—— Singapore Life Expectancy Increases; China Restricts U.S. Micron Chips; Uber to Sublease SF Office Space; U.S. Industrials See M&A Surge; Apple Eyes $3 Trillion Valuation Again; JPMorgan Raises Income Forecast; Long Island City Retail Booms
1. Singapore Life Expectancy Increases
Preliminary data from Singapore’s Department of Statistics shows that in 2022, the average life expectancy of Singapore citizens rose to 83 years, nearly one year more than a decade ago.
Singaporean women had an average life expectancy of 85.2 years, compared to 80.7 years for men.
As of May 17, Singapore had recorded 1,722 COVID-related deaths, which reduced the average life expectancy by 0.7 years compared to 2019.
Singaporeans are among the wealthiest populations globally, and the government has increased elderly care policies. By 2030, the proportion of citizens aged 65 and above is expected to rise from one in six to one in four.
Over the past 10 years, the number of working residents aged 70 and above increased by 173%, with women up by 237%.
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2. China Restricts U.S. Micron Chips
China’s Cyberspace Administration announced today that products from Micron Technology may pose significant cybersecurity risks to China’s information infrastructure supply chain. As a result, operators of critical infrastructure should avoid purchasing the company’s products.
Micron is the largest memory chip manufacturer in the U.S., and tech has become a major battleground in U.S.-China tensions. Previously, the U.S. government blacklisted several Chinese tech firms and banned exports of high-end semiconductors and processors to China.
The U.S. has responded by saying China’s decision lacks justification and is retaliatory against prior American actions.
China is the world’s largest semiconductor buyer, and the latest decision brings added uncertainty to companies like Qualcomm and Intel.
Qualcomm and other U.S. chipmakers rely heavily on the Chinese market, but Micron’s revenue exposure to China is relatively limited.
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3. Uber to Sublease SF Office Space
Uber plans to sublease one-third of its San Francisco headquarters, totaling 269,000 square feet.
However, the company said it still embraces hybrid work and encourages in-person collaboration among employees.
According to CBRE data, San Francisco’s office vacancy rate hit a record 29.4% in the first quarter.
Companies like Salesforce, Meta, and Lyft have all cut back on urban office space, and the San Francisco office market faces major challenges.
Tech firms are increasingly reducing their real estate footprint in San Francisco, facing similar challenges to New York’s Wall Street.
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4. U.S. Industrials See M&A Surge
Despite rate hikes and macroeconomic concerns slowing overall U.S. M&A activity, industrial sectors have remained an exception.
According to Bloomberg, from the start of 2023 to now, companies in manufacturing, materials, and related industries have planned or announced over $110 billion in acquisitions.
Notable completed or pending deals include Newmont-Newcrest, Allkem-Livent, Carrier Global-Viessmann Climate Solutions, and Emerson Electric-National Instruments.
In recent years, industrial firms faced stiff competition from private equity bidders, but rising interest rates have sidelined many financial buyers, giving strategic buyers more room to maneuver.
Higher rates have eased competitive pressure for strategic buyers, while lower valuations offer attractive entry points.
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5. Apple Eyes $3 Trillion Valuation Again
Year to date, Apple’s stock has risen 35%, adding nearly $690 billion in market cap as investors favor its steady income and strong cash reserves. The stock is now near its all-time high from January 2022.
Patrick Burton, portfolio manager at MainStay Winslow, said he never expected a company to generate $100 billion in free cash flow in one year. Apple’s underlying operations remain robust.
However, Apple’s revenue is expected to continue declining this year, and its price-to-earnings ratio has reached 28x. In 2022, Apple briefly surpassed the $3 trillion mark but then dropped 27%.
Although Apple’s stock is once again approaching record highs, its operating environment and financial performance are not as strong as in 2022.
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6. JPMorgan Raises Income Forecast
JPMorgan Chase & Co., the largest bank in the U.S., raised its net interest income forecast from $81 billion to $84 billion, according to a presentation on its website.
The bank said operating costs will remain around $81 billion. Credit performance is currently stable, but the bank is closely monitoring conditions. It expects unemployment to reach 5.8% by the end of 2024 and has increased reserves accordingly.
In Q1, the regional banking crisis drove a wave of deposits to large banks, and JPMorgan saw a significant surge in deposits.
Year to date, the KBW Regional Banking Index is down 28%, while JPMorgan’s stock is up 3.8%.
As the largest bank in the country, JPMorgan has benefited from the regional banking crisis.
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7. Long Island City Retail Booms
In the post-pandemic era, thanks to strong local infrastructure and highly responsible landlords, Long Island City (LIC), New York, has become a thriving environment for retail.
During the pandemic, well-known LIC landlord TF Cornerstone helped tenants survive by charging rent as a percentage of store revenue.
In addition, LIC’s spacious outdoor areas and wide sidewalks allowed businesses to set up outdoor dining, while some bars built rooftop spaces with Manhattan skyline views—helping them adapt and stay profitable.
TF Cornerstone has several waterfront developments in LIC, where most retail spaces were leased before opening. Rents are now 50% higher than pre-pandemic levels, highlighting the area’s retail growth.
TF Cornerstone’s tenant support helped LIC’s retail recover faster than almost any other area.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.