1. Saudi Offers Iran Investment to End War;
2. US GDP Growth Hits New High;
3. Ackman Expects Earlier Fed Rate Cuts;
4. Blackstone Acquires Pet-Care Platform Rover;
5. GM Announces $10B Stock Buyback;
6. KKR Adjusts Employee Compensation Structure;
7. Jamie Dimon Backs Nikki Haley.
1. Saudi Offers Iran Investment to End War
Arab and Western officials revealed that Saudi Arabia has proposed to invest in Iran’s economy and strengthen bilateral cooperation — if Iran agrees to help prevent the Israel-Hamas war from escalating further.
Hamas is funded, armed, and trained by Iran. Since October 7, the group has killed 1,200 Israelis and taken 240 hostages. In response, Israeli retaliatory airstrikes have killed over 15,000 Palestinians.
The US and the EU have designated Hamas as a terrorist organization. While Iran has denied direct involvement, it has praised Hamas’s actions.
The US and its Arab allies are attempting to contain Iran’s influence.
______
2. US GDP Growth Hits New High
According to preliminary government data released today, US GDP growth for the third quarter was revised upward to an annualized rate of 5.2% — the highest in nearly two years.
While consumer spending growth was revised slightly downward to 3.6%, government spending and corporate investment drove the stronger GDP figures.
The report also showed the largest increase in pre-tax corporate profits in over a year, led by non-financial companies.
Even with the spending revision, consumer demand remains strong thanks to a resilient labor market.
______
3. Ackman Expects Earlier Fed Rate Cuts
Billionaire investor Bill Ackman said he believes the Federal Reserve could begin cutting interest rates as early as Q1 2024 — earlier than the market currently expects.
Swap market data currently indicates a likely start to rate cuts in June.
Ackman argues that with inflation now nearing 3% and the Fed funds rate still around 5.5%, the gap is unreasonable. If the Fed delays, a “hard landing” for the US economy may be unavoidable.
Ackman founded Pershing Square in 2004. The firm manages $17 billion in assets.
______
4. Blackstone Acquires Pet-Care Platform Rover
Today, Blackstone announced it will acquire online pet-care service Rover Group for $2.3 billion in cash.
The COVID-19 pandemic sparked a surge in pet adoption in the US, driving growth in the pet economy. However, inflation has driven pet-care costs up 6% year-over-year.
Blackstone is offering $11 per share — a 61% premium over Rover’s 90-day average. Rover stock jumped 31% today to $11.10 on the news.
Seattle-based Rover went public in August 2021 via SPAC Nebula Caravel Acquisition Corp.
Recently, Blackstone also acquired event management software firm Cvent Holding for $4.6 billion.
______
5. GM Announces $10B Stock Buyback
General Motors today announced a $10 billion stock buyback plan and will raise its next quarterly dividend to $0.12 per share.
The announcement sent GM stock up as much as 11.8% in early trading — a two-month high.
Deutsche Bank analyst Emmanuel Rosner said the buyback far exceeded market expectations.
GM recently endured a six-week strike by the UAW union, which cost the company $1.1 billion and a loss of 95,000 vehicles in production.
GM also plans to scale back spending on its autonomous driving division, Cruise.
______
6. KKR Adjusts Employee Compensation Structure
Private equity firms including KKR and Apollo plan to revamp employee pay structures in the coming weeks to boost returns for shareholders.
Under the new model, investment professionals will receive less from management fees but more from carried interest — profits earned when investments perform well. This reduces the firm’s salary expenses and aligns incentives with investment success.
KKR announced it will reduce employee fee shares from 20–25% to 15–20%, while increasing profit participation to 70–80%.
KKR CFO Robert Lewin said the change better aligns compensation with performance.
______
7. Jamie Dimon Backs Nikki Haley
At the New York Times DealBook Summit, JPMorgan Chase CEO Jamie Dimon said Republican candidate Nikki Haley would be a better nominee than Donald Trump.
Dimon encouraged even Democrats to give Haley a chance.
Haley currently trails Trump and Florida Governor Ron DeSantis in the Republican primary race. On Tuesday, she received public backing from a political group affiliated with billionaire Charles Koch.
Dimon added that he would work with whichever candidate wins the presidency to support the US economy.
______
本文内容来自《Financial Times》、《Bloomberg》，以及《The Real Deal》等多家财经新闻媒体。