Wealth Management News & Insights – January 19, 2025

Wealth Management News & Insights

S&P Downgrades Chicago’s Credit Rating, We Still Have an Inflation Problem, Bidding Wars and Cutthroat Demand Takes Over L.A.’s Rental Market After the Fires

 

 

 

Primary Sources

• Federal Reserve National Summary: Economic activity increased slightly to moderately across the twelve Federal Reserve Districts in late November and December. Consumer spending moved up moderately, with most Districts reporting strong holiday sales that exceeded expectations. [FRB]
• Federal Reserve Joint Press Release: Federal and state financial regulatory agencies issue interagency statement on supervisory practices regarding financial institutions affected by the California wildfires and straight-line winds. [FRB]
• Supreme Court of the United States: As of January 19, the Protecting Americans from Foreign Adversary Controlled Applications Act will make it unlawful for companies in the United States to provide services to distribute, maintain, or update the social media platform TikTok, unless U. S. operation of the platform is severed from Chinese control. [SCOTUS]

 

Financial Markets

• S&P Downgrades Chicago’s Credit Rating — And the Mayor Pushes Back: Citing the structural imbalances in the city’s recently approved 2025 budget and the expectation the 2026 cycle will be challenging, S&P Global Ratings downgraded Chicago’s credit rating today. [Crain’s]
• ‘We Still Have an Inflation Problem.’ A Fed Newcomer Wants to Go Slow on Rate Cuts: Central bank’s recent infusion of financial-market brawn includes Beth Hammack, who worked for three decades at Goldman Sachs. [WSJ]
• EV, Hybrid Sales Reached a Record 20% of U.S. Vehicle Sales in 2024: Sales of all-electric vehicles and hybrid models reached 20% of new car and truck sales in the U.S. for the first time last year — marking a landmark year for “green” vehicles but coming at a slower pace than many had previously anticipated. [CNBC]
• Ozempic Among the Next Drugs Up for Medicare Price Negotiations: List of drugs account for $41 billion in annual Medicare spending, Biden administration says. [WSJ]

 

Financial Planning

• How a New Year’s Resolution Can Set Up Your Financial Goals for Success: Don’t give up on resolving to do better, psychologists and personal finance experts say. The key is to reframe the way you think about it. [NYT]
• Insurers Are Deserting Homeowners as Climate Shocks Worsen: Without insurance, it’s impossible to get a mortgage; without a mortgage, most Americans can’t buy a home. [NYT]

 

Business Strategy

• Starbucks Cracks Down: No Latte, No Lounging: Starbucks said visitors to the coffee shops would be required to buy something in order to use the restroom or stay in the store, as the company’s new chief executive responded to a decline in sales. [NYT]
• OpenAI Appoints One of Wall Street’s Most Powerful Dealmakers to Its Board: Billionaire investor has counselled some of the world’s most influential companies. [FT]
• Disney Wins the 2024 Box Office As Year-End Receipts Offer A Welcome Boost: The combination of Disney and Marvel’s “Deadpool & Wolverine,” Pixar’s “Inside Out 2,” Disney Animation’s “Moana 2” and Universal’s “Wicked” boosted the box office during the final months of 2024. [CNBC]

 

 

The charts above display 2025 domestic box office forecasts for the top 10 films in 1Q25E and 2Q25E with projected sales in millions of dollars. An increase in DBO is projected for 2025E compared to 2024E.

 

Life & Work

• China Sees a Fresh Decline in Population, Despite a Rise in Births: Year of the Dragon produces a baby rebound, but demographers say it is temporary. [WSJ]
• After the Fires, Bidding Wars and Cutthroat Demand Take Over L.A.’s Rental Market: Thousands of displaced people need somewhere to live; ‘Trying to find a house right now is a full-time job’. [WSJ]
• The Playlist Power Broker Who Makes or Breaks New Artists: Spotify is known for its algorithmic recommendations, but Sulinna Ong brings a human touch to finding new hits. [WSJ]
• What’s the Fastest Way to the Airport? We Raced in New York, L.A. and Chicago: What we learned from testing an array of ground transportation—even an e-bike—on a busy Friday afternoon. [WSJ]
• Why Marathon Running Is Booming: More people are taking on 26.2-mile runs, thanks to squishy shoes, running groups and Gen Z athletes. [WSJ]
• Night Owl or Early Bird? Here’s How Your Inner Clock Impacts Your Health: Science journalist Lynne Peeples says the body’s circadian rhythms are sensitive to many different types of changes — but especially to sunlight. [NPR]