—— 1. Biden Forgives Another $9 Billion in Student Loans; 2. US Mortgage Rates Top 7.5%; 3. 75,000 Kaiser Workers Go on Strike; 4. Apple CEO Sells $40M in Shares; 5. US Private Sector Hiring Slows Sharply; 6. Two Hedge Funds in Biggest Partnership Talks; 7. Apple Software Update Fixes Overheating
1. Biden Forgives Another $9 Billion in Student Loans
Today, U.S. President Joe Biden announced an additional $9 billion in student loan forgiveness for 125,000 borrowers, primarily targeting public service workers, individuals with disabilities, and low-income borrowers.
To date, the Public Service Loan Forgiveness Program has canceled $5.2 billion in loans for 53,000 borrowers.
In addition, the White House will forgive $2.8 billion in loans for 51,000 borrowers who have been repaying their loans for over 20 years without receiving any relief.
So far, the U.S. government has canceled $127 billion in loans for 3.6 million Americans.
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2. US Mortgage Rates Top 7.5%
According to data released today by the Mortgage Bankers Association (MBA), the 30-year fixed mortgage rate rose by 12 basis points, surpassing 7.5% for the first time since November 2000.
Meanwhile, the mortgage purchase application index plunged 5.7% to 136.6, the lowest since 1995.
High interest rates, combined with persistent home prices, have created one of the worst housing markets in history.
Applications for home purchases and refinancing fell 6%, reaching the lowest level since 1996.
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3. 75,000 Kaiser Healthcare Workers Go on Strike
This morning, more than 75,000 workers at Kaiser Permanente launched a strike, potentially disrupting the largest U.S. healthcare system and the broader labor market for months.
The three-day strike may impact access to timely care for 13 million Americans.
Kaiser said it would shut down non-essential services but would use shift adjustments to maintain emergency operations.
Many healthcare workers left the profession during the pandemic due to burnout. The union accuses Kaiser of failing to hire enough staff, leaving remaining employees overburdened, and claims the board is reluctant to negotiate.
On Monday, Kaiser announced a 12.5% pay raise for all employees, but both sides have yet to reach an agreement.
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4. Apple CEO Sells $40 Million in Shares
According to SEC filings, Apple CEO Tim Cook sold approximately $41 million worth of shares after taxes — his largest stock sale in more than two years.
Cook sold 511,000 shares and still holds 3.29 million.
In 2023, Cook took a rare 40% pay cut to $49 million. However, the portion of his compensation tied to Apple’s stock performance increased to 75%.
Apple shares hit an all-time high in July but have since fallen 12%.
Today, KeyBanc Capital Markets downgraded Apple stock due to slowing sales growth.
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5. US Private Sector Hiring Slows Sharply
According to a joint report by ADP Research Institute and Stanford Digital Economy Lab, U.S. private companies added only 89,000 jobs in September — down from 180,000 in August and the smallest gain since early 2021.
The data suggests that hiring demand is easing in several industries. Leisure and hospitality added the most jobs, offsetting declines in professional services, manufacturing, and transportation.
Higher borrowing costs and inflation have led many large companies to scale back hiring. As the data signals labor market cooling, U.S. stocks and bonds rallied today.
The likelihood of another Fed rate hike this year has also diminished.
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6. Two Hedge Funds in Biggest-Ever Partnership Talks
Sources say hedge fund Millennium Management is in advanced talks to form a deep partnership with rival Schonfeld Strategic Advisors — potentially the largest collaboration in the $4 trillion global hedge fund industry.
Under the agreement, Schonfeld, which manages $13 billion, would help oversee Millennium’s $60 billion in assets.
Millennium, which employs 5,300 people, would gain access to hundreds of Schonfeld’s investment teams.
Schonfeld would remain independent but could use Millennium’s capital to grow its business.
Both firms were founded in New York over 30 years ago and are second only to Citadel in the hedge fund space.
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7. Apple Software Update Fixes iPhone Overheating
Today, Apple released iOS 17.0.3, a new software update to fix overheating issues reported with early batches of iPhone 15 Pro models.
Some early adopters said their phones would sometimes become excessively hot. Last Saturday, Apple stated that the issue was due to poorly optimized code in apps such as Uber, Instagram, and Asphalt 9.
Users do not need to return their phones to stores; the issue can be resolved remotely via the software update.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.