—— BofA Traders Notch Best Quarter; BYD Unveils 2 New Models; Vornado to Develop Citadel Skyscraper; Tesla Market Cap Drops Below $500 bn; WNBA Start to Earn Less Than $80k; Hong Kong Apartment Discounted 40%
1. BofA Traders Notch Best Quarter
Bank of America Corp. traders achieved impressive results in the first quarter, marking it as one of their strongest performances to date. The company also capitalized on higher borrowing costs, resulting in net interest income surpassing analysts’ expectations.
In the initial three months of the year, revenue from equities trading surged by 15% to $1.87 billion, driven by clients navigating through prolonged high interest rates and geopolitical uncertainties. Consequently, Bank of America exceeded analysts’ forecasts for net income, reporting $6.67 billion in earnings for the quarter.
Additionally, the second-largest US bank reported a 2.9% decline in net interest income (NII), a pivotal revenue stream for the institution, to $14 billion during the first quarter of this year. Analysts had anticipated a 4% decrease in NII, which represents the revenue garnered from loan payments minus depositor payouts.
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2. BYD Unveils 2 New Models
BYD Co. is intensifying its focus on the luxury sport utility vehicle (SUV) and off-roader market with the introduction of two new models aimed at competing with Jaguar Land Rover Automotive Plc.
China’s largest automaker unveiled the Super 3 and Bao 8 SUVs at a lavish livestreamed event held at its Shenzhen headquarters on Tuesday night. The company did not specify whether the new SUVs are hybrid or fully electric vehicles.
In addition to the two new models, BYD also showcased the Super 9, a conceptual high-performance racing car.
This launch marks the beginning of a series of unveilings leading up to the Beijing Auto Show, scheduled from April 25 to May 4, which this year serves as China’s premier automotive showcase.
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3. Vornado to Develop Citadel Skyscraper
Ken Griffin, the founder of Citadel, has made substantial progress in his endeavor to construct a 62-story office tower on Manhattan’s Park Avenue.
Griffin, along with developers Vornado Realty Trust and Rudin, has submitted plans to New York City for their 1.8 million-square-foot (167,200-square-meter) skyscraper at 350 Park Ave., as announced on Tuesday.
Citadel and Citadel Securities are set to become the primary tenants in the building, occupying a minimum of 850,000 square feet of its office space. The project, slated for completion by 2032, will also feature a public concourse.
In order to facilitate the construction of the tower, the development partners plan to acquire air rights from nearby institutions such as St. Bartholomew’s Church and St. Patrick’s Cathedral. As part of this arrangement, they will contribute a total of $150 million towards the maintenance and preservation of these historic properties, as outlined in the statement.
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4. Tesla Market Cap Drops Below $500 bn
Tesla Inc. shares continued their downward trend for 2024, causing the market valuation of the electric-vehicle manufacturer to dip below $500 billion. This decline was exacerbated by a recent round of job cuts, which further dampened investor sentiment towards the company.
On Tuesday in New York, the stock fell approximately 4% to below $154, marking a year-to-date decrease of around 38%. Tesla shares rank as the second-largest decliner on the S&P 500 Index for 2024, having shed more than $290 billion in value since the end of last year. Notably, the company has not closed with a market value below $500 billion since late April of the previous year.
Analysts and investors emphasize that while the development of a fully self-driving car is pivotal for the company’s future prospects, creating an affordable electric vehicle (EV) is essential to fuel growth in the interim.
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5. WNBA Start to Earn Less Than $80k
In her debut season as a WNBA player, Caitlin Clark is set to earn approximately $76,500 on the court and a remarkable $3 million off it, showcasing a rare instance of a rookie significantly boosting a modest starting salary.
Clark’s signing with the Indiana Fever during the 2024 WNBA Draft signals the beginning of her professional career. Over the course of her initial four years, she is expected to accumulate around $340,000 in earnings from her on-court performance.
Additionally, the NCAA Division I’s all-time leading scorer is poised to secure approximately $3 million in advertising deals over the next year, according to data from On3.
While players like Clark, Angel Reese, Cameron Brink, and Kamilla Cardoso have the potential to land lucrative advertising agreements, many other incoming rookies may not achieve similar financial success in this realm. Even for seasoned stars, the highest-paid individuals typically earn around $250,000 solely from their on-court contributions.
With the league experiencing a notable 20% increase in ratings last season, anticipation is high for another significant surge with the arrival of stars like Caitlin Clark and Angel Reese.
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6. LVMH Sales Growth Hit New Low
LVMH experienced a deceleration in sales growth at the beginning of the year, attributed to affluent consumers tightening their spending on high-end Louis Vuitton handbags and Hennessy Cognac.
The luxury group reported a 2% increase in organic revenue for its fashion and leather goods division — its largest segment — during the first quarter, as announced by LVMH based in Paris on Tuesday. This contrasts with an 18% growth recorded in the same unit a year earlier, which includes renowned brands such as Louis Vuitton, Christian Dior, Celine, and Loewe.
This quarter’s growth rate marks the slowest performance for a first quarter since 2016, excluding the pandemic-affected year of 2020 when Covid-19 lockdowns paralyzed economies globally. Analysts surveyed by Bloomberg had anticipated a growth rate of 3.2%.
The results indicate that LVMH Moet Hennessy Louis Vuitton SE, led by Bernard Arnault, the world’s wealthiest individual, is starting to feel the effects of the luxury market’s slowdown.
The conglomerate, boasting around 75 luxury brands spanning fashion, jewelry, hotels, and spirits, has historically navigated the luxury landscape more resiliently than many of its competitors.
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7. Hong Kong Apartment Discounted 40%
Distressed Chinese developers facing mounting debt repayment pressures and heightened competition in Hong Kong’s property market are resorting to drastic measures to offload luxury apartments at a new complex.
According to promotional materials reviewed by Bloomberg, prices of certain units at the first tower of The Corniche have been slashed to approximately HK$25,000 ($3,200) per square foot. This represents a staggering reduction of more than 40% from the original asking price of HK$45,000.
The six-tower project, developed by Logan Group Co. and KWG Group Holdings Ltd., has struggled to attract buyers since marketing commenced in January 2023. Only five out of the 295 apartments have been sold thus far, fetching prices ranging from HK$40,000 to HK$50,000 per square foot based on transaction data analyzed by Bloomberg. The most recent sale occurred in January.
Prospective buyers are being offered additional incentives, including the flexibility to make downpayments within a window of 120 to 180 days, according to sources familiar with the matter.
Source: Bloomberg – China Developers Slash Prices by 40% at Luxury Hong Kong Apartment Project
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The content of this article comes from various financial news media such as The Wall Street Journal, Financial Times, and Bloomberg.