—— AT&T Keeps Gaining Mobile Subscribers; US Pre-Owned Home Sales Drop to Near 14-Year Low; Tim Cooks Meets with China Tech Officials; Warren Buffet Clarifies Political Position; Kering Profit Could Drop to 8-Year Low; Tesla Shares Surge 10% in Aftermarket Trading; Apple to Start Producing Mac Air with M4 Chips
1. AT&T Keeps Gaining Mobile Subscribers
AT&T Inc. surpassed analysts’ expectations for mobile subscriber growth in the third quarter, building on the success of the previous period. The company added 403,000 net new monthly wireless phone subscribers, exceeding the forecasted 394,600, according to Bloomberg data. Revenue remained largely flat compared to the previous year, reaching $30.2 billion, slightly below analysts’ average projection of $30.4 billion, as reported in a statement on Wednesday.
With fewer new wireless customers available, AT&T and its competitors have focused on expanding broadband internet services through fiber-optic and fixed wireless technology, which uses airwaves to provide
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2. US Pre-Owned Home Sales Drop to Near 14-Year Low
Sales of previously owned homes in the U.S. fell to their lowest level in nearly 14 years in September, as potential buyers held off, anticipating lower mortgage rates and better pricing. According to data from the National Association of Realtors released on Wednesday, contract closings dropped 1% from the previous month to an annualized rate of 3.84 million, falling short of economists’ expectations of 3.88 million, based on a Bloomberg survey.
Many buyers and sellers are hesitant to act, waiting for mortgage rates—currently in the mid-6% range—to decline. After reaching a two-year low in September, mortgage rates have since risen due to recent job market and inflation reports, which have led to speculation that the Federal Reserve will adopt a slower pace in reducing borrowing costs.
The resale market has remained relatively stagnant over the past two years, hovering around an annualized rate of 4 million homes. One major factor behind this is the “lock-in effect,” where homeowners are reluctant to list their homes and give up their lower mortgage rates.
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3. Tim Cooks Meets with China Tech Officials
Apple Inc. CEO Tim Cook reaffirmed the company’s commitment to investing in China during a meeting with Beijing’s top technology official, emphasizing China’s crucial role in Apple’s global operations. During his second visit to the country this year, Cook assured China’s Minister of Industry and Information Technology, Jin Zhuanglong, that Apple would “continue to expand its investments in China and support the high-quality development of the supply chain,” according to a post by the ministry on WeChat.
Jin encouraged Cook to further invest in innovation within the country. The two discussed Apple’s operations in China, cloud services, and the secure management of online data, although specific details were not provided.
As China seeks to attract foreign investments to boost its struggling economy, a record amount of capital was withdrawn by foreign investors in the second quarter, reflecting growing concerns about the nation’s economic outlook.
Despite these challenges, Apple continues to maintain strong ties with China, where it relies on numerous suppliers, including iPhone assembler Luxshare Precision Industry Co., and supports millions of jobs across the country.
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4. Warren Buffet Clarifies Political Position
Warren Buffett has announced that he will not be endorsing any political candidates, just two weeks before the U.S. presidential election. The 94-year-old billionaire clarified his stance in a statement posted on Berkshire Hathaway Inc.’s website, aiming to dispel rumors circulating online about his potential political endorsements and support for investment products.
The statement emphasized, “Due to the increased use of social media, there have been numerous false claims regarding Mr. Buffett’s endorsement of both investment products and political candidates. Mr. Buffett does not currently, and will not in the future, endorse any investment products or political candidates.” This declaration seeks to put an end to any speculation about Buffett’s involvement in political or financial endorsements.
Despite his previous involvement in politics, Buffett’s recent statement makes it clear that he will no longer be endorsing political candidates, marking a shift from his earlier engagements.
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5. Kering Profit Could Drop to 8-Year Low
Kering SA has warned that its annual profit will fall to its lowest level since 2016, as a decline in Chinese demand for luxury goods hinders the recovery of its flagship brand, Gucci. The company announced on Wednesday that its recurring operating income for the year is expected to be around €2.5 billion ($2.7 billion), which falls below analysts’ expectations of €2.82 billion.
Gucci, which accounts for the majority of Kering’s profits, saw a 25% drop in comparable sales during the third quarter compared to the previous year.
Following the announcement, Kering’s American Depositary Receipts (ADRs) in New York fell by as much as 5.7%, adding to the more than 40% decline in its share price this year. Kering is on track for its worst annual performance since 2008.
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6. Tesla Shares Surge 10% in Aftermarket Trading
Tesla Inc. exceeded Wall Street expectations for its third-quarter earnings and forecasted a slight increase in vehicle deliveries for the year, signaling a recovery in demand for its electric vehicles. On Wednesday, the company reported adjusted earnings of 72 cents per share, beating analysts’ average estimates. Tesla also reaffirmed its plans to begin producing more affordable models in the first half of 2025, projecting 50% growth in production next year compared to 2023.
Following the earnings report, Tesla’s shares surged 7.5% in postmarket trading, reaching $229.50 as of 4:20 p.m. in New York, though the stock remains down 14% for the year after Wednesday’s regular trading session.
Tesla also expressed confidence in delivering another strong quarter, anticipating higher volumes for the full year after a solid third-quarter performance.
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7. Apple to Start Producing Mac Air with M4 Chips
India’s PhonePe, a digital payments startup backed by Walmart Inc., reported significant financial improvements in its latest fiscal year, with revenue surging and losses narrowing. The Bengaluru-based fintech company saw a 74% year-over-year increase in revenue, reaching 50.64 billion rupees ($602 million). Meanwhile, its net loss decreased by 28%, totaling 19.96 billion rupees, according to the company’s annual report released on Monday.
PhonePe remains a dominant player in India’s Unified Payments Interface (UPI) market, commanding nearly 50% of total transactions. UPI enables instant money transfers by connecting banks with fintech apps like PhonePe, Paytm, and Google Pay (owned by Alphabet Inc.).
As of March 2024, PhonePe had 530 million registered users, with 200 million active on a monthly basis, solidifying its leadership in the digital payments space in India.
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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。