—— Berkshire Tops $1tn in Market Cap; US Mortgage Rate Drops to Lowest Since April 2023; SMCI Slides 27% After Delaying 10-K Filing; UBS Lowers China GDP Growth Forecast; Footlocker to Move Headquarter to St. Petersburg; Two Sigma Founders to Leave Over Feud; Nvidia Earnings Beat Expectations Yet Again
1. Berkshire Tops $1tn in Market Cap
Berkshire Hathaway Inc. has become the first US company outside the tech sector to exceed a $1 trillion market value.
On Wednesday, shares of Warren Buffett’s conglomerate increased by as much as 0.8%, pushing its market capitalization above the trillion-dollar threshold for the first time. The stock has surged this year, driven by strong insurance results and a positive economic outlook. The Omaha-based firm joins an exclusive group of companies that have reached this milestone, which has primarily been achieved by tech giants such as Alphabet Inc., Meta Platforms Inc., and Nvidia Corp.
Steve Check, founder and chief investment officer of Check Capital Management, noted, “Berkshire has done it the slower, but more sure, way.” His firm, which manages about $2 billion in assets with Berkshire as its largest holding, added, “It’s harder to make money the old-fashioned way.”
Berkshire Hathaway’s stock performance this year has outpaced the S&P 500, with a 30% gain in 2024 compared to the index’s 18% rise. The company’s performance is not far behind the Magnificent Seven—a group of major tech stocks, which have risen 35% this year.
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2. US Mortgage Rate Drops to Lowest Since April 2023
US mortgage rates dropped again last week, reaching their lowest point since April 2023, which led to a modest increase in home-buying applications.
The contract rate on a 30-year fixed mortgage fell for the fourth consecutive week to 6.44%, marking the longest period of declines this year, according to data from the Mortgage Bankers Association released on Wednesday. This decrease gave a slight boost to home-purchase applications for the week ending August 23, following a significant drop in the previous week.
Mortgage rates typically follow Treasury yields, which have been decreasing recently amid expectations that the Federal Reserve might start lowering interest rates in September. Minutes from the Fed’s July meeting suggested that several officials saw a need for rate cuts, and Chair Jerome Powell indicated on Friday that “the time has come for policy to adjust.”
While a further reduction in borrowing costs could stimulate the housing market, the current low level of purchases suggests that affordability issues, partly due to high home prices, are still deterring potential buyers.
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3. SMCI Slides 27% After Delaying 10-K Filing
Super Micro Computer Inc. has announced a delay in filing its annual financial disclosures, leading to the stock’s largest single-day drop in nearly six years.
The San Jose, California-based server manufacturer needs extra time to evaluate the design and effectiveness of its internal financial controls, according to a filing made Wednesday morning. The company has not updated its results for the previous fiscal year and quarter.
This delay follows a critical report from short-seller Hindenburg Research, which highlighted “significant accounting red flags, evidence of undisclosed related party transactions, sanctions and export control violations, and customer-related issues.”
As a result, Super Micro’s stock plummeted by as much as 26%, marking its steepest intraday decline since October 9, 2018.
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4. UBS Lowers China GDP Growth Forecast
UBS Group AG has revised its growth forecast for China for this year and next, citing a more severe property market downturn than anticipated, which has yet to reach its lowest point.
Due to the subdued economic activity in China since March, driven by the real estate slump and stringent fiscal policies, UBS now projects that the country’s GDP will grow by 4.6% in 2024, down from its previous estimate of 4.9%. For the following year, the growth forecast is reduced to 4%, from the earlier prediction of 4.6%.
UBS economists, including Wang Tao, noted in a report on Wednesday that weaker property market activities are expected to have a greater negative impact on the overall economy than previously thought, affecting household consumption as well.
Despite China easing its property market policies since late 2022—such as lowering down-payment requirements, reducing mortgage rates, and easing home purchase restrictions—the effects of these measures have been limited and slow to materialize, according to UBS.
The report highlights that changes in China’s property market fundamentals, low market confidence due to weak household income growth, high inventory levels, and slow destocking efforts have contributed to the downgraded outlook. UBS now anticipates that new property developments will only bottom out around mid-2026.
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5. Footlocker to Move Headquarter to St. Petersburg
Foot Locker Inc. is relocating its headquarters from New York to Florida to reduce costs and leverage its established presence in the state.
The sneaker retailer’s move to St. Petersburg, located on Florida’s Gulf Coast, is scheduled for late 2025. The announcement was made alongside the company’s earnings report on Wednesday. The firm already has some executives based in St. Petersburg, which previously housed the headquarters of Foot Locker’s sister brand, Champs.
According to Chief Executive Officer Mary Dillon, St. Petersburg has long been a key location for Foot Locker. She noted that while the relocation will offer cost efficiencies, the company will maintain a presence in New York to stay connected with basketball and sneaker culture.
Although St. Petersburg, with a population of around 250,000 and situated near Tampa, has not attracted as much corporate attention as Miami—home to figures like Ken Griffin and Jeff Bezos—the city’s lower cost of living, attractive beaches, and lower taxes have made it appealing to some.
In 2021, Ark Investment Management, led by Cathie Wood, also moved from New York to St. Petersburg, a city that has been the longtime base for Raymond James Financial Inc.
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6. Two Sigma Founders to Leave Over Feud
The founders of Two Sigma, a major hedge fund, are stepping down from their roles as co-CEOs after years of management disagreements.
John Overdeck and David Siegel will resign from their positions at the end of September, as announced by Two Sigma on Wednesday. They will be succeeded by Carter Lyons, the firm’s chief business officer, and Scott Hoffman, former general counsel of Lazard.
Overdeck and Siegel will remain involved as co-chairs, focusing on quantitative investment and technology. They founded the hedge fund, which now manages $60 billion in assets, more than two decades ago after their time at DE Shaw.
Internal conflicts between Overdeck and Siegel became public last year when the hedge fund disclosed that their disagreements could pose a “material risk” to the company. These conflicts were noted as potentially impacting the firm’s ability to retain and attract talent and to implement key initiatives.
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7. Nvidia Earnings Beat Expectations Yet Again
Nvidia Corp., a leading player in the AI boom, has provided a revenue forecast that falls short of some of the most optimistic predictions, raising concerns about a potential slowdown in its remarkable growth.
The company projected third-quarter revenue of approximately $32.5 billion, slightly above analysts’ average estimate of $31.9 billion but well below the highest forecast of $37.9 billion. Nvidia also indicated that it is dealing with production challenges related to its new Blackwell chip, impacting its shares in after-hours trading.
This forecast could dampen the AI enthusiasm that has propelled Nvidia to become the world’s second-most-valuable company. As a major beneficiary of the surge in spending to upgrade data centers for AI software, Nvidia’s sales projections have become a key indicator of the sector’s investment trends.
Ahead of the announcement, there were concerns about issues with Nvidia’s new Blackwell design. The company acknowledged production problems and mentioned it is working to improve its manufacturing yield—the proportion of functional chips produced. Despite these challenges, Nvidia expects to generate “several billion dollars” in revenue from the Blackwell chip in the fourth quarter.
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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。