—— Two Billionaires Daughters Could Face Off in US Open; Tesla to Release Full Self Driving Tech in China Next Year; Trump Proposes 15% Corporate Tax Rate; Biden Announces More Chip Export Curbs; Alibaba Teams Up with Mastercard for New US Card; US Farmers Could Make $140bn This Year; Zillow Economists See Great Chance to Buy Home in Fall
1. Two Billionaires Daughters Could Face Off in US Open
Jessica Pegula and Emma Navarro, both prominent tennis players, are making headlines at the US Open as they advance to the semifinals. At 30, Pegula, known for her tenacity on the court, is powered by the support of the passionate New York crowd. Her father, Terry Pegula, is the owner of the Buffalo Bills and a major player in the fracking industry, with a net worth of $12.1 billion according to the Bloomberg Billionaires Index.
Meanwhile, 23-year-old Navarro, a rising star in the sport, is also benefiting from enthusiastic support at Flushing, Queens. Her father, Ben Navarro, is the founder of Sherman Financial Group, a firm that deals with subprime consumer debts.
The two players have navigated opposite sides of the US Open draw and could face each other in an all-American championship match for the first time since 2017.
Pegula secured her semifinal spot with a notable victory over top-ranked Iga Swiatek, marking her debut in a Grand Slam semi. Navarro reached this stage by defeating defending champion Coco Gauff, achieving her best performance in a major tournament to date.
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2. Tesla to Release Full Self Driving Tech in China Next Year
The Nordstrom family is pursuing a plan to take the renowned department store chain private, proposing a $3.8 billion acquisition. Erik and Peter Nordstrom, descendants of the company’s founder John Nordstrom, alongside other family members and their business partner, the Mexican department store chain El Puerto de Liverpool, are leading this initiative. Liverpool previously acquired a nearly 10% stake in Nordstrom two years ago.
This proposed transaction, offering $23 per share, aims to transition Nordstrom away from the pressures of public market scrutiny and the demands of quarterly financial disclosures. This move follows an unsuccessful attempt by the family in 2018 to privatize the company at $50 per share, which was not accepted by the company at the time.
The backdrop for this move includes a long-term decline in the performance of US department stores, prompting executives and investors to explore strategic deals as potential solutions.
Notably, similar efforts have seen mixed results in the industry, such as the failed attempt by activist investors to take Macy’s Inc. private and the acquisition of Neiman Marcus Group by the owner of Saks Fifth Avenue, supported by Amazon.com Inc., earlier this year.
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3. Trump Proposes 15% Corporate Tax Rate
Donald Trump has pledged to cut the corporate tax rate, reduce regulations, and audit the federal government as he presented his economic agenda to Wall Street and corporate leaders in New York. His proposals align with ideas suggested by his billionaire supporter, Elon Musk.
At the Economic Club of New York on Thursday, Trump emphasized his commitment to “low taxes, low regulations, low energy costs, low interest rates, secure borders, and low crime,” aiming to contrast his policies with those of Democratic rival Kamala Harris.
The main highlight of his speech was a proposal to lower the corporate tax rate to 15% for companies manufacturing their products in the US, down from the current 21% rate established by Trump’s 2017 tax law. Trump argued that such a reduction would incentivize domestic production, asserting that companies outsourcing or offshoring jobs would forfeit these benefits.
While a 15% corporate tax rate could benefit large US corporations significantly, it might also increase federal deficits and result in larger disparities between the tax rates of big companies and smaller, privately-held businesses, which face rates as high as 37%.
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4. Biden Announces More Chip Export Curbs
The Biden administration is implementing new export controls on critical technologies, including quantum computing and semiconductor products, to curb advancements by China and other adversarial nations. The new rules specifically target quantum computers, advanced chipmaking tools, a semiconductor technology known as gate all-around, and various components and software related to metals and metal alloys.
These controls apply to all global exports but offer exemptions for countries that adopt similar restrictions. Allies like Japan and the Netherlands are included in this group, and the US expects more countries to join in, according to the Commerce Department.
This move is part of a broader strategy to limit adversaries’ access to cutting-edge technologies that could enhance their military capabilities. The US has already imposed unilateral semiconductor export controls and has sought to align these measures with key allies.
The recent restrictions, issued through an international framework, build on previous efforts to coordinate with allies and curb the proliferation of advanced technologies.
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5. Alibaba Teams Up with Mastercard for New US Card
Alibaba Group Holding Ltd. has partnered with Mastercard Inc. to launch a US credit card aimed at encouraging small businesses to purchase products from Alibaba.com. The Business Edge Credit Card will offer users a choice between 3% cash back or 60-day interest-free payment terms for purchases up to $40,000. Additionally, cardholders will have 90 days to request a refund if they are unsatisfied with their orders.
Set to debut later this year, the card will carry an annual fee of $199. The initiative is intended to boost confidence among small businesses in buying directly from predominantly China-based suppliers and to offer savings amid high interest rates, according to Alibaba.com President Kuo Zhang.
Facing challenges in its domestic market, Alibaba is focusing on expanding its international presence. The company recently reported a modest 4% increase in revenue, marking the first decline in its Chinese commerce business in over a year. Alibaba is competing fiercely with domestic rivals such as JD.com and PDD Holdings Inc., which owns Temu.
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6. US Farmers Could Make $140bn This Year
US farmers are anticipated to experience a smaller-than-expected decrease in income this year, with a projected decline of just 4.4% from 2023. Despite significant drops in prices for key crops like corn and soybeans, overall earnings are expected to reach $140 billion, according to the latest forecast from the US Department of Agriculture (USDA).
This is a notable improvement from the 26% drop to $116.1 billion that was previously estimated in February.
The projected decline follows a period of record-high farm income in recent years. If realized, the new forecasted income would be 15% above the 20-year average of $121.5 billion but still 28% below the 2022 record when adjusted for inflation, as reported by the USDA.
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7. Zillow Economists See Great Chance to Buy Home in Fall
Autumn in the US might bring a surprising shift to the housing market, offering an unexpected opportunity for buyers and sellers. Traditionally, the market slows down at the end of the year and picks up again in the spring. Buyers often prefer to tour homes in warmer weather and settle in before the school year starts.
However, with anticipated interest rate cuts starting later this month, the residential real estate market—previously described as “frozen” or “almost impossible”—is showing signs of revival. Mortgage rates have recently fallen to their lowest level since May 2023, leading to a faster pace of loan applications.
While a full-blown surge in activity hasn’t materialized yet and rate cuts aren’t guaranteed, those who are prepared could seize a unique opportunity. Being ready to act before the traditional spring market surge might give buyers and sellers a significant advantage.
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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。