— Apple Launches High-Yield Savings Account; BlackRock CEO Pay Cut by 30%; China’s New Home Prices Keep Rising; Sega Bids for Angry Birds Maker; MSG to Sell Tao Group; U.S. Homebuilder Sentiment Rises for Fourth Month; U.S. Cap Rate Growth Slows
1. Apple Launches High-Yield Savings Account
Today, Apple Inc. announced the launch of a high-yield savings account in partnership with Goldman Sachs.
The account offers an annual yield of 4.05%, ten times the national average, with no minimum deposit or fees.
Apple first announced the savings product last October, but the actual launch was delayed by six months. The new product is designed to boost revenue from financial services and further integrate users into Apple’s consumer finance ecosystem.
Apple and Goldman Sachs have launched credit card and savings account products aimed at entering the consumer finance space.
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2. BlackRock CEO Pay Cut by 30%
According to regulatory filings, BlackRock reduced CEO Larry Fink’s total compensation by 30% to $25.2 million for 2022.
Last year, the 70-year-old Fink received $1.5 million in base salary, $7.25 million in cash incentive, $12.7 million in long-term incentive awards, and $3.75 million in deferred equity.
BlackRock stated in its filing that management opted to reduce executive compensation to mitigate the impact of declining company earnings.
In 2022, BlackRock saw $300 billion in investment product outflows. In Q1 this year, assets under management rose by $110 billion.
Five top executives, including Larry Fink, received roughly 30% pay cuts.
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3. China’s New Home Prices Keep Rising
According to the latest official data, China’s new home prices rose 0.5% month-over-month in March, the biggest increase in 21 months, continuing February’s 0.3% gain.
The favorable data suggests the real estate sector is finally recovering. Last week, China also reported stronger-than-expected exports, driven by electric vehicle and component shipments, as well as increased trade with Russia.
This Tuesday, China will release Q1 GDP data, with economists forecasting 4% growth for the quarter and 5% for the full year.
Nomura analysts noted today that China’s electricity consumption rose 5.9% year-over-year, outpacing growth in the first two months of the year.
China’s CPI rose just 0.7% year-over-year, missing the 1% forecast and signaling some economic weakness.
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4. Sega Bids for Angry Birds Maker
Japanese gaming giant Sega Sammy has made a $776 million offer to acquire Rovio Entertainment, maker of Angry Birds—about 20% below Rovio’s IPO price from five and a half years ago.
Sega stated that by 2026, the global gaming market could reach $263.3 billion, with mobile gaming expected to take a 56% share. Rovio’s valuation is based on these projections.
Following the news, Rovio shares surged nearly 18%. The Angry Birds franchise accounts for 60% to 70% of Rovio’s total revenue.
Although Rovio remains profitable, its stock has not recovered from its steep decline in early 2018.
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5. MSG to Sell Tao Group Restaurant Business
Sources say Mark Scheinberg, founder of online gambling company PokerStars, is in talks with Madison Square Garden Entertainment Corp. (MSG) to acquire Tao Group Hospitality.
Scheinberg’s investment firm, Mohari Hospitality, is reportedly determined to outbid other competitors to acquire the restaurant and nightclub group. Tao operates popular venues including Hakkasan, and the deal could exceed $550 million.
Tao runs over 70 venues in more than 20 markets, including Hakkasan upscale Chinese restaurants, Lavo Italian eateries, and nightclubs like Omnia and Marquee.
Mohari’s portfolio includes Peninsula resorts, Miami’s Waldorf Astoria, and Ritz-Carlton cruises.
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6. U.S. Homebuilder Sentiment Rises for Fourth Month
The National Association of Home Builders (NAHB) reported today that homebuilder sentiment rose again in April, reaching a 7-month high of 45 points, though still below levels seen in late 2021 when interest rates were lower.
NAHB chief economist Robert Dietz said about one-third of the current housing supply is under construction—far above the historical average of around 10%. Meanwhile, more buyers are looking for new homes.
In April, 30% of builders reduced home prices, down from 36% in November.
As mortgage rates stabilize, more buyers are returning to the market.
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7. U.S. Cap Rate Growth Slows
A new CBRE report shows that since the Federal Reserve began raising rates in March 2022, the cap rate growth for Class A multifamily properties has significantly slowed.
In Q1 2022, the average cap rate rose 23 basis points. In the previous three quarters, cap rates had increased by 39, 36, and 38 basis points respectively.
Cap rates generally move in line with interest rates. Lower rates imply lower cap rates and cheaper financing, while higher cap rates suggest greater risk and lower property values.
Matt Vance, head of multifamily research at CBRE, said the slowdown in cap rate growth may indicate that multifamily investment is becoming more secure.
Cap rate is calculated as net annual income divided by asset value; lower property values imply higher cap rates.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.