1. Putin Arrives in Beijing to Meet Xi
2. U.S. Holiday Spending May Jump 14%
3. Biden to Visit Israel on Wednesday
4. Remote Work in the U.S. Drops Sharply
5. Baichuan AI Secures $300M in Funding
6. Weak Demand at Japan’s Sovereign Debt Auction
7. Goldman Sachs Profit Plunges 33% Due to Real Estate Losses
1. Putin Arrives in Beijing to Meet Xi
According to Chinese state media CGTN, Russian President Vladimir Putin has arrived in Beijing to attend the Belt and Road Forum. On Wednesday, he is scheduled to meet with Chinese President Xi Jinping.
Since the Russia-Ukraine war began in 2022, China has continued to provide political and economic support to Russia, maintaining a close bilateral relationship.
In a CCTV interview, Putin said he has met Xi over 40 times and has many meaningful memories with him.
China continues to help Russia ease the impact of Western economic sanctions.
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2. U.S. Holiday Spending May Jump 14%
A Deloitte survey conducted in late August showed that 4,330 American adults expect to spend an average of $1,652 during the holiday season — a 14% increase from last year.
Households earning between $50,000 and $99,999 plan to spend $1,534 on average, up 26% year over year. Those earning over $200,000 expect to spend $3,922, a 22% increase.
Two-thirds of respondents said they would shop during Black Friday, up from 49% in 2022, indicating stronger interest in discounts.
However, nearly half of respondents still paying off student loans said they plan to cut back on holiday spending.
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3. Biden to Visit Israel on Wednesday
U.S. President Joe Biden is set to visit Israel this Wednesday to show support for America’s Middle East ally and help prevent further escalation of the conflict.
Secretary of State Antony Blinken said Israel agreed to work with the U.S. on a plan to provide humanitarian aid to civilians in Gaza. Leaders will also discuss the possibility of creating safe zones.
Dozens of hostages and roughly 500 Americans remain in Gaza, with U.S. officials closely monitoring their safety.
Russian President Putin has also spoken with Egyptian and Iranian leaders, all emphasizing the importance of a ceasefire.
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4. Remote Work in the U.S. Drops Sharply
According to the latest U.S. Census Bureau survey, only 26% of U.S. households have a member working remotely at least one day a week — down from 37% in early 2021. This suggests employers are succeeding in bringing staff back to the office.
Companies like Goldman Sachs have mandated five days of in-office work. Although the labor market remains strong, economic uncertainty has weakened employees’ bargaining power.
During the pandemic, many New Yorkers moved to places like Greenwich. However, many are unlikely to return and instead choose to commute long distances.
In more than half of America’s 157 largest cities, remote or hybrid jobs attract the most job applications.
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5. Baichuan AI Secures $300M in Funding
Sources say Chinese AI startup Baichuan has raised $300 million from tech giants including Alibaba, Tencent, and Xiaomi.
Founded in April by Sogou’s founder, Baichuan focuses on developing ChatGPT-like generative AI software and is already valued at over $1 billion.
Baichuan now has over 170 employees, with many engineers from Google, Huawei, and Tencent.
It is one of China’s leading generative AI startups and aims to compete with Microsoft and OpenAI.
The firm has government approval and has released four open-source large language models.
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6. Weak Demand at Japan’s Sovereign Debt Auction
On Tuesday, Japan held an ¥1.2 trillion ($8 billion) auction for 20-year sovereign bonds, but local banks and life insurers showed little buying interest.
Since the start of the year, major and regional Japanese banks have been offloading long-term government bonds.
Normally, life insurers are major buyers of long-term bonds. However, on Monday, Fukoku Mutual Life Insurance said it might suspend purchases of Japanese government bonds this fiscal year.
Many investors are waiting to see what the Bank of Japan announces at its policy meeting later this month.
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7. Goldman Sachs Profit Plunges 33% Due to Real Estate Losses
Goldman Sachs reported that equity in its real estate investments lost $212 million, while other impairments totaled $358 million. These losses contributed to a 33% plunge in net profit.
Although trading revenue beat expectations, overall earnings were disappointing, and the stock fell as much as 2.1% today.
Goldman’s profit has declined for eight consecutive quarters, with its 7.1% return on equity still far below the 15% target.
The investment banking division expects M&A and IPO activity to normalize in 2024.
Last week, Goldman sold its buy-now-pay-later platform GreenSky for half its acquisition price.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.