Market Beats | Shrinking Workforce in China’s Financial and Real Estate Sectors; Russia Open to Long-term Ceasefire Talks; Alibaba Partners with South Korea’s E-Mart; Rising Challenges for U.S. Unemployed Workers; U.S. Mortgage Rates Hit Highest Since July

1. Russia Open to Long-term Ceasefire Talks

2. Alibaba Partners with South Korea’s E-Mart

3. U.S. Unemployment Challenges Grow

4. Miami Luxury Condo Project Secures $285M Loan

5. Top U.S. Universities Expand Financial Aid

6. U.S. Mortgage Rates Hit Highest Since July

7. China’s Finance and Real Estate Workforce Shrinks

1. Russia Open to Long-term Ceasefire Talks

During an online press conference today, Russian Foreign Minister Sergey Lavrov stated that Trump’s proposed ceasefire is insufficient, as Ukraine would use the pause to rebuild its military. Instead, Russia and Ukraine need a long-term, decisive, and legally binding ceasefire agreement to ensure security for Russia and neighboring countries.

Trump and his advisors suggested that Putin retain the roughly 20% of Ukrainian territory currently occupied by Russian forces in exchange for a ceasefire. Ukrainian President Zelensky has expressed willingness to negotiate diplomatically to reclaim these territories.

However, Russia demands that Ukraine formally abandon its NATO aspirations and impose strict military limitations, which Zelensky has firmly rejected. Lavrov urged the Trump administration to investigate the root causes of the conflict and reiterated Russia’s readiness to negotiate a formal treaty.

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2. Alibaba Partners with South Korea’s E-Mart

Stock exchange filings reveal that Alibaba’s South Korean division will form a 50-50 joint venture with E-Mart’s e-commerce platform, Gmarket.

Insiders say both companies will make additional investments following the joint venture’s establishment, potentially valuing the business at $4 billion.

This partnership strengthens Alibaba’s position against competitors like Naver and Coupang. Earlier this month, South Korea’s consumer confidence dropped to its lowest level since the pandemic due to political instability.

Amid intense competition from Pinduoduo and ByteDance, Alibaba has faced significant pressure in recent years.

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3. U.S. Unemployment Challenges Grow

Data released today by the U.S. Department of Labor showed that continuing jobless claims rose to 1.91 million as of the week ending December 14, marking the highest level in over three years. This indicates growing difficulties for unemployed workers in securing new jobs.

For the week ending December 21, initial jobless claims declined to 219,000.

Last week, Federal Reserve Chairman Jerome Powell stated that the labor market remains relatively healthy and that policymakers will closely monitor its trajectory. While the job market has cooled, it has not reached worrisome levels.

The four-week moving average of initial jobless claims increased to 226,500.

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4. Miami Luxury Condo Project Secures $285M Loan

Miami developers Terra Group and One Thousand Group announced they have secured a $285 million construction loan from Tyko Capital to develop Villa Miami, a high-end condominium project.

Scheduled for completion in late 2027, the development will feature 70 condo units starting at $5 million. More than half of the units have already been pre-sold, with most buyers being childless baby boomers.

Tyko Capital, based in New York, has invested in several real estate projects in Manhattan and Miami.

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5. Top U.S. Universities Expand Financial Aid

Several top U.S. universities have announced increased financial aid for middle- and low-income families to alleviate the financial strain of rising tuition costs.

The University of Pennsylvania recently announced that it will no longer consider home equity when determining a student’s financial aid eligibility. Meanwhile, MIT stated that starting next fall, families earning less than $100,000 annually will be eligible for full tuition coverage. The University of Texas system has also pledged tuition-free education for students from families earning below this threshold.

As tuition fees at many Ivy League and other elite universities approach $100,000 per year, more families are questioning the value of higher education.

Data shows that the number of 18-year-old first-year college students has declined by 5% year-over-year.

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6. U.S. Mortgage Rates Hit Highest Since July

Freddie Mac reported today that the 30-year fixed mortgage rate has climbed to 6.85%, up from 6.72% last week, marking the highest level since early July. Rates have hovered near 7% in recent weeks.

According to Redfin, despite high homebuying costs, pending home sales have increased by 4.1% year-over-year. November saw a rise in new home sales, although housing inventory reached its highest level since late 2007.

Freddie Mac’s chief economist, Sam Khater, noted that while new and existing home sales have improved, overall housing supply remains tight. A strong economy may support the housing market’s performance in the coming year.

Last week, the Federal Reserve cut interest rates by 25 basis points, but this had little effect on mortgage rates.

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7. China’s Finance and Real Estate Workforce Shrinks

Newly released data shows that by the end of 2023, the financial sector workforce had shrunk by 32% over five years to 12.4 million employees. Meanwhile, employment in real estate development dropped 27% to 2.7 million.

The decline in financial sector jobs is attributed to stricter government regulations, significant pay cuts, and reduced business activity.

Developers, facing stricter policies and rising default risks, have also cut jobs. However, the total workforce in the real estate sector increased by 14% over the same period, driven by growth in property management and real estate brokerage jobs.

The number of construction contractors declined by 12% to 51 million workers.

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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.