1. Bank of China May Offer Real Estate Loans;
2. Amazon Seeks Miami Office Space;
3. Goldman CEO Opposes New Bank Rules;
4. Goldman Leads Wall Street in Talent Loss;
5. Barclays May Cut 900 Back Office Jobs;
6. US Home Prices Rise for Eighth Month;
7. US Dollar Falls to Three-Month Low.
1. Bank of China May Offer Real Estate Loans
China’s $57 trillion property sector is still struggling to recover, and the government hopes major banks will step in to support developers.
Soon, over a dozen major banks — including ICBC — may be asked to provide unsecured loans to real estate developers.
Bloomberg estimates that these banks may need to set aside an additional $89 billion in bad debt reserves next year, accounting for 21% of their projected profits.
Sources say many banks are considering layoffs and have revised down their growth forecasts to absorb the impact.
Beijing-based investment bank Chanson warns that the government should not push for high-risk support before banks resolve their own issues.
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2. Amazon Seeks Miami Office Space
Insiders report that Amazon is searching for 50,000 square feet of office space in Miami. This follows founder Jeff Bezos’s recent move from Seattle to the city.
In recent years, Miami has become a magnet for ultra-high-net-worth individuals and their companies — including Ken Griffin’s Citadel.
According to CBRE, Miami’s office vacancy rate is now even lower than it was before the pandemic.
Amazon has over 400 employees based in Miami, but has not yet signed a lease for any new office building.
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3. Goldman CEO Opposes New Bank Rules
In July, the Federal Reserve, FDIC, and the Office of the Comptroller of the Currency proposed new banking regulations under Basel III.
These rules aim to improve banking sector stability by increasing capital reserve requirements.
But top executives — including Goldman Sachs CEO David Solomon — argue the changes could backfire.
Solomon says the rules would raise lending costs for customers and that regulators have not properly analyzed the cost-benefit tradeoffs.
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4. Goldman Leads Wall Street in Talent Loss
In the 12 months through September, Wall Street’s top firms saw significant employee turnover. Goldman Sachs lost a net 60 employees, followed by Bank of America with 55. Wells Fargo, on the other hand, added 130 employees.
Alexandra Mousavizadeh, CEO of consulting firm Evident, says hiring alone isn’t enough — firms need to retain talent through development, especially as AI skills are in high demand.
Evident also noted that AI talent commands top salaries. Heidrick & Struggles reported the US median salary for AI professionals last year was $901,000.
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5. Barclays May Cut 900 Back Office Jobs
UK investment bank Barclays has informed hundreds of back office employees that they may be affected by a new round of layoffs.
According to the Unite labor union, Barclays may cut around 900 jobs across technology, operations, and functional support teams. As of the end of 2022, Barclays employed 22,334 full-time staff.
A company spokesperson said the move is part of a business reorganization aimed at improving service quality and returns.
Unite is pressing Barclays to help affected workers find new positions.
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6. US Home Prices Rise for Eighth Month
In September, the S&P CoreLogic Case-Shiller Home Price Index rose 0.7% month-over-month — marking the eighth consecutive monthly increase and a new record high.
Craig Lazzara, managing director at S&P Dow Jones Indices, said high mortgage rates have been offset by low housing inventory, which continues to support prices.
Home prices in September were up 3.9% year-over-year, compared to 2.5% in August.
Detroit, San Diego, and New York saw the strongest price growth.
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7. US Dollar Falls to Three-Month Low
Today, the US dollar fell 0.5% against a basket of six major currencies, reaching its lowest level since mid-August — as expectations of Federal Reserve rate cuts in 2024 increased.
Even the Fed’s most hawkish official, Christopher Waller, recently said the central bank may not need to raise rates further — and could lower them if inflation continues to decline.
Last month, the inflation rate dropped to 3.2%, down sharply from the June 2022 peak of 9.1%.
Investors now expect the Fed to begin cutting rates in May 2024.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.