— U.S. GDP Growth Exceeds Expectations; Hamptons Luxury Home Price Wars Intensify; U.S. Existing Home Sales Unexpectedly Rise; Kering Takes Stake in Luxury Brand Valentino; Fed Proposes Major Capital Overhaul; Meta Reports Double-Digit Revenue Growth; U.S. Gas Prices Hit New High, Troubling Biden
1. U.S. GDP Growth Exceeds Expectations
According to preliminary data released today by the U.S. Department of Commerce, GDP growth in Q2 accelerated to an annualized 2.4%, up from 2% in Q1.
Consumer spending also grew by a better-than-expected 1.6%. The Fed’s preferred inflation gauge—the core PCE price index—rose 3.8%, below the expected 4%.
The U.S. economy appears healthier than economists predicted just months ago—strong labor market and consumer spending are holding up while inflation is gradually easing.
On Wednesday, Fed Chair Jerome Powell said officials no longer expect a recession.
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2. Hamptons Luxury Home Price Wars Intensify
DDespite falling prices and transaction volume in New York’s Hamptons, bidding wars for high-end homes are heating up. According to Douglas Elliman Real Estate, 31% of luxury homes sold last quarter received multiple bids—up from 27% a year ago.
East Hampton agent Justin Agnello said the increase is driven by tight luxury inventory and exceptionally high-quality listings.
Median prices for single-family homes and condos in the Hamptons fell 9.4% year-over-year to $1.45 million, while total transactions dropped 41% to 259 units.
21% of homes across all price points sold for above asking price.
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3. U.S. Existing Home Sales Unexpectedly Rise
The National Association of Realtors (NAR) reported today that U.S. pending home sales rose 0.3% in June to an index reading of 76.8, the first increase in four months—beating economists’ forecast of a 0.5% drop.
NAR Chief Economist Lawrence Yun said the housing downturn is over, though a full recovery has not arrived. Strong employment and lower mortgage rates continue to draw buyers back.
Sales rose in the Northeast and Midwest but declined in the South and West. Overall, transactions are down 14.8% year-over-year.
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4. Kering Takes Stake in Luxury Brand Valentino
Gucci’s parent company Kering announced today it will acquire a 30% stake in luxury fashion house Valentino for €1.7 billion ($1.87 billion), with the option to buy the remaining shares before 2028.
Valentino’s current majority owner, Qatar’s Mayhoola, may receive Kering shares in the future as part of the deal.
In Q2, Gucci’s revenue grew only 1%, missing analysts’ expectations of 4.2%.
Last week, Kering announced a leadership shake-up at Gucci.
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5. Fed Proposes Major Capital Overhaul
The Fed, FDIC, and the Office of the Comptroller of the Currency announced today that banks with over $100 billion in assets must raise capital buffers by 16% on average.
The eight largest U.S. banks will be required to raise their capital by 19%.
FDIC Chair Martin Gruenberg said a resilient capital framework ensures banks can meet consumer and business lending needs, even during crises.
Under the new rules, the six largest U.S. banks will see their $118 billion in excess capital fully allocated as reserves.
Share buybacks could decline sharply as a result—unlikely to return to 2019 levels.
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6. Meta Reports Double-Digit Revenue Growth
On Wednesday, Meta reported Q2 revenue of $32 billion, up 11% and exceeding expectations—the first double-digit increase since 2021.
Operating costs rose 10% to $22.6 billion, driven by $1.9 billion in legal expenses and $780 million in restructuring charges.
CEO Mark Zuckerberg said heavy AI investments are starting to pay off. Meta is focused on building generative AI tools to improve ad delivery and operational efficiency.
This month, Meta launched the commercial version of its large language model Llama 2, competing with OpenAI, Google, and Microsoft.
Despite rising costs, Meta’s net profit rose 16% to $7.8 billion—beating estimates.
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7. U.S. Gas Prices Hit New High, Troubling Biden
As of Wednesday, the average U.S. gasoline price climbed to $3.714 per gallon, the highest since last November—worrying both drivers and President Biden.
With re-election on the horizon, Biden faces pressure to control inflation and restore consumer confidence. Although inflation has eased over the past 12 months, gas remains a critical expense for voters.
Rising prices are driven by summer demand and fears of potential oil supply shortages.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.