Top 5 News of the Week
Closing eyes on geopolitics
Last week, Iran announced the reopening of the Strait of Hormuz, and markets ended the week on a high note. However, this opening only lasted a few hours. Both parties quickly accused each other of violating the ceasefire. As a result, Iran and the United States continue their blockades, and ships still pass through slowly. Despite this, the price of oil crossed the $100 mark, but it did not prevent Wall Street from making new records this week.
Semiconductors and the rest of the world
Stock markets seem to overlook geopolitical tensions, thanks in part to the strong performance of the semiconductor sector. The SOX index has seen 18 consecutive days of increase, its longest streak ever recorded. Reports this week have further confirmed the sector’s strength. SK Hynix stated that the demand for memory chips will exceed supply for the next three years. Texas Instruments’ data center segment grew by about 90% year-on-year. Intel’s forecasts exceeded expectations, leading its stock to reach an all-time high on Friday.
Kevin Warsh’s big moment
This week, Kevin Warsh faced a major moment as he was nominated by Donald Trump to succeed Jerome Powell as the head of the Fed. During his Senate hearing, the former governor (2006-2011) criticized the Fed and called for a “change in direction.” His nomination had been blocked by a senator demanding an end to the Justice Department’s investigation against Jerome Powell. On Friday, prosecutor Jeanine Pirro finally called for the investigation, which focused on cost overruns related to the Fed’s headquarters renovation, to be closed.
Apple’s leadership change
Apple made a surprising announcement that Tim Cook, the iconic CEO, will step down in September. John Ternus, the current product head, will take over. Tim Cook will become chairman of the board. Since taking over from Steve Jobs in 2011, Tim Cook has faced criticism for a lack of innovation at Apple, but he has transformed the company into a cash-generating machine, with revenue increasing by 700% under his leadership. Apple has also bought back $750 billion worth of shares in the last 10 years.
Ukraine secures European financing
In December, EU leaders agreed to provide Ukraine with a €90 billion loan, which was initially vetoed by Hungarian Prime Minister Viktor Orban. However, with his defeat in the recent legislative elections, the situation was unblocked. This loan is expected to cover two-thirds of Ukraine’s needs for the next two years, crucial as the country faced a liquidity shortage this year. At an informal summit in Cyprus, the 27 also adopted a 20th package of sanctions against Russia.
Best of the rest
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The Strait of Hormuz transports about 20% of the world’s oil and gas, and disruptions in April created a supply shortfall of 11.1 million barrels per day. American service providers, tube and material manufacturers, and specialized players are now central to the valuation of energy security. Who are the winners and losers?
