Macro

General Electric agreed to combine its NBC television network with Vivendi Universal's film studio, cable channels and theme parks, valuing the entertainment assets at about $14 billion. GE would own 80% of the new NBC Universal, with Vivendi retaining roughly 20%, and pay about $3.65 billion in cash at closing. Completed in May 2004, the deal created one of the world's largest media companies.

Healing off the bottom: Fed at 1%, market bottomed in March, survivors consolidated and ad markets slowly recovered. Still negative but steadily improving.

A cascading power failure triggered by a software bug and overloaded transmission lines cut electricity to some 50 million people across the northeastern United States and Ontario. The outage disrupted businesses, financial trading operations, and transportation for up to two days. It prompted a major push to modernize the aging North American power grid.

The sector feels stable but uninspired, as the massive blackout in the Northeast US and parts of Canada initially raised concerns about grid reliability and infrastructure resilience. However, swift restoration of power and no major systemic failures tempered broader worries, limiting negative fallout. Against a neutral macro backdrop, the event underscored operational risks but did not trigger lasting regulatory or financial repricing pressure on the sector.

NYSE chairman Richard Grasso stepped down after disclosure of a compensation package worth roughly $140 million drew public and regulatory outrage. The controversy raised broader questions about governance at the exchange, which at the time was also a self-regulatory organization overseeing member firms. It fed into a wider push for reform of Wall Street self-regulation.

The finance sector is trading cautiously optimistic despite the Parmalat bankruptcy and $12B fraud scandal weighing on sentiment. Market resilience stems from broad expectations that regulatory scrutiny will tighten, reinforcing confidence in systemic oversight rather than undermining it. The overall read remains slightly bullish as investors price in stronger governance safeguards across financial institutions.

Boeing CEO Phil Condit resigned amid an ethics scandal involving improper bidding practices and a controversial $27 billion Air Force tanker contract. The company faces a Pentagon investigation and scrutiny over hiring a former Air Force official, damaging its reputation and raising concerns about defense procurement integrity. Market implications include potential contract suspensions, increased regulatory oversight, and reputational harm affecting Boeing’s competitive standing with rivals like Airbus.

War fears and SARS clouded early months, but Baghdad's fall and 1% rates unlocked a durable recovery, reviving capex and order books through the second half.

Reports circulated that privately held Google had rebuffed acquisition overtures as speculation grew that the search company would eventually go public. Google's advertising-driven business model was already generating substantial profit, fueling Silicon Valley's broader recovery from the dot-com bust. The company would file for its IPO the following spring.

Ultra-low 1% rates and resolution of Iraq-war uncertainty powered a tech-led recovery (Nasdaq +50%), and Google's rebuffed acquisition talks signaled rekindled tech ambition.

A dairy cow in Washington state tested positive for mad cow disease, marking the first confirmed case in the U.S., prompting quarantine measures and a potential beef recall. The USDA and officials assured the public the food supply remains safe, as infected parts were diverted from human consumption. International markets reacted swiftly, with Japan and South Korea halting U.S. beef imports, threatening significant economic impact on exports.

After Q1 war and SARS uncertainty, the Iraq-war relief rally and the Fed's cut to 1% ignited a housing-and-consumer boom, powering strong auto and discretionary sales into year-end.

Reports of a new respiratory illness later identified as SARS began spreading from Guangdong province, prompting travel disruption and economic concern across Asia. Airlines, hotels, and retailers in Hong Kong, China, and Singapore saw sharp demand hits in the following months. The outbreak added another headwind to global markets already nervous about the looming Iraq war.

The spring SARS scare briefly spooked me, but it was contained by July; the real story was December's Medicare Modernization Act creating the Part D drug benefit, a huge new revenue stream flowing to pharma from 2006.

Crude oil prices rose toward $32 a barrel after OPEC trimmed production quotas and colder weather boosted heating fuel demand in the US. The move added a modest inflation risk to an otherwise recovering global economy. Energy stocks benefited from the firmer price environment heading into 2004.

Energy sector sentiment is positive this month, driven by rising oil prices amid tightening supply from OPEC output cuts and stronger seasonal demand due to cold winter weather. These factors have reinforced market confidence in near-term price support, underpinning the bullish read. The broader macro backdrop of volatile global energy demand adds context but does not overshadow the sector-specific supply-demand dynamics.

Accelerating Chinese demand, a weak dollar, and 1% rates ignited the commodity supercycle, doubling base-metals prices off their lows and lifting gold past $400, a booming setup for materials owners.

The Fed's 1% rate by June and 'considerable period' pledge supercharged the housing boom as subprime and cheap credit expanded; property owners rode accelerating appreciation.

The U.S. and coalition forces initiated a military campaign against Iraq with cruise missile strikes targeting Saddam Hussein, marking the start of the Iraq War. President Bush declared the operation aimed at disarming Iraq and freeing its people, while Saddam denounced the attack as 'criminal' and vowed resistance. The conflict's onset triggered regional instability, global diplomatic reactions, and significant military mobilization, with potential implications for oil markets and global security.

The March Iraq invasion opened peak wartime spending, with massive supplementals funding operations, munitions and equipment replacement.