1. U.S. Tourism Industry Expected to Recover Rapidly
2. McDonald’s Sees Decline in International Sales
3. BlackRock May Acquire Private Credit Giant
4. U.S. Government Employees Targeted by Phishing Emails
5. U.S. Q3 GDP Grows 2.8%
6. Super Micro Computer Drops Auditor Amid DOJ Probe
7. Related Group Develops Luxury Tower in Mexico City
1. U.S. Tourism Industry Expected to Recover Rapidly
Today, U.S. Secretary of State Antony Blinken said that the country’s $1.3 trillion tourism industry is expected to recover faster than previously forecast. More international tourists are expected to visit the U.S. as visa wait times shorten and appointment availability increases.
According to U.S. State Department data, 11.5 million visas were approved in the year ending September 30, with 8.5 million being tourist visas.
For first-time visitors to the U.S., wait times for embassy visa appointments have dropped from over 400 days to around 60. Blinken also announced plans to add one million additional appointment slots in 2025.
In 2023, international visitors spent $155 billion directly in the U.S.
______
2. McDonald’s Sees Decline in International Sales
McDonald’s reported on Tuesday that global same-store sales fell 1.5% in the third quarter, exceeding analysts’ expectations. In contrast, U.S. sales rose 0.3%.
Sales declined across nearly all global regions, largely due to weakened consumer purchasing power and boycotts of U.S. brands in parts of the Middle East.
During an analyst call, McDonald’s said its $5 meal deal was well-received by low-income customers and helped drive traffic. The company plans to launch another value meal option in early 2025.
Last week, following an E. coli outbreak, McDonald’s recalled hamburger ingredients from 20% of its stores.
______
3. BlackRock May Acquire Private Credit Giant
Sources revealed that BlackRock is in advanced talks to acquire HPS Investment Partners, aiming to expand its influence in the private credit sector.
The two parties are hoping to reach an agreement by the end of the year. However, if they can’t agree on valuation, HPS may still pursue an IPO or sell a minority stake.
HPS is targeting an IPO valuation of $11 billion, but may seek a premium if acquired directly.
As of Q3, BlackRock managed $11.5 trillion in assets, including $500 billion in alternative investments.
______
4. U.S. Government Employees Targeted by Phishing Emails
On Tuesday, Microsoft Threat Intelligence reported that since October 22, Russian hackers have sent phishing emails to thousands of U.S. government employees across more than 100 organizations.
In some emails, hackers impersonated Microsoft employees and embedded links designed to steal sensitive information.
Microsoft said the latest attack was carried out by a group called Midnight Blizzard, which U.S. and U.K. authorities link to Russia’s Foreign Intelligence Service (SVR).
Last Friday, the FBI also announced an investigation into espionage targeting the U.S. commercial communications sector.
______
5. U.S. Q3 GDP Grows 2.8%
Preliminary data released today by the U.S. government shows inflation-adjusted GDP grew at an annualized rate of 2.8% in Q3, slightly below the 3% growth in Q2.
Consumer spending, the largest contributor to GDP, rose 3.7%, the highest level since early 2023, led by strong demand for goods.
Core inflation, a key focus for the government, increased 2.2%, aligning closely with the Federal Reserve’s target.
Following the release, the U.S. dollar strengthened as expectations for a Fed rate cut declined.
______
6. Super Micro Computer Drops Auditor Amid DOJ Probe
Super Micro Computer (SMCI) disclosed today that its auditor, Ernst & Young (E&Y), has resigned, citing concerns over the company’s financial accuracy and professional integrity.
This follows accusations from a former employee alleging financial fraud, and a U.S. Department of Justice investigation announced last month. Super Micro is currently seeking a new auditor.
Before market open, SMCI shares plunged 30%.
______
7. Related Group Develops Luxury Tower in Mexico City
Related Group, one of Florida’s largest real estate developers, along with three Mexican partners, is building a 43-story hotel and condo tower in Mexico City called the Thompson Mexico City Reforma Hotel. Construction began last year, and pre-sales have already started.
The tower will feature 104 luxury condos and 115 fully furnished hotel suites, with a projected total value of $190 million.
Related Group was founded by billionaire Jorge Pérez, often referred to as the “Condo King of Miami.”
______
This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.