1. U.S. GDP Growth Hits Two-Year High
2. Country Garden Officially Declared in Default
3. Tech Earnings Disappoint, Nasdaq Drops 2%
4. Princeton Endowment Lags Ivy League
5. Apple Raises Prices for Multiple Services
6. Stellantis to Take Stake in Chinese EV Maker Leapmotor
7. ‘Barbie’ Boosts Mattel Revenue
1. U.S. GDP Growth Hits Two-Year High
Economists estimate that U.S. GDP grew at an annualized rate of 4.5% in Q3, the fastest pace in two years. Official government data will be released tomorrow.
Strong labor markets, rising wages, and easing inflation helped fuel the acceleration, surprising many who expected tighter Fed policy to cool the economy.
While good news for President Biden, the robust growth complicates the Fed’s goal to slow down the economy through interest rate hikes.
Since it began raising rates in March 2022, the U.S. economy has shown remarkable resilience.
______
2. Country Garden Officially Declared in Default
Last week, Chinese developer Country Garden missed a $15.4 million bond interest payment by the extended deadline. According to a letter sent by trustee Citicorp International to creditors, the company is now officially in default.
If investors holding at least 25% of the total debt vote to do so, they can demand immediate repayment of principal and interest. No such vote has yet occurred.
Given its size, Country Garden’s financial health has major implications for the broader Chinese economy—real estate and related industries account for around 20% of China’s GDP.
______
3. Tech Earnings Disappoint, Nasdaq Drops 2%
A wave of disappointing tech earnings caused turbulence across U.S. stock and bond markets today.
Weak Google Cloud results and gloomy guidance from Texas Instruments led to a 1% drop in the S&P 500 and a 2% decline in the Nasdaq.
In contrast, Bitcoin rose 2.9% to $34,619.
On Thursday, the U.S. will release data on wholesale inventories, GDP, durable goods orders, initial jobless claims, and pending home sales.
China will publish industrial profit data on Friday.
______
4. Princeton Endowment Lags Ivy League
Princeton University’s endowment declined 1.7% over the last fiscal year to $34.1 billion, the weakest performance among Ivy League schools for the second straight year.
Losses were largely attributed to underperformance in venture capital holdings, while the S&P 500 gained 18% over the same period.
Smaller endowments (under $500 million) tend to invest more in U.S. equities and performed better overall.
Despite the recent drop, Princeton’s private equity investments have delivered a 10-year average return of 19%.
______
5. Apple Raises Prices for Multiple Services
Apple announced today it is raising the monthly price of Apple TV+ from $6.99 to $9.99. Apple Arcade will increase by $2 to $6.99, and Apple News+ will now cost $12.99/month.
Despite the hikes, Apple TV+ remains one of the most affordable streaming services. Its growing popularity is driven by critically acclaimed content.
Services now account for 20% of Apple’s total revenue. Apple is reportedly redesigning its TV app to better integrate its video offerings.
This is only the second price increase for Apple TV+ since its 2019 launch.
______
6. Stellantis to Take Stake in Chinese EV Maker Leapmotor
Sources report that U.S. carmaker Stellantis is close to acquiring a 20% stake in Chinese electric vehicle firm Zhejiang Leapmotor Technologies, with an announcement expected within days.
Leapmotor’s Hong Kong–listed shares are up 22% year-to-date, giving it a valuation of $5.4 billion—making a 20% stake worth over $1 billion.
Stellantis owns brands like Chrysler, Fiat, Jeep, and Peugeot.
Global automakers increasingly look to Chinese EV startups as a way to tap into the country’s vast electric car market.
______
7. ‘Barbie’ Boosts Mattel Revenue
Toymaker Mattel reported a 9.3% increase in Q3 revenue to $1.92 billion, beating expectations of $1.84 billion—thanks in large part to the blockbuster Barbie movie.
Mattel maintained its full-year revenue forecast of $5.44 billion, indicating continued macroeconomic pressures in the toy industry.
The Barbie movie, the highest-grossing film of the year, served as a powerful brand boost. Since its July release, it has earned $1.4 billion globally.
Mattel estimates Barbie will contribute an additional $125 million in revenue this year.
______
This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.