1. U.S. Manufacturing Contracts for Fifth Consecutive Month
2. Jane Street Hits Record Annual Revenue
3. Airbnb Proposes Reforms to NYC Short-Term Rental Law
4. U.S. Semiconductor Sales Surpass China
5. Chinese Carmakers Top Sales in Spain
6. U.S. Stocks Tumble on Rising Fear
7. Sixth Street Increases Stake in TPG
1. U.S. Manufacturing Contracts for Fifth Consecutive Month
The Institute for Supply Management (ISM) reported today that the U.S. manufacturing index fell by 0.4 points to 47.2 in August, marking five consecutive months of decline. A reading below 50 indicates contraction.
The new orders index also dropped to a 15-month low. The export orders index is shrinking at its fastest rate so far this year.
The decline in orders and backlogs signals growing pressure on the manufacturing sector.
Although ISM’s factory employment index increased, it still shows signs of contraction for the third straight month.
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2. Jane Street Hits Record Annual Revenue
Two of the largest U.S. market makers — Citadel Securities and Jane Street — are on track to hit record annual revenue this year, closing in on the traditional big banks’ trading business.
In the first half of the year, Citadel’s revenue surged 81% YoY to $4.9 billion, while Jane Street’s jumped 78% to $8.4 billion. Based on this momentum, record-breaking annual revenue is likely.
Jane Street dominates the ETF space and is expanding into credit trading. Citadel has also entered the corporate and investment-grade bond market.
Jane Street said the revenue boost is largely driven by growth in stock and options trading volume.
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3. Airbnb Proposes Reforms to NYC Short-Term Rental Law
In a blog post today, Airbnb said New York City’s Local Law 18 requires hosts to obtain city-issued licenses to operate short-term rentals — a measure the company argues does little to address the housing crisis. Meanwhile, city rents continue to rise, and rental choices for travelers have significantly declined.
Airbnb is calling on the city to revise the law to make it easier for homeowners to legally rent their properties.
Last year, Airbnb sued the city in an attempt to block the law before it took effect, but the case was dismissed by a judge.
Airbnb’s short-term bookings in NYC have plunged 83% year-over-year to just 3,700, potentially slashing revenues by hundreds of millions.
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4. U.S. Semiconductor Sales Surpass China
The Semiconductor Industry Association (SIA) reported that in July, total U.S. semiconductor sales surpassed China’s for the first time in five years.
Global chip sales reached $51.3 billion in July, up 18.7% YoY, with U.S. sales rising to $15.4 billion, overtaking China’s $15.2 billion.
Sales increased across the U.S., China, and much of Asia, while Japan and Europe saw declines.
U.S. chip sales are now nearly four times higher than those of Europe.
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5. Chinese Carmakers Top Sales in Spain
According to Spain’s Anfac data, Chinese automaker Chery’s Omoda brand outsold Tesla, Jeep, and Fiat in August — a sign of China’s aggressive expansion in Europe.
Last month, Omoda sold 744 new vehicles in Spain, up 8,167% YoY, including the $30,900 Omoda 5 model.
China’s intense price wars are pushing brands like BYD, Chery, and Geely to focus on overseas markets. However, the EU plans to impose steep tariffs on Chinese vehicles.
Tesla sold 549 electric cars in Spain last month.
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6. U.S. Stocks Tumble on Rising Fear
The S&P 500 posted its biggest drop since August 5 today. Nvidia led the decline in both chipmakers and the broader tech sector, while energy stocks also slumped on falling oil prices. Wall Street’s fear gauge, the VIX, approached 20 again.
Inflation is no longer the market’s top concern — investors are now worried about economic stability. Although rate cuts are usually bullish, this time they’re seen as a sign of deeper economic trouble.
Experts say this week’s jobs data could determine whether the Fed cuts rates by 25 or 50 basis points.
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7. Sixth Street Increases Stake in TPG
Sources say that Sixth Street has exercised its stock purchase option and acquired a stake in alternative asset manager TPG, valuing the firm at $10 billion.
Founded in 2009, Sixth Street now manages over $75 billion in assets. In 2020, both firms told investors they would operate independently.
They plan to focus on their respective strengths — TPG on private equity, and Sixth Street on credit investment opportunities.
Sixth Street and TPG aim to remain separate while expanding in complementary investment areas.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.