1. Microsoft Rehires OpenAI Co-Founders
2. Citigroup Lays Off 300 Senior Managers
3. Blackstone Leads Bid for Signature Bank Loan Portfolio
4. McDonald’s Increases Stake in China Business
5. Bayer Stock Crashes After Afib Drug Fails Trial
6. Microsoft, Nvidia Help Nasdaq Hit 22-Month High
7. California Gas Prices Fall Below $5 for First Time Since July
1. Microsoft Rehires OpenAI Co-Founders
Just three days after OpenAI abruptly fired CEO Sam Altman—sparking backlash from executives and investors including Microsoft CEO Satya Nadella—Microsoft has brought Altman and fellow OpenAI co-founder Greg Brockman on board to lead its own AI research division.
Brockman had resigned from OpenAI in protest after Altman’s dismissal.
Microsoft, which invested $10 billion in OpenAI, now faces the prospect of more OpenAI staff defecting to join Altman at Microsoft.
Nadella posted a welcome message for Altman on social media.
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2. Citigroup Lays Off 300 Senior Managers
Citigroup is cutting around 300 senior managers—about 10% of the two levels below CEO Jane Fraser.
The bank said the move is meant to simplify its leadership layers and improve efficiency, although it acknowledged layoffs are a difficult decision.
More layoffs at lower management levels are expected in 2024, though no exact figures have been shared.
Citi has already laid off 7,000 employees this year, paying out $650 million in severance. The bank currently employs around 240,000 people worldwide.
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3. Blackstone Leads Bid for Signature Bank Loan Portfolio
Blackstone is the leading bidder for a $17 billion commercial real estate loan portfolio from failed Signature Bank, according to sources.
The FDIC believes Blackstone’s offer will minimize losses and is in final discussions, though other firms could still step in last minute.
The FDIC acquired $33 billion in property loans after Signature Bank collapsed earlier this year.
The portfolio mainly consists of loans to NYC apartment owners, including many rent-stabilized buildings.
Other bidders include Starwood and Brookfield.
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4. McDonald’s Increases Stake in China Business
McDonald’s has acquired an additional 28% stake in its China business from Carlyle Group, raising its ownership from 20% to 48%.
State-owned CITIC and CITIC Capital still hold a controlling 52% stake.
Six years ago, McDonald’s sold 80% of its China business to a consortium led by Carlyle and CITIC for around $2 billion.
McDonald’s China operations also include restaurants in Hong Kong and Macau.
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5. Bayer Stock Crashes After Afib Drug Fails Trial
German pharmaceutical giant Bayer announced that its atrial fibrillation (Afib) drug, Oceanic, failed a critical late-stage trial.
Shares plummeted 20% at market open—Bayer’s largest-ever single-day drop—wiping €7.5 billion from its market value in just a few hours.
The company had high hopes for Oceanic, but the trial results were disappointing.
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6. Microsoft, Nvidia Help Nasdaq Hit 22-Month High
Ahead of Nvidia’s earnings report tomorrow, U.S. markets continued their strong November rally.
The U.S. Treasury also auctioned $16 billion in 20-year bonds today with solid demand, easing investor concerns.
Both Microsoft and Nvidia reached record highs, pushing the tech-heavy Nasdaq 100 to its highest level in 22 months.
Oppenheimer’s chief investment strategist John Stoltzfus said the U.S. economy is growing sustainably, and they remain bullish on equities.
Principal Asset Management also noted Treasury yields remain attractive for conservative investors.
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7. California Gas Prices Fall Below $5 for First Time Since July
According to AAA, California gas prices have fallen below $5 per gallon for the first time since July, down from a $6 peak in September.
Due to strict environmental regulations, California requires higher-quality gasoline, which keeps its prices about $1 above the national average.
Nationwide, gas prices have dropped for 53 straight days. October gasoline demand was the lowest in 25 years for that quarter.
Thanksgiving weekend could drive a short-term bump in demand and prices.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.