1. U.S. Consumer Confidence Hits One-Year High
2. Xpeng Picks Site for European Factory
3. Hindenburg Shorts Super Micro
4. Klarna Plans to Cut Half Its Workforce
5. Pinduoduo Plunges 29%
6. Manhattan Luxury Condo Project Goes Bankrupt
7. Meta Shuts Down AR Studio
1. U.S. Consumer Confidence Hits One-Year High
According to the latest survey by the Conference Board, U.S. consumer confidence rose from 101.9 in July to 103.3 in August, beating economists’ expectations of 100.7. The data suggests that easing inflation is alleviating some consumer concerns.
However, confidence remains below pre-pandemic levels, mainly due to high living costs and slower job growth.
Expectations for the economy over the next six months rose to 82.5 — the highest in a year.
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2. Xpeng Picks Site for European Factory
Xpeng CEO said in a Bloomberg interview last Thursday that the company is selecting a site within the EU to build a manufacturing facility, aiming to expand local sales and avoid European import tariffs.
Xpeng, which partners with Volkswagen in China, plans to build the plant in a region with lower labor risks and also set up a large data center to improve data collection.
Currently, the company is focused on selling mid-to-high-end EVs in Europe.
Xpeng’s European factory could help it bypass a 36.3% import tariff.
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3. Hindenburg做空超微电脑
Today, short-seller Hindenburg Research alleged that Super Micro Computer (SMCI) had multiple red flags in its financials, including undisclosed related-party deals, export control risks, and customer concerns.
Following the report, SMCI stock dropped as much as 8.7%, and its convertible bonds also declined.
Bloomberg analysts say the short report could attract regulatory scrutiny, as U.S. authorities forbid selling AI systems to certain sanctioned companies and countries.
Super Micro, a major supplier of high-performance servers for data centers, is considered one of the top beneficiaries of the AI boom.
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4. Klarna Plans to Cut Half Its Workforce
Swedish BNPL (buy now, pay later) giant Klarna revealed it plans to cut nearly half of its workforce, replacing many roles with AI.
Last year, the company had already downsized from 5,000 to 3,800 employees. With AI able to handle many support and marketing tasks, Klarna expects to operate with just 2,000 employees in the coming years.
The CEO said the company can now achieve much more with fewer resources.
Klarna’s valuation peaked at $46 billion in 2021, but has since fallen back to $6.7 billion.
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5. Pinduoduo Plunges 29%
On a call with analysts Monday, Pinduoduo warned that China’s new policy direction toward promoting high-quality goods will likely squeeze profit margins for platforms like Pinduoduo and Temu, which mainly sell low-cost products.
Executives said the company will shift focus toward developing high-quality offerings in line with policy goals.
Management expects to invest $1.4 billion in reducing commissions for premium merchants and building a healthier, more sustainable ecosystem.
Following the warning, Pinduoduo’s stock plunged 29% today.
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6. Manhattan Luxury Condo Project Goes Bankrupt
Today, developer Madison 33 Owner LLC filed for Chapter 11 bankruptcy. The luxury condo project near the Empire State Building will face foreclosure, including five penthouse units, five lower-level condo units, and two commercial spaces.
Several penthouses remain unfinished, with the developer needing $13.5 million to complete construction. The company hopes to sell the completed units for at least $100 million.
A bankruptcy attorney says the developer is actively marketing unsold units and seeking refinancing.
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7. Meta Shuts Down AR Studio
Meta announced today that it will shut down its augmented reality studio, Meta Spark, and reallocate resources to areas like artificial intelligence.
Meta Spark developed digital video filters for Facebook, Instagram, and Messenger, originally created to compete with Snapchat.
The studio will officially close on January 14, 2025, although Meta will continue supporting internally developed AR effects.
As of January, Meta has lost $50 billion on its AR and VR product lines.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.