—— More Democrats Ask Biden to Step Down; Meta to Buy Minority Shares in Ray Ban; Tesla Continues to Lose California Market Share; Amazon Prime Day Sales Up 11%; Toronto New Condo Sales Drops 57%; Apple to License More Movies for TV+; Blackstone Heavily Invests Before Fed Rate Cut
1. More Democrats Ask Biden to Step Down
It seemed things couldn’t get much worse for the president after he was diagnosed with Covid-19 on Wednesday, thwarting his plans to counter-program the Republican National Convention by canceling his appearance before a key Latino advocacy group.
Then, the situation deteriorated further. A torrent of leaks revealed that senior Democratic Party leaders had warned Biden personally that he was unlikely to defeat Donald Trump and was jeopardizing the prospects of his congressional allies. Senate Majority Leader Chuck Schumer bluntly told Biden that it would be better for him to bow out of the race, according to ABC News. House Minority Leader Hakeem Jeffries informed the president that his candidacy was endangering the Democrats’ chances of retaining control of either chamber of Congress, as reported by the Washington Post.
Additionally, former House Speaker Nancy Pelosi conveyed to Biden in a private conversation that he couldn’t defeat Trump, according to CNN.
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2. Meta to Buy Minority Shares in Ray Ban
Meta Platforms Inc. is in discussions to acquire a minority stake in EssilorLuxottica SA, the maker of Ray-Ban sunglasses, as the Facebook owner ramps up its efforts to develop smart glasses.
Meta, which has previously collaborated with EssilorLuxottica on Ray-Ban Meta smart eyewear, is considering acquiring up to a 5% stake in the luxury eyewear group. This stake would be valued at approximately €4.5 billion ($4.9 billion) at current prices, according to sources familiar with the discussions, who requested anonymity as the information is not public. There is no certainty that the investment will occur, they noted.
Acquiring a stake in EssilorLuxottica would enable Meta to strengthen its partnership with the world’s largest eyewear company. Meta, alongside other major technology firms, is exploring virtual and augmented reality to maintain user loyalty and engagement.
Snap Inc. has been experimenting with mixed-reality spectacles for years, and Apple Inc. released the Vision Pro headset earlier this year. However, these technologies have yet to achieve widespread adoption among users.
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3. Amazon Prime Day Sales Up 11%
US shoppers spent $14.2 billion online during Amazon.com Inc.’s 48-hour Prime Day sale, marking an 11% increase from the previous year and aligning with estimates, according to Adobe Inc.
Consumers took advantage of substantial discounts to purchase electronics, apparel, and small home appliances, as reported by Adobe, which monitors online spending across all US retailers during Amazon’s annual summer sale.
“It’s clear now that the Prime Day event has been a catalyst across these major categories, with discounts deep enough for consumers to hit the buy button and upgrade items in their homes,” said Adobe analyst Vivek Pandya.
Adobe tracks total online spending during the Prime Day period because rival retailers offer their own deals, encouraging shoppers to compare prices on multiple sites. While Amazon stated that its marquee sale set another record for the number of items sold, it did not provide specific sales data.
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4. Tesla Continues to Lose California Market Share
Tesla Inc.’s new-car registrations in California fell by 24% in the second quarter, marking the third consecutive decline in the carmaker’s sales in the state, according to a report released Thursday by the California New Car Dealers Association (CNCDA).
Despite the Model Y remaining the top-selling car in California, Tesla’s market share has declined throughout the year. The company held 53.4% of California’s battery-electric car market in the first half of the year, down from 64.6% a year ago, the CNCDA report indicated. Overall, Tesla’s sales in California have decreased by 17% so far this year.
“Tesla’s allure seems to be wearing off, signaling potential trouble for the direct-to-consumer manufacturer,” the trade group’s analysts noted. New electric vehicle models have posed a significant competitive threat to Tesla, which has a relatively older lineup of cars. Companies such as Ford Motor Co., Hyundai Motor Co., and Rivian Automotive Inc. have captured a larger share of California’s electric vehicle market.
Battery-powered cars now account for about one-fifth of auto sales in the state, while California represents a third of US EV sales.
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5. Toronto New Condo Sales Drops 57%
Toronto’s condominium developers experienced the slowest pace of new unit sales in 27 years, as high interest rates dampen demand despite a housing shortage.
According to a report by consultancy Urbanation released Thursday, sales of newly built condos in Canada’s largest city plummeted 57% from last year, resulting in only 3,159 transactions in the first half of this year. This is the lowest number of sales in the first half of a year since 1997, contributing to a record increase in unsold inventory.
Although the Bank of Canada cut rates in June for the first time in four years, the quarter-point decrease may not sufficiently alleviate the pressure on a housing market that has become unaffordable for many Canadians. With inflation easing and the unemployment rate rising, it is widely expected that the central bank will continue to reduce borrowing costs, including at its upcoming rate decision next week.
“Buyers remained cautious in anticipation of further rate cuts and amidst a burgeoning supply of units for sale,” Shaun Hildebrand, Urbanation’s president, said in a statement.
Lower mortgage rates resulting from these cuts may offer the best hope for making new condos more affordable for buyers.
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6. Apple to License More Movies for TV+
Apple Inc. is in talks to license more films from major Hollywood studios to enhance its Apple TV+ streaming service, according to sources familiar with the matter.
The iPhone maker has engaged with several top studios about acquiring additional programming from their libraries for its customers in the US and internationally, said the sources, who requested anonymity due to the private nature of the negotiations. An Apple representative did not respond to a request for comment.
Unlike most other streaming services that offer a mix of new series and extensive libraries of older TV shows and movies, Apple has focused its paid streaming service almost entirely on original productions. Apple TV+ has achieved some notable successes, including the comedy series “Ted Lasso” and the TV news drama “The Morning Show,” and recently received 72 Emmy nominations, the highest in its history.
However, big hits have been relatively rare, and many of its original films, such as this year’s spy action movie “Argylle,” have not performed well. Currently, only 11% of US households use Apple TV+, compared to 55% for Netflix Inc., according to research firm MoffettNathanson LLC.
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7. Blackstone Heavily Invests Before Fed Rate Cut
Blackstone increased its investment pace to a two-year high in the second quarter as the world’s largest alternative asset manager prepared for the US Federal Reserve to start cutting interest rates.
The head of the New York-based private investment group told the Financial Times that signs of waning inflation were evident across its portfolio, including its massive $336 billion property business.
“The Fed has and will have air cover to cut rates,” said Jonathan Gray, president of Blackstone. “Their medicine has been working.”
In the quarter, Blackstone deployed $33.7 billion and committed an additional $19.1 billion to new investments, marking its most active three-month period since 2022. Gray explained that the increase in dealmaking reflected their strategy to invest before receiving an “all-clear sign,” anticipating the Fed’s rate cuts.
As Blackstone reported a 3% year-on-year increase in distributable earnings—a measure of cash flows—slightly below analysts’ expectations, Gray expressed confidence that the US central bank would soon have the opportunity to loosen monetary policy as inflation and the job market cool down.
“Wage pressures have come off, and when we survey our companies, they are saying it is much easier to hire,” he noted. He also mentioned that rents in their property portfolio were rising more slowly than government data suggested, which would eventually influence the official inflation data used by the Fed to set rates.
Source: Financial Times – Blackstone increases pace of investment as it bets on looming interest rate cuts
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本文内容来自《Financial Times》、《Bloomberg》，以及《The Real Deal》等多家财经新闻媒体。