Market Beats | Federal Reserve to Cut Workforce by 10%; Charter, Cox to Merge in $34.5B Deal; ByteDance Targets $186 Billion Revenue in 2025; US Housing Starts Rise on Multifamily Surge; US Consumer Sentiment Drops Sharply; Novo Nordisk Replaces CEO; Illinois Cuts Revenue Forecast Amid Trump Policy Uncertainty

—— Charter, Cox to Merge in $34.5B Deal; ByteDance Targets $186 Billion Revenue in 2025; US Housing Starts Rise on Multifamily Surge; US Consumer Sentiment Drops Sharply; Novo Nordisk Replaces CEO; Illinois Cuts Revenue Forecast Amid Trump Policy Uncertainty; Federal Reserve to Cut Workforce by 10%

1. Charter, Cox to Merge in $34.5B Deal

Charter Communications has agreed to merge with Cox Communications in a deal valuing Cox at $34.5 billion, including debt. The Cox family will hold a 23% stake in the combined company and gain board seats.

The merger unites two major U.S. cable firms as the industry faces mounting pressure from wireless internet providers like AT&T and T-Mobile, and ongoing disruption from streaming platforms such as Netflix. Charter shares are up 22% this year, with the company valued at around $66 billion.

The move follows Liberty Media’s John Malone suggesting Charter pursue a major merger to remain competitive. Charter and Cox last held merger talks over a decade ago.

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2. ByteDance Targets $186 Billion Revenue in 2025

ByteDance Ltd., the Chinese tech giant behind TikTok, is projecting about $186 billion in revenue for 2025, reflecting approximately 20% growth from last year’s estimated $155 billion, according to people familiar with its internal forecasts. If realized, this would bring ByteDance nearly on par with Meta Platforms Inc., which analysts expect to generate around $187 billion in revenue this year.

The target underscores ByteDance’s rapid rise as one of the world’s most dominant internet companies, despite heightened regulatory pressure — particularly from the United States. The company now claims more than 4 billion monthly active users across its suite of apps, including TikTok, Douyin (its Chinese twin), news aggregator Toutiao, and workplace tool Lark. That user base is approaching the scale of Meta’s global reach across Facebook, Instagram, and WhatsApp.

While ByteDance’s projected 2025 growth would mark a slight slowdown from 2024’s 29% expansion, it still signals remarkable resilience amid global economic uncertainty and the threat of forced divestment of TikTok from the U.S. market.

In April, President Donald Trump signed legislation requiring ByteDance to sell TikTok or face a ban in the U.S. ByteDance is now navigating the politically sensitive and legally complex process of complying with the order, as potential suitors — including Oracle Corp., Amazon.com Inc., and others — explore bids.

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3. US Housing Starts Rise on Multifamily Surge

US housing starts rose 1.6% in April to a 1.36 million annualized pace, lifted by a 10.7% surge in multifamily construction. The gain offset a 2.1% decline in single-family starts, which hit the lowest level since July due to weakness in the West.

With mortgage rates near 7% and builder confidence at a five-month low, the housing market remains under pressure. Developers are also bracing for rising costs tied to tariffs while home prices stay near record highs.

Permits for single-family homes fell 5.1% to the lowest since mid-2022, signaling further softness ahead.

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4. US Consumer Sentiment Drops Sharply

US consumer sentiment declined unexpectedly in early May, falling to the second-lowest level on record, as inflation expectations surged and concerns over trade tariffs intensified.

According to preliminary data from the University of Michigan, the sentiment index dropped to 50.8, down from 52.2 in April. This figure came in lower than nearly all economist forecasts in a Bloomberg survey.

Notably, nearly 75% of respondents mentioned tariffs unprompted, highlighting the outsized role of trade policy in shaping economic perceptions. The concern was bipartisan, with even a significant portion of Republicans citing tariffs.

The survey was conducted between April 22 and May 13, concluding shortly after the United States and China agreed to temporarily reduce tariffs while continuing trade negotiations.

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5. Novo Nordisk Replaces CEO

Novo Nordisk has removed Chief Executive Lars Fruergaard Jørgensen as the Danish pharmaceutical company faces falling profit growth, eroding market share, and a steep stock price decline. The maker of blockbuster obesity drug Ozempic has seen its shares plunge more than 50% over the past year, losing its status as Europe’s most valuable listed company after peaking at a $650 billion valuation in 2024.

The company stated: “Considering the recent market challenges, the share price decline and the wish from the Novo Nordisk Foundation, the Novo Nordisk board and Lars Fruergaard Jørgensen have jointly concluded that initiating a CEO succession is in the best interest of the company and its shareholders.”

Jørgensen expressed surprise at the decision but said he respected it and stood by his choices as CEO.

Investor concerns have been growing over Novo’s competitive position against US rival Eli Lilly, which has gained ground in obesity and diabetes treatments. Additionally, disappointing trial results from Novo’s next-generation drug candidates have weighed on market confidence.

Last week, Novo lowered its sales and profit forecasts for the year, citing pressure from rapidly expanding US compounding pharmacies that produce cheaper replica drugs. While a new ban on most compounders offers potential upside, analysts remain uncertain how many patients will return to Novo’s branded products, especially with some compounders exploring legal workarounds or advising patients to stockpile generics.

Novo now expects 2025 sales growth of 13%–21%, down from prior guidance of 16%–24%. Operating profit growth is forecast at 16%–24%, also reduced from an earlier 19%–27% range.

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6. Illinois Cuts Revenue Forecast Amid Trump Policy Uncertainty

Illinois has reduced its revenue forecast for the 2026 fiscal year by approximately $500 million, citing economic uncertainty and potential cuts to federal funding under President Donald Trump’s administration.

The governor’s Office of Management and Budget now projects $54.9 billion in revenue for the fiscal year beginning July 1, down about 1% from the $55.5 billion estimate issued in February’s budget plan.

Governor JB Pritzker had already warned in January that the incoming administration could pose financial risks to state budgets. In February, he highlighted the potentially “devastating” effects of losing federal support for Medicaid, a key health insurance program for low-income residents. Pending tax legislation in Congress proposes partially funding the plan through Medicaid cuts.

“This year has brought an unprecedented set of challenges,” said Andy Manar, deputy governor for budget and economy. “The administration’s cost-cutting proposals risk stripping Illinois of much-needed tax dollars.”

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7. Federal Reserve to Cut Workforce by 10%

The Federal Reserve plans to reduce its workforce by approximately 10% over the next couple of years, largely through attrition and a voluntary deferred resignation program offered to retirement-eligible employees.

Fed Chair Jerome Powell announced the initiative in a memo to staff, stating that the move aims to modernize operations and ensure the central bank remains appropriately sized to meet its statutory mission.

“I have directed the leadership of the Federal Reserve, here at the Board and across the System, to find incremental ways to consolidate functions where appropriate, modernize some business practices and ensure that we are right-sized and able to meet our statutory mission,” Powell said.

The voluntary deferred resignation program will be available to Board of Governors staff who are fully eligible to retire by December 31, 2027, similar to a program the Fed used in 1997.

As of 2023, the Fed reported 23,950 employees across its system. The 2024 budget had anticipated increasing staff to 24,553 — a 2.5% rise — making this a sharp reversal in hiring trajectory.

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