1. Morgan Stanley Stock Plunges 8%
2. Distressed U.S. Commercial Real Estate Nears $80 Billion
3. Ozempic Shows Remarkable Health Benefits
4. Poor Turnout at Singapore Wine Auction
5. $142M Loan Secured for Queens Residential Project
6. Tenant Experience Analytics Startup Raises $50M
7. U.S. Household Net Worth Hits Record High
1. Morgan Stanley Stock Plunges 8%
Morgan Stanley reported disappointing Q3 results today, with investment banking revenue plunging 27% and fixed-income trading revenue also down.
Additionally, wealth management revenue came in at $6.4 billion, missing analysts’ expectations, while net new assets reached only $35.7 billion — the lowest since the pandemic began.
These results triggered a 7.9% drop in the stock, Morgan Stanley’s largest one-day loss since June 2020. The drop exceeded its total year-to-date decline of 5.5%.
Net interest income fell to $2 billion, the lowest in over two years.
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2. Distressed U.S. Commercial Real Estate Nears $80 Billion
According to MSCI Real Assets, total distressed U.S. commercial real estate surged close to $80 billion in Q3 — the highest in a decade.
Distressed assets (defaults, foreclosures, or sales under duress) grew by $5.6 billion in the quarter, with office properties making up 41%.
Remote work and reduced tenant demand continue to batter the office market. Meanwhile, multifamily housing accounts for a third of troubled properties, mostly due to oversupply, not industry-wide collapse.
From January to September, commercial real estate values dropped 9%, while transaction volume plunged 53%.
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3. Ozempic Shows Remarkable Health Benefits
Weight-loss drug Ozempic has gained global fame for its weight reduction benefits — and researchers say that’s only the beginning.
New studies suggest that Ozempic and other GLP-1 drugs not only reduce weight but also protect the heart, liver, and kidneys. Weight loss itself can significantly improve or reverse cardiovascular conditions.
With Americans spending $250 billion a year on heart disease drugs, GLP-1s could significantly impact the pharmaceutical and medical device industries.
Wells Fargo estimates GLP-1s could grab 10% of the cardiovascular market by 2050.
Just six years after launch, Ozempic is now the best-selling prescription drug in the U.S.
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4. Poor Turnout at Singapore Wine Auction
Acker, America’s oldest wine auction house, held an auction in Singapore this week but grossed only $4.2 million — below the $5.43 million target.
The auction featured over 600 lots with 250 attendees.
Founded in 1820, Acker began hosting wine auctions in 1998 and expanded into Asia in 2008.
Buyers were able to pay via cash, credit cards, and cryptocurrencies such as Bitcoin.
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5. $142M Loan Secured for Queens Residential Project
Developer Joel Zupnick’s firm, Sutphin Boulevard Equities, secured a $142 million construction loan for a 521-unit multifamily building in Jamaica, Queens.
The 30-month floating-rate loan was provided by SCALE Lending, a Slate Property Group affiliate, with two 6-month extension options.
Slate’s founder Martin Nussbaum praised the project’s proximity to the airport, restaurants, and retail.
The building is expected to be completed by summer 2024 and will qualify for NYC’s 421a tax incentive.
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6. Tenant Experience Analytics Startup Raises $50M
Property tech company HqO announced a $50 million Series D funding round today.
The round was led by a Koch Industries subsidiary, with participation from Accomplice, Insight Partners, and Related Companies.
HqO will use the funds for acquisitions. Its flagship product, REX Assessment, helps landlords quantify tenant satisfaction, work habits, and preferences.
The “REX Score” provides a standardized metric for measuring tenant experience.
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7. U.S. Household Net Worth Hits Record High
The Federal Reserve’s latest Consumer Finance Survey shows that the median inflation-adjusted net worth of American households surged 37% from 2019 to $192,900 in 2022 — the largest three-year increase since 1989.
Combined with strong employment data, U.S. consumer spending has yet to show signs of fatigue — though this financial strength may complicate the Fed’s policy decisions.
The data shows rising net worth across all age groups, with Americans under 35 seeing their wealth more than double.
A record 20% of households reported owning a business, and those who do earn more than those who don’t.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.