1. Intel Invests $25 Billion in Israel;
2. Bristol Myers Acquires Cancer Drug Firm for $4.1 Billion;
3. US Home Prices Rise for Ninth Straight Month;
4. Holiday Season Spending Falls Short of 2022;
5. LA Office Building Sold at Half Price;
6. S&P 500 Inches Closer to Record High;
7. Banks Cut 60,000 Jobs in 2023
1. Intel Invests $25 Billion in Israel
After securing $3.2 billion in incentives from the Israeli government, Intel announced a $25 billion investment to expand its chip fabrication plant in Kiryat Gat.
Chipmakers like Intel have been expanding production outside of Asia in recent years. As a semiconductor pioneer, Intel hopes to reclaim its industry leadership after being overtaken by Nvidia and TSMC.
According to the Israeli government, the new Intel plant could begin operations in 2028 and continue running until at least 2035. Over the next decade, Intel will also purchase $16.6 billion worth of materials from Israeli suppliers, directly and indirectly creating thousands of jobs.
Intel currently employs 11,700 people in Israel, and the new facility is already under construction.
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2. Bristol Myers Acquires Cancer Drug Firm for $4.1 Billion
US-based multinational pharmaceutical company Bristol Myers Squibb has announced the $4.1 billion acquisition of radiopharmaceutical company RayzeBio, offering $62.50 per share—more than double its last closing price.
RayzeBio specializes in radioactive drugs targeting tumors across multiple organs. Before markets opened, RayzeBio’s shares surged 98%, potentially marking the largest single-day gain since its IPO in September. Meanwhile, Bristol Myers’ stock showed little change.
Just last week, Bristol Myers agreed to acquire schizophrenia drugmaker Karuna Therapeutics for $14 billion.
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3. US Home Prices Rise for Ninth Straight Month
In October, the S&P CoreLogic Case-Shiller Index rose 0.6% month-over-month, extending its growth streak to nine months and reaching a new high.
S&P Dow Jones Indices commodity chief Brian Luke said the main driver was the persistently tight inventory, with home prices rising in 19 of the top 20 US cities.
Year-over-year, prices rose 4.8% in October, up from 4% in September, showing accelerating momentum. Detroit led all markets with an 8.1% gain, followed by San Diego (7.2%) and New York (7.1%).
Falling interest rates may boost purchasing power and encourage more homeowners to list their properties.
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4. Holiday Season Spending Falls Short of 2022
According to Mastercard SpendingPulse, US retail sales (excluding autos) rose 3.1% from November 1 to December 24 compared to last year, falling short of 2022’s 7.6% growth.
Mastercard Economics Institute chief economist Michelle Meyer said consumers were more cautious this holiday season.
Holiday sales are often a key indicator of the US economy’s health. Retail sales in November saw a surprise jump thanks to lower gas prices, but many companies still report more conservative consumer behavior.
Online sales rose 6.3% year-over-year, while in-store sales increased 2.2%.
Restaurant and apparel sales led the gains, while jewelry and electronics declined.
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5. LA Office Building Sold at Half Price
Harbor Associates and F&F Capital Group announced today they jointly acquired an office building in Beverly Hills for $44.7 million—52% lower than its last sale price five years ago.
The property last changed hands in 2018 for $92.5 million. Built in 1987, the building underwent a $11 million renovation. At the time of this sale, it was 80% leased.
Recently, the Aon Center in Downtown LA was sold for $148 million—45% less than its 2014 value.
Harbor’s chairman said the market still holds many promising opportunities.
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6. S&P 500 Inches Closer to Record High
According to the Stock Trader’s Almanac, since 1969 the S&P 500 has gained an average of 1.3% in the final five trading days of the year and the first two sessions of the new year—a phenomenon known as the “Santa Claus Rally.”
Last week, the S&P 500 had its best performance since 2017, boosted by dovish signals from the Federal Reserve. The index is now less than 1% away from its all-time high.
Chris Larkin of Morgan Stanley E*Trade said whether the rally continues depends heavily on Fed rate cuts.
Intel shares rose 4.5% today, with the chip sector index hitting a record high.
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7. Banks Cut 60,000 Jobs in 2023
This year, global banks have cut more than 60,000 jobs, eliminating many of the roles added during the pandemic expansion—making it one of the most brutal years since the financial crisis.
A prolonged downturn in capital markets has reduced investment banking revenue for two consecutive years, prompting layoffs to preserve margins.
According to the Financial Times, the world’s 20 largest banks laid off 61,905 employees in 2023. During the 2007–2008 financial crisis, they cut a total of 140,000 jobs.
UBS, which recently acquired Credit Suisse, led with 13,000 layoffs.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.