Market Beats | Macys Employee Intentionally Hides $150mn Expense; Trump Election Sends Real Estate Stocks Down; US New Treasury Secretary Could Benefit China Relation; Buffet to Donate $1.14bn of Berkshire Shares; California New EV Credits Exclude Tesla; Global Airfares Could Breach Pre-Pandemic Level in 2025

—— Macys Employee Intentionally Hides $150mn Expense; Trump Election Sends Real Estate Stocks Down; US New Treasury Secretary Could Benefit China Relation; Buffet to Donate $1.14bn of Berkshire Shares; California New EV Credits Exclude Tesla; Global Airfares Could Breach Pre-Pandemic Level in 2025

1. Macys Employee Intentionally Hides $150mn Expense

Macy’s Inc. has postponed its third-quarter earnings release due to an internal investigation that uncovered significant hidden expenses by an employee. The company revealed that a worker responsible for small package delivery expense accounting had “intentionally” made erroneous entries that concealed approximately $132 million to $154 million in cumulative delivery expenses over several years.

This issue came to light as Macy’s was preparing its quarterly financial reports, leading to an independent investigation. The investigation determined that the malpractice began in the fourth quarter of 2021 and continued until the fiscal quarter ending November 2, 2024. The employee involved has since been terminated.

Despite the large scale of the hidden expenses, Macy’s stated that there is “no indication” these accounting discrepancies affected the company’s cash management activities or its payments to vendors.

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2. Trump Election Sends Real Estate Stocks Down

Donald Trump’s re-election led to mixed reactions in the real estate sector. While some builders and landlords personally celebrated his victory, the broader investor response was less optimistic, as evidenced by a significant drop in property stocks. The day following the election, property stocks decreased by 2.6%, marking the worst performance among sectors in the S&P 500. Notable companies such as D.R. Horton, CBRE Group, and American Tower saw their shares fall by 3.8%, 4%, and 7.7% respectively.

Economists expressed concerns that Trump’s policies, particularly those related to immigration, could negatively impact the real estate market. Anirban Basu, chief economist at Associated Builders and Contractors, pointed out that the construction workforce, which relies heavily on foreign-born labor, could be particularly vulnerable to stricter immigration policies. These workers, whether documented or undocumented, are vital for various construction tasks and often find daily work in places like Home Depot parking lots.

Additionally, bond traders anticipated that Trump’s comprehensive tariffs could lead to inflation across the economy and slow down the pace of interest rate cuts. This could dampen the recovery in home sales and provide less support for office landlords.=

Despite these initial setbacks, many real estate stocks have since recovered. An index of homebuilders’ shares, for example, rose on Monday, regaining its losses since Election Day, indicating some resilience in the sector despite the challenges posed by the election results and the anticipated policies of the Trump administration.

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3. US New Treasury Secretary Could Benefit China Relation

The appointment of Scott Bessent as Treasury Secretary by President-elect Donald Trump could potentially open up new avenues for negotiation between the U.S. and China concerning their ongoing trade disputes. Bessent, who leads the macro hedge fund Key Square Group and was officially nominated on Friday, is known for his relatively moderate views on tariffs, which may ease tensions.

Bessent has previously characterized Trump’s threats to impose steep tariffs on Chinese imports as part of a “maximalist negotiating position.” He advocates for a more gradual implementation of tariffs, suggesting they be “layered in gradually,” as he noted in a CNBC interview earlier this month. This approach could offer a more conciliatory path forward in U.S.-China trade negotiations.

John Gong, a professor at the University of International Business and Economics in Beijing and a consultant for China’s Commerce Ministry, views Bessent’s nomination as positive news for Beijing.

According to Gong, Bessent’s role ensures that Wall Street, a significant player in international economic policy, maintains a crucial position within the Trump administration. This alignment could facilitate more balanced and pragmatic trade discussions between the two superpowers.

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4. Buffet to Donate $11.4bn of Berkshire Shares

Warren Buffett is making another significant contribution to philanthropy by donating approximately $1.14 billion in Berkshire Hathaway Inc. shares to four family foundations. This donation is part of a longstanding pledge that Buffett made nearly two decades ago, aimed at giving away the majority of his wealth.

The 94-year-old investor plans to convert 1,600 of Berkshire’s Class A shares into 2.4 million Class B shares, according to a statement released by the Omaha, Nebraska-based conglomerate on Monday. Of these shares, 1.5 million will go to the Susan Thompson Buffett Foundation, established in memory of his late wife. Additionally, 300,000 shares will be distributed to each of the foundations led by his children: the Sherwood Foundation, the Howard G. Buffett Foundation, and the NoVo Foundation.

Buffett’s philanthropic journey intensified in 2010 when he, alongside Bill Gates and Melinda French Gates, initiated the Giving Pledge, committing to donate the majority of his fortune either during his lifetime or upon his death.

His charitable efforts began in earnest in 2006 with substantial donations to the Gates Foundation and to foundations associated with his family, marking a significant legacy of generosity.

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5. Some US Private Universities Slash Tuition By Half

Bethel University in St. Paul, Minnesota, has significantly reduced its tuition from $44,050 this year to $25,990 next year, joining a trend among U.S. colleges that are slashing prices to attract more students. This strategy, known as tuition “resets,” is being adopted by various smaller and less selective institutions as prospective students and their families increasingly scrutinize the value of expensive degrees, particularly from non-elite schools.

The steep reductions in tuition highlight a growing divide in higher education. While tuition at elite universities like those in the Ivy League approaches $100,000 per year, many smaller private colleges are reducing their costs in an effort to remain competitive and financially viable, as the threat of closure looms for some.

Phillip Levine, an economist at Wellesley College, notes that this approach is risky. Higher tuition rates often signal selectivity and quality to prospective students, and colleges often offset these high costs with merit aid, making education more affordable while maintaining the perception of exclusivity and high value.

By cutting tuition drastically, schools may lose these perceived advantages, complicating their market positioning and potentially impacting their appeal to prospective students.

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6. California New EV Credits Exclude Tesla

California Governor Gavin Newsom has introduced a proposal that might exclude Tesla Inc.’s electric vehicles from receiving consumer rebates, creating a potential rift between him and Elon Musk, the CEO of Tesla. This move comes as Newsom prepares a strategy to support EV buyers should President-elect Donald Trump decide to eliminate a federal subsidy.

On Monday, Newsom revealed that California might revive a previously phased-out program that provided a $7,500 tax credit to EV purchasers. According to Newsom’s office, the new proposal would implement market-share limitations that could prevent Tesla, a major player in the EV market, from benefiting from these rebates. This proposal is still in its early stages and subject to negotiations with the state legislature, leaving room for changes.

Governor Newsom’s office explained that the intention behind the proposal is to foster market conditions conducive to the growth of additional car manufacturers. It remains unclear whether other automakers might also be excluded under the new plan.

Elon Musk responded to the proposal by calling it “insane” on his X social-media platform, highlighting Tesla’s significant manufacturing footprint in California and suggesting that the proposal could undermine the company’s contributions to the state’s economy.

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7. Global Airfares Could Breach Pre-Pandemic Level in 2025

Air travel is expected to become more expensive globally in 2025, although the rate of fare increases is predicted to moderate compared to the sharp rises experienced post-Covid. According to a forecast by American Express Global Business Travel Group Inc., the anticipated increases will reflect the ongoing higher operational costs and persistent supply chain disruptions affecting the airline industry.

The American Express report notes that while airfare prices will likely increase across various routes, the extent of these hikes will differ significantly by region. In North America and Europe, the increases are expected to be relatively modest, around 2%. Conversely, regions like Asia and Australasia, which were among the last to relax pandemic restrictions, may see more substantial fare increases of up to 14%.

Despite a positive outlook on passenger demand for 2025, airlines are facing challenges in expanding their capacity due to delays in the delivery of new planes from major manufacturers such as Airbus SE and Boeing Co.

Additionally, extended servicing times for jet engines are further restricting the availability of aircraft, thus limiting the ability of airlines to meet the rising demand and contributing to higher ticket prices.

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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。