Weekly News (June 12, 2024)

Mortgage Interest Rates Review

United Mortgage Nation  6/12/2024

                  Federal Fund Rate: 5.25 -5.50%        Prime Rate: 8.25 – 8.50%  

NYC Rent Broker fee is on the table for hearing

 뉴욕시 렌트 ‘브로커 피‘, 집주인에게 부담에 무게

Korea Daily    6/11/24 

• NYC Counsel members is contemplating again on the regulation of the rent broker fee paid by landlord.
• Currently tenant pays 15% of the contract amount when they ask broker to find a rental place.  In NYC, it is very difficult to find available rental place and arrange showings, and make a deal without RE agents.
• So far 31 council members are joining and favoring this regulation, which is more than a half already. 
• But RE industry and landlords’ associations are arguing that this regulation will push landlords to increase rent even more.         

Restaurants Become New RE Darling

          건물주에게 식당자리가 인기

WSJ  6/12/24 

• Property owners have long seen restaurants as risky tenants with a high rate of failure. Now, with Americans dining out more than ever, the restaurant business is emerging as the hottest corner of retail real estate.
• Food services accounted for more than 19% of all retail leases last year, rising in recent years to the highest proportion for any category since data firm CoStar Group began tracking the statistic in 2007.
• For years, property owners were wary of food tenants. Many establishments fail early on. But an increase in creditworthy chains coupled with data showing that food establishments boost foot traffic to nearby businesses have made landlords eager to sign restaurant leases.

Congestion Tax might be delayed or cancelled 

   교통 혼잡세 연기. 천만다행? 주지사의 배신?

Korea Daily  6/7/24

• NYC decided to postpone the congestion tax without time limit on 6th. 
• Most New Jersey residents are favoring this decision : There are about 400K residents commuting daily to NY. 
• NJ residents were worried that they will have anticipate to pay $300-$450 monthly in addition to the existing transportation expenses.   

The Fed is still in No-Move

      연준, 이자률에 대한 의견이 분분

WSJ  6/12/24 

• After concluding a rapid series of rate rises last year, Fed officials remain widely united that the best course of action for an economy with solid growth and inflation still running somewhat above their target is to make no moves. 
• Many investors assume a median projection of two cuts would be needed to tee up a rate cut by September.
• Some officials who are on the fence about cutting twice this year could pencil in just one reduction to keep their options open. While the projections aren’t a promise of future action, some analysts have said a base case of one cut could be a way to effectively under promise and overdeliver if inflation data turns out to be placid this summer. 

PCE Price Index & FF rate

WSJ 6/12/24

EV Trade War in Europe 

      유렵도 전기차 무역 전쟁   

WSJ  6/12/24 

• Europe’s politicians have no easy options for dealing with Chinese electric vehicles.
• Slap a 100% tariff on them, as President Biden did last month, and China can easily retaliate against the more than 300,000 luxury cars it gets annually from the European Union. Let Chinese EVs into the EU with the current 10% tariff, though, and Chinese companies have an open road to take market share, given impressive technology and a roughly 30% cost advantage.
• This week, the European Commission is expected to announce the results of a nine-month investigation. Its most likely course of action is a cautious middle ground—a tariff of 25% to 30% that would make European EVs broadly competitive with lower-cost Chinese imports.

LG & GM  together aim for North America

       LG 하이웨이 따라 나란히 북미 시장 공략 

Korea Daily   6/8/24 

• LG Energy Solution and GM(50/50) made a joint venture in Nashville, TN and built the factory on 61 Ac lot ( 35 times of football play ground) as the 2nd Ultium Cells factory. The factory are making EV battery cells. Inside factory is never been open to public.
• The batteries produced from this factory will be installed Cadillac top EV brand “Lyriq”  and it runs 289 mile with one time charge. The target is to produce 50GWh capacity which make 600K 3rd generation batteries. 
• In Clarksville, 87 mile north from this factory, LG Chemical in 18.8 Ac Lot factory is making Cathode( positive electrode in EV battery) 
• TN Government named “LG Highway” for 3.4 mile highway, where LG is trying to build “Battery Belt”.