Daily Brief - 4 Jan 2024

Fed sees rates staying high for some time with cuts eyed in 2024

The Federal Reserve has decided to keep interest rates high for a while, despite optimism about lowering inflation. They're thinking about reducing rates in 2024 if inflation continues to drop. At their last meeting, they kept the rate between 5.25% and 5.5%. They're open to more hikes if needed, but also plan for cuts totaling about 75 basis points next year. The market reacted with a mix of lower stocks and less loss in government bonds. The Fed remains cautious, noting risks and uncertainties in the economy.

Apple at the forefront of a $383 billion dip

The biggest tech companies, including Apple, Amazon, and Tesla, have seen a drop in their stock value, losing a massive $383 billion in just four days. This slump ends a significant rally these companies enjoyed in 2023. Apple's stock decline is mainly due to predicted lower demand for iPhones, and Tesla has also faced a decrease after losing its top spot in electric car sales. Despite this, experts believe it's too early to say the tech rally is completely over, but these companies now face the challenge of proving their worth in 2024.

Bain is exploring €1 billion sale of Centrient Pharma

Bain Capital is considering selling Centrient Pharmaceuticals, a company specializing in antibiotics, potentially for up to €1 billion. They acquired Centrient, previously known as DSM Sinochem Pharmaceuticals, in 2018. The sale process, assisted by Citigroup and Jefferies, is still in its early stages, and it's not certain if it will definitely lead to a sale. Centrient is known for producing various pharmaceutical products. This move is part of a growing trend where private equity firms are looking to sell their holdings and return funds to investors.