— Japan Set to Release Fukushima Nuclear Wastewater; Nvidia Earnings Carry Heavy Weight; BlackRock Invests in Swedish Battery Maker; Student Loan Forgiveness Program Opens for Applications; Home Offices Increasingly Common in the US; Vietnamese EV Maker’s Stock Soars 280%; NYC Unveils Office-to-Housing Conversion Plan
1. Japan Set to Release Fukushima Nuclear Wastewater
Starting August 24, Japan will begin releasing treated Fukushima nuclear wastewater into the Pacific Ocean over the next 30 years, with a total volume of 1.3 million cubic meters.
Japan’s discharge plan has faced strong condemnation from China and many neighboring countries, with serious concerns raised over its safety.
Prime Minister Fumio Kishida stated that the Japanese government will ensure the safe implementation of the plan until all the wastewater has been released.
Local fishing companies in Japan have also expressed doubts about the plan and worry it could hurt seafood sales.
______
2. Nvidia Earnings Carry Heavy Weight
This Wednesday, Nvidia will release its highly anticipated earnings report. Over the past two trading sessions, both the S&P 500 and Nasdaq have seen consecutive gains. Additionally, the Federal Reserve is set to hold a major policy meeting this week.
Traders believe that if Nvidia’s results are strong, investor confidence will rise and the broader market could be boosted.
Analysts say the recent market rally is largely driven by extremely high expectations for Nvidia’s earnings, placing the company under enormous pressure.
Rising bond yields have made them more attractive relative to equities, and Nvidia is carrying the burden of lifting tech stocks.
From August until last week, U.S. equities had shed $2 trillion in market value.
______
3. BlackRock Invests in Swedish Battery Maker
Today, Swedish battery manufacturer Northvolt secured a €1.2 billion convertible bond investment from investors including BlackRock.
Sources say Northvolt is also planning to raise an additional $5 billion in equity over the coming weeks and aims for an IPO next year.
Northvolt’s shareholders include Volkswagen, Goldman Sachs, and BMW. The company needs several billion euros to build four gigafactories.
In July 2022, the company also issued €1.1 billion in convertible bonds.
______
4. Student Loan Forgiveness Program Opens for Applications
Starting today, President Biden’s administration will begin accepting applications for student loan repayment relief aimed at low-income borrowers.
The new plan, called SAVE (Saving on a Valuable Education), will offer greater support by basing repayment amounts on income and household size rather than loan balance.
Officials say many borrowers could have their monthly payments reduced to zero, while others could save around $1,000 in annual interest.
Beginning October 1, over 27 million Americans will be required to resume payments on $1.1 trillion in student loans.
The Department of Education estimates that over one million low-income borrowers could qualify for $0 monthly payments with no interest.
______
5. Home Offices Increasingly Common in the US
According to new Census Bureau data, nearly 48% of the one million new single-family homes built in the U.S. last year had at least four bedrooms — the highest share since 1973 and double the rate from 50 years ago.
Yet, nearly two-thirds of American households now consist of one or two people, and only 21% have four or more members.
These two trends seem contradictory, but developers explain that extra bedrooms aren’t just for sleeping — the rise in remote work has made spare rooms more valuable.
A National Association of Home Builders survey found that 80% of builders reported increased demand for home offices, and 72% believe they’ll become more common after 2023.
Homes with more bedrooms than people may become increasingly typical due to their versatility.
______
6. Vietnamese EV Maker’s Stock Soars 280%
Today, shares of Vietnamese EV company VinFast Auto surged 130%, boosting its market value by $53 billion.
Since its August 15 IPO, the stock has risen 280%, pushing VinFast’s market cap above $93 billion — even surpassing that of BYD.
Roughly 12 million VinFast shares traded hands today, making the company one of the most successful SPAC-backed listings ever.
However, Bloomberg data shows that on average, SPAC-listed companies see their share prices drop 45% within a few weeks, with 14 of them plunging by 80%.
VinFast’s market cap has already exceeded the combined value of Ford and GM.
______
7. NYC Unveils Office-to-Housing Conversion Plan
New York City is rolling out a new rezoning initiative to encourage developers to convert more vacant office buildings into residential housing.
Under the new policy, any office building constructed before 1990 can now be converted into apartments — expanding the eligibility from the previous cutoff year of 1961.
Mayor Eric Adams stated that the city won’t sit idly by in the face of a severe housing shortage and will do everything possible to introduce new policies.
Major U.S. cities like New York, Boston, and San Francisco face a dual crisis of office vacancies and housing shortages. Office-to-residential conversions are complex and expensive, but the city believes tax breaks, faster approvals, and other incentives can help.
Extending the eligible year increases the amount of convertible office space by 136 million square feet.
______
This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.