—— French housing attracts US buyers; Twitter cuts office space to save costs; Tremor acquires AD technology companies; Country Garden sells shares at a discount; Kraft Heinz raises its income forecast; Low-income people in the United States spend less on eating outside; the US Senate passes the chip bill.
1. French housing attracts US buyers
According to statistics made by real estate company Knight Frank, in the first five months of this year, the number of home buyers in the United States searching for French housing increased by 37% year-on-year, with Paris, Provence, and the French Riviera being the most searched.
Knight Frank said U.S. buyers have become more interested in French properties, mainly because the euro has depreciated significantly against the dollar, and many U.S. buyers have saved some savings over the past two years.
According to statistics, after the depreciation of the euro, properties in Europe are actually 16% cheaper for American buyers than they were a year ago.
The dollar and euro are currently valued at nearly equal levels, making it a great time to shop in Europe
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2. Twitter cuts office space
The company plans to reduce office space in San Francisco, New York and Sydney to save costs and cancel plans to expand in Auckland, according to documents sent to employees by social platform Twitter today.
It is reported that Twitter will “substantially” reduce office space at its San Francisco headquarters and may directly close offices in the Sydney area.
Twitter also said in the email that the company has no plans to lay off employees for the time being, but will mainly reduce expenses by reducing office space.
In May, Twitter announced a temporary hiring freeze and reduced budgets for employee travel and marketing.
During the epidemic, social platforms such as Twitter grew rapidly, and now companies are forced to step on the brakes in the economic recession
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3. Tremor acquires AD tech company
Digital advertising firm Tremor International said in a statement that it has acquired advertising technology company Amobee for $239 million from Singapore Telecommunications.
Tremor said the acquisition will include cash and $100 million in debt, and the deal is expected to close in the third quarter of 2022.
Back in 2012, Singapore Communications acquired the Amobee ad tech platform for $321 million. Subsequently, Amobee also launched a series of acquisitions.
However, last year, Singapore Communications stated that due to the impact of the epidemic, Amobee’s advertising business has suffered a serious decline for many years. SingCom was also forced to take a non-cash impairment charge of $438 million on the Amobee investment.
Amobee can enhance ad planning capabilities on traditional TV channels for Tremor
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4. Country Garden sales discounted share for financing
On Wednesday, China time, Country Garden, one of China’s largest developers, announced that it had raised $360 million in additional shares at a price 13% below the market price.
Affected by the news, Country Garden’s share price plummeted 15%, wiping $1.7 billion off the company’s market value.
As of now, Country Garden has never defaulted on any debt, and its debt leverage is also lower than other developers.
Country Garden said it would use the new financing to pay off existing debt, but the price of the additional shares was so low that it caused panic among investors.
Country Garden’s share price will inevitably fall immediately
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5. Kraft Heinz raises revenue forecast
This week, U.S. food giant Kraft Heinz Co. reported its second-quarter earnings report that the company’s overall revenue fell 0.9 percent to $6.55 billion, mainly due to foreign exchange fluctuations.
Excluding foreign exchange and the company’s investment losses, the company’s organic sales (Organic Sales) rose 10.1% year-on-year, of which the impact of rising food prices accounted for 12.4%.
Kraft Heinz said higher commodity prices led to a 2.3% drop in sales, with logistics chain issues also contributing to the drop in revenue.
In the second quarter, Kraft Heinz earned $265 million in revenue, far better than the $27 million loss in the same quarter last year.
The good news is that Kraft Heinz is raising its full-year organic revenue forecast, which is likely to rise by 8% to 9%.
Kraft Heinz’s revenue performance reflects the health of the U.S. economy to a certain extent
Source: WSJ – Kraft Heinz Raises Sales Outlook as Prices Soar
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6. Lower-income Americans spend less on eating outside
This week, well-known restaurant chains Chipotle Mexican Grill and McDonald’s both said inflation remains high and low-income U.S. consumers are tapering off restaurant spending.
According to Chipotle, consumers with an annual income of $50,000 account for nearly 40% of restaurant dining groups. This group of people is coming to restaurants less often.
McDonald’s said that low-income consumers will still choose to dine in, but they will choose lower-priced options.
Not everyone can afford a $9 taco in a time of such high inflation
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7. US Senate passes chip bill
On Tuesday, the US chip bill passed 64 to 32 in a procedural vote in the Senate, which aims to enhance US semiconductor manufacturing capabilities.
The U.S. government will provide $52 billion in subsidies for semiconductor manufacturers, and will also provide about $24 billion in tax credits for chip makers.
Biden and others see the bill from a security perspective, arguing that chips are vital to a variety of consumer goods and military equipment, ensuring U.S. production is critical.
The huge funding provided by the Chip Act aims to enhance the R&D, innovation, and production capacity of the US chip industry
Source: MSN – Senate passes Chips and Science Act, a ‘historic’ investment in U.S. innovation and tech
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The content of this article comes from various financial news media such as The Wall Street Journal, Financial Times, and Bloomberg.