In 2024, luxury asset markets have faced a downturn, with significant losses in art, fine wine, diamonds, and collectible cars. For instance, art investors saw a 16% loss by November, while fine wine lost 11% and diamond prices dropped by nearly 20%. This slump follows a period of rapid growth during the pandemic, when demand for luxury goods surged. Despite strong global economic growth and a rise in the number of millionaires, luxury assets are now competing with more profitable financial assets, such as stocks, Bitcoin, and Treasuries. Geopolitical tensions and changes in consumer sentiment, especially from China, have also negatively impacted the market. However, some segments of the luxury market remain resilient, particularly high-end art, where sales of “blue-chip” works by renowned artists have performed well. While the market faces challenges, a dedicated group of investors remains, drawn by both passion and the desire to showcase their wealth.

China, once a major beneficiary of foreign capital, is now facing its own challenges with offshoring. Chinese firms have invested a record $177 billion abroad, largely in emerging markets, including sectors like electric vehicles and computer chips. This shift is driven by rising labour costs in China, weak domestic demand, and tariffs imposed by the US. However, China’s overseas investments have raised concerns both at home and abroad. Chinese companies often import their own workers and retain technology, limiting the benefits to local economies. In Southeast Asia, for example, Chinese firms have increased their market share but also squeezed local competitors. Despite some signs of localisation, there are growing fears in China about the potential hollowing out of its domestic industries and the long-term impact on employment and economic stability. Chinese policymakers are now focused on managing the balance between offshoring and preserving domestic manufacturing capabilities.

2024 has been another challenging year for CEOs, with global uncertainties such as elections, geopolitical conflicts, and economic slowdowns impacting many. Despite these challenges, some CEOs have delivered exceptional performance. The Economist’s list of top-performing CEOs is based on shareholder returns, with a diverse group leading companies from various sectors. Notable names include Jean-Christophe Tellier of UCB, Rick Smith of Axon Enterprise, and Jensen Huang of Nvidia. Elon Musk is absent from the list despite significant gains in his companies, as the percentage increase was not enough to secure a top spot.

Some companies’ success is attributed more to external factors than to the CEOs’ leadership. For example, Axon and Texas Pacific Land have benefited from expectations around AI and political shifts. However, there are standout CEOs like Alex Karp of Palantir, whose company’s market value surged from $36bn to over $180bn in 2024. Palantir’s growth is driven by its expansion into AI-driven solutions and impressive financial performance. While Karp’s success is undeniable, the challenge now is maintaining this momentum as expectations rise.

Ultimately, Karp’s performance in 2024 has earned him recognition as one of the year’s best CEOs, but the pressure to sustain growth and meet high investor expectations remains significant.

In 2024, car shopping in the U.S. returned to normal with more vehicle options and better deals. Discounts and incentives, averaging $3,400, boosted sales, which rose 7% in December. However, overall U.S. vehicle sales are expected to grow by just 3% for the year, falling short of pre-pandemic levels due to high interest rates and limited affordable cars. While electric vehicle (EV) sales have slowed, discounts on EVs, especially leases, are increasing. In 2025, prices are expected to ease, but automakers will face challenges attracting customers as pent-up demand wanes.

Sue Jones, a 91-year-old from Tennessee, thought she had enough savings for retirement, but living longer than expected has left her struggling with rising bills and medical costs. Many elderly Americans are finding that their retirement plans, made in their 50s, don’t account for the longer lives people now lead. Interviews with octogenarians and nonagenarians revealed common regrets, such as not saving more, not spending on themselves, or failing to plan for life changes like business closures or divorce. Some, like Marge Horn, had financial setbacks due to unexpected events, while others, like Bernita Clark, found success in part-time work or early retirement savings. Financial experts advise longer-term planning, diversifying income sources, and being flexible with expectations to navigate longer, unpredictable retirements.

Japan’s economy is showing mixed signals, with healthy growth in inflation and retail sales, but a decline in industrial production. Consumer inflation in the Tokyo metropolitan area rose by 2.4% in December, slightly above November’s 2.2% increase, while retail sales grew by 2.8% in November, driven by holiday shopping and cooler weather. Unemployment remained stable at 2.5%, indicating tight labour market conditions and potential wage growth. However, industrial production fell 2.3% in November, pointing to challenges in the manufacturing sector. Despite this, the Bank of Japan (BOJ) kept interest rates unchanged, citing global economic uncertainties, including potential tariffs under the incoming US administration, which could impact Japan’s exports and production.

Mexico’s tequila industry is facing challenges, with over 525 million litres of tequila in inventory by the end of 2023, almost equivalent to the country’s annual production. This build-up is attributed to slowing demand and the expansion of distillery capacity. After a decade of rapid growth, driven by the rise of celebrity-backed brands, demand has cooled in the past 18 months, partly due to the post-pandemic slump and higher prices. Additionally, the threat of a 25% tariff on Mexican goods by the US under Donald Trump could severely impact the industry, as the US accounts for 80% of tequila exports. Despite these concerns, some believe the tariff threat is unlikely to materialise, noting that Trump previously made similar threats without action. Meanwhile, tequila prices have fallen due to weaker demand, though producers are benefiting from lower agave prices.

Global corporate debt issuance reached a record $8 trillion in 2024, driven by strong investor demand and lower borrowing costs. Corporate bond and leveraged loan issuance increased by over a third compared to 2023, surpassing the previous peak in 2021. Companies like AbbVie, Home Depot, and Boeing capitalised on favourable conditions, borrowing ahead of potential market uncertainty. Despite narrower bond spreads, total borrowing costs remain high due to elevated Treasury yields. Investor inflows into corporate bond funds also hit a record $170 billion. While borrowing activity is expected to remain steady in 2025, some caution is expressed about the potential risks if spreads widen.

Amazon’s decision to require its white-collar workers to return to the office five days a week in 2025 has sparked continued discussions on the role of the office in modern work life. The article explores how, despite the challenges and frustrations of returning to the office, the topic remains a central conversation point in the workplace. It highlights how office discussions, often dismissed as trivial, can provide valuable insights into the complexities of white-collar jobs, which have become more obscure and jargon-heavy over time. The author suggests that talk of the office, while sometimes tedious, can serve as a bridge to deeper, more meaningful conversations, allowing employees to navigate the complexities of their roles and connect on a personal level.

Clara Brugada, the mayor of Mexico City, has launched a bold initiative called the “Utopias” project, aimed at reducing inequality in the deprived neighbourhood of Iztapalapa. The project includes cultural and leisure facilities such as a Boeing 737 library, parks with animatronic dinosaurs, sports centres, and free wellness services like yoga and hydrotherapy. These Utopias are designed to offer the working-class community access to facilities often reserved for wealthier areas, including swimming pools, planetariums, and even classical music classes. The project has improved the quality of life, reduced crime, and is seen as a model for addressing urban inequality. However, the initiative has faced criticism for its high costs and the potential sustainability of its funding. Despite these concerns, the Utopias represent a significant departure from traditional neoliberal policies, advocating for equitable access to public services regardless of socio-economic status.

A recent Danish study tracking over 630,000 children born between 1972 and 1982 has revealed how parental income influences the economic outcomes of their children. The study confirmed that wealthier parents tend to produce wealthier offspring, but the mechanisms differ across income groups. For children from low-income families, slightly better-off parents increase the likelihood of employment. In middle-income families, education plays a crucial role in improving outcomes, with wealthier parents providing better educational opportunities. For the top 5% of earners, however, the key factor is the transfer of assets, as rich parents help ensure their children’s prosperity through capital income. The study highlights how the impact of parental wealth varies significantly depending on the family’s financial standing.

The UK streaming advertising market is set to surpass £1 billion by the end of 2024, marking a significant shift in the TV industry. After initially dismissing ads, streaming giants like Netflix, Amazon, and Disney have embraced ad-supported tiers in response to stagnating subscriber growth and consumer demand for cheaper options. Netflix, which launched its ad-supported plan in 2022, has reached 70 million monthly viewers globally, although ads are still not expected to drive significant revenue until 2026. Despite challenges such as high ad pricing, traditional UK broadcasters like ITV and Channel 4 continue to dominate the market, with ITVX growing rapidly. However, while streaming advertising is growing, it has not yet fully offset the decline of traditional TV, and smaller services like AppleTV+ and Paramount+ struggle with customer retention and profitability. Nonetheless, analysts believe that the US streaming giants will eventually fine-tune their advertising strategies and become a dominant force in the sector.