—— Evergrande Releases Long-Awaited Financial Results; Ford Slashes F-150 Lightning Prices by $10,000; US Loan Rejection Rate Hits 5-Year High; China Publishes Key Economic Data; US Bike Share Usage Surges Past Pre-Pandemic Levels; Kingspan Acquires German Building Materials Firm; Apollo Forms Family Office Team
1. Evergrande Releases Long-Awaited Financial Results
Today, China Evergrande Group disclosed long-delayed financial statements in filings with the Hong Kong Stock Exchange.
The report shows that Evergrande lost $66 billion in 2021, with shareholder-attributable losses reaching 476 billion yuan. In 2022, the company recorded a net loss of 105.9 billion yuan.
Evergrande’s shares have been suspended since March 2022. With the release of its financials, its shares are more likely to resume trading, and offshore bondholders now have more data to evaluate Evergrande’s restructuring proposals.
In March this year, Evergrande proposed a multi-billion dollar debt restructuring plan offering new debt maturing in 10 to 12 years.
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2. Ford Slashes F-150 Lightning Prices by $10,000
Today, Ford Motor announced price cuts of up to 17% for its best-selling F-150 Lightning electric pickup truck to better compete with Tesla and GM.
The base F-150 Lightning Pro now starts at $49,995, nearly $10,000 cheaper but still above its original $39,974 launch price in April 2022.
Earlier this year, GM began production of its electric Chevrolet Silverado, and Tesla announced initial production of the Cybertruck last week.
Ford spokesman Martin Gunsberg said the EV market is evolving rapidly, and the company needs to adapt to stay competitive.
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3. US Loan Rejection Rate Hits 5-Year High
According to the latest Fed survey, in the 12 months ending in June, 21.8% of loan applicants were rejected, the highest rate in five years. Meanwhile, total loan application volume fell to its lowest since October 2020.
In the Fed’s previous survey in February, the rejection rate was 17.3%. Both surveys found the highest rejection rates among applicants with credit scores below 680.
Auto loan rejection rates rose from 9.1% to 14.2%.
Over the past year, the percentage of people applying for auto loans has fallen below the rejection rate itself.
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4. China Publishes Key Economic Data
According to the latest data, China’s GDP grew at an annualized 6.3% rate in Q2, up from 4.5% in Q1 but below analysts’ 7% expectations.
Unemployment among 16- to 24-year-olds rose to 21.3% from 20.8% a month earlier.
Real estate investment fell 7.9% in the first half of the year. June retail sales rose 3.1% year-over-year, showing resilient consumer demand.
Increased government spending is expected to support multiple industries, along with regulatory rate cuts and looser credit conditions.
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5. US Bike Share Usage Surges Past Pre-Pandemic Levels
According to the US Bureau of Transportation Statistics, bike share ridership in six major US cities rose 27% to 45 million trips in 2022 compared to pre-pandemic levels. 2023 figures could set another record.
New York led the growth, with Boston and Chicago also surpassing pre-pandemic numbers.
Ken McLeod, policy director at the League of American Bicyclists, said that many Americans bought bikes during the pandemic and grew accustomed to cycling.
Bike sharing eliminates parking hassles and offers flexible pickup and drop-off, while cities like New York have invested heavily in bike infrastructure, such as the Brooklyn Bridge bike lane.
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6. Kingspan Acquires German Building Materials Firm
Today, Ireland’s Kingspan agreed to buy a 51% stake in German building materials company Steico SE for $282 million. Founder Udo Schramek will retain a 10.1% stake and continue as CEO.
If Steico meets performance targets, Kingspan may significantly increase the acquisition price and has the option to acquire the remaining shares.
Morgan Stanley analysts said Steico is currently at a low point in the industry cycle but has good growth potential ahead.
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7. Apollo Forms Family Office Team
Over the past year, New York-based private equity giant Apollo Global Management formed a family office team of about 10 people and plans further expansion to target ultra-wealthy family clients.
Apollo partner Brian Feurtado said the new team will focus on family offices with in-house CIOs and investment teams.
BlackRock recently noted that family offices and insurers are likely to boost private equity allocations, despite concerns about recession and rising rates.
Feurtado said Apollo has so many family office clients that a dedicated team was necessary; private equity allocations in this segment remain relatively low but have strong future growth potential.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.