—— 60% American Family Financially Stressed; Blackstone acquires UK rental properties for $580 million; Trump received $140 million in donations in May; Paramount can save $500 million annually in costs; U.S. job vacancies fall to a three-year low; Cisco invests in AI startups; Brooklyn apartment building secures nearly $500 million in loans.

1.  60% American Family Financially Stressed

According to a survey report by the National True Cost of Living Coalition, nearly two-thirds of American middle-class families are facing financial difficulties and do not believe the situation will improve in the future.

While macroeconomic data highlights the resilience of the U.S. GDP, job market, stock market, and housing market, the financial situation of American households is far from optimistic.

Among the 2,500 middle-class adults surveyed, 65% stated that their financial situation is not good, despite having an annual household income of at least $60,000.

Additionally, 25% of households with an annual income exceeding $150,000 expressed concerns about being unable to pay their bills.

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Source: Bloomberg – Majority of Middle-Class Families Struggle Financially

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2. Blackstone acquires UK rental properties for $580 million

Recently, Blackstone agreed to purchase 1,750 newly built rental apartments from UK builder Vistry for £580 million.

Most UK rental apartments are developed by small private landlords, but an increasing number of large fund companies are entering the local market. Over the past few years, with rising interest rates, residential properties have outperformed other commercial real estate.

James Seppala, head of Blackstone Real Estate Europe, stated that private equity firms can help the UK build a large number of high-quality homes, as the current market supply is very insufficient.

The housing acquired by Blackstone will be managed by Leaf Living.

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Source: Financial Times – Blackstone in UK rental housing push with £580mn Vistry deal

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3. Trump received $140 million in donations in May

Trump’s team revealed that in May, Trump and the Republican National Committee (RNC) raised a total of $141 million, nearly double the $76 million raised in April, and more than the historical record set by Biden and the Democratic National Committee.

The team disclosed that within 24 hours of Trump being convicted on May 30, he received $52.8 million in donations, as Trump leveraged the legal controversy to rally his supporters.

In May, Trump received over 2 million donations, with an average amount of $70.27.

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Source: Bloomberg – Trump Rakes in $141 Million in May, Aided by Guilty Verdict

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4. Paramount to save $500mn in costs

At the annual shareholders’ meeting on Tuesday, the three co-CEOs of Paramount Global revealed that the company’s streaming platform, Paramount+, has received cooperation invitations from many potential investors.

Paramount expressed interest in enhancing Paramount+’s operations through international joint ventures, which could save the company $500 million annually.

The three CEOs did not comment on the potential acquisition of Paramount by Skydance Media. However, if the deal goes through, Paramount’s chairman, Shari Redstone, would sell most of her family’s shares to Skydance Media and other investors.

The Redstone family holds 77% of the voting shares of Paramount.

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Source: Bloomberg – Paramount Seeks Streaming Partnerships, $500 Million Cost Cuts

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5.  U.S. job vacancies fall to a three-year low

The U.S. Bureau of Labor Statistics’ JOLTS survey report shows that in April, the number of job openings in the U.S. fell to a three-year low of 8.06 million, indicating that the job market is indeed cooling down.

There are only 1.2 job openings for every unemployed worker, a ratio that has hit a new low since June 2021. At its peak in 2022, this ratio was 2.

Job openings have decreased in almost all industries, with healthcare falling to a three-year low, the manufacturing sector dropping to its lowest since late 2020, and government job openings also decreasing.

The voluntary quit rate fell to its lowest since 2020, indicating that employees are less confident about finding new jobs.

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Source: Bloomberg – US Job Openings Fall to Lowest Since 2021 in Broad Cooldown

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6. Cisco invests in AI startups

Today, at a conference in Las Vegas, networking hardware and software company Cisco revealed that it will invest $1 billion in startups developing AI services.

Currently, the company has invested $200 million in this direction and is preparing to invest in Mistral AI and Scale AI.

In addition to investing in AI companies, Cisco plans to collaborate with these companies and help them expand their client base among enterprises and government institutions.

Cisco has already completed seven AI acquisitions and eleven investments.

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Source: Bloomberg – Cisco to Invest $1 Billion in AI Startups to Capitalize on Boom

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7. Brooklyn apartment building secures nearly $500 million in loans

Developer Rabsky Group’s massive apartment building at 625 Fulton Street in downtown Brooklyn has secured a $485 million loan from Madison Realty Capital.

The 35-story apartment building, currently under construction, will feature 1,098 residential units and retail space on the ground floor.

In 2021, Madison Realty provided Rabsky Group with a $450 million construction loan.

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Source: Commercial Observer – Madison Realty Capital Lends $450M on Rabsky Group’s 625 Fulton Street

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本文内容来自《Financial Times》、《Bloomberg》，以及《The Real Deal》等多家财经新闻媒体。