Market Beats | US Housing Starts Drop to 4-Month Low; Morgan Stanley Offers SpaceX Staff Special Loan; Foxconn Interested in Buying Stakes in Nissan; US CMBS Market May Look Gloomy in 2025; Trump to Reshape Auto Industry in First 100 Days; Salesforce CEO Not Selling Time Magazine

—— US Housing Starts Drop to 4-Month Low; Morgan Stanley Offers SpaceX Staff Special Loan; Foxconn Interested in Buying Stakes in Nissan; US CMBS Market May Look Gloomy in 2025; Trump to Reshape Auto Industry in First 100 Days; Salesforce CEO Not Selling Time Magazine

1. US Housing Starts Drop to 4-Month Low

In November, new-home construction in the U.S. unexpectedly declined, driven by a significant drop in multifamily projects, which overshadowed a recovery in single-family home starts, especially in the storm-affected South.

Housing starts fell 1.8% to an annualized rate of 1.29 million, marking the slowest pace since July, based on government data released Wednesday. This was below the median forecast of a 1.35 million pace.

There was a 6.4% increase in single-family home starts, reaching an annualized rate of 1.01 million, while construction of multifamily units fell by more than 23%. The rise in single-family homes included a significant 18.3% surge in the South — the largest homebuilding region in the nation — as areas including Florida recovered from hurricane-induced delays experienced in late September and October.

The outlook for the industry has become more uncertain in recent months. Builders had increased construction over the past year to capitalize on the lack of existing homes available. However, the inventory of new homes for sale has now reached its highest level in nearly 17 years.

______

2. Morgan Stanley Offers SpaceX Staff Special Loan

As SpaceX’s valuation reaches a new high of approximately $350 billion, boosting Elon Musk’s net worth, Morgan Stanley is also poised to gain from this growth.

The bank has launched a specialized lending program for SpaceX employees, allowing them to liquidate their high-value shares without forfeiting ownership, according to sources familiar with the matter. To qualify, employees must hold at least $500,000 in vested SpaceX stock.

The recent surge in SpaceX’s valuation—its share price now stands at $185, up from $112 in the last valuation less than three months ago—has expanded eligibility for more employees. The terms of the loan include an advance rate of 15% on the pledged shares and a maintenance requirement of 40%.

The interest rate is approximately SOFR plus 4.5%, which currently amounts to about 9%.

______

3. Foxconn Interested in Buying Stakes in Nissan

Honda Motor Co. is currently in discussions to potentially support Nissan Motor Co., which could lead to the creation of the world’s third-largest automaker. This move aims to bolster their resilience against the increasing challenges faced by the global auto industry.

The merger talks between the two Japanese car manufacturers gained momentum following an approach by Hon Hai Precision Industry Co. (Foxconn), the Taiwan-based electronics giant known for making iPhones, which expressed interest in purchasing a stake in Nissan. Foxconn has been actively investing in facilities to manufacture electric vehicles (EVs).

Following these developments, Nissan’s shares soared by a record 24% in Tokyo trading on Wednesday, recovering some of the significant losses they incurred since the arrest of former Chairman Carlos Ghosn in late 2018. Conversely, Honda’s stock declined by 3%, dropping to its lowest closing price in more than a year.

Nissan has been grappling with deep-seated issues, which culminated in early November when it drastically reduced its earnings forecasts and announced a global reduction of 9,000 jobs.

The company also declared a 20% cut in global production due to declining consumer interest in its unimpressive vehicle lineup, leading to an accumulation of unsold cars at dealerships.

______

4. US CMBS Market May Look Gloomy in 2025

According to a Bloomberg analysis, US delinquencies on commercial mortgage-backed securities spiked in November, with over 10% of office building loans falling into arrears. The real estate sector, still reeling from the pandemic’s impact on office occupancy, faces heightened pressure as interest rate hikes in 2022 exacerbated financial strains.

Notably, companies like Cannon Hill Capital Partners and Pimco’s Columbia Property Trust have been forced to liquidate assets under financial duress. They recently sold 799 Broadway in Lower Manhattan for $255 million, which was $15 million short of covering their outstanding mortgage.

The surge in interest rates has complicated the traditional real estate financing model, which relies on short-term mortgages with balloon payments covered by refinancing. Higher rates have not only increased payment burdens but have also driven down property valuations due to lower profit yields — with office spaces and residential buildings seeing an average valuation decline of 23% and 20% respectively since 2022, as reported by MSCI.

A case in point is Brookfield Asset Management, which secured a 12-month extension on a £459 million loan for the Citypoint office building in London, by agreeing to an almost £1 million fee and increased monthly payments. Despite the extension, Brookfield’s efforts to offload the building for about £500 million have met with lower-than-expected bids, highlighting the ongoing challenges in the commercial real estate market.

The diminished valuations make refinancing challenging, prompting lenders to adopt a cautious stance on extending further credit, especially for maturing loans. This scenario echoes the 2008 financial crisis’ “extend and pretend” strategy, though the current context has seen a shift to what banks now term “amend and extend,” where they demand concessions for loan extensions.

______

5. Trump to Reshape Auto Industry in First 100 Days

Advisers to President-elect Donald Trump are proposing a dual strategy to reform the US auto industry, which involves reducing federal subsidies that support electric vehicle (EV) sales while still promoting a domestic supply chain for their production.

This approach aligns with Trump’s campaign pledge to end EV mandates and suggests a shift towards supporting domestic automakers and suppliers without direct consumer subsidies from taxpayers.

These recommendations are part of proposed policy changes for the initial 100 days of the incoming Trump administration, as per insiders and a document reviewed by Bloomberg News. The proposals are in line with the views of conservative, free-market proponents and fossil fuel industries who oppose government influence over consumer vehicle choices.

The advisers also advocate for easing environmental assessments and accelerating permits for government-backed EV projects, including battery and critical mineral development.

These details come from the mentioned document and sources who requested anonymity due to the private nature of the discussions.

______

6. Salesforce CEO Not Selling Time Magazine

Salesforce Inc. CEO Marc Benioff has dismissed the idea of selling Time magazine, which he acquired in 2018. In an interview with Bloomberg Television, Benioff emphasized the importance of maintaining fair and balanced journalism and expressed pride in owning Time.

This statement comes after a CNBC report in November suggested that Benioff was in preliminary discussions with Antenna Group to sell the publication. Benioff and his wife, Lynne, originally purchased Time for $190 million from Meredith Corp. six years ago.

Additionally, Benioff commented on a recent significant editorial decision at Time. Earlier this month, the magazine named President-elect Donald Trump as its person of the year, an accolade Benioff described as reflective of a pivotal moment in the political landscape, calling for an open mindset to all possibilities ahead.

______

7. Goldman Buys Majority Stake in Dutch Drugmaker

Goldman Sachs Group Inc.’s alternative investment division has reached an agreement to acquire a majority stake in Dutch generic drugmaker Synthon from BC Partners.

BC Partners will retain a minority stake in Synthon to support its future growth, according to a statement released Monday, which confirmed an earlier report by Bloomberg News. Financial terms of the deal were not disclosed. However, Bloomberg had reported that Goldman’s bid valued Synthon at approximately €2 billion ($2.1 billion), outpacing other contenders.

Founded in 1991, Synthon International specializes in developing and manufacturing generic drugs for therapeutic areas such as oncology, the central nervous system, and cardiovascular diseases. The Netherlands-based company also operates offices in Argentina, Chile, the Czech Republic, South Korea, Mexico, and Spain.

BC Partners acquired its majority stake in Synthon for $750 million in 2019 from the company’s founder, who retained a minority interest. Since then, BC Partners claims to have more than doubled Synthon’s operating profit.

______

本文内容来自《Financial Times》、《Bloomberg》，以及《The Real Deal》等多家财经新闻媒体。