📈 Calm after the storm

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Israel's overnight retaliation against Iran sparked a brief surge in safe-haven assets and a jump in oil prices. But don't hold your breath for escalation—Iran's already dialing back, with no retaliation in the cards as both sides cool their jets post-Isfahan attack. This stand-down has mostly flipped the market's knee-jerk reaction on its head. Let's dive into the details. 👇️☕️ 

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Markets

Markets unsettled by Israel-Iran tit-for-tat (4 minute read)
Israel's Friday missile strike on Iran didn't exactly drop jaws, but it sure has everyone bracing for a roller coaster in global markets. Despite the high stakes, the initial market reactions were surprisingly chill. Oil and global stocks made modest moves, and even gold, typically a go-to in times of trouble, saw its surge fizzle out without setting new highs. Why the calm?

Well, Iran's playing it cool for now, with officials telling Reuters there's no rush to retaliate, and their media echoing the low-key vibe. Even the dollar, which usually benefits from both oil chaos and its role as a safe haven, didn't make significant gains. Meanwhile, the traditional safety nets of the yen and Swiss franc were hardly noticeable. But don't let the subdued start fool you. With U.S. stock futures dipping and the S&P 500 set to log its sixth consecutive day of losses—a streak not seen since 2022—the tension is palpable. As the VIX, or 'fear gauge,' spikes, it's clear Wall Street is on edge, watching nervously for what might come next.

How the strong U.S. dollar is rippling through the world economy (2 minute read)
The U.S. dollar's relentless climb against other major currencies. This muscular dollar is flexing across the globe, complicating life for policymakers everywhere. Why? A stronger dollar weakens others, fuelling inflation in places already battling price hikes.

Emerging markets feel the squeeze even more with their dollar-denominated debts becoming heavier burdens, stifling economic growth. Some, like Indonesia, are stepping into the ring, trying to prop up their currencies to prevent money from flying out the door. Meanwhile, the U.S. economy isn’t just surviving—it’s thriving, robustly growing despite the Federal Reserve's rate hikes. This growth spurt is delaying any anticipated cuts in Fed rates, nudging U.S. treasury yields higher. As of late December, the dollar index has pumped up by 5%, showing no signs of slimming down.

Investing

Everything you need to know about Netflix earnings (2 minute read)
Netflix just threw us a curveball. Sure, they knocked it out of the park with a stellar earnings report, smashing expectations with a cool $2.3 billion in net income and a 15% jump in revenue to $9.37 billion. So why did their stock dip? Mixed signals and a bit of mystery moving forward—they're cutting the cord on sharing subscriber numbers regularly after this year. Adding 9.3 million new paid subscribers sounds great until you realize Netflix is playing it coy about future growth. Investors, craving transparency and predictability, aren't thrilled.

Huawei just gave Tim Cook a new headache in China (4 minute read)
Tim Cook's glossy Weibo highlight reel from his China trip may have shown him reveling in fanfare at a new Shanghai Apple store, but behind the scenes, it's not all rosy for Apple in China. In the early part of the year, iPhone sales plummeted by 24%, and there’s a new challenger on the block: Huawei’s Pura 70. Released just last Thursday, this smartphone packs a punch with a camera system that mirrors the iPhone Pro's and starts at a competitive $760.

Huawei is not just stepping up; it’s sprinting forward, gaining market share with its domestically made chips that rival the iPhone’s capabilities. These chips, which powered last year’s Mate 60 Pro success, are also likely juicing up the new Pura 70, turning the heat up on Apple’s market stronghold.

Money

A Tipping Guide To Counteract Tipflation And Feel Great Again (4 minute read)
Tipping: once a reward for stellar service, now a social expectation that keeps creeping up on your bill. If you're feeling the squeeze and unsure how much to fork over without looking cheap, Financial Samurai's got your back with a new tipping guide.

It's not just about figures; it breaks down the why behind each dollar you drop. With tipping norms having jumped by at least 5% recently, this guide aims to navigate the tricky waters of gratuities, helping you tip with confidence and understanding, no matter the service you get.

And a note for our non US readers, tipping isn’t really common in other countries (thankfully). But this is still an interesting read to get a peek inside US tipping culture.

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