Good morning readers. The Mirage Hotel and Casino closed its doors after 34 years on the Las Vegas Strip yesterday. Known for its iconic volcano and luxe tropical theme, the hotel will undergo a three-year renovation, reopening in 2027 as Hard Rock Las Vegas with a guitar-shaped tower. Opened by Steve Wynn in 1989, it set a new standard for Vegas resorts. As it bids farewell, visitors reminisced about its famed attractions like Siegfried and Roy's tigers and Cirque du Soleil shows.

Let’s jump into today’s storylines.

In today’s digest:

• International buyers aren’t buying homes in the U.S. anymore

• Headline Hustle: Biden said he would step quit the presidential race if a ‘medical condition’ emerged, tech stocks log worst day of the year, Anthropic launches $100 million AI fund

• An eyewear company acquires streetwear brand Supreme

• Pulse Points: What’s Trending

REAL ESTATE

International buyers are steering clear of the U.S. housing market

Let’s face it, buying a home in the U.S. is tough these days. Imagine doing it from another country.

International buyers are hitting the same obstacles as domestic ones—high prices and tight supply—but they’re also grappling with a strong U.S. dollar, making properties even pricier for them. The result? A significant pullback.

Out of reach

From April last year to March this year, international buyers purchased 54,300 existing homes, marking a 36% drop from the previous year, according to a new report from the National Association of Realtors (NAR). This is the lowest level of international investment since the NAR began tracking it in 2009. The dollar volume, $42 billion, also saw a 21% decrease.

Both the average ($780,300) and median ($475,000) purchase prices reached record highs for foreign buyers.

• The top buyers by volume were from Canada, China, Mexico, and India, focusing on properties in Florida, Texas, California, and Arizona.

• Chinese buyers, in particular, spent the most, often opting for higher-priced homes.

Foreign buyers face additional hurdles. “We don’t have a credit score, we have a weird name, we have a different passport,” said Yuval Golan, CEO of Waltz, a company that facilitates foreign purchases of U.S. real estate. Waltz offers a streamlined, remote experience, underwriting buyers in their home country, setting up U.S. bank accounts, and handling foreign currency exchanges quickly.

But international buyers currently make up just 1.3% of all U.S. home sales, with half of these transactions being all-cash, compared to 28% of total existing-home sales. Despite more supply entering the market, it remains historically low, and prices are still high.

Big picture: Additionally, political uncertainty, particularly the upcoming presidential election, tends to deter international buyers. Unless economic and political conditions improve, foreign buyer sales are unlikely to rebound in the coming year.

IN THE KNOW

Headline Hustle

😷Biden says he might quit presidential race if ‘medical condition’ emerged. President Joe Biden said he might reconsider his decision to stay in the race against Donald Trump if a medical condition emerged. In an interview with BET’s Ed Gordon, Biden, 81, mentioned he would reevaluate his candidacy if doctors identified a significant health issue. Amid increasing pressure from his own party following a poor debate performance against Trump, Biden acknowledged his mistakes but emphasized his ability to deliver results for the country. White House physician Kevin O’Connor described Biden as “healthy” earlier this year.

📉Tech stocks log worst day of the year. Shares of Nvidia, Meta Platforms, and other leading tech stocks plunged Wednesday, causing the Nasdaq Composite to suffer its worst day in over a year, dropping 2.8%. The S&P 500 fell 1.4%, while the Dow Jones Industrial Average gained 0.6%. This market rotation marks the first time since 1999 that the Dow rose as the S&P 500 dropped more than 1%. Investors are now reassessing tech giants after a stellar run, with some chip stocks hit hard by fears of new U.S. trade restrictions.

💰️Anthropic and Menlo Ventures launch $100 million AI fund to support early-stage startups. Anthropic and Menlo Ventures are launching a $100 million fund to support early-stage AI startups. Menlo will invest in startups, while Anthropic offers $25,000 in credits for its AI models. Inspired by Apple and Kleiner Perkins’ 2008 iFund, this initiative aims to boost Anthropic’s technology adoption. The fund will provide coaching, meetups, and a direct line to Anthropic. Unlike OpenAI’s venture fund, Anthropic seeks no equity, focusing instead on creating a feedback loop to enhance its products.

BUSINESS

Ray-Ban maker to buy streetwear brand Supreme

Supreme, the trendy streetwear brand beloved by celebrities and cool kids alike, has been sold to an eyewear manufacturer for significantly less than its previous sale just four years ago.

A surprise new owner

On Wednesday, Italian eyewear manufacturer EssilorLuxottica announced its acquisition of Supreme for $1.5 billion in cash from VF Corp., the parent company of Vans and Dickies, which bought the brand for $2.1 billion in 2020.

Supreme “perfectly aligns with our innovation and development journey, offering us a direct connection to new audiences, languages and creativity,” EssilorLuxottica said in a statement.

• This marks the company’s first-ever apparel brand acquisition, ensuring Supreme will have its “own space” in their portfolio.

• EssilorLuxottica might not be a household name, but its eyewear collection, including Oliver Peoples, Ray-Ban, Oakley, and Persol, is widely recognized. It also holds licensing agreements with luxury brands like Chanel, Coach, and Dolce & Gabbana.

Founded in a New York skateboard shop in 1994, Supreme gained a cult following among skateboarders and hip-hop fans, expanding its appeal to Millennials and Gen Z shoppers. The Carlyle Group acquired half the company in 2007 for $500 million.

VF Corp. shares soared nearly 7% in premarket trading following the sale. The company cited “limited synergies” between Supreme and its other brands, making the sale a “natural next step.”

Not the brand we once knew: Observers note that Supreme’s prevalence and a decline in its resale value on platforms like StockX have hurt its popularity.

SNIPPETS

Pulse Points

• Ethereum co-creator Vitalik Buterin cautioned on Wednesday against voting for political candidates based solely on their "pro-crypto" stance.

• After the assassination attempt on former President Donald Trump, the Secret Service faced scrutiny for the security breach at the Pennsylvania event, with right-wing media blaming workforce diversity initiatives and women serving as agents.

• Pernod Ricard is selling most of its wine brands due to declining global wine consumption and will focus on expanding its champagne and premium spirits labels, particularly in the United States.

• HSBC appoints its Chief Financial Officer Georges Elhedery as its next CEO, its third in less than eight years.

• Spotify's AI DJ feature, which introduces personalized song selections, is now available in its first language outside of English. On Tuesday, Spotify announced the launch of a Spanish-speaking AI DJ.

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