1. CICC Bans Analysts From “Flaunting Wealth”;
2. US Labor Market and Economy Both Cool;
3. NYC Revises Real Estate Broker Fee Policy;
4. PwC Fined $7 Million Over Employee Cheating;
5. UAE Launches $30 Billion Climate Fund;
6. AbbVie Acquires Cancer Drugmaker;
7. Tesla Livestreams Cybertruck Delivery.
1. CICC Bans Analysts From “Flaunting Wealth”
According to internal documents from China International Capital Corporation (CICC), the bank has banned analysts from making negative economic comments in private or public. Analysts are also prohibited from wearing luxury brands or disclosing their salaries to third parties.
CICC further instructed employees not to share opinions with overseas clients in order to reduce political risks.
In addition, analysts must conduct thorough background checks before inviting any experts to meetings or roadshows.
CICC analysts are barred from posting politically sensitive content on social media.
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2. US Labor Market and Economy Both Cool
According to new data from the Bureau of Economic Analysis, US personal spending in October — adjusted for inflation — rose by 0.2%, down from 0.3% in September.
In a separate report, the number of continuing unemployment claims rose to the highest level in two years. This suggests a cooling in consumer spending, inflation, and the labor market.
Economists had already predicted a slowdown in Q4, so the data did not come as a major surprise.
Bloomberg economist Eliza Winger noted that the steady rise in continuing claims could push the jobless rate above 4% soon.
Lawmakers are closely watching core services inflation excluding housing and energy, which saw just a 0.1% rise in October — the smallest increase this year.
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3. NYC Revises Real Estate Broker Fee Policy
New York’s residential property market has already been sluggish this year, and a surge of lawsuits over who should pay real estate broker commissions has cast further uncertainty on the industry.
Traditionally, the listing broker shares a portion of the commission with the buyer’s agent. However, due to ongoing legal challenges, New York’s Real Estate Board has updated its policy: starting next year, sellers will be required to directly pay the buyer’s agent.
According to the Consumer Federation of America, buyer agents in Brooklyn earned about 1% on average in 2022, while in Manhattan the average was 3%.
In Q3, Manhattan home sales dropped 23% year-over-year.
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4. PwC Fined $7 Million Over Employee Cheating
This week, the Public Company Accounting Oversight Board (PCAOB) announced that more than 1,000 PwC employees in China and Hong Kong cheated on internal training exams over a period extending until at least 2020.
PwC’s China and Hong Kong units agreed to pay $3 million and $4 million in fines, respectively, without admitting wrongdoing.
Last year, the US and China reached an agreement allowing the PCAOB to oversee the audit quality of Chinese accounting firms.
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5. UAE Launches $30 Billion Climate Fund
Sources revealed that the United Arab Emirates is planning to launch a $30 billion climate investment fund in collaboration with BlackRock, TPG, and Brookfield.
Abu Dhabi’s Lunate Capital, which manages $50 billion in assets, will oversee investments for the new fund.
Despite being one of the world’s largest oil and gas producers, the UAE’s sovereign wealth funds, pensions, and central bank hold a combined $2.5 trillion in assets.
Many countries still lack sufficient funding for economic transformation and clean energy transitions.
According to a UN study, $125 trillion in climate investments will be needed by 2050 to meet emission goals.
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6. AbbVie Acquires Cancer Drugmaker
Today, Chicago-based pharma giant AbbVie announced a $10.1 billion acquisition of ImmunoGen, offering a 94.6% premium over Wednesday’s closing price. The deal is expected to close by mid-2024.
The acquisition includes ImmunoGen’s flagship ovarian cancer drug, Elahere, which has already received regulatory approval in the US.
AbbVie’s shares fell nearly 15% in premarket trading, while ImmunoGen shares have surged 227% year-to-date.
Investors may be reacting negatively to the steep acquisition premium.
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7. Tesla Livestreams Cybertruck Delivery
Tesla CEO Elon Musk announced via X (formerly Twitter) that at 2 p.m. Austin time today, the company will livestream the delivery of the first Cybertruck units. The event will also reveal pricing, specs, and battery range.
The Cybertruck is Tesla’s first attempt to break into the electric pickup market. However, many analysts have argued that Tesla should scrap the model due to its complex manufacturing process and questionable profitability. Some also doubt the design will appeal to practical-minded buyers.
Kelley Blue Book expects the Cybertruck to start around $50,000 — similar to the F-150 Lightning.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.