Sponsored by ATHA Energy

Should hedge funds own single family homes?

Democrats in the US have unveiled legislation that aims to curb the influence of hedge funds in the residential real estate market by prohibiting them from acquiring and owning single-family homes.

The proposed bill, titled the “End Hedge Fund Control of American Homes Act of 2023”, mandates hedge funds to divest all single-family homes within a 10-year period and subsequently forbids them from re-entering the market.

U.S. Representative Adam Smith, one of the leads in the bicameral bill together with U.S. Senator Jeff Merkley, highlighted the urgency of addressing the issue, emphasizing how the current trend of large investors purchasing significant percentages of single-family homes has intensified the challenges faced by middle-class Americans aspiring to own homes.

You can read more on the matter here.

What’s going on?

• Wharton Board Asks Penn President Liz Magill to Step Down After Major Donor Pulls $100 Million Donation (theDeepDive)

• Venezuela’s Maduro Arrests Opposition Figures Challenging Guyana Region Annexation (theDeepDive)

• Inflation expectations plunge in closely watched University of Michigan survey (CNBC)

• Citadel Hedge Fund Alum Raises $3.5 Billion for ‘Anti-Pod’ Multimanager Firm (BNN)

• Jeff Bezos Wants to Be Your Landlord, Backs New Fund that Acquires Single-Family Homes in the US (theDeepDive)

• Toronto May Soon Make You Pay for Reusable Bags (theDeepDive)

• FDA Approves World’s First Crispr Gene-Editing Drug for Sickle-Cell Disease (WSJ)

• UN Secretary-General Urges Security Council Action on Gaza Crisis (theDeepDive)

• Binance founder Changpeng Zhao is too rich to leave the U.S. before criminal sentencing, judge says (CNBC)

• U.S. adds 199,000 jobs and unemployment falls, signaling a still-sturdy labour market (BNN)

• Ohio’s GOP-Controlled Senate Reverses Course, Passes Bill Expanding Marijuana Legalization (theDeepDive)

What’s the latest?

• US Job Growth: The U.S. labor market added 199,000 jobs in November, and the unemployment rate fell to 3.7%. This decline in unemployment, close to a five-decade low, indicates the economy might achieve a "soft landing," with inflation returning to the Federal Reserve's 2% target without causing a significant recession. The job gains were partly due to the return of about 40,000 striking workers.

• Cons Delay Liberal Agenda: The Canadian House of Commons experienced a marathon voting session orchestrated by the Opposition Conservative Party, led by Pierre Poilievre. The Conservatives initiated 135 votes in an effort to delay the Liberal government's agenda. This move was a part of their strategy to force the government to make changes to its carbon tax policy, specifically to remove the tax from all home-heating sources, provide carbon tax relief to some farmers, and exempt all First Nations from the carbon levy.

• When Rate Cuts?: The Federal Reserve is expected to initiate rate cuts in 2024, with the first reduction now more likely in May, following a robust U.S. labor market report for November. These rate cuts are anticipated to continue throughout the year, potentially bringing the policy rate down to a range of 4%-4.25% by year's end. This monetary policy adjustment hinges on ongoing inflation cooling and further economic softening.

• CIBC Fined: Canada's Financial Transactions and Reports Analysis Centre (Fintrac) has imposed a $1.3 million penalty on CIBC for not complying with anti-money laundering and terrorist financing regulations. This action, announced on Oct. 23 but only made public recently, follows a similar, larger fine of $7.4 million against RBC. Fintrac's decision stems from CIBC's failure to report suspicious transactions and deficiencies in reporting large money transfers from abroad.

• Cybertruck Concerns: Safety experts have expressed concerns about the design of Tesla's Cybertruck, particularly its stiff stainless-steel exoskeleton, which could pose risks to pedestrians, cyclists, and other vehicles. While Tesla claims that the truck's structure can absorb impact during crashes, experts are wary due to the potential limited "crumple zones."

A unicorn’s rise and fall

The stock market and stuff

• California Fines Tesla $38K For Employee Stuck In Model Y On A Conveyor Belt (theDeepDive)

• FTC Probes Chevron’s $53 Billion Deal for Hess (WSJ)

• Do Kwon To Be Extradited To US From Montenegro (theDeepDive)

• FedEx faces US racketeering lawsuit by former delivery contractor (Reuters)

• “I’d Close It Down”: JPMorgan CEO Jamie Dimon Slams Crypto at Senate Hearing (theDeepDive)

• Are Oil Prices Approaching Breakeven for Producers? (theDeepDive)

In the juniors

• Mullen Automotive Drops Short Selling Claims, Launches Spoofing Lawsuit (theDeepDive)

• Athabasca CEO says new emissions regulations create 'uncertainty' (BNN)

• Sterling Metals Hits 25 Metres Of 0.24% Copper In Initial Drilling At Adeline (theDeepDive)

FULL DISCLOSURE: ATHA Energy is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of ATHA Energy. The author has been compensated to cover ATHA Energy on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.