Search

The article highlights a significant reduction in spending by Saudi Arabia's Pro League on foreign soccer players. Topics discussed include the broader spending cutback in Saudi Arabia due to economic strains, the league's efforts to stabilize its roster, and its long-term goals for soccer development and global stature.

SoftBank, a global tech investor, experienced an 11% increase in shares due to higher revenue at its chip-design subsidiary, Arm. This surge in shares is the largest daily jump in nearly two years for SoftBank. SoftBank also reported its first quarterly profit in over a year, earning 950 billion yen ($6.4 billion) in the last three months of 2023. While SoftBank's founder, Masayoshi Son, has faced setbacks in his AI investments, Arm's strong performance is helping to offset those losses. Arm's revenue forecast for the first quarter of 2024 is expected to be at least $850 million, and its shares jumped 60% in response. [Extracted from the article]

René Benko, the founder of Signa Holding, a global real estate company, has experienced a significant downfall as his $30 billion empire of trophy real estate and department stores has collapsed into the largest property bankruptcy in Europe since the global financial crisis. This collapse has the potential to cause substantial losses for lenders and investors and halt the progress of half-built developments in various city centers. Benko's empire included stakes in iconic properties such as the Chrysler Building and upscale British retailer Selfridges. The unraveling of Signa's corporate structure and excessive debt, combined with the end of the low interest rate era, contributed to this downfall. This article discusses the rise and fall of Signa Holding, a real estate empire led by Austrian billionaire René Benko. Signa acquired high-profile properties and expanded its department store empire across Europe, fueled by paper gains and high property valuations. However, as the company faced financial difficulties and the impact of the COVID-19 pandemic, it struggled to sustain its high rents and faced insolvencies and defaults. The empire's future remains uncertain, with stalled development sites and ongoing investigations into alleged government corruption. [Extracted from the article]

Banks in the U.S., Japan, and Switzerland are experiencing losses due to troubled real estate lending. New York Community Bancorp and Tokyo-based Aozora Bank have seen significant drops in their shares after disclosing troubles in their commercial property portfolios. Julius Baer, a private bank in Switzerland, has also announced losses and the resignation of its CEO due to loans it may not recover from an Austrian property landlord. The downturn in commercial property is affecting banks worldwide, particularly smaller regional lenders. The pain in commercial real estate is just beginning, and many banks are facing challenges as loans come due and landlords struggle to find new loans. While investors remain optimistic that most banks have enough reserves to absorb losses, regulators are concerned about the potential for further contagion in the financial sector. The International Monetary Fund has warned of the possibility of falling commercial property prices leading to tighter funding conditions, bank losses, and broader implications for macrofinancial stability. Aozora Bank's situation highlights the impact of elevated borrowing costs, and Julius Baer's troubles add to Switzerland's reputation following the demise of Credit Suisse. Japanese financial firms, including Aozora Bank, have increased investments in U.S. commercial real estate in recent years. Despite the challenges, Julius Baer still made a net profit for 2023 and hopes to recover some of the loan amount. New York Community Bancorp has set aside a significant amount for potential loan losses, largely from commercial property. The bank is also dealing with regulatory demands after acquiring assets [Extracted from the article]

Rashit Makhat, a jujitsu champion from Kazakhstan, received close to $500 million from Sam Bankman-Fried's FTX cryptocurrency empire before it collapsed. Makhat sold most of his stake in a bitcoin-mining enterprise, Genesis Digital Assets, to Bankman-Fried's hedge fund. U.S. prosecutors highlighted this deal as part of Bankman-Fried's "spending spree" of money stolen from FTX customers. FTX's new management is now trying to recover money from recipients of Bankman-Fried's largess, including his parents and a Hollywood agent-turned-venture capitalist. However, retrieving all the customer funds may be challenging as many of the startups that received the money likely spent it on their own operations, and the value of the shares purchased by Bankman-Fried has declined with the decline in crypto prices. [Extracted from the article]

Norway's sovereign-wealth fund, Norges Bank Investment Management, is pursuing legal action against Silicon Valley Bank (SVB), its management, and Wall Street advisers over the collapse of SVB. The lawsuit accuses SVB of concealing its financial health and ignoring warnings about rising interest rates. The suit also names the bank's board, auditor KPMG, and four investment banks, including Goldman Sachs and Bank of America, for failing in their roles as gatekeepers. Investors allegedly lost over $24 billion in market value. Norges Bank Investment Management has taken an active stance in holding companies accountable and aims to ensure the integrity of financial markets. [Extracted from the article]

René Benko, an Austrian-born retail and department-store magnate who co-owns the Chrysler Building in New York, is facing financial difficulties as his main holding company, Signa Holding, files for insolvency in Austria. The property empire, which includes stakes in major department store chains and upscale British retailer Selfridges, has been hit by the global property slump, rising interest rates, and poor performance of Benko's trophy holdings. European regulators are closely monitoring the situation, and banks that have lent to Signa have taken provisions on their loans. Benko's empire grew rapidly over the years, but the retail sector's struggles and mounting debt costs have contributed to the current crisis. [Extracted from the article]

Adam Neumann, the former CEO of WeWork, could potentially benefit financially from the company's bankruptcy. Neumann left WeWork four years ago as a billionaire due to stock sales and an exit package. In 2019, SoftBank committed billions of dollars to bail out WeWork, and Neumann negotiated concessions and payments from the company. One of these concessions was a $430 million loan from SoftBank, which Neumann could potentially walk away from, leaving his shares in WeWork as collateral. Another winner from WeWork's bankruptcy is Rajeev Misra, a part-time SoftBank executive whose investment fund made a profit of about $105 million on a loan to WeWork. SoftBank has lost over $14 billion on its investments in WeWork. [Extracted from the article]

Keywords: leder; wsj-usnews; Real Estate Services/Transactions; Office Real Estate; Commercial/Industrial Real Estate; Real Estate/Construction; Real Estate; North America; United States; Bankruptcy EN leder wsj-usnews Real Estate Services/Transactions Office Real Estate Commercial/Industrial Real Estate Real Estate/Construction Real Estate North America United States Bankruptcy N.PAG N.PAG 1 11/06/23 20231103 NES 231103 Once the country's most-valuable startup, the flexible-workspace company is expected to file for bankruptcy WeWork rode the wave of the venture-capital frenzy, building a global real-estate empire worth more than any other U.S. startup before buckling and laying off thousands when funding ran dry under its turbulent co-founder and former chief executive Adam Neumann. Advertisement Needing more money, WeWork listed publicly through a merger with a special-purpose acquisition company in October 2021, raising $1.3 billion from new big-name backers including real-estate investor Barry Sternlicht's Starwood Capital and top venture-capital firm Insight Partners. WeWork had bet big on subletting entire floors and other larger offices to companies, rather than primarily to smaller firms and individuals that were its first customers. [Extracted from the article]

Despite the ongoing Israel-Hamas war, the Future Investment Initiative conference in Riyadh, Saudi Arabia, proceeded as planned, with high-profile attendees from Wall Street, including JPMorgan, Goldman Sachs, and Blackstone. The conflict in Gaza did not disrupt the event, which focused on topics such as artificial intelligence, planned cities, and economic risks. The presence of these CEOs at the conference demonstrates the influence of Saudi Arabia and Crown Prince Mohammed bin Salman in the finance world. The conference aimed to showcase investment opportunities in Saudi startups and the futuristic city of Neom, which could potentially foster collaboration between Israel and Saudi Arabia. The war in Israel was acknowledged but did not overshadow the discussions at the event. [Extracted from the article]

Big U.S. university endowments are experiencing weak returns due to write-downs in their growth and venture-capital investments, stemming from the bursting of the startup bubble. The Massachusetts Institute of Technology and Duke University reported losses for the fiscal year ending June 30, while Yale and Stanford had modest gains. The overall stock market outperformed these endowments, with the MSCI All Country World Index and the S&P 500 gaining 17.1% and 19.6% respectively. Exposure to China and rising interest rates have also impacted returns. Despite these challenges, large endowments continue to outperform over longer periods due to their diversified investment approach. [Extracted from the article]

Silicon Valley investor Sam Altman's blank-check company, AltC Acquisition, plans to merge with nuclear reactor maker Oklo, a startup that Altman chairs and partly owns. The deal, valued at up to $1.4 billion, has raised concerns about potential conflicts of interest since both companies are backed by the same investor. Altman stands to have a more than 7% stake in the combined company. Oklo, which is years away from generating revenue, plans to deploy its first commercial reactor by 2026. The merger is part of the growing trend of special-purpose acquisition companies (SPACs) taking companies public. [Extracted from the article]

First Republic, based in San Francisco, was a big bank with a small-town feel, the ultimate relationship bank. Customers taking out home equity and other lines of credit were encouraged to park those funds in First Republic deposit accounts, according to former First Republic employees. On March 16, a group of large banks agreed to deposit $30 billion in First Republic, a move designed to turn First Republic into a firewall. "I'm willing to bet everybody at the bank has met and had a chat with Jim at some point", said John Rosanelli, who ran First Republic's business serving hedge-fund customers until May 2022. [Extracted from the article]

For instance, the publicly traded shares held by SoftBank's flagship Vision Fund are down 37% from SoftBank's initial investment - a loss of $11.5 billion. Keywords: wsjfinance-eur; Telecommunication Services; Wireless Telecommunications Services; Mobile Telecommunications; Legal Services; Business/Consumer Services; Financial Performance; Earnings; Corporate/Industrial News; Content Types EN wsjfinance-eur Telecommunication Services Wireless Telecommunications Services Mobile Telecommunications Legal Services Business/Consumer Services Financial Performance Earnings Corporate/Industrial News Content Types N.PAG N.PAG 1 02/09/23 20230208 NES 230208 Tech investment company has shifted to defensive strategy Graph: Masayoshi Son, chief executive of SoftBank Group, in 2020; Tuesday marked the first quarterly earnings presentation in years that Mr. Son didn't attend. [Extracted from the article]

The shift away from the Chinese internet giant leaves SoftBank increasingly reliant on the Vision Fund, where losses continue to deepen. [Extracted from the article]

Charts with flying unicorns and geese laying golden eggs are set to be replaced with a more sedate performance amid a plunge in tech valuations. [Extracted from the article]

Despite massive losses, Japanese billionaire Masayoshi Son has tried to chart a new path for the tech investment giant. [Extracted from the article]