—— Newmont Launches $17B Gold Merger; Renovated Manhattan Tower Gains New Tenant; Dell PC Sales Plunge, Cuts 6,000 Jobs; U.S. Considers 200% Tariff on Russian Aluminum; Americans Gloomy on 2023 Economy and Stocks; NY State Sees Tax Revenue Surge; Wanda’s $300M Bond Oversubscribed
1. Newmont Launches $17B Gold Merger
Today, Newmont Corporation—the world’s largest gold producer—announced plans to acquire Australian rival Newcrest for $17 billion. If successful, the merger would combine two of the world’s top gold mining companies into an industry powerhouse.
According to Dealogic, the $17 billion offer represents a 21% premium over Newcrest’s Friday closing valuation and would become the largest M&A deal so far this year.
In 2018, the world’s second-largest gold miner, Barrick Gold, acquired Randgold for $6 billion.
Denver-based Newmont stated that the deal is still subject to approval by both companies’ boards and regulatory authorities. The merger is expected to deliver significant value to shareholders, employees, and the communities where the companies operate.
In recent years, rising production costs in Australia and volatile gold prices tied to interest rate changes have driven more miners to pursue consolidation for scale and stability.
In 2019, Newmont acquired Canadian rival Goldcorp, overtaking Barrick to become the world’s largest gold producer.
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2. Renovated Manhattan Tower Gains New Tenant
According to a statement from asset manager Junto Capital, the firm will lease the 33rd floor—25,000 square feet—at the 550 Madison Avenue office tower in Manhattan.
The tower’s owner, Olayan Group, recently completed renovations on the 41-story building, which was previously home to AT&T’s headquarters in the 1980s. The building now includes a 21,000-square-foot public garden, amenities, and a fitness center.
In the past two years, the tower has secured retail lease agreements with insurer Chubb and luxury brand Hermès.
Amid the remote work trend, New York firms continue to prefer newly built or renovated office buildings.
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3. Dell PC Sales Plunge, Cuts 6,000 Jobs
Dell Technologies Inc. disclosed in a filing today that it will lay off 6,650 employees—about 5% of its global workforce—due to weakening demand for personal computers.
Co-COO Jeff Clarke wrote that the company faces a rapidly deteriorating market environment with great uncertainty ahead.
Preliminary data from research firm IDC shows that global PC shipments plunged in Q4 2022. Among major vendors, Dell recorded the steepest drop at 37%. Making matters worse, PCs account for 55% of Dell’s total revenue.
In the quarter ending October 28, Dell’s revenue fell 6%, and the company issued weaker-than-expected guidance for the current quarter.
In 2022, the tech industry laid off 97,000 workers—an increase of 649% year over year.
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4. U.S. Considers 200% Tariff on Russian Aluminum
Sources revealed that for the past several months, the U.S. government has been considering imposing a 200% tariff on Russian aluminum, possibly taking effect as early as next week. The measure targets Russia’s dumping of aluminum in the U.S. market, which has harmed domestic producers.
President Biden has not yet approved the policy, and cabinet members are concerned that it may negatively impact the U.S. aerospace and auto industries.
If implemented, the 200% tariff would likely halt nearly all U.S. aluminum imports from Russia. Russia, the world’s second-largest aluminum producer, currently supplies 3% of U.S. imports—down from 10% in past years. Most U.S. aluminum buyers are in construction and auto manufacturing.
Russia is the U.S.’s second-largest metal supplier, after China.
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5. Americans Gloomy on 2023 Economy and Stocks
According to a Gallup survey conducted January 2–22, a record share of Americans believe the economy, stock market, jobs, interest rates, and inflation will all worsen this year.
40% of respondents expect the unemployment rate to rise, while the rest are evenly split between expecting a decline or no change. Most believe loan costs and inflation will continue to climb.
Republicans were more pessimistic than Democrats about the labor market: 48% of Republicans expect rising unemployment, while 78% and 76% believe inflation and interest rates will increase, respectively.
A record share of Americans expect the stock market to fall sharply this year, with few believing it will remain flat or rise.
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6. NY State Sees Tax Revenue Surge
New York State Comptroller Thomas DiNapoli announced today that state sales tax revenue rose 12.7% year over year to $22.1 billion in 2022, building on a 19.1% gain in 2021.
The biggest driver was New York City, where sales tax revenue surged 20.6% thanks to the rebound in tourism and retail activity.
DiNapoli noted that consumer spending remains healthy, and the state’s online sales tax policy also contributed significantly. Inflation has driven prices—and thus tax revenue—higher.
White-collar workers returning to the office and a recovering tourism industry helped boost NYC’s sales tax receipts.
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7. Wanda’s $300M Bond Oversubscribed
Today, Chinese property developer Dalian Wanda issued its second U.S. dollar bond in a month, attracting overwhelming investor demand and quickly reaching oversubscription.
The three-year bond received approximately $500 million in orders, although the company only sought to raise around $300 million.
In January, Wanda successfully issued a $400 million bond, reflecting investors’ growing appetite for risk and belief in a property sector rebound.
Investment banks across Asia say that as government policy loosens, the real estate sector continues to recover and both domestic and international investor confidence in Chinese property is rising.
Wanda’s back-to-back bond issuances in one month highlight investor optimism in the recovery of China’s property market.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.