—— 1. US Job Openings Unexpectedly Surge; 2. CFA Level I Pass Rate Remains Below Historic Average; 3. Wealthy US Households Reduce Charitable Giving; 4. State Street Bets Fed Will Cut Rates by 1% in 2024; 5. Legendary Apple Designer Invests in Juicer; 6. PNC Acquires Signature Bank Loan Portfolio; 7. Brookfield Launches Largest-Ever Private Equity Fund
1. US Job Openings Unexpectedly Surge
Data released today by the U.S. Bureau of Labor Statistics showed that job openings in August unexpectedly rose to 9.61 million, with white-collar positions driving most of the increase.
The figure exceeded all economists’ forecasts. U.S. Treasury yields rose, while U.S. stocks fell.
The quit rate remained steady at around 2.3%, tied with the lowest level since 2020. A lower quit rate indicates declining worker confidence in job security and changing positions.
The rise in job openings suggests continued strong demand in the labor market, which could require employers to offer higher wages—fueling wage-driven inflation.
Currently, there are 1.5 job openings per unemployed person, slightly below the 2022 peak of 2.
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2. CFA Level I Pass Rate Remains Below Historic Average
According to new data released today by the CFA Institute, the pass rate for the August CFA Level I exam fell to 37% from 39% in May, below the 10-year historical average of 41%.
Rob Langrick, Senior Head of the CFA Program, said in an email that many candidates who were forced to delay their exam may have lost access to study materials or had disrupted preparation schedules. Those who stayed on their original timeline performed better.
Over 23,000 candidates took the CFA Level I exam in August at 467 global test centers.
The below-average pass rate suggests that candidates may still be feeling the effects of the COVID-19 pandemic.
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3. Wealthy US Households Reduce Charitable Giving
According to a new report from Bank of America, 85% of wealthy U.S. households made charitable donations in 2022, down from 88% in 2020.
The year 2020 saw severe pandemic conditions and repeated social unrest, prompting more causes to require donations. In contrast, the S&P 500 fell 19% in 2022, and interest rates continued to rise, leading to a 19% drop in donation amounts compared to 2020.
The survey defined wealthy households as those earning more than $200,000 annually or holding at least $1 million in net assets.
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4. State Street Bets Fed Will Cut Rates by 1% in 2024
Lori Heinel, Chief Investment Officer at Wall Street giant State Street Global Advisors, believes the Federal Reserve is likely to cut interest rates by a total of 100 basis points in 2024 — and possibly as much as 200 basis points.
To that end, State Street has purchased a large amount of long-term Treasuries to capitalize on the anticipated rate cuts.
Heinel believes the Fed’s rate-hiking cycle is over and that fiscal conditions are already tight. She expects U.S. GDP growth to slow to 1.1% next year, with inflation potentially falling below 3%.
Currently, 10% of State Street’s portfolio remains in cash, though the firm is considering more bond purchases.
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5. Legendary Apple Designer Invests in Juicer
Jony Ive, the legendary designer behind Apple’s iPhone and iPad, is investing in juicer startup BlenderCap.
Since leaving Apple in 2019, Ive has been running his own design firm.
BlenderCap was founded earlier this year by former Apple employees Matthew Moore and Dacorta Adams, both of whom worked in Apple’s product design team.
BlenderCap’s products retain Apple-like aesthetics in color, materials, and packaging, and retail for $129.
The investment amount and BlenderCap’s valuation have not been disclosed, but several former Apple executives are involved.
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6. PNC Acquires Signature Bank Loan Portfolio
PNC Financial Services Group has acquired a $16.6 billion loan portfolio from the FDIC, previously managed by the now-defunct Signature Bank.
PNC used its cash reserves to purchase the portfolio, which primarily consists of loans issued to private equity firms for acquisitions and liquidity management.
Following the acquisition, PNC expects a $0.10 boost to its Q4 earnings per share (EPS).
The bank noted that the acquisition will not impact its total assets or capital ratio.
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7. Brookfield Launches Largest-Ever Private Equity Fund
Canadian investment firm Brookfield Asset Management has launched its largest private equity fund to date — the $12 billion BCP VI fund, with $3.5 billion of equity coming from Brookfield itself.
So far this year, Brookfield has been one of the world’s most active investors, outpacing other major private equity firms. BCP VI has already deployed $4 billion, with a focus on technology and healthcare sectors.
CEO Cyrus Madon said tech valuations were significantly inflated over the past three years, and past investments have underperformed. However, current valuations are more attractive and present better investment opportunities.
Brookfield’s various strategic divisions manage a total of $85 billion in assets, spanning infrastructure, energy, real estate, and credit.
Source：Bloomberg – Brookfield Raises $12 Billion for Flagship Private Equity Fund
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.