— Trump Loses 200,000 Donors; High-End Builders’ Orders Surge; Microsoft Adopts Intel Chip Technology; US Needs More Chip Subsidies; Roblox Developers Earn $700 Million; Fed Releases Meeting Minutes; China Evades Tariffs Through Mexico
1. Trump Loses 200,000 Donors
According to data from the Financial Times, in the second half of 2023, Trump’s fundraising efforts and associated political committees attracted 516,000 donors, down from 740,000 during his previous campaign.
In the same period last year, President Biden raised funds from 473,000 donors, fewer than Trump but almost double the number from 2019.
In 2023, Trump raised a total of $189 million, while Biden received $202 million from a smaller pool of donors.
Many Wall Street heavyweights chose to support Trump’s opponents this time, making small donors more crucial for Trump’s campaign.
In 2020, Biden raised $1 billion, while Trump raised $775 million.
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2. High-End Builders’ Orders Surge
Toll Brothers CEO Doug Yearley disclosed in a revenue call that since mid-January, the company has seen a significant increase in homebuilding orders, prompting the company to raise its 2024 housing delivery forecasts.
After this positive news, Toll’s stock surged by 6.1% to a new high of $109.61.
Due to limited inventory in the resale market, homebuyers have turned to builders who remodel new homes, with Toll being one of the biggest beneficiaries. In the quarter ending January 31, Toll’s orders increased by 40% year-over-year.
Toll’s customers are wealthier than their peers, so high interest rates have less impact on them. Over half of buyers signed contracts as soon as construction began.
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3. Microsoft Adopts Intel Chip Technology
Today, Microsoft announced at an event that it plans to use Intel’s (Intel) 18A chip production technology to develop its own computer processors and AI accelerators.
In recent years, Intel has been trying to catch up with Taiwan Semiconductor Manufacturing Company (TSMC), and Microsoft’s new partnership will provide a significant boost for Intel. Microsoft, in turn, hopes to improve the stable supply of semiconductors to meet the operational needs of data centers.
Microsoft CEO Satya Nadella stated that the company needs reliable suppliers of high-quality, high-performance semiconductors, which is why it decided to partner with Intel.
Both companies will also apply for government subsidies to help boost US domestic chip production capabilities.
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4. US Needs More Chip Subsidies
According to data released today by IdeaWorks and CarTrawler, in 2023, global airlines’ baggage handling fees rose nearly 15% year-over-year to $33.3 billion, surpassing pre-pandemic levels in 2019. Baggage handling fees accounted for 4.1% of total airline revenue of $117.9 billion.
American Airlines announced that starting today, the fee for the first checked bag will rise from $30 to $35, and the second checked bag will increase by $5 to $45.
Scott Chandler, Senior Vice President at American Airlines, stated that the company had not raised fees since 2018, and the price increase is simply to adjust for inflation.
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5. Roblox Developers Earn $700 Million
According to a filing released by game development company Roblox, developers on the Roblox platform earned a total of $741 million in 2023, a 19% increase from the previous year.
Since its founding in 2006, Roblox developers have launched millions of games. Last year, nearly 100 Roblox games earned over $1 million, with 9 games earning more than $10 million.
Originally, more than half of Roblox’s users were under 17 years old, but as the platform developed, many professional game studios began using Roblox to create games.
In 2022, Gamefam Studios in Los Angeles raised $25 million to develop Roblox games.
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6. Fed Releases Meeting Minutes
The minutes of the Federal Reserve’s meeting from January 30 to 31, released today, show that many officials believe the negative impact of cutting rates too early would outweigh keeping high rates for longer, and they are closely monitoring inflation trends.
Fed officials believe the benchmark interest rate is likely at its peak, but the timing for the first rate cut has not yet been determined.
At the March 19-20 meeting, the Fed will update its economic and rate expectations.
Fed Chairman Jerome Powell will also provide more insights during a congressional hearing in early March.
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7. China Evades Tariffs Through Mexico
《An analysis of trade data by the Financial Times found that in the first three quarters of 2023, China shipped 881,000 20-foot containers to Mexico, up from 689,000 in the same period of 2022. This indicates that more Chinese companies are bypassing U.S. tariffs by routing goods through Mexico, which became the largest exporter to the U.S. last year, surpassing China.
Robin Brooks, Chief Economist at the Institute of International Finance, said that the U.S. is the world’s largest consumer of goods, and China is the largest producer.
The two countries will eventually need to meet.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.