—— NYC Property Values Rise 6.1%; China’s Population Declines for First Time in 60 Years; Citi Summons Inefficient Staff for Training; $20 Billion Pulled From U.S. Real Estate Funds; Microsoft Begins Engineering Layoffs This Week; Roblox Surges 15% on Strong Performance; Moderna RSV Vaccine Shows Promising Results
1. NYC Property Values Rise 6.1%
According to the latest data released today by New York City’s Department of Finance, the value of 1.1 million commercial and residential properties in the city is projected to rise by 6.1% in the next fiscal year, driven by gains in single-family home prices.
Currently, the total market value of NYC properties is estimated at around $1.48 trillion.
Finance Commissioner Preston Niblack told reporters that high office vacancy rates are limiting retail recovery, and hotel occupancy remains underwhelming. However, residential properties—including single-family homes—are steadily recovering.
Property tax is the largest source of revenue for NYC, accounting for one-third of total income. It also serves as the primary backing for the city’s $40 billion in general obligation bonds.
The total value of NYC single-family homes rose 8.3% to $765 billion, with Staten Island leading at 12.1%.
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2. China’s Population Declines for First Time in 60 Years
According to the latest data from China’s National Statistics Bureau, China’s population decreased in 2022—the first time since 1961.
As of the end of 2022, China had 1.41 billion people, 850,000 fewer than at the end of 2021. Last year’s economic growth rate was also the second slowest since the 1970s.
In 2022, China had 9.56 million newborns, down from 10.62 million the year before, marking the lowest level since 1950. Government incentives to boost births have had little visible effect.
Meanwhile, there were 10.41 million deaths in 2022, slightly above the recent average of 10 million.
Due to the pandemic and economic pressures, China saw fewer births and more deaths.
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3. Citi Summons Inefficient Staff for Training
In recent years, Citigroup has offered employees some of the most flexible remote work options, but productivity has noticeably declined.
Citi CEO Jane Fraser said that it’s easy to identify whether employees are being productive. Those who are not will be asked to return to the office and undergo continuous training until their efficiency improves.
Previously, Jane had allowed most staff the option for permanent remote work, though employees may still need to come into the office three times per week.
Citigroup continues to seek a balance between remote and in-office work arrangements.
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4. $20 Billion Pulled From U.S. Real Estate Funds
According to data from IDR Investment Management, institutional investors withdrew $20 billion from real estate funds last year—the most since the Great Depression.
Sources said real estate funds from major firms such as JPMorgan, Morgan Stanley, and Prudential were affected. Redemption requests from UBS’s Trumbull Property Fund totaled $7.2 billion, or 40% of the fund’s assets.
With borrowing costs doubling, U.S. commercial property prices dropped 13% last year. Bloomberg’s index tracking listed REITs also fell 29%.
Investor redemptions are forcing funds to sell properties, putting additional downward pressure on asset prices.
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5. Microsoft Begins Engineering Layoffs This Week
Sources said that starting this week, Microsoft will begin laying off a number of engineers amid declining tech sector demand. While the exact scale is unknown, it may be larger than prior rounds last year.
In July and October last year, Microsoft froze hiring and closed many open positions across departments.
Compared with Amazon, Meta, and Salesforce—which each laid off thousands—Microsoft’s adjustments have been relatively modest.
Microsoft’s smaller layoff scale may suggest it did not significantly over-hire during the pandemic.
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6. Roblox Surges 15% on Strong Performance
According to a statement released today by game development platform Roblox, subscription revenue in December may have risen 20% year-over-year to $430 million. Monthly active users also grew 18% to 61.5 million.
Driven by this positive news, Roblox shares surged as much as 15% today, marking the largest single-day gain in nearly three months.
Analysts at Truist Securities wrote that the company’s strong performance justifies the stock price jump.
Additionally, starting in April, Roblox will shift from monthly to quarterly financial reporting.
During the pandemic, Roblox stock soared due to lockdowns and remote work, but fell 72% last year.
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7. Moderna RSV Vaccine Shows Promising Results
Today, pharmaceutical company Moderna announced that in a phase 3 trial of 37,000 participants aged 60 and older, its RSV (respiratory syncytial virus) vaccine prevented mild symptoms in 82% of cases and severe illness in 84%.
Following the news, Moderna shares rose 3.8% today. The company’s stock fell 24% over the past year.
Currently, there is no effective RSV vaccine on the market, but Moderna faces competition from GSK and Pfizer, both of which received FDA fast-track approval last year.
With no approved RSV vaccines yet available, Moderna, GSK, and Pfizer are in a three-way race.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.