Here is a rundown of Cheddar News' top market stories of the day.
BITCOIN RALLIES
The price of bitcoin is back above $20,000 after months hovering around $16,000 per coin. This is still less than a third of cryptocurrency's peak of roughly $65,000 in 2021, but it does show that bitcoin has so far weathered the recent collapse of several large crypto exchanges. Crypto-related stocks were buoyed by the rally, and second-runner Ethereum is up more than 20 percent year-to-date, threatening to cross $1,500 for the first time since November.
TIKTOK'S NEW PLAN
TikTok parent company ByteDance is rolling out a $1.5 billion plan to reorganize its U.S. operations and increase transparency around its data-collecting, according to a Wall Street Journal article. The China-based company is looking to assuage federal regulators' concerns that Beijing can access U.S. TikTok users' data. Tiktok is also looking to convince the U.S. government that it can operate independently of its parent company.
EV SALES SURGE
Electric vehicle sales now make up around 10 percent of global automotive sales, according to data provided to the Wall Street Journal. However, the U.S. continues to lag behind China and Europe when it comes to EV adoption. Just 5.8 percent of U.S. auto sales were electric vehicles in 2022, which is nonetheless more than double the previous year's percentage.
CHINA'S LOW GROWTH
In the West, China has long been synonymous with growth — both economically and demographically. But two official reports out of China Tuesday show that the country's reputation for constant expansion could be coming to an end. China recorded its first population drop in more than 70 years and its second-lowest growth rate in four decades. The country's economy grew around 3 percent in 2022, which is less than half what it achieved in 2021.
Nestlé has dismissed its CEO Laurent Freixe after an investigation into an undisclosed relationship with a direct subordinate. The company announced on Monday that the dismissal was effective immediately. An investigation found that Freixe violated Nestlé’s code of conduct. He had been CEO for a year. Philipp Navratil, a longtime Nestlé executive, will replace him. Chairman Paul Bulcke stated that the decision was necessary to uphold the company’s values and governance. Navratil began his career with Nestlé in 2001 and has held various roles, including CEO of Nestlé's Nespresso division since 2024.
Kraft Heinz is splitting into two companies a decade after they joined in a massive merger that created one of the biggest food companies on the planet. One of the companies will include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese. The other will include brands like Oscar Mayer, Kraft Singles and Lunchables. When the company formed in 2015 it wanted to capitalize on its massive scale, but shifting tastes complicated those plans, with households seeking to introduce healthier options at the table. Kraft Heinz's net revenue has fallen every year since 2020.
