Beijing and Shanghai May Ease Home Purchase Restrictions; Nike Hires Retired Veteran as CEO; New York State Pension Fund Purchases $350 Million in Private Equity Shares; Buffett’s Investment in U.S. Bank Earns $34 Billion; Apollo Secures $5 Billion from BNP; MicroStrategy Raises $1 Billion to Buy Bitcoin; Nvidia Options Expiry May Drive Stock Price
1. Beijing and Shanghai May Ease Home Purchase Restrictions
Sources reveal that major cities like Shanghai and Beijing are considering relaxing several remaining housing purchase restrictions and allowing buyers without local hukou (household registration) to purchase homes. Many smaller cities have already removed their hukou restrictions.
Additionally, the government may no longer differentiate between first-time and second-time homebuyers, offering lower down payment requirements and loan interest rates for second-time buyers.
Today, Chinese developers’ stock index rose by as much as 2.5%.
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2. Nike Hires Retired Veteran as CEO
Sportswear giant Nike announced yesterday that it will replace CEO John Donahoe and bring back retired veteran executive Elliott Hill as the new CEO.
At 60, Elliott Hill joined Nike in 1988 and previously served as the Chairman of the Consumer and Marketplace division. He announced his retirement in 2020.
Starting October 14, Elliott will officially replace John, who is 64 and will retire but stay on as an advisor until January.
Nike has been struggling with sales in recent years, facing constant promotions, and CEO John has faced immense pressure.
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3. New York State Pension Fund Purchases $350 Million in Private Equity Shares
Sources reveal that the New York State Common Retirement Fund plans to acquire shares of Vista Equity Partners’ late billionaire shareholder, Robert Brockman, for an estimated $350 million.
These shares are part of Point Investments’ $1.46 billion portfolio, and private equity firm Ardian is also considering acquiring several hundred million dollars’ worth of shares.
Previously, the New York State pension fund entrusted Vista with managing $5 billion in funds. Now, the pension fund will purchase shares at a 35% discount from Point Investments’ asking price.
Investment bank Jefferies will handle the transaction, and Vista must approve the deal.
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4. Buffett’s Investment in U.S. Bank Earns $34 Billion
Berkshire Hathaway disclosed in a filing yesterday that it sold $896 million worth of U.S. Bancorp shares this week.
Since mid-July, Buffett has been steadily selling his U.S. Bancorp shares, and when factoring in dividends since 2011, the total exceeds the $14.6 billion Berkshire initially invested in the shares. This means his investment has fully recouped, with the remaining $34 billion in shares being net profit.
Buffett has yet to publicly explain why he began selling his U.S. Bancorp shares.
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5. Apollo Secures $5 Billion from BNP
Private equity firm Apollo Global Management has secured $5 billion in new funding from BNP Paribas and continues to expand into the private credit sector, traditionally dominated by banks.
Apollo’s CEO, Marc Rowan, aims to make the company a credit giant capable of challenging Wall Street banks. Apollo now operates 16 credit issuance funds, covering mortgages, airplane loans, and other products that can be packaged into private credit.
Marc hopes the private credit business will reach $200 billion to $250 billion in issuances over the next five years.
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6. MicroStrategy Raises $1 Billion to Buy Bitcoin
Enterprise software company MicroStrategy announced it will sell $1.01 billion worth of convertible senior notes and use the proceeds to buy more Bitcoin while also paying off some high-interest loans.
MicroStrategy holds the most cryptocurrency among publicly traded companies, with a position totaling $15 billion. Last week, the company announced it had recently purchased $1 billion worth of Bitcoin.
Co-founder Michael Saylor has essentially turned the traditional software company into a cryptocurrency hedge fund.
MicroStrategy first bought Bitcoin in 2020 and later integrated cryptocurrency investment into its corporate strategy.
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7. Nvidia Options Expiry May Drive Stock Price
Spotgamma analysts suggest that a large number of Nvidia options are set to expire today, potentially increasing buying demand for Nvidia shares.
Since early September, Nvidia’s stock has been fluctuating within a small range, unable to break through the $120 resistance level, and has underperformed the S&P 500 and Nasdaq.
Currently, option traders need to buy or sell $2 billion worth of Nvidia shares to ensure proper exercise.
As most options are bullish, anticipating a breakout above $120, buying demand for Nvidia will likely surge.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.