1. New York Mayor Accused of Corruption for Years
2. Citi and Apollo Join Forces to Invest in Private Credit
3. Super Micro Computer Under Investigation by DOJ
4. Bitcoin Surpasses $65,000 Again
5. Chime Hires Morgan Stanley for IPO Preparation
6. Costco’s Net Profit Surpasses Expectations
7. Commercial Real Estate May Be Facing a Turning Point
1. New York Mayor Accused of Corruption for Years
he federal prosecutor in Manhattan stated that New York Mayor Eric Adams received bribes worth over $100,000 from foreign leaders over the past few years, including free upgrades on flights and hotels.
Damian Williams, the U.S. Attorney for the Southern District of New York, said that Eric repeatedly crossed legal lines without the public’s knowledge.
Eric stated at a press conference today that he will continue serving as mayor and will fight the charges vigorously.
Prosecutors revealed that Eric had received benefits from high-net-worth individuals overseas nearly a decade ago.
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2. Citi and Apollo Join Forces to Invest in Private Credit
According to a statement observed by Bloomberg, Citigroup and Apollo Global have reached an exclusive partnership agreement to jointly invest $25 billion in private credit over the next five years.
The two Wall Street giants will provide loans to private equity firms and companies. Mubadala Investment and Apollo’s insurance division Athena will also participate in some projects.
Apollo’s Co-Chairman Jim Giertt said in an interview that private credit is the future direction of the industry, and banks and private equity firms will collaborate more.
Citigroup will bring in the projects and earn fee income, while Apollo and its partners will provide the funding.
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3. Super Micro Computer Under Investigation by DOJ
《The Wall Street Journal reported that the U.S. Department of Justice has launched an investigation into Super Micro Computer (SMCI) following financial concerns raised by short-seller Hindenburg.
It is reported that the DOJ has contacted former employees of Super Micro to gather information and evidence of any financial violations. The employee had previously filed a lawsuit against the company and is willing to act as a whistleblower.
Today, Super Micro’s stock price fell as much as 17% to $382.29, marking the biggest drop in nearly a month.
Year-to-date, Super Micro’s stock price has still risen by 61%.
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4. Bitcoin Surpasses $65,000 Again
Chris Neuhouse, head of research at Cumberland Labs, stated that large amounts of options will expire this Friday, and the cryptocurrency market is expected to experience significant volatility. Today, Bitcoin’s price surpassed $65,000 for the first time in a month.
Chris said that after reaching $65,000, Bitcoin is still trying to break through higher resistance levels. Bitcoin has failed to break through $65,000 in the past two months, and if it fails again and cannot maintain above $65,000, a new round of declines may follow.
This Friday, over $5.8 billion worth of Bitcoin options will expire.
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5. Chime Hires Morgan Stanley for IPO Preparation
Sources revealed that Chime Financial, a fintech company known for its fee-free services, has hired Morgan Stanley to handle its IPO preparation for 2025.
Chime offers users bank-like services through its app, including checking accounts and high-yield savings accounts.
In 2021, Chime was valued at $25 billion when loan rates were very low, and tech companies had high valuations.
Earlier this month, Chime introduced a service allowing users to advance up to $500 of their salary.
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6. Costco’s Net Profit Surpasses Expectations
Costco’s latest financial report shows that for the quarter ending on September 1st, the net earnings per share reached $5.29, surpassing analysts’ average expectations. Year-to-date, Costco’s stock price has risen by 37%.
Compared to last year, customer traffic at U.S. Costco stores has increased, although the average spending per customer has slightly decreased. In the last quarter, more than 90% of members renewed their memberships, and the total number of paying members increased.
Since Costco collects membership fees, the company’s revenue remains largely unaffected by economic cycles.
In the last quarter, same-store sales in the U.S. increased by 5.3%, and e-commerce sales rose nearly 19%.
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7. Commercial Real Estate May Be Facing a Turning Point
Amy Price, Chair of real estate investment company BGO, stated in an interview with Bloomberg that she believes the commercial real estate market has reached a turning point.
With interest rate cuts already underway, the market’s attitude is becoming more optimistic, and transactions are becoming more active. Loan issuance and equity investments are both on the rise, indicating that the market is starting to recover.
However, Amy warned that the entire recovery cycle may take a long time, and owners of office buildings are still struggling.
Amy revealed that her company is also focusing on investments in data centers.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.