— Fed Sharply Raises GDP Forecast; Arc’teryx Parent Plans IPO; Roku Surges on Cost Cuts; Global Early-Onset Cancer Cases Soar 79%; Lockheed Delays F-35 Deliveries; US Share of Chinese Imports Hits Record Low; Restaurant Brands Launches $5B Refinancing
1. Fed Sharply Raises GDP Forecast
According to unofficial data released by the Federal Reserve Bank of Atlanta, U.S. GDP in Q3 may grow at an annualized rate of 5.6%, far exceeding economists’ expectations just one quarter ago.
Stephen Stanley, Chief U.S. Economist at Santander Capital Markets, said that consumer spending remained solid in June and July. While 5% GDP growth may seem high, it’s not out of reach.
In 2021, the U.S. economy rebounded rapidly from the pandemic, with GDP growth hitting 3.2%. The current quarter may surpass that record.
Back in mid-June, the Fed projected minimal GDP growth for Q3 — this is now being significantly revised upward.
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2. Arc’teryx Parent Plans IPO
Sources reveal that Amer Sports — parent of brands such as Wilson, Arc’teryx, and Salomon — has filed for a U.S. IPO early next year, potentially reaching a valuation of up to $10 billion.
Amer plans to raise $1 billion, though that figure could rise to $3 billion if market conditions are favorable. Its prominent shareholders include Chinese sportswear giant Anta Sports Products.
In 2019, a consortium led by Anta acquired Amer for $5.2 billion, aiming to introduce premium sportswear to China’s increasingly affluent middle class.
Last year, Amer’s revenue rose 22% to $3.3 billion.
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3. Roku Surges on Cost Cuts
Streaming hardware company Roku announced in a filing today that it will cut about 10% of its workforce, consolidate office space, and streamline its media content portfolio. The San Jose–based firm also plans to reduce hiring.
Roku expects to incur $45M–$65M in costs related to layoffs, and cost savings of up to $200M in office space and $65M in content.
Advertising revenue has declined across tech and media firms in recent years, and Roku has been no exception.
Following the announcement, Roku shares jumped nearly 12% to $93.58. The stock has more than doubled year-to-date.
The company also raised its Q3 revenue forecast from $815M to $875M.
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4. Global Early-Onset Cancer Cases Soar 79%
A new BMJ Oncology study found that global cancer cases among people under 50 have surged nearly 80% over the past 30 years — totaling 3.26 million cases.
Breast cancer remains the most common early-onset cancer, but prostate and tracheal cancer cases are also increasing rapidly.
This alarming data poses mounting pressure on global healthcare systems and highlights the importance of early detection.
Researchers warn that by 2030, early-onset cancer cases and deaths could rise 31% and 21%, respectively, with the 40–49 age group at highest risk.
U.S. cancer prevention experts recommend lowering the starting age for colorectal cancer screenings to 45.
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5. Lockheed Delays F-35 Deliveries
The U.S. Department of Defense announced today that delivery of Lockheed Martin’s most advanced F-35 fighter jets will be delayed until at least April next year — later than the original December 2023 target.
Lockheed confirmed the delay in an SEC filing, attributing it to the required upgrade of the aircraft’s TR-3 software.
The upgrade will increase processing power and storage capacity by 37x and 20x respectively, compared to current versions.
The Pentagon’s F-35 program office said Lockheed should be delivering nine jets per month. Many completed jets are now sitting in storage awaiting the TR-3 software.
Before final delivery, the Pentagon will withhold 10% of payment — about $7 million per aircraft.
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6. US Share of Chinese Imports Hits Record Low
According to the latest U.S. Census Bureau report, as of July, goods imported from China accounted for just 14.6% of total U.S. imports — the lowest since 2005.
The share peaked at 21% in 2018, before former President Trump launched his trade war with Asian nations.
In recent years, U.S. companies have restructured supply chains to reduce reliance on China, benefiting countries like Vietnam and Mexico.
As of July, goods from Mexico accounted for 15% of U.S. imports — the highest in over 30 years.
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7. Restaurant Brands Launches $5B Refinancing
According to Bloomberg, Restaurant Brands International is issuing a total of $4.16 billion in leveraged loans — one of the largest refinancing deals of 2023.
Sources say JPMorgan is leading the underwriting group for the debt sale.
The company will issue a 7-year leveraged loan and a $1 billion secured loan to refinance its existing $5.16 billion loan due in 2026.
So far this year, refinancings make up 54% of the leveraged loan market. M&A-related debt issuance has also boosted market activity.
Restaurant Brands owns popular chains such as Popeyes and Burger King.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.