—— US Inflation Cools Further; Barclays Expands Parental Leave; China’s Top 100 Developers See Home Sales Drop; Aspartame to Be Labeled as Carcinogenic; Brookfield Faces Maturing $130M Loan; Moderna Investor Nets 30x Gain; Muzinich Launches $500M Asia Credit Fund
1. US Inflation Cools Further
The U.S. Commerce Department released new data today showing that in May, the U.S. Personal Consumption Expenditures (PCE) price index rose just 0.1% year-over-year — the smallest gain in over two years.
From February to May, U.S. households reduced spending on goods but increased spending on services.
Excluding food and energy, the core PCE price index rose 4.6% year-over-year in May.
Excluding energy and housing, service price inflation rose just 0.2% compared to April, the smallest increase since July last year, another positive signal.
After the data release, U.S. stocks and Treasuries rallied, though traders still expect the Federal Reserve to raise rates next month.
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2. Barclays Expands Parental Leave
According to a new statement from Barclays Bank, starting July 1, all employees welcoming a new child by birth, adoption, or fostering will receive at least 16 weeks of leave, while non-primary caregivers will receive 6 weeks.
Additionally, new mothers will be eligible for an extra 6 to 8 weeks of recovery leave.
In recent years, Wall Street firms have expanded parental leave policies to attract and retain talent. Studies show that offering paternity leave helps mothers return to the workforce and boosts their earnings.
Wall Street firms increasingly recognize that both mothers and fathers should receive parental leave to better share caregiving responsibilities.
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3. China’s Top 100 Developers See Home Sales Drop
Preliminary data from China Real Estate Information Corp. shows that in June, the top 100 developers’ new home sales totaled $72.5 billion, a 28.1% drop year-over-year but an 8.5% increase from May.
Analysts at Gavekal Dragonomics said the property market has not yet bottomed out and remains tense.
In May, existing home prices continued to fall, and as sellers kept cutting prices, there was still room for further decline.
With slower gains in new home prices, real estate investment is becoming less attractive.
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4. Aspartame to Be Labeled as Carcinogenic
The World Health Organization (WHO) is expected to officially announce on July 14 that aspartame, one of the world’s most widely used sweeteners, will be listed as a carcinogen, though the exact classification remains to be seen.
Discovered in 1965 by chemist James Schlatter, aspartame is very sweet but low in calories, making it popular with brands like PepsiCo and Coca-Cola.
A 1981 study suggested that a daily intake of up to 40 mg per kilogram of body weight was safe. A 355ml can of diet soda typically contains about 200mg of aspartame.
The specific cancer risk level for aspartame will be revealed when the full report is released next month.
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5. Brookfield Faces Maturing $130M Loan
Canadian private equity giant Brookfield Asset Management is facing a maturing $130 million mortgage on its Brooklyn office property at 15 MetroTech Center.
The large loan has entered special servicing, and Brookfield is seeking a resolution with lenders.
Earlier this year, Brookfield defaulted on multiple office mortgage loans, mostly in Washington, D.C., and also relinquished control of two Los Angeles properties.
Brookfield said the properties in default represent just 0.08% of its real estate portfolio’s value.
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6. Moderna Investor Nets 30x Gain
During the pandemic, Moderna became a household name with its COVID-19 vaccine, and shareholder Noubar Afeyan became a billionaire.
On Thursday, after Eli Lilly agreed to acquire Sigilon Therapeutics, Sigilon’s shares surged 438% to $21.15, setting up Flagship Pioneering, Afeyan’s VC fund, for up to a $101 million windfall.
Sigilon and Moderna were both founded in Cambridge, Massachusetts, and share co-founder Robert Langer, a professor at MIT.
Afeyan, a biochemical engineer, holds over 100 patents and has been involved in launching more than 70 startup products.
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7. Muzinich Launches $500M Asia Credit Fund
Today, Muzinich & Co. announced the closing of its first private credit fund in Asia, raising $500 million.
Around 80% of the funding came from institutional investors, with the remainder from family offices.
Andrew Tan, CEO of Muzinich Asia Pacific, said half the investors were based in Asia, with Singapore’s DBS Group Holdings contributing $200 million.
Tan told Bloomberg that the fund will focus on secured loans across sectors such as education, healthcare, manufacturing, consumer goods, and technology.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.