TikTok Officially Unavailable In The US But Users Are Flocking To Another Chinese App

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Hello and happy Sunday! Today, we’re diving into global shifts and market tremors shaping the start of the year. Here’s what’s on the radar:

• Inflation on the rise: CPI climbs again, with housing keeping inflation stubbornly high as the Fed reassesses rate cuts.

• Boeing’s setbacks vs. Airbus’ ascent: Airbus outpaces Boeing in deliveries, widening the gap as Boeing grapples with safety concerns and strikes.

• SoFi’s winning streak: Strong profits and a new loan deal propel the fintech giant to new highs.

• Apple slips in China: Vivo and Huawei take the lead in China’s smartphone market, knocking Apple down a notch.

• TikTok ban drives Americans to RedNote: Users are flocking to the Chinese app and even learning Mandarin in defiance of a TikTok exit.

Inflation Alert

Inflation is back on the rise, marking three straight months of increases, according to the Bureau of Labor Statistics. 🚨 The Consumer Price Index for All Urban Consumers (CPI-U) climbed 2.9% year-over-year in December 2024, while core inflation, excluding food and energy, edged down slightly to 3.2%—the first core decline since July.

Housing remains the main inflation driver. Rent costs jumped 4.3%, and owners’ equivalent rent rose 4.8%, making shelter inflation a persistent headache. Without shelter, inflation would have hovered at or below the Federal Reserve's 2% target for much of the past two years.

The Federal Reserve appears poised to pause rate cuts at its January meeting after lowering rates by a full percentage point across three previous meetings. Market odds suggest the next rate cut might not come until June, contingent on the incoming Trump administration’s policies, some of which—like tariffs and stricter immigration—could amplify inflation.

Inflation’s journey has been bumpy since 2021, initially fueled by post-pandemic recovery and later exacerbated by the war in Ukraine. Now, as prices compare against already high baselines, progress in bringing inflation down has slowed, leaving it a persistent concern.

Setbacks Ground Boeing While Airbus Takes Off

Boeing's tough year has widened the gap with its rival Airbus. The American aerospace giant delivered just 348 commercial planes in 2024, a drop of 180 compared to the previous year. Meanwhile, Airbus delivered 766 jetliners, 31 more than in 2023, solidifying its lead. 💪💯

2024 was riddled with setbacks for Boeing. Early in the year, a door plug failure mid-flight on an Alaska Airlines Boeing 737 Max 9 grabbed headlines, followed by reports of loose bolts on the same model. These safety concerns, coupled with other incidents across different models, eroded trust in Boeing’s planes. Adding to the turbulence, over 33,000 machinists went on strike between September and November, demanding better wages and benefits.

Boeing and Airbus were once neck and neck in deliveries, but the 737 Max crisis in 2019 marked a turning point. The model’s 20-month grounding after two fatal crashes devastated Boeing’s momentum. While both manufacturers scaled back production during the pandemic, Airbus has rebounded more effectively, leaving Boeing struggling to regain altitude.

SoFi Soars Again: Profit Streak and New Deal Impress Investors

SoFi Technologies is on a winning streak, adding 15% to its stock value last week. 🚀The fintech firm jumped 4% on Thursday alone after announcing a $525 million personal loan securitization deal, showcasing its ability to maintain the capital flow essential to its business model. This marks a continuation of SoFi's impressive five-month run, with its stock more than doubling in that period and outpacing fintech peers like PayPal, Block, and Affirm.

The excitement around SoFi is fueled by its recent profitability streak, with five consecutive quarters in the black, and optimism about a regulatory shift under the incoming Trump administration that could favor fintech firms. The latest deal underscores what analysts call “continued demand” for SoFi’s lending products, keeping the company firmly in the spotlight.

Vivo and Huawei Take the Lead: Apple Slips in China Market

Apple shares fell nearly 3% last week after a Canalys report revealed the company lost its top spot in China’s smartphone market. 📱📉Vivo and Huawei now lead, pushing Apple to third with a 15% market share. Despite shipping 285 million phones—a 4% year-over-year increase—this marks a setback in one of its key markets. Year-to-date, Apple stock is down 8%, making January its worst month since September 2023.

TikTok’s Exit Has Americans Saying “Ni Hao”

With TikTok officially unavailable in the US, many Americans are flocking to Chinese social app Xiaohongshu (RedNote), ironically embracing the platform in defiance of US concerns. Over 700,000 new users joined RedNote in just two days, with US downloads surging 200% year-over-year.

Even more striking, “TikTok refugees” are now learning Mandarin to better navigate the Shanghai-based app, driving a 216% spike in new Mandarin learners on Duolingo. 🔡 👨‍🏫 The language-learning platform leaned into the trend, joking on X: “Oh so NOW you’re learning Mandarin.” Duolingo's stock jumped as much as 10%, boosted in part by a new AI-enabled product launch.