1. U.S. Job Market Finally Shows Weakness
2. Shipping Giant Maersk Shares Plunge 18%
3. Jeff Bezos Moves to Miami
4. Siemens to Invest $510M in U.S. Supply Chain
5. Chrysler Building Owner Ousted
6. CalPERS Plans $53 Billion in Climate Investments
7. Treasuries Rally in Biggest 3-Day Surge Since 2020
1. U.S. Job Market Finally Shows Weakness
The U.S. Bureau of Labor Statistics reported today that non-farm payrolls rose by 150,000 in October—down from 297,000 in September and below analysts’ expectations. The unemployment rate ticked up to 3.9%, and wage growth slowed significantly.
Markets rallied on the news, as weaker jobs data suggest the Federal Reserve may hold off on further rate hikes, increasing the likelihood of a soft landing.
Healthcare and social services saw the largest job gains, while other sectors were stagnant or declined.
Slowing wage inflation supports the case for the Fed to ease monetary tightening.
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2. Shipping Giant Maersk Shares Plunge 18%
A.P. Moller-Maersk CEO Vincent Clerc told Bloomberg he expects the global shipping market to remain weak for the next 2–3 years. The company will cut at least 10,000 jobs—about 9% of its workforce.
Maersk’s shares tumbled over 18% today, wiping out $5.1 billion in market value.
With businesses focused on reducing excess inventory, demand for new shipments has sharply dropped. Lower freight rates and rising competition are also squeezing margins.
Clerc said 6,500 staff have already left, and the cuts are expected to save $600 million.
Q3 EBITDA plummeted over 80% YoY to $1.88 billion.
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3. Jeff Bezos Moves to Miami
Amazon founder Jeff Bezos announced on Instagram that he’s relocating from Seattle—where he founded Amazon in 1994—to Miami to be closer to his parents.
Bezos said Seattle holds countless cherished memories, and moving is a difficult decision.
He recently bought a 7-bedroom mansion on Miami’s exclusive Indian Creek island. He also owns homes in Los Angeles, New York, Washington D.C., and Texas.
Miami has become a hot destination for executives. Hedge fund billionaires Ken Griffin, Dan Loeb, and Josh Harris have all snapped up beachfront properties.
Griffin even relocated his firm’s headquarters to Miami, boosting the city’s elite appeal.
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4. Siemens to Invest $510M in U.S. Supply Chain
Siemens announced a $510 million investment to expand its U.S. manufacturing footprint in data centers, battery, and semiconductor facilities.
The company will spend $150 million on a new plant in Fort Worth, Texas, to produce power distribution systems for data centers and industrial facilities.
The investment is expected to create 1,700 new jobs, including 700 in Fort Worth, which added more residents in 2022 than any other U.S. city.
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5. Chrysler Building Owner Ousted
Signa Holding, owner of iconic properties like New York’s Chrysler Building and London’s Selfridges, is facing a liquidity crisis fueled by falling valuations and high interest rates.
Shareholders have lost faith in CEO Rene Benko and are demanding his resignation.
Benko has agreed to give up his majority voting rights and chairman role. German restructuring expert Arndt Geiwitz will take over leadership.
Benko previously built Signa into one of Europe’s top property firms through aggressive sales and financing strategies.
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6. CalPERS Plans $53 Billion in Climate Investments
CalPERS, the largest U.S. public pension fund, announced plans to increase climate-related investments by $53 billion by 2030, while reducing exposure to polluting industries.
If approved, the fund’s total climate investment would exceed $100 billion.
In January, CalPERS appointed Peter Cashion to lead a 15-person climate investment team.
The fund manages $444 billion in total assets.
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7. Treasuries Rally in Biggest 3-Day Surge Since 2020
Today’s soft jobs data led to a massive bond rally, as markets now believe the Fed may be done with its aggressive tightening cycle.
Yields on U.S. Treasury bonds dropped sharply, with the 30-year yield plunging 40 basis points—the biggest 3-day drop since early 2020.
Andrew Brenner of NatAlliance Securities said weaker job data is a good sign for markets under current conditions.
If the Fed halts rate hikes, the likelihood of a soft landing increases, benefiting U.S. Treasuries.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.