— FC Barcelona Launches €1.45 Billion Venue Overhaul; U.S. Pending Home Sales Index Plunges in March; U.S. GDP Growth Slows Sharply; Barclays Trading Revenue Unexpectedly Rises; AI Startup Raises $100 Million; Mobileye Sees Largest Drop Since IPO; U.S. 30-Year Mortgage Rates Hit March High
1. FC Barcelona Launches €1.45 Billion Venue Overhaul
Renowned football club FC Barcelona plans to renovate the iconic Spotify Camp Nou stadium, while also developing arenas for other sports, a hotel, a supermarket, and a museum.
Club management disclosed that the team has secured €1.45 billion in loans for development and renovation, with annual interest costs reaching €94 million.
CFO Manel del Rio stated that debt repayments will begin in 2026, by which time all developments will be completed.
The renovation of Camp Nou will commence in June this year. During this period, Barcelona will temporarily use the Estadi Olimpic. However, the temporary stadium accommodates 40% fewer spectators than Camp Nou, meaning a significant drop in ticket revenue.
Barcelona expects the new venue to generate an additional €247 million in revenue annually.
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2. U.S. Pending Home Sales Index Plunges in March
According to the latest data from the National Association of Realtors (NAR), the pending home sales index in March dropped by 5.2% to 78.9, marking the largest decline since September and far below economists’ forecast of a 0.8% increase.
The pending sales index is one of the key indicators of actual housing sales activity.
NAR Chief Economist Lawrence Yun said that a shortage of housing supply is one of the biggest constraints on sales, as inventory cannot meet national homebuying demand.
The positive news is that new home sales have increased, and builders’ confidence has also risen.
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3. U.S. GDP Growth Slows Sharply
Preliminary data from the U.S. Department of Commerce show that GDP grew at an annualized rate of 1.1% in the first quarter of this year, falling short of growth expectations. Consumer spending rose by 3.7%, marking the highest increase in the past two years.
In addition, business equipment investment posted the largest decline since the onset of the pandemic, and inventories also dropped sharply.
The data indicate that under persistent inflation and the Federal Reserve’s ongoing rate hikes, the U.S. economy is gradually slowing.
Currently, a strong labor market and stubborn wage inflation have helped consumers maintain a certain level of spending. The personal consumption expenditures price index (PCEPI) rose by 4.2% in the first quarter.
Cliff Hodge of Cornerstone Wealth said that inflation remains stubborn, and the Fed may raise rates in both May and June.
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4. Barclays Trading Revenue Unexpectedly Rises
Barclays’ latest quarterly report shows that fixed-income trading revenue rose 9% to £1.79 billion, beating analyst forecasts of an 11% decline. Overall pre-tax profit increased to £2.6 billion.
The CEO said in an interview that fixed-income trading provided important support to the company, and other business segments also performed well.
In the first quarter, Barclays’ total deposits rose by £10 billion, while competitor Deutsche Bank lost a large number of clients.
Loan-loss provisions reached $524 million, three times higher than a year earlier. Total operating costs rose 9% to £1.1 billion, pressured by inflation.
This morning, Barclays’ share price rose as much as 5.1%.
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5. AI Startup Raises $100 Million
AI software platform Pinecone Systems has recently raised $100 million in funding, valuing the company at $750 million.
Investors in this round include Andreessen Horowitz, as well as existing shareholders Menlo Ventures and Wing Venture Capital.
Pinecone plans to use the funds for R&D, hiring, and scaling its operations.
In February 2022, New York-based Pinecone raised $28 million in a Series A round led by Menlo Ventures, with a valuation of $168 million.
Over the past year, investor interest in artificial intelligence has surged, with chatbots like ChatGPT generating significant buzz and funding flowing to startups across the AI ecosystem.
Companies can use Pinecone’s platform to build AI-powered applications; clients include Shopify and HubSpot.
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6. Mobileye Sees Largest Drop Since IPO
Mobileye Global, a producer of autonomous driving hardware and software, revised down its full-year revenue forecast today, causing its share price to plunge 31% to the lowest level since January.
Mobileye was spun off from Intel and listed independently in October last year.
The company now expects full-year revenue to range from $2.07 billion to $2.11 billion, below analysts’ consensus estimate of $2.25 billion.
JPMorgan analysts believe that although demand for Mobileye’s products remains strong, the current business environment is challenging, and the company is not immune to broader industry pressures.
Intel acquired Mobileye for $15.3 billion in 2017.
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7. U.S. 30-Year Mortgage Rates Hit March High
Freddie Mac announced today that the average fixed interest rate for 30-year mortgages rose to 6.43%, up from 6.39% last week, marking the highest level since March.
Freddie Mac Chief Economist Sam Khater said that data suggest home sales and prices are leveling off, and mortgage rates may decline over the remainder of the year—good news for prospective homebuyers.
The monthly payment on a $600,000 mortgage has increased from $3,258 a year ago to $3,765 today.
Homeowners who locked in lower rates are reluctant to sell or upgrade, contributing to limited housing supply.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.