1. Apple Pulls Two Watch Models Over Patent Dispute;
2. Chinese Company Replaces Bonus with Exercise Incentive;
3. US Housing Starts Unexpectedly Surge;
4. Bank of Japan Maintains Negative Rates;
5. Nikola Founder Sentenced to 4 Years in Prison;
6. Manhattan Sees 240 Ultra-Luxury Home Closings;
7. Racial Disparities Persist in Mortgage Lending.
1. Apple Pulls Two Watch Models Over Patent Dispute
Sources revealed that the blood oxygen monitoring technology in Apple’s Series 9 and Ultra 2 watches infringes on patents held by medical device company Masimo Corp. Engineers must revise the device algorithms before Christmas—otherwise, Apple will be required to pull all Series 9 watches from the US market.
Apple could have opted to cooperate with Masimo, but both the company and regulators appear to favor technical modifications instead.
According to Monday’s statement, Apple will remove the two models from its website and retail stores starting December 21. Masimo issued a statement asserting that even the world’s most powerful companies must obey the law.
An Apple spokesperson said the company is working with regulators to find a solution. Internally, Apple believes a software fix is sufficient and won’t require major hardware changes. Masimo, however, contends that hardware modifications are necessary as well.
If the disagreement remains unresolved, Apple may lose access to its own home market for the Apple Watch.
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2. Chinese Company Replaces Bonus with Exercise Incentive
To promote physical and mental health among employees, Guangdong-based Dongpo Paper Company introduced a bonus system linked to monthly running distance.
Reportedly, the company has over 100 employees. If they run at least 100 kilometers in a month, they’ll receive 130% of their monthly salary as an annual bonus. If they hit half the target for six consecutive months, they’ll instead receive a pair of running shoes.
Some critics argue the policy is a veiled attempt to avoid paying bonuses, as factory workers already endure physically demanding work and few have the energy to run 100 kilometers each month.
Chairman Lin Zhiyong, a mountaineering enthusiast, has successfully summited Mount Everest twice—once from the China side and once from the Nepal side.
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3. US Housing Starts Unexpectedly Surge
US government data released today shows new residential construction surged 14.8% in November to an annualized rate of 1.56 million units, beating economists’ expectations of 1.36 million. The primary driver was a shortage of existing home inventory.
New single-family housing starts jumped 18% to the highest level since April 2022, while multifamily starts increased 6.9%.
However, building permit applications fell to an annualized rate of 1.46 million, with the largest drop in multifamily units, offsetting gains in single-family permits.
Meanwhile, mortgage rates have declined for six consecutive weeks, boosting confidence among both homebuyers and developers.
All US regions saw an increase in housing starts, with the Northwest doubling month-over-month.
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4. Bank of Japan Maintains Negative Rates
After the Bank of Japan announced it would maintain its benchmark interest rate at -0.1%, the yen depreciated by 1.3% today.
BOJ Governor Kazuo Ueda noted that inflation progress is improving, but the central bank is not yet ready to tighten policy. As the US prepares for rate cuts next year, the BOJ also sees no urgency in reversing its dovish stance.
The BOJ aims to resolve Japan’s long-standing deflation issues and expects to provide support to the yen early next year. The bank will continue communicating with investors and closely monitor inflation trends.
Nomura Securities expects the BOJ to raise interest rates in January but not embark on a series of hikes.
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5. Nikola Founder Sentenced to 4 Years in Prison
On Monday, US District Judge Edgardo Ramos in Manhattan sentenced 41-year-old Nikola founder Trevor Milton to four years in prison for defrauding investors.
Over a year ago, Milton was charged with providing false information about the company’s technology development to shareholders. He was also ordered to pay a $1 million fine.
Prosecutors had argued for an 11-year sentence to serve as a deterrent for other executives.
Government officials estimate Milton’s actions caused investors to lose $660 million.
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6. Manhattan Sees 240 Ultra-Luxury Home Closings
According to real estate agent Donna Olshan, Manhattan saw 240 closings of homes priced over $10 million so far in 2023, exceeding last year’s total of 235—showing that the ultra-wealthy remain very wealthy.
Seven of this year’s top ten most expensive homes are located on Billionaires’ Row (57th Street), and six of those are condominium units.
Olshan noted that co-op sales continue to underperform, continuing a multi-year trend. Wealthy buyers still overwhelmingly prefer condo ownership.
Olshan concluded that 2023 saw more negotiation between buyers and sellers, with longer listing periods and drawn-out transactions.
The top 10 most expensive home sales totaled $651 million, highlighting the resilience of New York’s real estate market.
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7. Racial Disparities Persist in Mortgage Lending
A new Bloomberg analysis of 38 million mortgage loans issued from 2018 to 2022 shows that nonbank lenders charged, on average, $300 more in fees than traditional banks.
Additionally, Latino homebuyers paid $230 more than white buyers, while Black buyers paid $150 more.
While these fees are small compared to overall home prices, they add up significantly across millions of loans. Nonbank lenders, responsible for 60% of all loans, collected $71 billion in total fees.
In counties like Los Angeles with higher Latino and Black populations, the racial gap in mortgage costs is even more pronounced—twice the national average over the past five years.
Some nonbank lenders argue that interest rates are a better metric for measuring equity.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.