— US Dollar Hits Six-Month High; Arm Preps for Year’s Biggest IPO; Country Garden Avoids Default at Last Minute; US Gas Prices Hit Quarterly High; Sequoia Faces Turbulent Year; Ontario Teachers’ Buys 7IM; US Homebuyers Increasingly Weigh Climate Risks
1. US Dollar Hits Six-Month High
Today, the U.S. dollar rose 0.6% against six major foreign currencies, reaching its highest level since March.
The strengthening dollar reflects investor concerns about other global economies, prompting capital to flow into the relatively safer U.S. market.
Meanwhile, the yield on 10-year U.S. Treasuries rose 0.1 percentage point to 4.27%. Generally, bond prices fall when yields rise.
Federal Reserve official Christopher Waller stated that various data suggest a soft landing for the U.S. economy is within reach, implying that the Fed may not cut rates anytime soon.
Investors believe the benchmark interest rate will likely remain elevated for an extended period.
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2. Arm Preps for Year’s Biggest IPO
According to filings submitted to the SEC, smartphone chipmaker Arm Holdings plans to issue 95.5 million American Depositary Shares (ADRs) priced between $47 and $51, aiming to raise up to $4.87 billion in its IPO.
This would give Arm a potential valuation of $54.5 billion. Underwriters will also receive options for 7 million shares.
Initially, Arm aimed to raise $8–10 billion, but SoftBank later decided to retain a 25% stake and continue holding a majority of shares.
Even if Arm lists at the lowest proposed valuation, the IPO would still be the largest of the year and could set the stage for other tech listings.
Filings show SoftBank will retain approximately 90% of Arm’s shares post-IPO.
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3. Country Garden Avoids Default at Last Minute
This week, Chinese property giant Country Garden narrowly avoided default by making a $22.5 million interest payment on its U.S. dollar bonds by the final deadline on September 5–6.
Country Garden still holds $187 billion in debt, and its debt crisis and the broader property market downturn are far from over.
Despite a recent rally, Country Garden’s bond prices remain at just 9–14% of face value, signaling that investors still expect debt restructuring or liquidation.
Eddie Chia, a portfolio manager at China Life Franklin Asset Management Co., said a recovery in lower-tier city home sales is Country Garden’s only hope.
The original interest due date was August 7, but Country Garden secured a one-month extension.
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4. US Gas Prices Hit Quarterly High
Following Labor Day on Monday, the U.S. summer driving season has officially ended. However, average gas prices have risen to $3.811 per gallon, higher than this time last year and marking the second-highest level since 1994.
Today, Brent crude futures surpassed $90 per barrel, while U.S. gasoline stockpiles remain below historical averages.
Many refineries typically enter maintenance season in the fall, meaning supply may not increase significantly in the near term.
Usually, oil prices decline heading into fall — but this year is an exception.
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5. Sequoia Faces Turbulent Year
Over the past year, Sequoia Capital has spun off its highly profitable China unit and drastically scaled back its crypto investment fund — a series of moves that led to the departure of key partner Michael Moritz.
In 2021, Sequoia invested $225 million in FTX, and its collapse left many of Sequoia’s long-term investors disillusioned.
This summer, Sequoia CEO Roelof Botha met with over 50 of the firm’s largest limited partners across New York, Chicago, and the Bay Area to reassure them.
Now, one of Silicon Valley’s most storied VC firms is working to rebuild investor confidence.
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6. Ontario Teachers’ Buys 7IM
The Ontario Teachers’ Pension Plan (OTPP) announced today it is acquiring a majority stake in UK-based wealth manager Seven Investment Management (7IM) for £255 million, from seller Caledonia Investments.
7IM, headquartered in London and Edinburgh, manages £21 billion in assets for 2,300 advisory firms and 7,000 private clients.
Senior Managing Director Iñaki Echave said OTPP would provide 7IM with industry expertise and flexible capital to support organic growth.
OTPP manages $180 billion in assets on behalf of 336,000 active and retired Ontario teachers.
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7. US Homebuyers Increasingly Weigh Climate Risks
According to a Zillow survey conducted from April to July, 83% of the 12,000 prospective homebuyers surveyed had considered risks such as flooding, extreme heat, wildfires, hurricanes, and droughts.
Although these risks don’t directly affect homebuying decisions, they do increase buyer concerns — especially among younger buyers.
Zillow found that while homebuyers in the U.S. West are the most concerned about climate risk, many still show interest in moving to the region.
Young buyers are increasingly concerned about future climate risks, even if it doesn’t prevent them from buying.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.