Key Takeaways
- Goldman Sachs projects that U.S. stocks will significantly underperform global peers over the next decade, forecasting annualized returns of just 6.5% for U.S. equities compared to 10.9% for Emerging Markets.
- Apple (AAPL) and Tencent Holdings Ltd. (0700.HK) have finalized a revenue-sharing agreement, granting Apple a 15% commission on purchases made within WeChat mini-games and apps, resolving a year-long dispute.
- Unionized Starbucks (SBUX) baristas have initiated an unfair labor practice strike across over 40 cities nationwide, with 92% voting in favor, ahead of the critical holiday season.
- Finnair (FIA1S) plans a substantial €2.5 billion investment over the next four years to modernize its short-haul aircraft fleet, adapting its operations to ongoing geopolitical airspace restrictions.
- Ukraine's military claims to have struck Russian oil terminals in occupied Crimea and an oil depot in the occupied Zaporizhzhia region, escalating geopolitical tensions and potentially impacting energy logistics.
Unionized Starbucks (SBUX) baristas have launched an open-ended unfair labor practice (ULP) strike across more than 40 cities nationwide, with a supermajority of 92% voting "yes" to authorize the action. This significant labor action comes just before the crucial holiday season, following six months of Starbucks allegedly refusing to offer new proposals to address workers' demands for better staffing, higher pay, and the resolution of hundreds of ULP charges. Workers United, the union representing the baristas, states that administrative law judges and the National Labor Relations Board have found Starbucks to have committed over 500 labor law violations, with more than 1,000 ULPs filed to date, including over 125 since January 2025. The union has indicated readiness to escalate actions, potentially impacting key sales days like "Red Cup Day," if a fair contract is not finalized by November 13.
In a significant development for the tech sector, Apple (AAPL) and Tencent Holdings Ltd. (0700.HK) have reached an agreement that will allow Apple to process payments and collect a 15% commission on purchases made within WeChat mini-games and apps. This resolution concludes more than a year of negotiations, during which Apple pushed to eliminate loopholes that enabled app developers to bypass its standard 30% commission on in-app purchases. The new arrangement is expected to create an additional revenue stream for Apple while simultaneously easing pressure on Tencent.
Geopolitical tensions continue to impact global markets, as Ukraine's military announced it has struck Russian oil terminals in occupied Crimea and an oil depot in the occupied Zaporizhzhia region. The strikes reportedly targeted facilities such as the Morskoy Oil Terminal in Feodosia, a critical hub for supplying fuel and lubricants to Crimea and southern Ukraine, with "direct hits on storage tanks" confirmed. These actions are part of Ukraine's stated strategy to degrade Russia's military and economic capabilities.
Finnair (FIA1S) is poised for a major investment, planning to spend up to €2.5 billion over the next four years to modernize its fleet of short-haul planes. The Finnish flag carrier is currently in discussions with aircraft manufacturers regarding a partial renewal of its narrow-body aircraft fleet and is also considering the acquisition of smaller secondhand aircraft. This strategic fleet update is a direct response to operational challenges posed by airspace restrictions, particularly the inability to access Russian airspace, which has significantly impacted Finnair's flight schedules and Asian routes. The airline aims to achieve improved fuel efficiency and reduced maintenance costs through this modernization effort.
Looking ahead, Goldman Sachs (GS) has issued a cautious outlook for U.S. stocks, predicting that they will lag behind their global counterparts over the next decade. The investment bank forecasts annualized returns of just 6.5% for U.S. equities in USD terms, which is notably lower than the 10.9% projected for Emerging Markets and 10.3% for Asia ex-Japan. Strategists, led by Peter Oppenheimer, attribute this bearish forecast to elevated U.S. stock valuations and market concentration, arguing that the tailwinds of expanding profit margins, tax cuts, and low interest rates that propelled past growth are unlikely to be sustained. Goldman Sachs advises investors to diversify their portfolios with a tilt towards Emerging Markets and Asia to capitalize on higher growth potential.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.