—— Tesla and BYD Set Sales Records; Apple Cuts Vision Pro Production Target; Bridgewater CIO Warns on Economy; China to Restrict Key Metal Exports; Manhattan Landmark Building Secures Refinancing; Yellen to Visit China This Week; World’s Top 500 Billionaires See Wealth Surge
1. Tesla and BYD Set Sales Records
In the second quarter, both Tesla and BYD set new sales records, solidifying their positions as the world’s leading electric vehicle manufacturers.
Tesla sold 466,140 vehicles globally, surpassing Wall Street estimates. China’s top EV brand BYD delivered a record 700,244 electric and hybrid vehicles.
Tesla’s U.S. stock and BYD’s Hong Kong stock each rose 6% and 5%, respectively. Battery makers CATL and LG also saw share price increases.
Compared to last year’s production shutdowns in China, Tesla’s deliveries jumped 83%, and production exceeded deliveries by 13,560 units, easing inventory shortages.
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2. Apple Cuts Vision Pro Production Target
The Financial Times reports that due to the complexity of the Vision Pro design, Apple has faced mass production issues.
As a result, Apple cut its 2024 production target to fewer than 400,000 units, down from the original goal of one million.
Suppliers said Apple only ordered enough materials for 130,000–150,000 units, and plans for a cheaper version have been delayed.
The Vision Pro, priced at $3,499, resembles ski goggles and runs on the new visionOS operating system, creating production challenges.
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3. Bridgewater CIO Warns on Economy
Bridgewater’s co-CIO Greg Jensen recently said on a podcast that investors are overly optimistic about the economic outlook and the Fed’s ability to curb inflation.
He believes stock market rallies require both rapid rate cuts and strong corporate earnings, which Bridgewater sees as unlikely.
Greg expects disappointing economic and inflation data ahead, with potential declines in stocks and bonds. Rising savings rates could signal an approaching recession.
Corporations will eventually feel the impact of high borrowing costs, slowing investment and hiring, though more gradually than Bridgewater initially anticipated.
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4. China to Restrict Key Metal Exports
China’s Ministry of Commerce announced today that starting August 1, exports of gallium and germanium metals will be restricted.
Both metals are critical for semiconductor and electromagnetic equipment production, and the move could strain global tech supply chains.
China dominates the global production and refinement of gallium, germanium, and 18 other key materials.
Exporters must now apply for licenses and disclose buyer information, increasing scrutiny on material usage abroad.
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5. Manhattan Landmark Building Secures Refinancing
Maddd Equities secured a $43 million refinancing loan for the landmark Bridgemarket retail property beneath the Ed Koch Queensboro Bridge.
Key tenants include Trader Joe’s, TJ Maxx, and Ship Essential.
Lakeland Bank provided the new financing, with Progress Capital brokering the deal.
Built in the 1930s as a farmers’ market space and later used by the city’s Transportation Department, Bridgemarket is located at 405-409 East 59th Street.
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6. Yellen to Visit China This Week
U.S. Treasury Secretary Janet Yellen will visit China this week, becoming the second Biden administration official to seek to ease bilateral tensions.
Yellen will meet senior Chinese government officials and American business leaders during her stay in Beijing.
The Treasury Department said the goal is to increase communication, resolve misunderstandings, and stabilize and expand relations.
Yellen emphasized that while no major breakthroughs are expected, she hopes the two nations can cooperate on global challenges like debt and climate change.
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7. World’s Top 500 Billionaires See Wealth Surge
In the first half of 2023, the S&P 500 and Nasdaq 100 posted gains of 16% and 39%, respectively, marking their best half-year performance ever.
According to Bloomberg’s Billionaires Index, the combined wealth of the top 500 billionaires grew by $852 billion, averaging $14 million per person per day.
Elon Musk led the gains, adding $96.6 billion to his net worth, while Mark Zuckerberg gained $58.9 billion.
Meanwhile, Indian billionaire Gautam Adani saw a $60.2 billion loss following a short-seller attack by Hindenburg Research.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.