—— Titanic Submarine Passengers Confirmed Dead; Qatar Sovereign Fund Invests in NBA Team; Beijing and Tianjin Record Historic Heat; Netflix Invests $2.5 Billion in K-Dramas; US Office Market Recovery May Take 17 Years; Oracle Founder Nets $482M; Global Stocks Post Worst Week in Three Months
1. Titanic Submarine Passengers Confirmed Dead
On Thursday, the US Coast Guard found debris from the missing sightseeing submarine 488 meters from the Titanic wreck, concluding that the vessel suffered a catastrophic implosion and that all members perished.
Rear Admiral John Mauger stated that the families of the victims had been immediately notified and extended the Coast Guard’s deepest condolences.
The submarine’s passengers included Hamish Harding, founder of Action Group; French diving expert Paul-Henry Nargeolet; Stockton Rush, CEO of OceanGate; and a father and son from a prominent Pakistani family.
OceanGate released a statement saying the victims were true explorers, passionate about the ocean’s discovery and preservation.
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2. Qatar Sovereign Fund Invests in NBA Team
Sources revealed that Qatar Investment Authority (QIA) will acquire a 5% stake in Monumental Sports and Entertainment, the ownership group of the NBA’s Washington Wizards.
Monumental also owns the NHL’s Washington Capitals and the WNBA’s Washington Mystics.
Sportico estimated that following the acquisition, Monumental’s valuation could reach $4 billion.
In recent years, NBA team valuations have ballooned. Last week, NBA legend Michael Jordan sold his stake in the Charlotte Hornets for $3 billion, having initially bought it for $275 million in 2010.
Earlier this year, Abu Dhabi and Qatar sovereign funds both expressed interest in investing in the NBA.
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3. Beijing and Tianjin Record Historic Heat
A heatwave has recently gripped 17 cities across China. According to the China Meteorological Administration, temperatures in Beijing and Tianjin reached a record 41.8°C (107°F) on June 22.
Provinces such as Hebei and Shandong also reported record-breaking temperatures.
The extreme heat is expected to persist into Friday, increasing electricity demand and wildfire risks.
Several regions have issued red alerts for extreme heat, warning of significant health risks for the elderly and disrupted outdoor activities.
Similarly, Texas experienced an 80% surge in electricity prices due to extreme heat this week.
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4. Netflix Invests $2.5 Billion in K-Dramas
Following the global success of Korean dramas like “Squid Game,” Netflix CEO Ted Sarandos announced Thursday that the company will invest $2.5 billion over the next four years to nurture the next generation of Korean actors and crews.
Statistics show that three out of five Netflix users have watched K-dramas, with viewing hours up sixfold compared to four years ago. Korean content has helped drive Netflix’s international subscriber growth.
In 2022, Netflix’s Korea sales grew 22% to $600 million, although its crackdown on account sharing caused Korean subscriber numbers to fall 30% to 1.17 million in Q4.
“Squid Game” and “The Glory” are among Netflix’s most popular Korean titles.
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5. US Office Market Recovery May Take 17 Years
London-based research firm Capital Economics projected that US office property values may not return to previous peaks until 2040.
By the end of 2025, office values are expected to decline 35% from historical highs and take 15 years to recover from hybrid and remote work’s impact, a trend similar to what e-commerce inflicted on shopping malls.
Economist Kiran Raichura wrote that demolishing or converting office buildings could mitigate value declines but would involve significant costs.
Recently, major institutional investors like Brookfield and Blackstone have defaulted on several office mortgages.
Demand for office space may see a permanent drop, requiring costly property transformations.
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6. Oracle Founder Nets $482 Million
Between June 20 and June 22, Oracle founder Larry Ellison exercised expiring stock options and sold $640 million worth of Oracle shares.
According to filings, Ellison sold 5.25 million shares at an average price of $122, realizing a $482 million gain, based on an option exercise price of $30.11.
On June 15, Oracle shares hit an all-time high of $127.54, fueled by a 54% surge in cloud sales reported in its latest earnings release.
Ellison is currently the fourth-richest person in the world.
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7. Global Stocks Post Worst Week in Three Months
Global stock markets are on track for their worst weekly performance in three months, hit by fears that central bank rate hikes will dampen economic growth.
European equities fell for a fifth consecutive session, led by a 36% plunge in Siemens Energy after an earnings warning. Hong Kong stocks also recorded significant declines.
UBS Global Wealth Management’s Chief Economist Paul Donovan said investor sentiment has shifted rapidly, now fearing that higher rates will increase recession risks.
In the week ending Wednesday, global investors pulled $5 billion from equity funds while pouring $5.4 billion into bonds.
After Fed Chair Jerome Powell hinted at one or two more rate hikes, two-year Treasury yields rose above 4.8%.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.