Good Morning! On Thursday, U.S. equities rebounded as investors adjusted their expectations for interest rate reductions by the Federal Reserve and anticipated the release of key earnings reports from large-cap technology companies.
The S&P 500 and the Nasdaq both had solid returns of 1.25% & 1.30%, while the Dow Jones lagged a little behind but still finished up by 0.97%.
DRIVING FAST INTO 2024
Ferrari (RACE) shares are surging today on the release of Q4 sales data by the Italian luxury manufacturer, which exceeded forecasts. Furthermore, Ferrari anticipates the positive trend to persist into 2024. There are rumors that Ferrari has recruited Lewis Hamilton to join its racing team. This news has brought more excitement to Ferrari fans and certain investors.
- Revenue: $1.65 Billion vs. $1.63 Billion expected
- EBITDA: $606 Million vs. $608.2 Million expected
So what is this rumor? Various media sources are stating that Lewis Hamilton, a seven-time champion, is nearing a surprising transition from the Mercedes Formula 1 team, with which he has been associated since 2013, to Scuderia Ferrari for the year 2025. Hamilton is said to have a contract with Mercedes until 2024, with the provision of an option for 2025, which would enable him to go for Ferrari. Hamilton, with his seven world championships, has the record for the most number of victories among all Formula 1 drivers.
NO MORE TWSIFT FOR TIKTOK!
Universal Music Group (UMG), the music label representing renowned artists such as Eilish, Taylor Swift, and Drake, has announced its decision to withdraw its catalog from TikTok. This action comes as a result of unsuccessful negotiations with TikTok on a new deal. So how soon will this happen? Well… Commencing today, the app’s extensive user base of around 1.4 billion individuals will become aware of the change, rendering them unable to incorporate music by UMG’s artists into their videos.
But how did it come to this? The primary obstacle to securing a new agreement was the issue of royalty payments. UMG has accused TikTok of constructing a company centered on music while failing to sufficiently compensate for the value of the music. Even though, according to The Information, the app generated around $20 billion in advertising income last year.
What is Tiktok’s stance on all this? TikTok disputed UMG’s “false narrative” and said that it has established “artist-first” agreements with other labels. However, this might provide a significant obstacle to TikTok’s future music strategies, particularly with the introduction of TikTok Music in 21 countries, such as Ireland, Australia, and Mexico, last year, as a direct competitor to Spotify and Apple Music.