—— US Job Openings Drop to Nearly 3-Year Low; Nordstrom Family to Take Department Store Chain Private; Raising Cane’s Revenue Jumps 30%; Biden Plans to Block Nippon Steel Takeover of US Steel; Nvidia Receives DOJ Subpoena; Kamala Proposes 28% Capital Gain Tax; Verizon to Buy Rival Frontier
1. US Job Openings Drop to Nearly 3-Year Low
U.S. job openings dropped in July to their lowest point since the beginning of 2021, with layoffs increasing, pointing to a deceleration in the labor market’s demand for workers.
The Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey (JOLTS) reported that available positions decreased to 7.67 million, down from a revised figure of 7.91 million the previous month. This number fell below all predictions made in a Bloomberg survey of economists.
This reduction in job openings aligns with other indicators suggesting a softening labor market, a development that has concerned Federal Reserve officials. Signs of this softening include slower job growth, rising unemployment rates, and increasing difficulties for job seekers to find employment, all of which heighten worries about a looming recession.
Given these conditions, Federal Reserve policymakers have expressed a desire to avoid further downturns in the labor market and are broadly anticipated to begin reducing interest rates at their upcoming meeting in two weeks.
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2. Nordstrom Family to Take Department Store Chain Private
The Nordstrom family is pursuing a plan to take the renowned department store chain private, proposing a $3.8 billion acquisition. Erik and Peter Nordstrom, descendants of the company’s founder John Nordstrom, alongside other family members and their business partner, the Mexican department store chain El Puerto de Liverpool, are leading this initiative. Liverpool previously acquired a nearly 10% stake in Nordstrom two years ago.
This proposed transaction, offering $23 per share, aims to transition Nordstrom away from the pressures of public market scrutiny and the demands of quarterly financial disclosures. This move follows an unsuccessful attempt by the family in 2018 to privatize the company at $50 per share, which was not accepted by the company at the time.
The backdrop for this move includes a long-term decline in the performance of US department stores, prompting executives and investors to explore strategic deals as potential solutions.
Notably, similar efforts have seen mixed results in the industry, such as the failed attempt by activist investors to take Macy’s Inc. private and the acquisition of Neiman Marcus Group by the owner of Saks Fifth Avenue, supported by Amazon.com Inc., earlier this year.
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3. Raising Cane’s Revenue Jumps 30%
Raising Cane’s Restaurants LLC has reported a significant increase in revenue, climbing more than 30% in the first half of this year as the company continues to broaden its presence. The Baton Rouge, Louisiana-based chain generated $2.3 billion from January to June, up from $1.7 billion during the same period in 2023, according to sources familiar with the private financial details and documents from a previous bond sale.
Currently, Raising Cane’s operates over 800 locations worldwide, marking an increase from more than 720 reported as of June 2023. This expansion has significantly boosted the fortune of founder Todd Graves, who holds approximately 90% ownership in the company. According to last year’s Bloomberg reports, this growth has propelled Graves into the multi-billionaire status.
With the latest revenue figures considered, Bloomberg’s Billionaires Index estimates that Graves’ net worth will surge by $3.3 billion, reaching a total of $10.2 billion. This considerable increase will elevate his position among the world’s wealthiest individuals, moving him up to around 250th from 423rd.
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4. Biden Plans to Block Nippon Steel Takeover of US Steel
US President Joe Biden is preparing to block Nippon Steel Corp.’s $14.1 billion acquisition of United States Steel Corp., according to sources familiar with the situation.
The deal has been under review by the Committee on Foreign Investment in the United States (CFIUS), and Biden is expected to reject it once the CFIUS referral reaches his desk, the sources said. An official decision could come as early as this week.
The proposed takeover has stirred controversy in Pennsylvania, a key swing state where both US Steel and the United Steelworkers union, which opposes the deal, are based. A White House official indicated that CFIUS has not yet forwarded its recommendation to the president.
Following the Washington Post’s report on Biden’s plan, US Steel shares dropped by as much as 24% in New York.
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5. Nvidia Receives DOJ Subpoena
The US Justice Department has issued subpoenas to Nvidia Corp. and other companies as part of its intensified investigation into potential antitrust violations by the chipmaker, a leading provider of AI processors.
Previously, the DOJ had sent out questionnaires, but the shift to legally binding subpoenas marks a significant escalation, moving the investigation closer to the possibility of a formal complaint.
Antitrust officials are reportedly scrutinizing Nvidia for allegedly making it difficult for customers to switch to other suppliers and penalizing those who do not exclusively use its AI chips. Sources familiar with the matter, who spoke on condition of anonymity, revealed these concerns.
Following a record-setting $279 billion decline in Nvidia’s market value on Tuesday, the company’s shares fell further after Bloomberg reported the subpoenas. Despite this, Nvidia’s stock has more than doubled this year, driven by explosive growth in sales for the Santa Clara, California-based firm.
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6. Kamala Proposes 28% Capital Gain Tax
Vice President Kamala Harris has proposed a 28% capital gains tax rate for individuals earning $1 million or more, framing it as a way to ensure the wealthy pay their fair share. This proposal, announced Wednesday at an event in Portsmouth, New Hampshire, is part of her broader economic agenda and aims to contrast with Republican rival Donald Trump.
Harris emphasized that the new rate would support investment in American innovators, founders, and small businesses. Her proposal is lower than the 39.6% capital gains tax rate advocated by President Joe Biden, signaling her intention to present a distinct economic vision. Currently, the capital gains tax rate stands at 20%.
In recent weeks, Kamala Harris has been actively promoting her economic agenda, aiming to build voter confidence in her ability to manage the economy. She has focused on addressing high prices that have affected US households under the current administration, striving to present herself as a solution to economic challenges.
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7. Verizon to Buy Rival Frontier
Verizon Communications Inc. is reportedly in advanced negotiations to acquire Frontier Communications Parent Inc., according to sources familiar with the discussions. An announcement of an all-cash deal could come as soon as Thursday, though details remain confidential. Frontier declined to comment, and Verizon did not immediately respond to inquiries.
The Wall Street Journal first reported the talks, and Frontier’s shares surged by as much as 38%—the highest increase since the company emerged from bankruptcy in 2021—reaching $38.62 and valuing the company at $9.3 billion.
Frontier, based in Dallas, is the “largest pure-play fiber internet company in the US” and reported $5.8 billion in sales for 2023, with about 52% of its revenue coming from fiber-optic products.
As data usage continues to rise, telecommunications companies are expanding their broadband services. For instance, T-Mobile US Inc. announced in July that it would invest $4.9 billion in a joint venture with private equity firm KKR & Co. to acquire fiber-optic internet service provider Metronet.
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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。