—— Luxury Crash Hurts LVMH and Hermes Alike; Dollar Drops amid a More Possible Kamala Win; Age of Typical US Homebuyers Hit Record High; Amazon Partners with Mexico Delivery Startup; Apollo to Double Asia-Pacific Wealth Management Team; Palantir Profit Hits Record Amid Strong Demand; Tesla China Sales Drop Sharply in October
1. Luxury Crash Hurts LVMH and Hermes Alike
When LVMH CEO Bernard Arnault toured China in June last year, he visited a five-story Beijing site designated as the upcoming flagship store for Louis Vuitton, set to open in early 2024.
However, over a year later, the building remains behind construction barriers, with the store potentially delayed until next year, insiders report. The slow progress of this high-profile project underscores the challenges European luxury brands like LVMH face in China. Hopes for a post-Covid demand surge have instead been met with a downturn, contributing to a $251 billion decline in these brands’ stock market value since March.
Signs of a prolonged slump are evident. Salespeople at Hermès have reportedly eased the spending thresholds required to buy iconic items like Birkin bags—an unusual move.
Meanwhile, companies like Kering and Burberry are offering discounts of up to 50% to clear unsold stock.
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2. Dollar Drops amid a More Possible Kamala Win
Recent shifts in the U.S. presidential race have impacted financial markets:
- U.S. Dollar and Treasury Yields: The U.S. Dollar Index dropped by 0.6%, marking its steepest decline in six weeks, while 10-year Treasury yields fell by 10 basis points to 4.28%.
- Mexican Peso: The peso strengthened, ranking among the top-performing major currencies.
- Equity Futures: Futures for the S&P 500 and Nasdaq 100 moved up slightly, signaling a potential positive opening for U.S. markets.
- Nvidia and Intel: Nvidia shares rose by 1.9% following news of its replacement of Intel in the Dow Jones Industrial Average, leading to a 1.3% dip in Intel shares.
These market responses highlight investor reactions to the latest polling data and corporate announcements.
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3. Age of Typical US Homebuyers Hit Record High
The age of a typical homebuyer jumped to an all-time high of 56 in the US, with many young people locked out of the housing market while older owners tap their accumulated home equity for cash purchases or to make large down payments, according to a report.
The share of first-time home buyers shrunk to 24%, the lowest in data going back to 1981, according the National Association of Realtors’ 2024 Profile of Home Buyers and Sellers. The median age of a first-time buyer also reached a record of 38 — about a decade older than in the 1980s.
High prices and borrowing costs have created a bifurcated housing market, in which an increasing share of sales come from repeat buyers and richer households. In just two years, the median income of a first-time buyer has increased by $26,000 to $97,000.
The NAR report, tracking transactions between July 2023 and June 2024, also shows a big jump in the share of single-women first-time buyers from a year earlier.
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4. Amazon Partners with Mexico Delivery Startup
Mexican online grocer Jüsto has partnered with Amazon to offer its grocery delivery services through Amazon’s platform in Mexico. Customers can now purchase a range of items, including fresh produce, meat, and fish, directly from Jüsto via Amazon’s website, with Jüsto managing the deliveries.
This collaboration allows Amazon to expand its selection of fresh products and supermarket staples for Mexican shoppers, while providing Jüsto with increased online visibility. Jüsto’s founder and CEO, Ricardo Weder, highlighted that the partnership aligns with Amazon’s strategy to expedite order deliveries, thereby enhancing sales of everyday essentials typically purchased from local stores.
In October 2024, Jüsto secured $70 million in equity and debt financing, led by General Atlantic, to support its growth and operational efficiency.
The company also counts Femsa Ventures and Grupo Bimbo SAB among its investors.
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5. Apollo to Double Asia-Pacific Wealth Management Team
Apollo Global Management Inc. plans to double its private wealth headcount in the Asia-Pacific region over the next two to three years, focusing on hiring in Japan, Korea, and Australia, while also expanding teams in Singapore and Hong Kong.
This initiative aligns with a broader industry trend where alternative asset managers, including Blackstone Inc. and KKR & Co., are increasingly targeting wealthy individuals as a capital source, especially as institutional funding from pension funds slows.
Notably, Capital Group and KKR are collaborating to launch two funds in the first half of next year, aimed at affluent investors and investing across public and private debt markets.
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6. Palantir Profit Hits Record Amid Strong Demand
Palantir Technologies Inc. reported quarterly earnings that exceeded analyst predictions and upgraded its operating income forecast due to strong U.S. demand for its artificial intelligence software.
The company’s shares surged about 15% in after-hours trading following the announcement.
For the third quarter, Palantir posted a revenue increase of 30% to $725.5 million, surpassing the average analyst estimate of $703.7 million, as compiled by Bloomberg. The company also recorded a net income of $144 million, marking its highest ever.
Palantir’s CEO, Alex Karp, attributed the robust financial performance to “an unwavering demand” from both government and commercial clients in the U.S.
In a letter to shareholders, Karp emphasized, “The world is in the midst of a US-driven AI revolution that is reshaping industries and economies, and we are at the center of it.”
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7. Tesla China Sales Drop Sharply in October
Tesla Inc.’s Shanghai factory deliveries slipped in October, the unexpected softness coming after a record quarter for China shipments at Elon Musk’s carmaker.
The US electric vehicle maker shipped 68,280 Model 3 sedans and Model Y sport utility vehicles last month, down 5.3% year-on-year and a sharp 23% contraction from September, preliminary data released Monday by the China Passenger Car Association show.
Tesla’s October performance in China — a crucial market for the company — may deal a blow to its guidance of delivering a record number of EVs this year.
The sales slip is a rare outlier considering peers like BYD Co., Xpeng Inc. and Geely Automotive Holdings Ltd. all posted record sales in Asia’s biggest automobile market last month.
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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。