Jan 17, 2024
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“We must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist.” – Dwight D. Eisenhower, 1/17/61
Below is a snippet of commentary from today’s Morning Lineup. Start a two-week trial to Bespoke Premium to view the full report.
It’s not a pretty morning for risk assets as Asian stocks, specifically China, were down sharply overnight, and Europe is down sharply this morning after ECB President Lagarde followed the lead of US central bankers when she noted that rate cuts aren’t likely to start until the Summer and UK inflation came in higher than expected. Here in the US, it’s a busy day of economic data. Retail Sales and Import Prices were just released, and they both came in higher than expected. On the docket, we have Industrial Production and Capacity Utilization at 9:15 and then Business Inventories and Homebuilder Sentiment at 10 AM.
When comments like the above are made today, the people making them are often written off by the mainstream as candidates being on the fringe, but President Dwight D. Eisenhower made the statement above as part of a nationally televised farewell speech from the Oval Office when his approval rating was just under 60%. Eisenhower’s concerns stemmed from the fact that after multiple major wars, the US defense industry was becoming a much larger share and player within the US economy, and he was pointing out that as its size grew, so too would its influence.
During Eisenhower’s last year in office (1960), total US defense spending, according to the World Bank, was $47 billion. Within 16 years, defense spending had doubled, and just six years later, it had more than doubled again to over $220 billion. Under Reagan, spending steadily increased and reached a short-term peak in 1990 at $325 billion. For the remainder of George H. Bush’s term through most of Clinton’s entire time in office, total spending actually drifted lower but then surged exponentially after 9/11. Spending then generally declined for most of Obama’s time in office and then ramped back up again after Trump came into office (“When I took over our military, we didn’t have ammunition”). As of 2022, the latest year of available figures, total defense spending in the US reached $877 billion, or more than 18 times the level during Eisenhower’s last year in office.
While it may look as though defense spending has only become a larger influence on the US economy since Eisenhower left the Oval Office for the last time, when measured as a percent of GDP, defense spending has generally been on the decline. During Eisenhower’s last year in office, total defense spending equaled about 9% of GDP, and through the decades steadily declined to a low of 3.09% of GDP in 1999 during Clinton’s second to last year in office. Again, spending ballooned as a percent of GDP during George W Bush’s Presidency after the 9/11 attacks, but then started to decline again after Obama came into office. While total dollar-spending surged after Trump came into office, as a share of the economy, the increase looks much more subdued.
In terms of the current US geo-political picture, it’s hard to remember a time when more fires were smoldering around the world, so you would think that it would be a great time for defense contractors. Based on the performance of the largest US defense contractors over the last year, though, that has hardly been the case. The chart below shows the one-year performance of the five largest defense contractors (market cap greater than $50 billion), and during that time, TransDigm (TDG) is the only one that is outperforming the S&P 500. Of the remaining four, two are up less than 4% while Boeing (BA) is down over 5% and RTX is down over 13%. BA is facing its own issues as the company tries to get its act together, but for the other companies rising geo-political instability hasn’t necessarily been good for their stocks.
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Jan 14, 2024
Welcome to Bespoke Brunch Reads — a linkfest of the favorite things we read over the past week. The links are mostly market-related, but there are some other interesting subjects covered as well. We hope you enjoy the food for thought as a supplement to the research we provide you during the week.
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On This Day in History:
Miracle on the Hudson: We’re one day off but it’s a long weekend and Monday marks fifteen years since the Miracle on the Hudson on January 15, 2009. Shortly after takeoff, US Airways Flight 1549 had its engines disabled after a bird strike, forcing an emergency landing on the Hudson River in New York City. Captain Chesley “Sully” Sullenberger and First Officer Jeffrey Skiles determined that they didn’t have enough speed or altitude to make it back to the airport, making the cold Hudson the only option. The heroic actions and quick decision-making under a world of pressure saved the lives of all 155 people on board. Since the crash in 2009, a movie was made about the event in 2016. It’s titled “Sully” and stars Tom Hanks as Captain Sully.
Investments
ETFs in 2023: A Tale of Success and Failure (Morningstar)
The ETF market experienced substantial growth in 2023, with significant inflows and more than 500 new launches. As a result of strong competition, though, there were almost 250 closures. Many of these were linked to factors like low assets, high fees, and poor performance. Commodities-focused ETFs had the highest number of closures, along with closures in leveraged equity ETFs and active ETFs. [Link]
Hedge Funds’ Popularity Flags Among Allocators, per Consulting Firm (Chief Investment Officer)
Hedge funds are losing their popularity according to Agecroft Partners. Despite growth in hedge fund assets, investment inflows are slowing, with smaller and midsize funds outperforming larger ones. For some time, hedge fund returns have been in the single digits along with higher fees. The overall hedge fund industry is predicted to experience consolidation, with stronger managers attracting more investments and underperforming ones facing potential closure. [Link]
AI & Technology
This iPhone fell out of Alaska Airlines Flight 1282 (The Verge)
At this point, most of us have seen the video of the Alaska Airlines Flight that lost part of its fuselage shortly after takeoff. If you haven’t, this link has a clip of it embedded in the article! The incident, involving a Boeing 737 Max 9, led to an emergency landing at Portland International Airport. The National Transportation Safety Board confirmed two phones from the flight were found on the ground, including one that survived the fall to Earth! Pretty crazy to think about when some of us have dropped and cracked phones from just a few feet. [Link]
New material found by AI could reduce lithium use in batteries (BBC)
Microsoft and the Pacific Northwest National Laboratory, with the help of AI, discovered a new material that could reduce lithium usage in batteries by up to 70%. AI screened through tens of millions of materials in less than a week to identify candidates for the job. Once AI could identify qualifying materials, it took less than nine months to develop a battery prototype. The material called N2116 has the potential to be a sustainable energy storage solution because it’s safer than lithium. The quick AI finding is also beneficial because of the lithium shortage that could occur in just a year. [Link]
California wants to reduce traffic. The Newsom administration thinks AI can help (Los Angeles Times)
The California Department of Transportation is exploring the use of AI to reduce traffic, not just for the cars jammed up in LA and other dense cities, but also for pedestrians and cyclists. AI would be employed to analyze data from traffic sensors and cameras. The technology would be able to identify narrow roads, frequent site crashes, dimly lit areas, and other factors that clog up traffic and lead to more accidents and then present solutions to those problems. [Link]
Our fingerprints may not be unique, claims AI (BBC)
Columbia University is challenging the belief that every fingerprint is unique with the help of AI to analyze 60,000 prints. With 75-90% accuracy, AI could identify whether different fingerprints belonged to the same individual. There are some issues with the research though, as the methods used by AI aren’t fully understood due to untraditional analysis. If this research continues to develop, AI could have implications in biometrics and forensics. [Link]
How AI Replaced the Metaverse as Zuckerberg’s Top Priority (Bloomberg)
Since starting Facebook at Harvard in the early 2000s, the CEO of Meta Platforms, Mark Zuckerberg, has seen a fair share of technological changes. Perhaps the development of AI is the biggest evolution yet, and Meta’s AI research group is now focusing more on developing consumer-facing AI products. The company’s strategy includes leveraging AI to enhance user engagement on its platforms. After the launch of ChatGPT, which has quickly accelerated public interest in AI, Zuckerberg has shifted focus from the Metaverse to AI-driven initiatives. [Link]
Environment & Energy
America’s Carbon Emissions Fell for the First Time Since Covid (Heatmap News)
In 2023, the United States saw a 1.9% decrease in greenhouse gas emissions even as the economy grew. That marks the first time this decade that economic growth and emission reduction occurred simultaneously. The decline in emissions was driven mainly by the power sector, with notable reductions in coal usage and increases in solar and nuclear power. However, transportation and industrial sectors still present challenges, with rising emissions in air travel and heavy industries. [Link]
A huge battery has replaced Hawaii’s last coal plant (Canary Media)
In 2022, Hawaii shut down its last coal plant and replaced it with the Kapolei Energy Storage system, featuring 158 Tesla Megapacks. The project boasts 185 megawatts of discharge capacity, providing crucial grid services like capacity, energy storage, and frequency stabilization. The battery’s integration aids in maintaining grid reliability while transitioning to renewable energy, marking a significant step in Hawaii’s commitment to a clean-energy grid. [Link]
Marketing
How Pop-Tarts pulled off its unforgettable mascot sacrifice (Marketing Brew)
Pop-Tarts made a bold marketing move just before the new year, ending 2023 with a bang. After Kansas State’s 29-19 win over North Carolina State in the Pop-Tarts Bowl game, a Strawberry Pop-Tarts mascot climbed into a massive toaster before spitting out an equally large and edible Pop-Tart for the victors to feast on. It was certainly an unconventional marketing tactic playing to its “crazy good” mantra. It ended up being a big success, as internet memes and discussion boosted viewership and turned the stunt into the brand’s biggest earned campaign. [Link]
Back to Work?
Offices Around America Hit a New Vacancy Record (WSJ)
Office vacancies in major US cities have reached their highest levels in over four decades, tracing back to overbuilding in the 1980s and 1990s, worsened by the shift towards remote work and smaller office spaces accelerated by the pandemic. Many of the vacancy trends have flipped too. For example, areas that were once booming like San Francisco and Texas cities are now facing high vacancy rates, while cities in Florida that once struggled now show lower rates. [Link]
Soccer Stumbles
Chinese Remains Terrible at Soccer. It Says This Is Why. (WSJ)
Corruption is Xi Jinping’s explanation of China’s soccer struggles. The Chinese government has revealed that high-profile figures in the country have been involved in bribery and match-fixing. Li Tie is one star player turned coach who admitted to manipulating the outcome of games in exchange for money. With such a large population, of which many are fans of the sport, it’s hard to imagine that a country of its size wouldn’t be able to put together a solid team. The corruption involved sounds like it might be a smaller byproduct of larger issues like government policy and business models within the country and world of sport. [Link]
Government Programs & Policies
The Fed Launched a Bank Rescue Program Last Year. Now, Banks Are Gaming It. (WSJ)
The Federal Reserve’s emergency lending program, created during the 2023 banking crisis, has unexpectedly turned into a profitable opportunity for banks. With the market anticipating multiple Fed rate cuts, banks are able to borrow from the Fed’s program at lower rates and earn higher returns by depositing these funds with the central bank. Initially, the program provided costly loans due to expected higher rates, but the recent reversal in rate expectations made borrowing cheaper. [Link]
Maine renews effort to elect president by national popular vote (Daily Kos)
Maine is a state that divides its electoral votes: two for the statewide winner and one each for the winners in its congressional districts. Democrats in the state are now revisiting a bill to join the National Popular Vote Interstate Compact and allocate Maine’s four electoral college votes to the national popular vote winner. All member states would collectively award their electoral votes to the winner of the national popular vote and will only take effect when states representing a majority of the 538 electoral votes join, which means 270 or more votes. The goal would be to ensure that the winner of the popular vote becomes president. The popular vote winner has lost the Electoral College five times in US history, the most recent being Hillary Clinton vs Donald Trump. [Link]
IRS collects more than $500 million in back taxes from delinquent millionaires (MarketWatch)
Millionaires with outstanding tax debts have paid $520 million to the IRS following increased enforcement efforts geared toward wealthy businesses and individuals. Now that the IRS has received a big funding boost from the Inflation Reduction Act, the agency can enhance compliance which is already having success. The crackdown could be hindered by a deal to lift the debt ceiling or a potential deal to avert an upcoming government shutdown, both of which would redirect billions of dollars of funding elsewhere. [Link]
Secret Societies
Skull and Bones and Equity and Inclusion (The Atlantic)
In 2019, members of Yale’s secret society Skull and Bones, known for its elite and exclusive history, confronted its legacy of exclusion by replacing traditional portraits in their meeting place with signs criticizing the society’s lack of diversity. This act reflected broader changes within Yale’s secret societies, which historically have been symbols of privilege and exclusivity. To give you an idea of the exclusivity here, the Vanderbilts, Rockefellers, US presidents, and other high-profile figures have all been bonesmen. The societies now are increasingly diverse, with members advocating for social justice and inclusivity, which has raised tensions between those focused on progress and alumni who value tradition. [Link]
Tails Never Fails?
Scientists Destroy Illusion That Coin Toss Flips Are 50–50 (Scientific American)
After more than 350,000 coin flips, a study found that coins landed on the same side as they started 50.8% of the time, indicating a nearly 1% bias. This finding supports the theory that coins don’t rotate symmetrically in the air, meaning that they spend more time in the air with their initial side facing up. However, for everyday decisions, this bias is negligible, and standard coin flips can still be considered virtually random. If you can see the coin before it’s flipped, though, it sounds like the side facing up might be the one you should go with, instead of the favored “tails never fails” strategy. [Link]
Race Against Rats
A New York Professor Wages Epic Battle Against Rats Attacking His Car (WSJ)
A theater professor at the City University of New York has been unlucky enough to experience four rat invasions of his car in New York City, which is known for its large rat population. The professor has used some creative tactics to combat the rats, like wrapping ignition wires in minty tape and pouring a “garlic-scented potion” on his engine. It’s an issue many are having, with more than 91,700 car damage claims due to rodents in the US from July 2022 to the end of June 2023. The search for effective deterrents is ongoing, and many more interesting methods are being tested. [Link]
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Jan 9, 2024
See what’s driving market performance around the world in today’s Morning Lineup. Bespoke’s Morning Lineup is the best way to start your trading day. Read it now by starting a two-week trial to Bespoke Premium. CLICK HERE to learn more and start your trial.
“When we put it all together, we’ve got to be perhaps the greatest club ever.” – Bill Sharman
Below is a snippet of commentary from today’s Morning Lineup. Start a two-week trial to Bespoke Premium to view the full report.
Markets are experiencing a bit of a turnaround Tuesday (in the wrong direction) this morning as a good chunk of yesterday’s gain is getting retraced this morning. Small Business Optimism from the NFIB topped forecasts reaching its joint-highest reading since September 2022, and the Trade Balance came in slightly narrower than expected. Perhaps the biggest headlines in the next 24 hours, though, will come in the crypto space where the SEC is expected to give a definitive answer regarding approval for a Bitcoin ETF.
Last week’s decline to kick off the year ended what had been simultaneous nine-week winning streaks for the S&P 500 and the Nasdaq and the longest such streak in decades. Given the weakness to kick off the year, a lot of investors went into the weekend thinking that maybe the rally had finally run its course, and the bears were going to be back in charge for 2024. Yesterday, though, the bulls made a stand as the S&P 500 rallied 1.4% to put it down just 0.13% on the year. Who knows what the rest of the year may bring, but one week doesn’t necessarily make a trend (even if it was the all-important first week of the year). Think back to the 1972 Lakers.
52 years ago today, the Lakers, led by Jerry West, Gail Goodrich, and Wilt Chamberlain ended a record 33-game win streak when Kareem Abdul-Jabbar dropped 39 to help lead the Milwaukee Bucks to a 120-104 win. While the end of the streak was undoubtedly a disappointment at the time, the Lakers still ended the season with a 69-13 record. They then sailed through the playoffs with just three losses in three rounds, ultimately winning the Championship over the Knicks. Even the best runs have their rough patches.
As mentioned above, after five full trading days, the S&P 500 is down just fractionally YTD with a decline of 0.13%, and the average performance of stocks in the index is a decline of 0.23%. Overall, 230 stocks in the index are up YTD, so it’s been a draw all around. While there hasn’t been much movement at the index level, on an individual stock level, there have been some extremes at each end of the spectrum with a handful of ‘stars’ already up over 5% YTD and an even larger number down over 5%.
Starting with the biggest winners, 18 stocks in the S&P 500 have already rallied 5% on the year, and the top five performers are all from the Health Care sector with Moderna (MRNA) leading the way posting a gain of 16.1% YTD. Rounding out the top five, Eli Lilly (LLY) is continuing its run from last year with an additional gain of 7.4%. Outside of the Health Care sector, some of the more notable names on the list include Verizon (VZ), which doesn’t often find itself on a top performer list, and NVIDIA (NVDA), which always seems to be near the top of a top performer list no matter what time frame you look at.
While 18 stocks are already up at least 5% YTD, 27 stocks are already down 5% on the year. The most notable of the losers is Boeing (BA) as it’s down over 12% following its 8% decline on Monday. Tech was a top-performing sector last year, but it has run into a bit of profit-taking in the first week of 2024 as one-third (9) of the stocks listed are all from that sector and more specifically, the semiconductor group.
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Jan 8, 2024
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“All truths are easy to understand once they are discovered; the point is to discover them.” – Galileo
Below is a snippet of commentary from today’s Morning Lineup. Start a two-week trial to Bespoke Premium to view the full report.
We may be eight days into the year already, but from a market perspective, today seems like the first day back. While there isn’t any economic news on the calendar, there’s been a ton of announcements from individual companies concerning guidance and Q4 performance. This week also marks the unofficial start of Q4 earnings season, and we’ll have the JP Morgan Healthcare Conference and the 2024 Consumer Electronics Show. It’s also a full trading week!
The biggest individual stock story of the morning is Boeing (BA) which is trading down around 7.5% after a door panel on an Alaskan Air (ALK) flight blew off mid-flight. In response to the event, the FAA has ordered the grounding of all 737 MAX 9 jets in the US.
Boeing can’t seem to catch a break this decade, but towards the end of last year, the 40%+ rally in the stock suggested that maybe the worst of the company’s problems were behind it. This morning, though, the stock is poised to gap down to just above its 50-day moving average (DMA) in what would be the worst downside gap for the stock since 6/11/2020.
As painful as the decline is for BA shareholders this morning, historically the stock has tended to bounce back following downside gaps of at least 5%. The chart below compares the stock’s median performance following 5%+ downside gaps in the stock to its average performance for all periods since 1980. Outside of the one month, the stock’s median performance and frequency of positive returns were better than the average for all periods and in many cases, significantly so. That obviously doesn’t guarantee anything going forward, but even in the post-COVID period, the stock’s performance, especially over the following three, six, and twelve months, has tended to be positive.
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Nov 19, 2023
Welcome to Bespoke Brunch Reads — a linkfest of the favorite things we read over the past week. The links are mostly market-related, but there are some other interesting subjects covered as well. We hope you enjoy the food for thought as a supplement to the research we provide you during the week.
While you’re here, join Bespoke Premium with a 30-day trial!
On This Day in History:
Four Score and Seven Years Ago: On November 19th, 1863, US President Abraham Lincoln delivered the famous Gettysburg Address. The 272-word speech, a cornerstone of American history, was given at the dedication of the Soldiers’ National Cemetery in Gettysburg, Pennsylvania four and a half months after the pivotal battle during the Civil War. President Lincoln redefined the war as a struggle not only for the Union but for the principle of human equality. He emphasized the ideals of democracy and liberty and ensured the “government of the people, by the people, for the people, shall not perish from the earth.” Of course, the Gettysburg Address did not receive universal acclaim at the time. In fact, the immediate reaction was largely divided. As history now remembers, the speech resonates as one of the greatest in the nation’s history and remains one that encapsulates its very meaning.
The Environment & Fossil Fuels
Drought Leaves Midwest Towns ‘Drier Than the Dust Bowl’ (WSJ)
Towns in Mid-America are experiencing severe water shortages due to a prolonged drought. Caney, Kansas, may run out of water by March, prompting conservation measures like a shortened school week. In Iowa, Belle Plaine and Osceola face significant water production declines and restrictions. The crisis is attributed to changing rainfall patterns and climate patterns, compounded by small towns’ limited capacity for major water infrastructure projects. Solutions being considered include emergency wells, water treatment plants, and potentially recycling wastewater, but challenges like aging infrastructure and funding constraints complicate efforts. [Link]
Analysis: China’s emissions set to fall in 2024 after record growth in clean energy (Carbon Brief)
China’s CO2 emissions are expected to decline in 2024 due to a substantial increase in low-carbon energy sources, particularly wind, solar, and hydropower. This follows a temporary rise in emissions in 2023, largely driven by a rebound in oil demand and sectors affected by pandemic policies re-started. This trend, while welcome, will be tough to maintain given the ongoing expansion of coal power capacity in the country. [Link]
U.S. and China Agree to Displace Fossil Fuels by Ramping Up Renewables (NYT)
The United States and China, the world’s two largest polluters, have agreed to increase renewable energy use to reduce fossil fuel dependence. This agreement does not commit China to phasing out coal use but sets goals for renewable energy expansion and emissions reductions. The deal, significant for the upcoming COP28 climate talks, shows both nations’ intent to transition to cleaner energy sources. [Link]
Housing & Real Estate
A town that became ‘one giant Airbnb’ is now facing a reckoning (Business Insider)
Hochatown, Oklahoma, a small town with a population of just 219, has experienced a dramatic transformation due to the influx of Airbnb rentals. Before the pandemic, the town had about 400 rental properties, but now it boasts 2,400, turning it into a major vacation destination. This growth has brought significant tax revenue but also challenges, such as a lack of professional public services and infrastructure issues like unpaved roads and unreliable water supply. The surge in Airbnb properties has led to concerns about an “Airbnbust,” where an imbalance between supply and demand impacts profitability for property owners. [Link]
The Share of Americans Who Are Mortgage-Free Is at an All-Time High (Bloomberg)
The number of Americans owning their homes outright has risen significantly, with nearly 40% of homes being mortgage-free by 2022, a 5% increase from 2012. This trend is driven by baby boomers, many of whom have refinanced to shorter-term mortgages, enabling faster loan payoff. The total number of mortgage-free homes grew by 7.9 million from 2012 to 2022. West Virginia leads with almost 53% of homes owned outright as older homeowners, if not choosing to stay in their current homes, move to more affordable areas. The news comes as new homebuyers get crushed by steep rates. [Link]
Lawler: New Census Long-Term Population Projections Are MASSIVELY Lower Than Previous Projections (CalculatedRisk)
The US Census Bureau’s 2023 long-term population projections for the United States are significantly lower than their 2017 projections. The main reasons for this stark difference are lower projected birth rates, higher projected death rates, and reduced expectations for net international migration. The updated projections will likely have significant implications for housing market analysis. [Link]
What the $2 Billion Realtor Lawsuit Means for Homebuyers and Sellers (US News)
A jury ruled against the National Association of Realtors (NAR) and major real estate brokerages in a class-action lawsuit (Sitzer v. NAR) alleging collusion to inflate agent commissions. The industry may see changes in commission models, moving towards referral fees or separate payments for buyer and seller agents. This shift could lead to more transparency in real estate transactions and a possible decrease in commission rates. [Link]
Automobiles
Hyundai to be First Automaker to Sell New Cars on Amazon (WSJ)
Hyundai and Amazon are partnering to sell new vehicles on Amazon’s platform, signifying a shift towards online car buying, a trend accelerated by the COVID-19 pandemic. Hyundai cars will also feature Amazon’s Alexa technology. The trend, pioneered by Tesla, is being adopted by other car manufacturers, with Ford planning transparent, online-based sales models for EVs. This partnership reflects the automotive industry’s evolution towards e-commerce and changing consumer buying habits. [Link]
The Myth of ‘Slowing’ EV Sales (Heatmap News)
Is EV demand really declining? This article suggests that EV sales are actually growing robustly, with a 60% annual increase in purely electric vehicle sales. The narrative of slowing sales mainly pertains to traditional automakers like Ford and GM, who are adjusting their strategies in response to Tesla’s price cuts and rising interest rates. Although there have been some major production issues, the market is becoming more competitive and affordable, with the average EV price decreasing and new models expanding the market. [Link]
Sweden’s Tesla Blockade Is Spreading (Wired UK)
Swedish workers, including mechanics, cleaners, electricians, and dockworkers, are striking against Tesla for its refusal to sign a collective agreement, crucial to Sweden’s labor norms. This escalating labor dispute involves various unions and actions like refusing to unload Tesla cargo, stopping cleaning services at Tesla locations, and halting deliveries. Former Prime Minister Stefan Löfven has publicly criticized Tesla for ignoring Swedish labor practices, but the impact on Tesla’s operations in Sweden, a key European market, is yet to be determined. [Link]
“Greedflation”
The ‘greedflation’ question: what have we learnt? (Financial Times)
The concept of “greedflation,” suggesting corporate greed contributed to recent inflation, has sparked some debate. While some attribute inflation to the pandemic, Ukraine war, and government stimulus, others argue that corporate power and supply chain bottlenecks also played a role. Some studies indicate that industries with more pre-pandemic pricing power were able to raise prices more easily amid supply disruptions. This suggests that while corporate efforts to boost margins may not be the sole cause of inflation, it is a factor worth considering in understanding the economic situation. [Link]
Flying Horses
Plane turns back to JFK after horse escapes on board (CNN)
Just last Thursday, November 9th, a Boeing 747 flying from JFK in New York to Belgium, had to return after a horse got loose in the cargo hold. The horse, which was one of fifteen being transported, became spooked by turbulence and jumped, getting trapped in its stall. Despite efforts to secure the situation, the horse suffered severe injuries and was euthanized after landing. The plane, after dumping fuel, returned to JFK and continued its journey to Liege with a delay. [Link]
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