1. Blackstone Launches $10 Billion Direct Lending Fund
2. Macy’s Shares Surge 11%
3. Alibaba Abandons Cloud Unit Spin-off
4. AI Could Take Over 40% of Accenture Staff Tasks
5. US Labor Market Continues to Cool
6. Fried Chicken Founder Builds $7.6 Billion Fortune
7. Biden Stresses Importance of US-China Relation
1. Blackstone Launches $10 Billion Direct Lending Fund
Sources report that private equity giant Blackstone plans to raise $10 billion across the US and Europe for a new direct lending fund.
Institutional investors have already committed $8 billion.
The private credit market now totals $1.6 trillion, and rising investor demand is enabling firms like Blackstone, Ares, and HPS Investment Partners to bypass traditional banks and issue large-scale loans directly.
In recent years, Blackstone provided debt financing for Bain Capital’s acquisition of consulting firm Guidehouse.
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2. Macy’s Shares Surge 11%
Before market open, department store Macy’s released stronger-than-expected earnings and raised its full-year revenue forecast, sending shares up 11.2%.
Macy’s now expects full-year EPS to reach $2.88, up from previous guidance of $2.70 and beating analyst estimates of $2.77.
However, the company still faces weak demand for non-essential goods, with net revenue down 7% year-over-year to $4.9 billion.
Inventory fell 6% from a year ago, indicating better inventory management.
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3. Alibaba Abandons Cloud Unit Spin-off
E-commerce giant Alibaba announced it will abandon its plan to spin off its cloud computing division and delay the IPO of its grocery unit, Freshippo.
The company cited increased US export restrictions as a major source of uncertainty, along with weak market conditions for Freshippo’s listing.
Alibaba’s latest quarterly revenue dropped 9% to $30.8 billion, missing expectations. However, net profit rose to RMB 27.7 billion, compared to a loss of RMB 20.6 billion last year.
Earlier this year, Alibaba announced plans to restructure into six independent units, but investor enthusiasm has waned.
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4. AI Could Take Over 40% of Accenture Staff Tasks
Accenture Europe’s tech lead Jan Bremen said at the Workday conference in Barcelona that advancing AI technology could eventually replace 40% of Accenture consultants’ current tasks, freeing them up for other roles.
He said many employees are being redeployed and retrained for new positions.
Earlier this year, Accenture announced 2.5% workforce cuts (about 19,000 jobs) while committing to hire 80,000 AI professionals.
Accenture plans to invest $3 billion over three years into AI and data initiatives.
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5. US Labor Market Continues to Cool
The US Department of Labor reported that continuing jobless claims rose to 1.87 million in the week ending November 4, the highest in nearly two years. This marks eight consecutive weeks of increases.
Initial jobless claims also rose to 231,000, the highest since August.
These figures suggest a cooling job market, which could help reduce inflation but might dampen consumer spending.
The data strengthens expectations that the Federal Reserve will hold off on further rate hikes, and US Treasuries gained on the news.
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6. Fried Chicken Founder Builds $7.6 Billion Fortune
Raising Cane’s, the popular chicken finger chain, now operates 750 restaurants globally. Founder Todd Graves owns 90% of the company, a stake valued at $7.6 billion, placing him 307th on the global rich list.
In the 12 months ending in June, Raising Cane’s earned $3.3 billion in revenue and $647 million in net profit.
Over the past two years, it distributed $183 million in dividends. The company plans to reach $10 billion in revenue by 2030.
Unlike other chains, franchising is limited—just 24 franchise locations as of June.
A few weeks ago, Raising Cane’s issued $500 million in high-yield bonds.
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7. Biden Stresses Importance of US-China Relations
President Biden addressed corporate leaders at the APEC summit, emphasizing that stable US-China ties benefit both countries and the world.
He described his recent meeting with President Xi as sincere and constructive, reaffirming that the US does not seek conflict.
Biden also used the forum to encourage US companies to invest more in the Asia-Pacific, citing benefits for regional peace and stability.
The White House said US companies invested $40 billion in APEC countries in 2023, and 60% of US exports go to APEC members.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.