— US Home Prices Rise for Fifth Straight Month; Job Openings Fall to Two-Year Low; Three Firms to Build NYC Studio Campus; Alternative Asset Fundraising Down 27%; China’s July Prices Slightly Decline; Country Garden Requests Repayment Extension; Apple Sets iPhone 15 Launch Date
1. US Home Prices Rise for Fifth Straight Month
According to the latest seasonally adjusted data from S&P CoreLogic Case-Shiller, US home prices rose 0.7% in June compared to May — marking the fifth consecutive monthly increase.
Although high mortgage rates have shattered many buyers’ dreams of homeownership, demand remains strong with limited supply. Black Knight noted that high rates and tight inventory have created the least affordable housing market since 1984.
Chicago, Cleveland, and New York saw the strongest price growth. Cities with the biggest declines included Seattle and San Francisco, with home prices down 8.8% and 9.7%, respectively.
Redfin data shows US home prices rose 3% year-over-year in the month ending August 6.
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2. US Job Openings Fall to Two-Year Low
The US Bureau of Labor Statistics released its JOLTS report today, showing that job openings fell from 9.17 million in June to 8.83 million in July — the lowest level in more than two years, indicating weakening hiring demand.
The voluntary quit rate fell to 2.3%, its lowest since early 2021, suggesting Americans are less confident about finding new jobs.
While job openings declined, labor force participation rose, potentially easing labor market imbalances.
Fed Chair Jerome Powell noted that continued labor market softening could help further reduce inflation.
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3. Three Firms to Build NYC Studio Campus
According to a joint statement, Blackstone, Vornado Realty Trust, and Hudson Pacific Properties will co-develop a movie production campus at Manhattan’s Pier 94.
The three firms will invest $350 million total, with construction set to begin in Q3. Royal Bank of Canada will provide financing.
The campus, expected to be completed in 2025, will also include public restrooms for Hudson River Park, a community center, and a waterfront plaza.
Vornado Chairman Michael Franco said the project will boost NYC’s film production standing and raise industry standards.
Vornado, Hudson Pacific, and Blackstone will hold 49.9%, 25.6%, and 24.5% stakes, respectively.
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4. Alternative Asset Fundraising Down 27%
Preqin data shows alternative asset funds have raised $740 billion so far in 2023 — down 27% year-over-year.
Preqin’s 2022 report projected that assets under management in the alternatives sector would double from 2021 to 2026. In 2022, total fundraising reached $1.5 trillion.
Hamilton Lane’s head of investments, Drew Schardt, said the past year has been the most challenging fundraising environment in the past 15 years, driven by volatility, geopolitics, and macroeconomic factors like interest rates.
Alternative assets include private equity, hedge funds, real estate, and credit.
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5. China’s July Prices Slightly Decline
Recent data shows that China’s consumer price index (CPI) fell 0.3% month-over-month in July, as consumers became increasingly cautious with spending.
The housing downturn, declining exports, and youth unemployment are major contributing factors.
In the CPI breakdown, pork prices fell 26% due to oversupply — and may continue to drop in August.
Consumers also scaled back on big-ticket items, especially homes, cars, and travel.
Some citizens say price volatility is having a more noticeable impact on younger people.
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6. Country Garden Requests Repayment Extension
Next week, Chinese property giant Country Garden is due to repay a ¥3.9 billion bond, but has requested a 40-day extension.
So far this year, the company has repeatedly missed dollar bond payments, and its stock is down a third.
Country Garden’s total debt nears $200 billion. Earlier this month, it failed to pay $22.5 million in interest.
A trader at a Chinese securities firm said creditors are reluctant to trigger a default, and may be open to negotiating better terms.
The company is also expected to release its H1 2023 financial report in the coming days.
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7. Apple Sets iPhone 15 Launch Date
Today, Apple announced on its website that the new iPhone 15 will be unveiled on September 12 at 10 a.m. Pacific Time in an online event.
After three consecutive quarters of declining revenue, the iPhone 15 is under pressure to deliver. Apple is also expected to reveal new watches, aiming for a holiday season revenue boost.
The launch is expected to include two base models and two high-end iPhones. Reports say the premium models will feature lighter titanium frames instead of stainless steel, slimmer bezels, and the new A17 chip.
iPhones and wearables currently account for 48.5% and 19.1% of Apple’s revenue, respectively.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.