—— Global GDP Growth Outlook Bleak for 2024; NBA Star Durant Launches Advisory Firm; Instacart Shares Surge 40% on IPO; Amazon to Hire 250,000 Workers; Disney to Invest $60B in Land Development; American Dream Losses Quadruple; Global Debt Hits Record High
1. Global GDP Growth Outlook Bleak for 2024
According to the latest projections from the OECD, global GDP growth in 2024 may slow to 2.7% from an already sluggish 3% this year.
The OECD believes the negative impact of fiscal tightening is becoming increasingly evident, with declining confidence among businesses and consumers, and a gradually weakening recovery in China.
OECD Chief Economist Clare Lombardelli said in an interview that high inflation continues to burden the global economy. China’s struggles may affect global productivity.
Excluding the pandemic year of 2020, the 2024 GDP growth rate may be the slowest since the global financial crisis.
______
2. NBA Star Durant Launches Advisory Firm
Recently, NBA star Kevin Durant and his business manager Rich Kleiman launched a sports, music, and media consulting firm called Boardroom Advisory.
Boardroom will offer VC and private equity investments, team investments, business strategy, and content creation services to athletes and brands.
Durant said he hopes to use Boardroom as a platform to provide more resources to other athletes. Fellow NBA player James Harden will join the firm as Head of Talent Relations.
Durant and Rich have co-invested in numerous ventures, including soccer clubs and Pickleball teams.
______
3. Instacart Shares Surge 40% on IPO
Today, grocery delivery company Instacart debuted on the U.S. stock market, surging 43% from its IPO price of $30 to $42.
The company’s valuation reached $10.9 billion—down from its $39 billion peak in 2021—but still marks the fourth-largest IPO on U.S. markets this year.
After over a year of sluggish IPO activity, recent listings by Arm and Instacart have brought much-needed momentum to the market.
According to Bloomberg, year-to-date IPO proceeds in the U.S. total $21 billion—far below the $250 billion seen in 2021.
Arm and Instacart have created a more “welcoming” environment for tech startups looking to go public.
______
4. Amazon to Hire 250,000 Workers
Today, Amazon announced plans to hire 250,000 full-time, part-time, and seasonal workers ahead of the holiday shopping season. Hourly wages will range from $17 to $28.
Every fall, Amazon expands its workforce to ensure adequate staffing for the holidays. The company is the second-largest employer in the U.S., behind only Walmart.
As of the end of June, Amazon had 1.46 million global employees, most of whom work in logistics and warehouse operations.
Some employees will be eligible for bonuses ranging from $1,000 to $3,000.
______
5. Disney to Invest $60B in Land Development
According to a filing released today, Walt Disney plans to double its capital investment in theme parks and resorts to $60 billion over the next decade.
The company currently manages over 1,000 acres of developable land.
Disney said that in recent years, entertainment attractions, cruise lines, and other movie-themed experiences have driven higher profits, with spending per visitor at Disney parks rising rapidly.
However, the market responded poorly to the news—Disney’s stock fell more than 3% today.
______
6. American Dream Losses Quadruple
According to securities filings, New Jersey’s 3.5 million-square-foot megamall American Dream posted a $245 million loss in 2022.
Operating costs nearly doubled to $428 million, with financing costs ballooning to $189 million.
American Dream has struggled with construction delays, pandemic closures, and a fire at its indoor ski facility, and has since fallen into a debt management crisis.
In 2022, revenue grew just 6% to $183 million.
As of July 1, 85% of the mall had been leased.
______
7. Global Debt Hits Record High
According to the latest data from the Institute of International Finance (IIF), global debt rose by $10 trillion in the first half of 2023 to a record $307 trillion.
The debt-to-GDP ratio climbed to 336%, though still below the pandemic peak of 360%.
The IIF noted that 80% of new debt came from developed economies such as the U.S., Japan, the U.K., and France.
The report includes government, corporate, and household debt.
______
This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.