 2,000 Jobs

Morgan Stanley is preparing to lay off approximately 2,000 employees later this month, marking the first significant reduction in its workforce under the leadership of Chief Executive Officer Ted Pick.

The cuts will be implemented across the firm, excluding its roughly 15,000 financial advisers. These plans were already in development prior to the recent market disturbances, according to sources familiar with the situation.

This strategic decision is part of an effort to manage costs effectively as the company faces minimal employee turnover. A spokesperson for the New York-based investment bank declined to provide comments on the matter.

These layoffs are part of a broader trend of workforce reductions on Wall Street, reflecting ongoing economic uncertainties. For example, Goldman Sachs Group Inc. recently accelerated its annual workforce trimming, planning to eliminate 3% to 5% of its staff this spring.

The anticipation of increased market activity following Donald Trump’s election victory in November has yet to fully materialize, with many clients still adjusting to tariffs and other policy shifts. Treasury Secretary Scott Bessent recently commented on the market downturn, noting that he is not concerned and that such market corrections are normal and healthy.

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4. Global Music Revenue Growth Slows

The global recorded music industry experienced a notable slowdown in growth last year, with overall revenues increasing by only 4.8% to nearly $30 billion, a sharp decline from the over 10% growth observed in 2023. This represents the slowest growth rate in nearly a decade, according to data from the International Federation of the Phonographic Industry (IFPI).

This downturn was primarily driven by a decrease in physical music revenues, which fell by 3.1% to $4.8 billion. This follows a surprising 13.4% increase the previous year, fueled by a resurgence in consumer interest in vinyl and tapes during the Covid-19 pandemic. While vinyl sales continued to see modest growth last year, appealing primarily to collectors, sales of CDs and tapes declined.

Additionally, the music industry is currently facing challenges related to the impact of artificial intelligence on copyright laws. There are concerns among industry executives about AI technologies that use copyrighted music to train their models without permission from rights holders. Victoria Oakley, CEO of IFPI, emphasized the threat that unauthorized use of copyrighted music by AI developers poses to human artistry.

Dennis Kooker, President of Global Digital Business at Sony Music Entertainment, highlighted that AI technology companies are actively lobbying for legal exceptions and loopholes that could undermine copyright protections. He pointed out recent legislative proposals in the UK and the US that could allow AI companies to use copyrighted material unless an opt-out is explicitly filed by the rights holders, a move that has sparked considerable opposition from artists and industry stakeholders.

The United States, which is the largest market for the music industry, also showed signs of weakening, with growth tapering to just 2.2% last year.

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5. Earth CO2 Concentration Hits New High in 800k Years

According to recent findings by the UN’s World Meteorological Organization, the concentration of carbon dioxide in the atmosphere has reached the highest level in 800,000 years. The 2024 data suggest that it was likely the hottest year on record, marking the first time global temperatures surpassed 1.5°C above pre-industrial levels.

This alarming milestone in climate change is attributed to record greenhouse gas concentrations, exacerbated by the El Niño weather phenomenon and other factors, leading to unprecedented global warmth. The UN Secretary-General António Guterres highlighted these findings as further evidence of our planet in distress, calling for increased global climate action from world leaders.

These developments follow President Donald Trump’s decision to withdraw the United States from the Paris Climate Agreement for the second time, intensifying the debate around environmental policies. The research also indicated that the global average surface temperature last year was 1.55°C above the baseline from 1850-1900, with a margin of uncertainty of 0.13°C, making it the warmest year in the 175-year record of observational data.

This comprehensive study pools together data from UN member countries and partner agencies, underlining the urgent need for concerted efforts to address the escalating climate crisis.

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6. Fed Holds Rate Steady While Stock Continues Rebound

Federal Reserve officials decided to maintain their benchmark interest rate unchanged for the second consecutive meeting, navigating between concerns of economic slowdown and persistently high inflation.

Chair Jerome Powell recognized the high level of uncertainty stemming from President Donald Trump’s significant policy shifts, emphasizing that the central bank is not in a rush to alter borrowing costs. He indicated that the Fed could afford to wait for more clarity on how these policies might impact the economy before making any changes.

During its Wednesday meeting, the Federal Open Market Committee (FOMC) voted to keep the federal funds rate within the range of 4.25% to 4.5%. Additionally, it announced plans to further decelerate the reduction of its balance sheet. Governor Christopher Waller, who agreed with the decision to hold rates, dissented concerning the approach to the balance sheet reduction.

This decision arrives amid Trump’s aggressive and often unpredictable policy initiatives, which have complicated the economic landscape and the Fed’s efforts to manage it effectively.

The President’s fluctuating strategies, especially regarding tariffs on international trade partners, have heightened concerns about potential economic deceleration and reignited fears about inflation, presenting a challenging scenario for policymakers.

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7. Congestion Pricing Gains More Support from New Yorkers

New York City’s contentious congestion pricing program is slowly winning over support, though it still hasn’t secured a majority of voter approval.

The program, which launched on January 5, charges most drivers $9 during peak hours to enter Manhattan south of 60th Street. Its goals are twofold: reduce traffic congestion and generate revenue to upgrade the city’s over-a-century-old transit system.

According to a recent Siena College poll of registered voters statewide, 40% believe the fee should be eliminated—mirroring the Trump administration’s push—while 33% support keeping the program in place. This marks a modest shift from a December poll, where opposition was at 51% compared to just 29% in favor.

Among New York City residents specifically, attitudes have notably reversed. Now, 42% say the toll should remain, while 35% want it scrapped, compared to December figures showing only 32% in support and 56% opposed.

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