1. UniCredit Removed from G-SIBs List
2. US New Home Sales Miss Expectations
3. Thanksgiving Weekend Shopping Surge
4. Blackstone Plans Real Estate Deals in Europe
5. US Gas Prices Drop Sharply
6. Zhongzhi Investigation May Cost Investors Billions
7. Asset Manager Castlelake Explores Sale
1. UniCredit Removed from G-SIBs List
Today, the Financial Stability Board (FSB) announced that Italy’s UniCredit has been removed from the list of Global Systemically Important Banks (G-SIBs).
The G-SIB designation is based on a bank’s size, interconnectedness, and complexity, indicating whether its failure would threaten the global financial system. G-SIBs must meet stricter standards, including higher capital buffers and regulatory oversight.
The FSB also removed Credit Suisse — acquired by UBS — and China’s Bank of Communications from the list.
UBS, which acquired Credit Suisse this year, now faces heightened regulatory scrutiny and increased capital requirements.
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2. US New Home Sales Miss Expectations
US government data released today showed that sales of new single-family homes in October fell 5.6% year-over-year to an annualized rate of 679,000 units, missing all economists’ forecasts.
Still, over the past year, new home sales have generally risen, as developers offered financial incentives and price cuts to attract buyers.
Last month, mortgage rates hit nearly 8% but have since declined. If they continue to fall, inventory and buyer demand — especially for existing homes — may rise.
The median new home price dropped to $409,300, down 17% from a year ago but still above pre-pandemic levels.
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3. Thanksgiving Weekend Shopping Surge
Adobe Inc. forecasts that US consumers will spend $12.4 billion online on Cyber Monday, following stronger-than-expected sales over Black Friday and the weekend.
Adobe’s data showed Thanksgiving Day sales were up 5.5% year-over-year to $5.6 billion, and Black Friday sales rose 7.5% to $9.8 billion.
Despite inflation, “buy now, pay later” services helped budget-strapped shoppers.
Over the weekend, Saturday and Sunday online sales totaled $10.3 billion — a 7.7% increase year-over-year.
The S&P 500 retail index rose less than 1% today; Shopify led gains with a 5.2% rise.
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4. Blackstone Plans Real Estate Deals in Europe
Blackstone CEO Stephen Schwarzman told Bloomberg the firm is actively seeking real estate investment opportunities in Europe, including data centers, warehouses, and student housing.
With borrowing costs soaring this year, private equity investors have become more selective.
Schwarzman said the UK remains attractive thanks to its strong legal framework. Blackstone’s new London headquarters is a testament to its confidence in the UK.
He added humorously that he only invests in places he’s willing to visit at least twice.
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5. US Gas Prices Drop Sharply
According to AAA, US gas prices have fallen for 60 consecutive days, with the national average now at $3.25 per gallon — 60 cents below the peak in mid-September.
In 14 states, average gas prices have fallen below $3 per gallon.
The continued decline in oil prices suggests gas prices could keep falling, which is politically favorable for President Biden ahead of the 2024 election.
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6. Zhongzhi Investigation May Cost Investors Billions
Over the weekend, Chinese regulators launched a criminal investigation into asset manager Zhongzhi Enterprise Group. Analysts and lawyers estimate investors could lose up to 75% of their funds.
Zhongzhi recently disclosed a severe liquidity crisis and liabilities of $36.4 billion. Regulators have advised investors to file complaints online.
The case serves as a warning for investors seeking high returns from lightly regulated products.
Back in August, Zhongzhi-linked companies missed payments on several investment products.
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7. Asset Manager Castlelake Explores Sale
Insiders say Castlelake — which manages about $22 billion in assets — is exploring a sale of the firm.
Founded in 2005, Castlelake focuses on real estate, specialty finance, and aircraft. Its client base includes endowments, pension funds, family offices, insurers, and sovereign wealth funds.
The firm has invested in consumer loans through fintech companies like Upstart and Portun Financial, capitalizing on the boom in private credit.
Private credit has surged in popularity — last year, Carlyle acquired CBAM Partners’ loan portfolio.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.