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Buyers Snap Up Aging and Empty Office Buildings for Deep Discounts

A perfect storm of plunging property values for aging buildings, weak tenant demand coming out of the pandemic and high interest rates for new loans and refinancing has left the $2.4 trillion office building sector wobbling.

For some real estate investors, that may be a good thing.

Several big office buildings nationwide — including in Manhattan — have recently sold at steep discounts of as much as 70 percent to opportunistic buyers, who are gambling that they will score big profits when prices eventually rebound.

In April, a little-known firm, Yellowstone Real Estate Investments, paid $185 million for 1740 Broadway, a storied office tower near Columbus Circle in Manhattan. The investment giant Blackstone had paid $600 million for the building a decade earlier. And this week, two real estate firms snapped up a Midtown Manhattan tower for less than $50 million, according to Bloomberg.

Even though these are relatively small buyers, their emergence is a sign of the pain building in the U.S. commercial real estate market. Distressed deal-making is one of the more visible illustrations of trouble brewing in the sector that could lead to large losses for hundreds of banks and investors in real-estate-backed loans.

Isaac Hera, the chief executive of Yellowstone, said his firm was making deals based on calculations that “our current investments will not be adversely affected if office prices continue to drop.” Mr. Hera added, “We never try to time the markets.”

Some industry analysts have cautioned that the bargain hunting is the tip of the iceberg, more a sign of quick deal-making than an indication that prices of office buildings have hit rock bottom — especially ones built decades ago.

“Office vacancies are going to heights we have never seen before,” said Chad Littell, national director of U.S. capital markets analytics at CoStar, a commercial real estate data and research firm. “As vacancies are rising, it’s difficult to get debt for buying or developing an office.”

CoStar is predicting that 2024 and 2025 will be the two worst years on record for office buildings in terms of the amount of floor space that tenants are giving back or vacating across the country.

The full extent of problems might not be evident until much later, given the complex dynamics and competing incentives of players in the market — from lenders and tenants to buyers and sellers.

The troubles in the office sector began with the pandemic, which ushered in a lasting shift to remote work. Employers have since had to adjust to not having their workers in the office five days a week, leading many to downsize their office space. That has hit building owners, who depend on regular rents to pay off their mortgages.

Rising interest rates have made things only more difficult, with many owners reluctant to renegotiate financing deals or unable to afford new mortgages — especially if landlords don’t have enough rent-paying tenants. Some building owners have threatened to default on mortgages and walk away from their properties.

At the same time, lenders and investors in bonds backed by commercial real estate loans are trying to stave off foreclosures of buildings and having to incur big losses through distressed sales. Instead, many have given property owners more time, hoping they can recruit new tenants and restart mortgage payments. That strategy is keeping a lid on the number of distressed buildings currently up for sale. But at some point, foreclosures and distressed sales become inevitable, and that is happening in New York, Chicago and Los Angeles.

So far this year, 16 office buildings with mortgages that were packaged into commercial real estate bonds were foreclosed on or extinguished — resulting in $500 million in losses for investors nationally, according to Trepp, a data and research firm. Last year, 26 mortgages packaged into bonds were foreclosed on or extinguished, resulting in $265 million in losses for investors.

The dollar value of those losses is small given that about $171 billion worth of office building mortgages has been packaged into bonds. But Trepp has placed more than a quarter of those loans on a watch list for potential problems — meaning more distressed sales could be in the offing.

Most bargain hunters are paying all cash for office buildings because lenders are more focused on shedding portfolios of troubled loans and less open to taking on new debt, industry experts said. Those buyers are often content to wait for interest rates to come down before locking themselves into the customary 10-year loan for financing an office building transaction.

Mr. Hera of Yellowstone said he preferred cash-buying when dealing with distressed sellers because deals closed quicker. He added that his firm, which relies on money from pension funds and wealthy investors, had “hundreds of millions of dollars” to buy other properties or loans.

Yellowstone bought 1740 Broadway, a largely vacant building, with plans to potentially convert some floors to apartments, Mr. Hera said. A Blackstone fund had paid $600 million in 2014 for the historic building, once occupied by the Mutual Life Insurance Company of New York and nicknamed the “MONY” building.

The Blackstone purchase was partly financed by a $308 million mortgage from Deutsche Bank, which was later rolled into a commercial real estate bond that was sold to investors. Blackstone said that it had written off its stake in the building three years ago, around the time big tenants began to leave during the pandemic, and that the effects on its investors were limited. Some investors in the bond backing 1740 Broadway also suffered losses because the $185 million that Yellowstone paid was well below the value of the mortgage.

TPG and its business partner, GFP Real Estate, also plan to convert the largely empty 27-story building that they acquired at 222 Broadway for $147.5 million into apartments, a person briefed on the matter said. GFP is part of an ownership group that also plans to convert the historic Flatiron building in Manhattan to apartments.

Many in the real estate business see converting office buildings into apartments as a way to deal with the need for more housing in cities and the decreased demand for office space. But conversions are costly, and not all buildings are easy to retrofit.

Both Yellowstone and TPG picked up the two buildings on Broadway at a price that was roughly a 70 percent discount to what those buildings were last sold for about a decade ago.

Robert Sarver, a real estate developer and former owner of the National Basketball Association’s Phoenix Suns, is using some of his personal fortune to invest in office buildings. Mr. Sarver’s family money backs a Phoenix-based investment firm, 3Edgewood, which last year acquired office properties in Dallas and Houston in all-cash deals.

Mr. Sarver sold the Suns and a professional women’s basketball team two years ago after an investigation by the N.B.A. into allegations of mistreating employees and having used racial slurs. He reportedly sold the two teams for $4 billion. Mr. Sarver declined to discuss the deal.

In October, Mr. Sarver’s firm paid about $580 million in cash for a relatively new office and retail complex in suburban Dallas. Seven years earlier, the complex sold for more than $733 million, according to CoStar data.

Timothy Sloan, a former chief executive of Wells Fargo and vice chairman of the investment firm Fortress, said it was too early for most institutional investors to start buying office buildings — even at distressed prices.

“You could see wealthy people buying empty office buildings,” Mr. Sloan said. “But they can afford to take the long view where an investment fund can’t.”

Another thing holding back distressed buying is that so many aging properties need big capital investments to provide the kind of amenities that tenants are looking for or to pay to convert those buildings to residential apartments.

Jeffrey Kaplan, a founder of Meadow Partners, a $6.2 billion real estate manager, said it was hard to get too excited about buying an older office building that did not have the amenities of a newly constructed one — even at a distressed price.

“Some of these buildings, I just don’t know what happens,” Mr. Kaplan said. “It’s not feasible to convert all these ‘meh’ office buildings into residential. It’s still too expensive in a lot of cases.”

Susan C. Beachy contributed research.

#Buyers #Snap #Aging #Empty #Office #Buildings #Deep #Discounts

Royal Ascot: Aidan O'Brien 2024 stable tour features old favourites Kyprios, Auguste Rodin & Continuous

Aidan O’Brien, the 12-time top trainer at Royal Ascot, has saddled a record 85 winners at the big meeting and is set for more glory in Berkshire in 2024.

Since being appointed as the trainer in the historic Ballydoyle complex in 1996 at the age of just 26, he has broken every record worth breaking and won every race worth winning in Europe and beyond.

Royal Ascot has always been a focus point for O’Brien, and it is a meeting that he has enjoyed a great amount of success at.

Indeed, he overtook Sir Michael Stoute as the most successful trainer in the long history of the meeting last year with his record now standing at 85 winners. As well as that, O’Brien has been crowned the leading trainer at the meeting on no less than 12 occasions.

Aidan sat down with Kevin Blake of attheraces.com to discuss those that can give him more glory at Royal Ascot in 2024.

Auguste Rodin

He’s in great order and he has been trained for the Prince Of Wales’s Stakes. We were happy with his run in the Tattersalls Gold Cup. The hope going into it was that he’d win, but the rain sent the ground in a direction that wasn’t ideal for him. He also just had a little wobble when he got pushed out on the home turn which interrupted his rhythm for a few strides. Even though he was beaten, the run was always going to bring him on. Royal Ascot has been a big part of the plan with him, and we couldn’t be happier with where he is at the minute. We wouldn’t want rain for him and would much prefer faster ground.

Image:
Ryan Moore and Auguste Rodin in action

Continuous

The plan is for him to run in the Hardwicke Stakes. We are happy to send him there without a run as we didn’t feel there was a suitable lead-in race for him. He’s been away for two works, and he seems in good form. He ran great the last time we saw him on the track in the Prix de l’Arc de Triomphe. We thought afterwards that maybe we rode him too quietly and that he would have run better with a more positive ride. We think there’s more to come from him and hopefully he can make a strong start to his season at Royal Ascot.

Kyprios

He is bang on target for the Gold Cup. He has hit every marker we’ve set for him this season and it has all gone very smoothly. He’s never likely to be the type to stretch away and after what happened in France, where he veered left after hitting the front, we are never in a rush to deliver him to the front. We would always ideally like to get him a lead for as long as possible. After all the difficulties he faced last season, we are excited to see him back in the Gold Cup.

Diego Velazquez

It isn’t locked in yet, but at the minute it looks like he could go for the Hampton Court Stakes on the Thursday. We are inclined to forgive his run in the Prix du Jockey Club last time. He had a wide draw and Ryan wasn’t happy with the slot he ended up in from out there in what was a messy race. We think he’ll leave that run behind him and the Hampton Court looks a nice spot for him.

Diego Velazquez and Ryan Moore win for trainer Aidan O'Brien
Image:
Diego Velazquez and Ryan Moore win for trainer Aidan O’Brien

Henry Longfellow

Henry Longfellow will go for the St James’s Palace Stakes. His last run in the Poule d’Essai des Poulains was a bit of a mess. He got trapped back in the field in a slowly-run race and every time he tried to come out someone cut the head off him. It was a bit of a non-event, but he didn’t have a hard race as a result, and he seems to have come forward from it. We think he’ll perform an awful lot better at Royal Ascot. If the rain comes, that’ll be fine for him.

Opera Singer

We’re really looking forward to seeing her in the Coronation Stakes. She had a hold-up earlier this year and we felt we had to run her in the Irish 1,000 Guineas if she was going to make it to Royal Ascot. She hadn’t been away for a work and really, we didn’t expect her to run as well as she did at the Curragh as we didn’t think she had nearly enough work done. It says plenty about how much class and ability she has that she ran so well. She looks to have come forward at home just as we hoped she would since then and she’s one to look forward to.

River Tiber

The plan is to run him in the Jersey Stakes. He ran very well in the Irish 2,000 Guineas and in fairness, you couldn’t say he didn’t get the mile, but he does show a lot of pace and we feel the Jersey Stakes is a nice spot for him. We’ll learn more about him there, but it wouldn’t be at all out of the question that he could go back up to a mile after the Jersey. We’ll be guided by what we see from him there. He’s a horse we’ve always held in high regard and we’ll looking forward to him.

Ryan Moore looks across to see River Tiber has just edged out Army Ethos in the Coventry
Image:
Moore looks across to see River Tiber has just edged out Army Ethos in the Coventry

Two-year-olds…

Bedtime Story – The plan is to run her in the Chesham Stakes. We were delighted with her performance at Leopardstown. We didn’t really set out to try and force any of these two-year-olds into getting to the Chesham, we just let it happen if it happened. She put her hand up for the job at Leopardstown and looked a classy filly.

Camille Pissarro – The plan is for him to run in the Coventry Stakes. We have thought for quite some time that he is a Coventry horse. He works like a very good horse. He was just green in the Marble Hill last time. Ryan felt he was very babyish and would come forward a good bit again. We’re looking forward to him.

Celtic Chieftain – I’d say he’s likely to run in the Windsor Castle Stakes. He was ready to run early, but he had a little hold-up that delayed him. We were delighted with what he did at Navan, and it was great to see him beat a horse in Red Evolution that had such a good run under his belt. He was plenty green when he hit the front. He should sharpen up and come on plenty from that.

Easy Mover – I don’t think she’ll run as it might come a little bit soon for her after only winning on Friday. If she was going to run, it would be the Albany Stakes, but I’d say more than likely she’ll wait for the Airlie Stud Stakes at the Curragh at the end of the month.

Fairy Godmother – She’ll go for the Albany Stakes. She has always worked like a really good filly. We couldn’t see her being beaten on her debut at Naas, but when she got there to challenge, she started looking all over the place and was beaten. So, for her second start we set out with the intention of riding her much quieter and teaching her as much as we could. She quickened up really well from off the pace to win narrowly and for us she could be rated a fair bit better than the bare form. She seems to have come forward again and is a really lovely prospect.

Heavens Gate – We’re aiming her at the Queen Mary Stakes. It’s a possibility that she might find that test a little bit sharp for her, but we have to split them up and we hope she might get away with it as she had good pace. I could see her running over seven furlongs later in the season.

Treasure Isle – He’s one for the Windsor Castle Stakes. He knuckled down well when winning at Naas last time and we think he’s come forward from that. He has plenty of pace and should enjoy Ascot.

Treasure Isle and Ryan Moore win for trainer Aidan O'Brien from Saratoga Special
Image:
Treasure Isle and Ryan Moore win for trainer Aidan O’Brien from Saratoga Special

Tunbridge Wells – He’s another one that isn’t a certain runner at Royal Ascot. If he goes, it’ll be in the Coventry Stakes. If he doesn’t go, he’ll be one for the Railway Stakes. He galloped through the line very well at the Curragh and looks a nice prospect.

Whistlejacket – He’s the one for the Norfolk Stakes. We thought he couldn’t be beaten on his debut, and he ran great, but he bumped into what looked a really good horse in Cowardofthecounty. He had no problem dropping back in trip for the First Flier Stakes and was impressive there. The form has worked out well since then. His full-brother Little Big Bear was beaten on debut and went on to win the Windsor Castle Stakes at Royal Ascot and we think this fella will go there with a big chance.

#Royal #Ascot #Aidan #O039Brien #stable #tour #features #favourites #Kyprios #Auguste #Rodin #Continuous

Hunter Biden verdict: Biden vows to respect jury's decision – BBC News

Image source, Getty Images

  • Author, Bernd Debusmann Jr
  • Role, BBC News, in court in Delaware

US President Joe Biden has said he will respect a jury’s decision to find his son guilty of gun crimes, after a week-long trial that laid bare a tumultuous time for the family.

The 12-person jury found Hunter Biden, 54, guilty of lying about his drug use on a form while purchasing a handgun in 2018. He faces possible jail time following the verdict, which marked the first criminal prosecution of a sitting president’s child.

His conviction on all three felony counts comes as President Biden campaigns for re-election in November, and less than two weeks after his election rival Donald Trump was himself convicted of a crime in New York.

While President Biden did not attend the trial in Delaware, many family members including First Lady Jill Biden did so regularly. Hunter Biden’s wife, sister and uncle were all present at times to support him during proceedings.

President Biden flew to Wilmington, Delaware, after the verdict where he greeted and hugged his son on the tarmac.

“I am the president, but I am also a dad. Jill and I love our son, and we are so proud of the man he is today,” he said in a statement. Mr Biden added that he would “accept the outcome of this case and… continue to respect the judicial process as Hunter considers an appeal”.

President Biden earlier ruled out pardoning his son, whose trial aired embarrassing details as prosecutors sought to show he was using crack cocaine at the time he bought the gun.

Jurors heard from his ex-wife, Kathleen Buhle, and a former girlfriend, Zoe Kestan, who described frequent drug binges that took a toll on his friends and family. Text messages detailing his addiction and photographs, some showing a half-naked Hunter Biden, were also shown to the court.

The verdict on Tuesday prompted instant political reaction, including from Republicans in Congress who have spent years investigating Hunter Biden’s behaviour and business ties.

James Comer, the Republican chair of the House oversight committee, said it marked a “step toward accountability”, but added that “everyone involved” in what he called the “Bidens’ corrupt influence peddling schemes” should be investigated.

A statement from the Trump campaign, meanwhile, said the trial had “been nothing more than a distraction from the real crimes of the Biden Crime Family”. The former president has often used that description of the family on the campaign trail, referring to allegations of improper conduct made against the president and his son by Republicans.

Democrats in Congress accused their Republican colleagues of hypocrisy, and praised the US justice system.

“Compare and contrast the difference in reaction between the Republicans and the Democrats,” Maryland Democrat Jamie Raskin said in a hearing.

Referring to Trump’s criminal conviction, he said: “The Republicans are attacking our entire system of justice and the rule of law because they don’t like the way one case came out, whereas the son of the president of the United States is prosecuted and I don’t hear a single Democrat crying foul.”

Video caption, BBC reporter describes Hunter Biden’s reaction in court as verdict is read

“Out of all the jurors, nobody mentioned anything about political motivations,” he added.

Aides to President Biden have told US news outlets that the trial and verdict have taken an emotional toll on Mr Biden, who has been closely watching the case.

Politico reported that Mr Biden had been “consumed with the trial for weeks” and asked family members for updates while he was on a trip to France for D-Day anniversary events.

The outlet also said Mr Biden has at times felt guilty about the spotlight that has been placed on his son, and believes his political career has contributed to his son’s legal problems.

According to the Washington Post, the president’s advisers have often been reluctant to speak to him about his son and some have tried to limit Hunter Biden’s public appearances.

Hunter Biden will be sentenced at some point in the next 120 days, but the judge overseeing the case has not set a date for the hearing. He faces up to 25 years in prison, but legal experts say it is highly unlikely the eventual sentence will be close to that given he is a first time, non-violent offender.

His legal issues are set to continue throughout the year, and throughout his father’s election campaign. In September, he will face trial in California on charges of failing to pay $1.4m (£1.1m) in income taxes.

If convicted in that case, Hunter Biden could face up to 17 years in prison.

Video caption, New Yorkers react to Hunter Biden’s guilty verdict

#Hunter #Biden #verdict #Biden #vows #respect #juryx27s #decision #BBC #News

Netflix users point out same problem with Glen Powell in Hit Man

Netflix users are pointing out a light-hearted discrepancy with its latest chart-topping new film Hit Man.

After a limited release in cinemas, the new project from School of Rock and Boyhood director Richard Linklater arrived on the streaming service on Friday (7 June).

The film has won acclaim from viewers, with many hailing one particular scene as a future classic as well as the chemistry of its lead stars Glen Powell and Adria Arjona.

Linklater’s comedy tells the “somewhat true story” of an undercover police contractor named Gary Johnson (Powell) who unexpectedly discovers he can pose as a reliable hitman to bring down those enlisting his “services”.

In the film, Gary, who is a professor of psychology and philosophy at the University of New Orleans, is depicted as a nerdy bird watching-enthusiast with a “forgettable face”, which makes his transition into the hitmen he plays, including the suave Ron, more impressive.

One moment sees Gary’s evolution noticed by his students, with one asking: “Excuse me, when did our professor get hot?”

Despite loving Powell’s performance in the film, some viewers were left unconvinced by his casting, believing him to be too charismatic to pull off someone being considered uncool.

“Just started Hit Man and I already have a problem with this movie. There’s no way they want me to think that Glen Powell isn’t a Cool Guy,” one viewer wrote, with another adding: “Hit Man is a good film but they’re not fooling anyone with the idea that clearly very good-looking Glen Powell is regarded as a dorky loser by his students (wow, you gave him a pair of glasses, he still looks like Glen Powell!)”

One additional user stated: “The most unrealistic part of Hit Man is when someone comments that Glen Powell has a forgettable face,” while another posted on X/Twitter: “HIT MAN is a pleasant enough time passer but it never really works because you buy Powell as a suave hitman but not as a nerd pretending to be a suave hitman.”

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Glen Powell in ‘Hit Man’
Glen Powell in ‘Hit Man’ (Netflix)

Another wrote: “Glen Powell is so wonderfully miscast in Hit Man. He is just way too hot for the role.”

Meanwhile, the scene in which the students “realise their professor is hot” was branded “the dumbest moment” by another viewer.

Powell’s role in Hit Man follows an appearance in 2016 Linklater film Everybody Wants Some!! and 2022 blockbuster Top Gun: Maverick alongside Tom Cruise. He will next star in action disaster film Twisters. The actor co-wrote Hit Man alongside Linklater.

#Netflix #users #point #problem #Glen #Powell #Hit #Man

Simon Cowell gets candid about ‘biggest regret’ from working with One Direction

Simon Cowell gets candid about One Direction reunion

Simon Cowell recently opened up about his biggest regret from working with One Direction.

Speaking exclusively to Steven Bartlett on The Diary of a CEO podcast on Monday, June 10 about his search for the latest boy band, the 64-year-old shared his thoughts about the band’s future.

He said: “If one band member says for whatever reason that they don’t want to tour, it can stop the others from touring.”

Sharing his regret over not owning the name himself, Cowell added that if he owned the brand, “you could do a tour with three of them” rather than making all the original members come back.

“If you’re listening, I’ll buy it back from you,” the Britain Got Talent judge quipped.

However, when asked about the brand’s revival nearly a decade into hiatus, Cowell simply said, “I doubt it.”

Although remaining members of the band, including Harry Styles, Louis Tomlinson, Niall Horan, and Liam Payne have expressed interest in a potential reunion, no official statement has been released to support the claim.

In addition, Cowell reflected on the band’s early days, realizing that the members had star power.

Reminiscing about a time from when One Direction was on a beach in Spain and “everyone [was] looking at them.”

He quipped: “It’s unbelievable. Everyone is looking at these five boys as if they’re already stars.”   

#Simon #Cowell #candid #biggest #regret #working #Direction

Why Bachelor's Joey Graziadei & Kelsey Anderson Have Been Living With 2 Roommates Since Show Ended – E! Online

“I do think people forget that, in my situation, moving to my sister’s was strategic,” he noted. “So, I was like, ‘I need to either go find a new place, or I have to get into a place that’s gonna let me be able to travel pretty easily on the mainland.'”

And despite being literally the odd man out in the household, Joey said it was a “no-brainer” to adapt and move in with Kelsey instead of trying to find a place of their own.

“It would have been wrong of me to be like, ‘We need to get you out of your life,'” he shared, “because she dropped her whole life to be a part of this. And I knew that regardless of what was going to happen, my life was going to have to change and go somewhere else.”

#Bachelorx27s #Joey #Graziadei #Kelsey #Anderson #Living #Roommates #Show #Ended #Online

Utd’s Shaw regrets playing in game he was injured

Manchester United defender Luke Shaw has said he should not have played in their game against Luton Town in February when he injured his hamstring, as he races the clock to be fit for England‘s opening game of the European Championship against Serbia on June 16.

England manager Gareth Southgate said earlier this week he was taking a “gamble” in selecting Shaw for his squad.

The 28-year-old, who has been at United for a decade, said he was disappointed when fans questioned his commitment to the club following his selection for the England squad after playing just 15 games for United last season.

“If the manager asks me to play, I’m never going to say ‘no.’ But I shouldn’t have played [at Luton],” Shaw said. “It’s kind of everyone’s fault. Partly my fault, partly the [United] medical staff.

“I came back too quickly and I actually ended up getting another injury in my hamstring … I did push to do everything I can to be fit for United.”

Asked if he will play against Serbia in Group C on June 16, Shaw said: “That’s not really down to me. We just go day by day, see how I’m feeling in training.

“I would love to make the first game, but I don’t want to rush too quickly because realistically I’ve only got one chance. If I feel something, then that’s it. I don’t want that to happen.”

Shaw added that England’s 1-0 loss against Iceland in their last Euros warm-up game on Friday could possibly be a blessing for the team in disguise. “This could have been the best thing to happen to us,” he said.

“It made us realise that going to Germany is not going to be an easy ride. It’s going to need a lot of determination from the team to do that.”

#Utds #Shaw #regrets #playing #game #injured

Stock futures slip as traders look ahead to Fed decision, inflation data: Live updates

34 Mins Ago

Nvidia shares slide to start the week

Nvidia slipped 0.4% Monday, the first day for the stock reflecting a 10-for-1 split. Shares have been on fire this year, surging more than 144%.

— Fred Imbert

36 Mins Ago

European stocks under pressure

European stocks were under pressure Monday as concerns grew over right-leaning politicians gaining traction in the region.

The Stoxx 600 index, which includes a broad swath of European stocks, fell 0.8%. France’s CAC 40 dropped 2.2% after French President Emmanuel Macron called snap parliamentary elections to be held later this month following a big loss in initial EU Parliament election results.

Germany’s Dax index lost nearly 1%.

— Fred Imbert

11 Hours Ago

May inflation data set to release this week

Investors are looking ahead to May’s consumer price index that’s set to release Wednesday.

Economists polled by Dow Jones anticipate a rise of 3.4% from the year-ago period, and a 0.1% increase on a monthly basis. That’s compared to increases of 3.4% and 0.3%, respectively, in the prior reading.

Core CPI, which excludes volatile food and energy prices, is expected to show an increase of 3.5% year over year, and a 0.3% gain on the month. Previously, it gained 3.6% and 0.3%, respectively.

— Sarah Min

12 Hours Ago

Stock futures open flat

Stock futures opened little changed Sunday night.

Dow Jones Industrial Average futures rose by 13 points. S&P 500 futures and Nasdaq 100 futures were flat.

— Sarah Min

#Stock #futures #slip #traders #ahead #Fed #decision #inflation #data #Live #updates

Frontier hackers threaten to release private data for at least 750,000 customers

Frontier Communications has revealed that information for over 750,000 customers — including full names and Social Security numbers — was exposed in a data breach following a cyberattack on April 14th. Hackers claim to have even more and will release it unless Frontier pays a ransom.

The attack enabled hackers to access 751,895 customers’ personal data on Frontier’s systems according to a sample of the notice Frontier submitted to the Office of the Maine Attorney General. Frontier has notified impacted customers and provided them with one year of free credit monitoring and identity theft services, but says it “does not believe” customer financial information was exposed in the breach.

Bleeping Computer reports that the RansomHub extortion group claimed responsibility for the attack on June 4th and is threatening to leak the 5GB of customer data it allegedly stole unless Frontier responds to their demands by June 14th. The group claims the stolen dataset contains information belonging to two million Frontier customers, including their full name, physical address, date of birth, social security number, email address, credit score, and phone number.

Frontier says it’s bolstered its network security following the attack and notified both regulatory authorities and law enforcement. A securities filing reveals that the company was forced to shut down some of its systems to contain the incident.

#Frontier #hackers #threaten #release #private #data #customers

Fallout From European Election Hits Euro, Stocks: Markets Wrap

(Bloomberg) — The euro fell to its lowest in a month after French President Emmanuel Macron called a legislative vote in the wake of suffering a crushing defeat in the European Parliament elections.

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The common currency dropped 0.4%, retreating alongside European equities and French bonds. BNP Paribas SA and Societe Generale SA tumbled more than 6% as banks led losses among stocks in Paris.

Gains for the French far-right in the vote for European lawmakers prompted Macron to gamble on a snap election to halt the rise of his rival, Marine Le Pen. While German Chancellor Olaf Scholz also suffered humiliating losses, centrists parties across the bloc mostly held their ground.

For the currency, the risk from Sunday’s results is that the European “far-right swing becomes embedded in higher positions of power,” said Simon Harvey, head of FX analysis at Monex Europe. The weakness “is likely to remain durable as long as the national polls support a consolidation in Le Pen’s support.”

The euro entered the weak already on the back foot after suffering its biggest loss in almost two months on Friday as stronger-than-expected US jobs figures lifted the dollar. Focus will now turn toward Federal Reserve policymakers updating their rates forecast on Wednesday after last week’s data tempered optimism about the extent of policy easing this year.

“A hawkish Fed outcome this Wednesday could prove harder to shake off” for the euro than the European elections, Ipek Ozkardeskaya, an analyst at Swissquote Bank, said in a note on Monday.

Meanwhile, the dollar strengthened against a basket of currencies while US equity futures contracts edged lower. Southwest Airlines Co. rose as much as 5.5% in premarket trading after the Wall Street Journal reported that Elliott Investment Management has built a an almost $2 billion stake in the US carrier.

The yield on 10-year Treasuries advanced for a third day.

MSCI’s Asia-Pacific stock index was little changed, while traders were also focused on India as Prime Minister Narendra Modi is set to outline portfolios for his cabinet later Monday.

Some key events this week:

  • UK jobless claims, unemployment, Tuesday

  • China CPI, PPI Wednesday

  • Thailand rate decision, Wednesday

  • India CPI, industrial production, Wednesday

  • UK monthly GDP, Wednesday

  • US mortgage applications, CPI, Wednesday

  • FOMC decision, quarterly summary of economic projections, Fed Chair Jerome Powell’s press conference, Wednesday

  • Australia unemployment, Thursday

  • Eurozone industrial production, Thursday

  • US jobless claims, PPI, Thursday

  • New York Fed’s John Williams moderates discussion with US Treasury Secretary Janet Yellen, Thursday

  • Tesla annual meeting, Thursday

  • Japan rate decision, Friday

  • U. of Michigan consumer sentiment, Friday

  • Chicago Fed’s Austan Goolsbee, Fed Governor Lisa Cook, Friday

Some of the main moves in markets:

Stocks

  • The Stoxx Europe 600 fell 0.7% as of 10:17 a.m. London time

  • S&P 500 futures fell 0.2%

  • Nasdaq 100 futures fell 0.2%

  • Futures on the Dow Jones Industrial Average fell 0.3%

  • The MSCI Asia Pacific Index was little changed

  • The MSCI Emerging Markets Index fell 0.4%

Currencies

  • The Bloomberg Dollar Spot Index rose 0.2%

  • The euro fell 0.4% to $1.0758

  • The Japanese yen was little changed at 156.80 per dollar

  • The offshore yuan was little changed at 7.2654 per dollar

  • The British pound was little changed at $1.2709

Cryptocurrencies

  • Bitcoin fell 0.4% to $69,384.41

  • Ether fell 0.8% to $3,671.26

Bonds

  • The yield on 10-year Treasuries advanced two basis points to 4.45%

  • Germany’s 10-year yield advanced three basis points to 2.65%

  • Britain’s 10-year yield advanced four basis points to 4.30%

Commodities

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Subrat Patnaik.

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