Good morning readers. It looks like global markets have kicked off the new year on a lackluster note: stocks are stumbling out of the gate, oil's playing seesaw, and Bitcoin's making a flashy comeback. The S&P 500 and Nasdaq are nursing their New Year hangovers with some modest losses, while the Dow Jones, ever the stoic, maintained its composure with a small rise. Apple's stock took a tumble after Barclays gave it the cold shoulder, shaking up the tech sector and broader market. As for the rest of the world? Europe's playing it cool with a slight dip, while Asian markets had a mixed bag of results, reflecting concerns over China's weakening manufacturing sector.

Let’s jump into today’s storylines.

In today’s digest:

• Audiences are feeling IP fatigue heading into 2024

• Headline Hustle: Harvard president steps down, Sen. Menendez accused of being a foreign agent and accepting favors from foreign governments, ASML barred from shipping parts to China

• How Private Equity is changing the game for Major Sports Leagues

• Pulse Points: What’s Trending

ENTERTAINMENT

Will 2024 be the year of box office boom or bust?

As the curtains prepare to rise on 2024's cinematic lineup, Hollywood's A-listers might feel like they're attending a high school reunion – familiar faces everywhere, but with a few more wrinkles.

Sequels, spinoffs and sandworms

Denis Villeneuve's "Dune: Part Two" is leading the charge, promising to draw crowds with its epic storytelling and visual grandeur. But this is just the tip of the iceberg in a year that's expected to see an onslaught of franchise films from major studios like Warner Bros., Disney, Universal, and Paramount. While these sequels, prequels, and spin-offs represent a safe bet for studios looking to capitalize on established fan bases, there's concern that reliance on familiar intellectual property (IP) might not be enough to sustain long-term growth.

Moviegoers are struggling with IP fatigue. It's a term that's becoming all too familiar in Tinseltown. Studios are scrambling to strike the right balance between brand loyalty and creative exhaustion. The successes of "Spider-Man: Across the Spider-Verse" and "Guardians of the Galaxy Vol. 3" stand as testaments to the power of well-crafted continuations. But flops like "Shazam! Fury of the Gods" serve as cautionary tales against over-saturating the market.

So what do audiences really want? According to Michael O’Leary of the National Association of Theatre Owners, it's simple: compelling stories told with mastery.

In the end…it's not just about churning out sequels for the sake of it. Audiences crave quality, innovation, and above all, a good story. Films like "The Batman" and "Guardians of the Galaxy Vol. 3" didn't just rake in the bucks; they captured hearts. So, as we venture into 2024, the question isn't just which films will hit the screen, but which will hit home. Will this be the year of cinematic revival or retreat? Only time will tell, but one thing's for sure: the popcorn will be ready.

Headline Hustle

🏫 Harvard president Claudine Gay resigns. In a dramatic chapter at Harvard, President Claudine Gay, the university's second female and first Black leader, has resigned amid controversies over her handling of antisemitism and plagiarism allegations. Gay's brief tenure was marred by her responses to the October 7 Hamas attacks and a congressional hearing on genocide. Criticisms intensified with accusations of uncredited academic work. Gay's departure, echoing Liz Magill's at Penn, leaves Harvard grappling with political and ethical dilemmas. U.S. Rep. Elise Stefanik claims her questioning influenced the resignation, while campus opinion remains divided.

🤝 Sen. Menendez charged with receiving gifts in exchange for political favors. Senator Bob Menendez stands accused of a corruption scheme stretching years, with Qatar now joining Egypt in the list of countries he allegedly aided in exchange for lavish gifts. The updated indictment claims Menendez, engaged in bribery and acted as a foreign agent, extending into 2023. Menendez and his wife, along with others, pleaded not guilty to last year's charges. Prosecutors allege Menendez helped a New Jersey real estate developer secure Qatari investments, receiving luxury watches, gold bars, and Formula One tickets in return. Despite these grave accusations, Menendez's attorney staunchly defends his actions as patriotic, dismissing the charges as baseless conjectures.

🇳🇱 ASML blocked from shipping chip making tools to China. In a strategic move echoing U.S. policies, the Dutch government has clamped down on ASML, a key player in the semiconductor sector, by partially revoking its license to export advanced chipmaking tools to China. This decision targets ASML's deep ultraviolet lithography machines, essential in producing less sophisticated chips. This development comes amidst heightened U.S. export controls aimed at curbing China's access to cutting-edge technology. Despite this geopolitical chess game impacting global tech dynamics, ASML remains financially buoyant, projecting up to 7.1 billion euros in Q4 sales, highlighting its resilience in a turbulent market.

INVESTING

Scoring big in sports investments: The new game plan for Private Equity

As the whistle blows on a new era of investment strategies, private investors are lacing up their sneakers and taking to the field of U.S. basketball, baseball, and European soccer. It's not just the thrill of the game they're after; these savvy players are eyeing the massive growth potential and unique diversification opportunities that major sports leagues offer. With billions at stake, the game plan is clear: buy low, sell high, and cheer all the way to the bank.

The surging value of sports teams in North America

The investment landscape shifted when leagues like Major League Baseball opened their doors to private-equity firms in 2019, followed by the NBA and NHL in 2021. The allure? A playing field where the rules of the game differ from the typical market dynamics. Investors in the space note, "Institutions are the cleanest and most operationally efficient way to increase that capital." And with over 63 major North American sports teams valued at a staggering US$234.3 billion, the stakes are high.

Leading the charge is Certuity, a Florida-based powerhouse with a cool $4.5 billion under management. Certuity's play began with the Dyal Homecourt Partners fund, taking shots with minority stakes in NBA teams. Their strategy wasn't just a blind throw; the NBA's franchise valuations have soared an average of 7.7 times since 2007, dwarfing the growth of other leagues. But as the ball keeps bouncing, so do the potential risks. From complex team operations to fluctuating viewership and ratings, the game of sports investing requires a sharp eye and a steady hand.

Big picture: While wealth management firms like Certuity play it safe with the big leagues for now, they're keeping an eye on emerging sports like women's soccer and pickleball. The mantra here is simple: do your homework, play the long game, and you might just score the investment goal of a lifetime.

SNIPPETS

Pulse Points

• Chinese automaker BYD surpassed Tesla as the world's top electric vehicle seller for the first time in a quarter, highlighting China's growing dominance in the EV market.

• The NFL fined Carolina Panthers owner David Tepper $300,000 for throwing a drink at fans during a game in Jacksonville.

• Fidelity has reduced the value of its investment in X Holdings, Elon Musk's parent company of X (formerly Twitter), by 71.5% from its original valuation.

• MIT's new vibrating capsule, proposed as an alternative to surgery and expensive GLP-1s like Ozempic and Wegovy, mimics the sensation of fullness similar to drinking a glass of water before eating.

• Rafa Nadal celebrated his return to singles tennis after nearly a year's injury hiatus with a decisive 7-5, 6-1 win over former world number three Dominic Thiem at the Brisbane International's first round.

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