—— US CPI Rises More Than Forecast in September; US Retirees to Enjoy 2.5% Monthly Payment Jump; NYC Rent Continues to Drop; AMD to Release New AI Chip to Battle Nvidia; Altice Offers 15% Equity to Lenders for Haircut
1. US CPI Rises More Than Forecast in September
Underlying U.S. inflation rose more than expected in September, signaling a pause in the recent progress toward easing price pressures. The core consumer price index (CPI), which excludes food and energy costs, increased by 0.3% from August and by 3.3% on an annual basis, according to data from the Bureau of Labor Statistics (BLS). Additionally, the three-month annualized core inflation rate climbed to 3.1%, the highest since May, based on Bloomberg’s calculations.
Economists often view the core CPI as a more accurate gauge of underlying inflation trends compared to the overall CPI. The broader measure, which includes food and energy, rose by 0.2% from the previous month and by 2.4% year-over-year, marking the slowest annual rate since early 2021, largely due to declining energy prices.
The BLS noted that shelter and food prices together contributed to over 75% of the monthly increase, with goods prices also rising after a year of consistent declines.
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2. US Retirees to Enjoy 2.5% Monthly Payment Jump
Monthly payments for approximately 72.5 million Americans receiving Social Security retirement or disability benefits will rise by 2.5% in 2025, a smaller increase compared to this year, reflecting the ongoing slowdown in inflation. Starting in January, the average Social Security retirement benefit will increase by nearly $50, bringing the monthly total to $1,976, according to the Social Security Administration’s announcement on Thursday.
This cost-of-living adjustment (COLA) will apply to Social Security benefits beginning in January and to Supplemental Security Income (SSI) benefits starting on December 31. The COLA for 2024 was set at 3.2%, following a larger adjustment of 8.7% in 2023, which was the highest in more than three decades, spurred by the inflation surge in 2022.
The annual COLA is based on changes in the consumer price index and is intended to ensure that Social Security beneficiaries’ purchasing power is not diminished by inflation.
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3. NYC Rent Continues to Drop
New York City rents continued to decline in September, but those hoping for substantial relief may need to be patient. In Manhattan, the median rent for new leases dropped 3.4% compared to a year ago, settling at $4,200, according to a report from Douglas Elliman Real Estate and appraiser Miller Samuel Inc. Rents also decreased in Brooklyn and Queens.
Despite the gradual decline in Manhattan rents over four of the past five months, the median rent is still just $200 below the record high reached in the summer of 2023 and remains 20% higher than in September 2019, before the pandemic. While rents typically drop during the autumn and winter months, Jonathan Miller, president of Miller Samuel, anticipates “modest easing” rather than a significant price correction.
The market remains highly competitive, with the number of newly signed leases in Manhattan up 40% from a year earlier, and bidding wars occurring in nearly 20% of those agreements.
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4. AMD to Release New AI Chip to Battle Nvidia
Advanced Micro Devices Inc. (AMD), aiming to close the gap with Nvidia Corp. in the booming artificial intelligence (AI) processor market, announced that its latest chips are being deployed in data centers and are expected to outperform some of Nvidia’s offerings. AMD’s MI325X processors, which will be available soon, boast a performance advantage over Nvidia’s H100 chips, according to AMD CEO Lisa Su. Speaking at an event in San Francisco, Su highlighted that the MI325X’s use of a new memory chip technology will enhance its ability to run AI software, particularly in tasks related to inference.
AMD is working to challenge Nvidia’s dominance in AI accelerators—specialized chips critical for AI system development—and has committed to releasing new accelerators annually, aiming to accelerate its pace of innovation. However, despite these advances, AMD still has significant ground to cover to match Nvidia’s position in the market.
Investors were not particularly impressed with Thursday’s presentation, as AMD’s stock fell by more than 2%, trading at $166.08 by midday in New York.
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5. Altice Offers 15% Equity to Lenders for Haircut
Altice France is considering a proposal to offer secured creditors a stake in the company in exchange for a reduction in their debt holdings, as the struggling telecommunications firm seeks to address its €24.4 billion ($26.7 billion) debt load.
According to sources familiar with the matter, the informal proposal would grant creditors an equity stake of between 10% and 15% in the company in return for forgiving the same portion of their principal debt. Additionally, the plan suggests extending the maturities of the remaining debt and reducing interest rates compared to the current terms.
The proposal, shared with advisers of secured creditors, does not include any new capital from billionaire owner Patrick Drahi, who would retain control of the company.
While the proposal is not a formal offer, Altice France has asked the creditors’ steering committee if they would be willing to sign a non-disclosure agreement to begin negotiations based on this framework, according to the sources.
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6. Record $6.46tn Sitting in US Money Market Funds
A surge of investment into US money-market funds has driven the industry’s total assets to a record high of $6.47 trillion, as investors seek out higher yields amid expectations of Federal Reserve interest-rate cuts.
In the week ending October 9, money-market funds attracted $11 billion, according to data from the Investment Company Institute. This brings the total inflows for 2024 to more than half a trillion dollars, as traders continue to assess the pace at which US borrowing costs may decline.
Despite the Fed’s recent half-point rate cut in September, money-market funds remain attractive due to their superior yields compared to other financial instruments, particularly bank deposits, according to analysts at JPMorgan Chase & Co.
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7. Saudi PIF to Buy 40% Stake of Selfridges
Saudi Arabia’s Public Investment Fund (PIF) is poised to become a minority partner in the luxury department store chain Selfridges after acquiring the stake of the now-bankrupt Signa Group. The PIF will hold a 40% stake in both Selfridges’ properties and its operational businesses, while Thai retail conglomerate Central Group, the current co-owner, will maintain a 60% stake. Both shareholders plan to inject new investments to strengthen Selfridges’ financial standing.
The PIF has signed a binding agreement for the complete buyout of Signa’s interest in Selfridges, although the terms of the deal were not disclosed. This partnership follows the collapse of Central Group’s joint-venture partner Signa, which fell into insolvency due to a sharp rise in interest rates that exacerbated its debt issues.
Turqi Al-Nowaiser, deputy governor and head of international investments at PIF, expressed enthusiasm for the collaboration, stating, “We are pleased to be partnering with Central Group in Selfridges Group, one of Europe’s most iconic luxury department stores. This transaction allows Selfridges Group to further strengthen its position as a premier retail destination.”
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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。