In partnership with

Anna's Daybreak News

_{Just facts, you think for yourself}

Tuesday, 5:25 AM

January 28, 2025

Good morning news friend! Step into the moments shaping today and transforming the future. 📰🌟

DeepSeek $1 Trillion Selloff

On Monday, Nvidia’s shares plummeted 17%, erasing $593 billion in market value—the largest one-day loss ever for a public company. The S&P 500’s tech sector dropped 5.6%, its worst day in four years. Overall, the stock market lost about $1 trillion in value.

This setback stemmed from DeepSeek's recent AI model launch, which demonstrated performance on par with industry leader OpenAI while requiring way less computing power.

DeepSeek, founded by Liang Wenfeng, used lower-cost Nvidia chips to develop its AI model, rumored to require only $6 million in chips for training. Investors are now questioning the hefty valuations and massive CapEx costs in Silicon Valley.

In 2024, US tech mutual funds attracted $23 billion, the largest annual inflow since 2000.

Sources: WallStreetJournal, Bloomberg, Reuters, NYTimes, Barrons

Surge in New Home Sales

New home sales in the US rose by 3.6% in December, reaching a seasonally adjusted annual rate of 698,000 units. Approximately 683,000 new homes were sold in 2024, a 2.5% rise from 2023. The median price for new homes rose by 2.1%, totaling $427,000.

The average 30-year fixed mortgage rate sits just below 7%. December saw a rebound in housing starts and building permits, reaching a 10-month high. The inventory of new homes increased to 494,000 units, the highest level since December 2007.

Regionally, sales soared by 41.7% in the Northeast and 20.3% in the West. However, the South and Midwest experienced declines of 2.1% and 3.3%, respectively.

Economists anticipate continued increases in new home sales, as these homes have become more competitively priced than existing inventory..

Sources: Reuters, Census, RealEstateNews, HousingWire, BusinessStandard

Turmoil in China's Real Estate

China Vanke, a leading property developer, announced a record loss of 45 billion yuan (approximately $6.2 billion) for 2024, its first annual loss since 1991. Chairman Yu Liang and CEO Zhu Jiusheng have resigned.

In response to this crisis, Xin Jie, chairman of Vanke's major shareholder, Shenzhen Metro, will assume the role of chairman.

Vanke’s sales fell 35% in 2024, totaling about 51.3 billion yuan, worsening from an earlier profit of 12 billion yuan in 2023. Overall, home sales have dropped 18% in the Chinese real estate sector.

There is concern about Vanke's ability to meet its 32.64 billion yuan of onshore debts maturing in 2025.

Sources: NYTimes, Reuters, Caixin, CEOWorld, TaipeiTimes, WallStreetJournal

War in Congo

Fighting rages in Goma, DR Congo's key city, causing a humanitarian disaster. M23 rebels, backed by Rwanda, claimed full control after intense battles. Heavy artillery and gunfire echo through the city, leaving many residents trapped in their homes.

Bombs have struck hospitals and camps for displaced people, resulting in multiple casualties, including injuries to infants. Thousands flee the city, with disrupted water and electricity supplies intensifying the crisis.

Congolese soldiers are reportedly surrendering to Rwandan troops. Video footage showed a mass prison escape as chaos unfolded.

Kenya’s President Ruto announces an emergency summit with Congolese and Rwandan leaders to address the crisis. The UN Security Council condemned the violence interfering in Congo's sovereignty.

Sources: Reuters, BBC, NYTimes, DW

A New CBD Source in Brazil's Trema Micrantha

Scientists have discovered cannabidiol (CBD) in the Brazilian plant Trema micrantha, a shrub often dismissed as a weed. CBD is used to treat conditions like epilepsy, chronic pain, and anxiety.

The team from the Federal University of Rio de Janeiro found CBD in the plant's flowers and fruits. The plant does not contain THC, making it a simpler, cheaper, and legal alternative for CBD extraction.

The Brazilian government is investing 500,000 reais (about US$104,000) to further research extraction methods.

The global CBD market is projected to grow from nearly US$5 billion to over US$47 billion by 2028.

Sources: ScienceAlert, PennLive, Nature, Earth

Bird Flu

The bird flu outbreak is affecting over 900 herds and has resulted in one death in the US. The virus initially struck dairy cattle in early 2024 but has continued to spread. Inadequate testing and slow data reporting have hindered effective containment.

Recently, the U.S. reported its first case of the H5N9 strain in California. Authorities culled nearly 119,000 birds on a duck farm due to an outbreak.

Concurrently, the U.K. reported a rare human case of bird flu. The individual contracted it after prolonged contact with infected birds. However, officials assert that the risk to the public remains very low.

New measures are in place in the UK, including an Avian Influenza Prevention Zone in Shropshire, affecting all bird owners.

Sources: NYTimes, Reuters, BBC, Politico, CIDRAP

“You can tell how poor someone feels by the number of times he references ‘money’ in his conversation.”

_{Support us by checking out our sponsor below—your clicks make a big difference!}

Start learning AI in 2025

Everyone talks about AI, but no one has the time to learn it. So, we found the easiest way to learn AI in as little time as possible: The Rundown AI.

It's a free AI newsletter that keeps you up-to-date on the latest AI news, and teaches you how to apply it in just 5 minutes a day.

Plus, complete the quiz after signing up and they’ll recommend the best AI tools, guides, and courses – tailored to your needs.

Sign up to start learning.

_{A quick click on our sponsor's ad goes a long way—thank you for your support!} 😀 

Baked with love,

Anna Eisenberg ❤️