Hilton has tapped a major development project in Manhattan’s Times Square to debut its boutique brand, The hotel, which will be the first under the new Tempo by Hilton flag, will feature 661 rooms when it opens next year. It is part of TSX Broadway, a $2.5 billion, 550,000-square-foot tower located next to Times Square’s red bleachers and the TKTS discount-tickets booth.
Neumann Apartments
Adam Neumann recieved a $1 billion exit package in cash and loans when he left WeWork. He is now launching a residential apartment brand called Flow.
Inflation
Stocks suffered their worst day since 2020 as high inflation raised fears about a more-aggressive Fed. The Dow dropped nearly 1,300 points.
Bank Deposits
Deposits at U.S. banks fell by a record $370 billion in the second quarter, the first decline since 2018. Deposits fell to $19.563 trillion as of June 30, down from $19.932 trillion in March.
Tech Funding
Tech firm startups raised $444 billion in the first eight months of 2022, down from $526 billion during the same period in 2021.
Rate Hike
The Federal Reserve appears to be on a path to raise interest rates by another 0.75 percentage point this month in the wake of Chairman Jerome Powell’s public pledge to reduce inflation even if it increases unemployment.
Junk-Loan Defaults
Defaults on leveraged loans hit $6 billion in August, the highest monthly total since October 2020, when pandemic shutdowns hobbled the U.S. economy. This sprawling loan market doubled over the past decade to about $1.5 trillion.
Energy Investments
The aggregate transaction value of private-equity and venture-backed investments in oil and gas has been just $4.4 billion so far this year compared to the peak in full-year 2014 of $49.5 billion. Meanwhile, there has been nearly $11 billion worth of investments in renewable-energy sources such as solar and wind so far this year, on track to surpass oil and gas for the first time.
Housing Migration
An analysis of U.S. Census and Internal Revenue Service data found that in many metro areas, migration patterns led to a net loss for the city centers, often as people relocated to the suburbs. These patterns could prompt concern of a doughnut effect in which city centers are hollowed out as migration and housing demand shift to suburban counties.
Fed’s Outlook
The Federal Reserve Bank of New York President said that combating high inflation is likely to require lifting the central bank’s benchmark short-term interest rate above 3.5% and holding it at that level through next year.