1. Budget Airlines Face Major Challenges
2. US Jobless Claims Drop Sharply
3. China Approves Broadcom’s Acquisition of VMware
4. OpenAI Reinstates Sam Altman, Replaces Board
5. San Jose Tops US Cities in Living Standards
6. Blackstone to Shut Down Multi-Strategy Fund
7. Nvidia Revenue Triples Amid AI Boom
1. Budget Airlines Face Major Challenges
Following the post-COVID travel surge in 2022, US budget carriers like Spirit, JetBlue, Frontier, and Southwest expanded seating on planes to handle more passengers.
However, travelers are now leaning toward pricier, internationally connected full-service airlines, making it harder for budget carriers to fill seats. Analysts warn these airlines could struggle over the next two years.
Challenges also include flight delays, flight bans, rising labor costs, volatile fuel prices, and congested airspace.
Data from ARC Corp shows that average domestic airfare in the US declined year-over-year between April and October. According to booking platform Hopper, the average airfare this Christmas is $324 — down 12% from last year.
Jefferies estimates that while passenger volume could grow 4% from late 2022 through 2025, available seat capacity is up 22%, leading to a supply-demand mismatch.
Budget airlines depend on high seat occupancy to remain profitable, but this imbalance is hurting them.
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2. US Jobless Claims Drop Sharply
According to data from the US Department of Labor, initial jobless claims for the week ending Nov. 18 dropped by 24,000 to 209,000 — the largest weekly drop since June.
While the labor market is cooling, employers seem reluctant to lay off workers.
Bloomberg economist Stuart Paul noted that layoffs are rare during Thanksgiving week, but the steady rise in continuing claims shows it’s becoming harder for the unemployed to find new jobs.
The Fed is watching for more signs of labor market cooling before easing monetary policy.
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3. China Approves Broadcom’s Acquisition of VMware
On Thursday, Broadcom CEO Hock Tan announced the completion of the $61 billion acquisition of VMware after receiving final approval from Chinese regulators — 18 months after the deal was announced.
The deal had already passed reviews in the EU, UK, South Korea, and Japan, making it one of the most challenging regulatory processes.
China’s approval came with conditions: Broadcom must sell products in China under certain guidelines, and VMware’s server software must remain compatible with rival hardware.
VMware will now be a core part of Broadcom’s software division.
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4. OpenAI Reinstates Sam Altman, Replaces Board
OpenAI has reinstated Sam Altman as CEO, just days after his abrupt firing sparked backlash from investors and nearly all OpenAI employees.
Co-founder Greg Brockman will also return to the company.
In a dramatic twist, OpenAI will replace its board of directors — underscoring Altman’s influence and popularity.
Altman posted on X that he “loves OpenAI” and had been working tirelessly to reunite the team.
New board members include former Salesforce CEO and former US Treasury Secretary Larry Summers.
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5. San Jose Tops US Cities in Living Standards
According to a new Ludwig Institute survey, expensive cities like San Francisco and Washington, D.C. offer the highest living standards for middle- and low-income families.
San Jose ranks first among 50 US cities for overall living standards.
The study found that high costs are offset by higher wages, and that cities with good living standards tend to offer a variety of jobs across pay scales.
However, about 60% of Americans still struggle to meet basic needs, largely due to rising housing and living costs.
Seattle ranked lowest in living standards because wages haven’t kept up with inflation.
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6. Blackstone to Shut Down Multi-Strategy Fund
Blackstone announced it will shut down its Diversified Multi-Strategy Fund by year-end after assets plunged 90% over four years.
The fund allocated capital to equity and credit managers for a diversified portfolio. But investor redemptions have reduced its assets from £1.7 billion at the end of 2019 to just £192 million.
The fund had invested in firms like Two Sigma (New York) and credit specialist Bayview (Florida).
Neuberger Berman’s similar fund also faced mass redemptions, showing this investment model has underperformed.
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7. Nvidia Revenue Triples Amid AI Boom
On Tuesday, Nvidia — the world’s most valuable chipmaker — projected Q4 revenue of $20 billion, beating Wall Street’s $17.9 billion forecast.
For Q3, Nvidia’s revenue tripled to $18.1 billion with earnings per share reaching $4.02.
Its data center division earned $14.5 billion, a 279% increase year-over-year. The PC graphics segment grew 81% to $2.86 billion.
Despite the stellar report, Nvidia shares fell around 3%, likely due to already sky-high investor expectations.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.