Key Takeaways
- China's housing market crisis is accelerating, with new-home prices in 70 major cities dropping -0.45% month-over-month in October, the steepest decline in a year, and resale prices falling -0.66%, the largest in 13 months.
- A federal jury has ordered Apple (AAPL) to pay Masimo (MASI) $634 million for infringing a patent related to blood-oxygen reading technology in Apple Watches.
- Former President Donald Trump has significantly increased his bond holdings, purchasing at least $82 million in corporate and municipal bonds since late August, with a maximum potential value exceeding $337 million.
- Cryptocurrency analysts are forecasting a bullish end to the year, predicting Bitcoin (BTC) could reach $150,000 – $200,000 and Ethereum (ETH) $7,000.
- Global inflation rates continue to show wide disparities, with Turkey and Argentina reporting the highest annual rates at 32.87% and 31.3%, respectively, while the United States stands at 3%.
China's real estate sector continues its protracted downturn, now in its fifth year, with no immediate signs of recovery. New-home prices in China's 70 largest cities experienced a -0.45% month-over-month decline in October, marking the steepest drop in a year. Resale home prices also fell by -0.66% month-over-month, representing the largest decline in 13 months, as all 70 surveyed cities recorded price reductions. This broad-based weakness is further underscored by a -2.9 percentage point drop in home-purchasing confidence in smaller cities, according to a survey by the China Index Academy. The ongoing crisis, which began with the default of major developers like Evergrande in 2021, continues to impact local government revenues and overall economic growth, which has historically relied heavily on the property sector.
In corporate legal news, Apple (AAPL) has been ordered to pay medical-monitoring technology company Masimo (MASI) $634 million after a federal jury in California found the tech giant infringed on a patent covering blood-oxygen reading technology used in its Apple Watch. Apple has stated it disagrees with the verdict and plans to appeal. This ruling is part of a broader, multi-front patent dispute between the two companies, which previously led to an import ban on some Apple Watch models in 2023.
Former U.S. President Donald Trump has been actively engaged in financial markets, with recent disclosures revealing he purchased at least $82 million in corporate and municipal bonds between late August and early October. The maximum total value of these bond purchases could exceed $337 million. These investments include bonds from major financial institutions like Goldman Sachs Group Inc. (GS), Morgan Stanley (MS), and JPMorgan Chase & Co. (JPM), as well as tech firms such as Meta Platforms Inc. (META), Broadcom Inc. (AVGO), Qualcomm Inc. (QCOM), and Intel Corporation (INTC). Separately, the Trump Organization is reportedly in discussions to develop a Trump-branded project within Saudi Arabia’s ambitious $63 billion Diriyah development. Geopolitically, Venezuela's President Nicolás Maduro reportedly offered Trump rights to "much" of the country's 300 billion barrels of oil in secret talks, an offer Trump ultimately called off, with the deployment of a U.S. aircraft carrier near Venezuela seen as a move to gain leverage.
The cryptocurrency market is buzzing with optimistic forecasts for the year-end. Analysts predict that Bitcoin (BTC) could surge to $150,000 – $200,000, while Ethereum (ETH) is projected to reach $7,000. This bullish sentiment is fueled by increasing institutional adoption and expectations of potential interest rate cuts by central banks.
Globally, inflation rates present a mixed picture. Turkey continues to grapple with a high annual inflation rate of 32.87%, closely followed by Argentina at 31.3%. In contrast, major economies like the United States recorded an annual inflation rate of 3%, and Japan at 2.9%. The USD/JPY currency pair has seen a round trip on the day, now sitting near its annual high, reflecting ongoing currency market volatility.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.