All posts by Peter Jefferson

About Peter Jefferson

Peter Jefferson is a full-time researcher for www.businessdistrict.com, a task he took on in 2011 when the site was launched. He brings to the position a wealth of practical experience in the field of fiscal policy, having consulted with various government bodies on revenue collection, expenditure and economic growth. Contact Peter at peter[at]businessdistrict.com

Introducing Temu, the Most Downloaded App in the US

China, Consumerism, News, , ,

It is safe to assume that most Americans would consider Amazon and Target to be the most popular online retailers, along with some other well-known conglomerates.  And until the Super Bowl last Sunday, that stood true. But now, in a surprising turn of events, a new online shopping platform has become the most downloaded app in the United States, surpassing even the biggest names in the industry.

Temu is an online shopping destination for just about everything, including clothing, houseware items, electronics, and much more. Based in Boston, it shares the same parent company as the Chinese e-commerce icon, Pinduoduo. The target market is anyone looking for great deals. And, with prices like $11 for a smart watch and $8.50 for wireless earphones, it’s not hard to understand the ultra-quick popularity Temu has gained.

In its 30-second Super Bowl slot, word about Temu reached millions of US homes. The ad focused on bargain prices yet feeling like a billionaire. The background song played: “The prices blow my mind. I feel so rich. I feel like a billionaire.”

According to Sensor Tower, since its release in September, the Temu app has been downloaded 24 million times.

An Exciting Evening at Sotheby’s

Art, News, ,

Monday evening at Sotheby’s in Manhattan was a memorable one for the famed auction house. Pablo Picasso’s ‘Guitar on a Table’ sold for $37.1 million, closing the evening at one of its highest-ever tallies of $392 million.

The cubist from 1919 was part of CBS founder William Paley’s private collection. Following his passing in 1990, a couple dozen pieces were put into the care of New York’s Museum of Modern Art. A foundation for Mr. Paley decided to begin auctioning off some of the famed works in an effort to raise $70 million for various causes. One of the main goals of the sales is to help fund an expansion of MoMA’s digital footprint, with the possibility of developing a museum-run streaming art channel or pairing up with a university to offer art degrees.

During the auction, two bidders competed diligently for the Picasso piece, driving up the price tag. While the colorful “Guitar on a Table” had expected to sell for an estimated $20 million, a telephone bidder closed the sale at over $37 million.

Other pieces from Mr. Paley’s estate were also sold on Monday night and an additional painting was auctioned earlier this month at Sotheby’s in London.

Record High for Rentals in Manhattan

Economy, Real Estate,

Have you always dreamed of living in the big city? Now may not be the time.

For the sixth month in a row, apartment rental prices in Manhattan have reached a record high. With the median rate last month at $4,150 per month, rentals have climbed 2.5% since June and a whopping 29% from just one year ago. Renters are currently shelling out an average of $5,113 per month.

According to Jonathan Miller, president of Miller Samuel Real Estate Appraisers and Consultants, rent prices are expected to soar even higher this month as August is generally peak season. It is unclear what to expect from September, though. If the Federal Reserve continues to raise interest rates with the hope to curb inflation, the possibility of a recession will become more of a reality. In this situation, layoffs would be expected and demand for Manhattan rentals may decline, which would likely result in an ease on prices. However, Miller expects that rent prices will continue to climb till the year’s end, perhaps at a slower rate.

While rentals are in high demand, the dream of many to become homeowners is being put on hold. Rising mortgage rates are making the possibility of buying now impossible for many. With the current average rate on a 30-year fixed-rate mortgage now at 5.81%, families are opting out. With less buyers, the rental market is seeing extra added pressure, contributing to the increase in rates.

As the economy continues fluctuate in so many areas, the housing market will swing along accordingly. With the end of year gradually approaching, it will be interesting to see what develops. As Miller has asserted, “…it is going to come down to external factors like unemployment and hard landing to see what happens next.”

Spotify Acquires Online Music Game Heardle

Companies, News, Tech News, ,

The big-name streaming app Spotify has just acquired musical guessing game Heardle.

In a similar style to the popular Wordle game, players in Heardle try to guess the names of songs based on hearing the first note. After each guess, additional notes are played to help users identify the song, until the allotted six chances are up. Since the buyout, players can listen to the full song on Spotify once they’ve used all their guesses.

But, the deal has left some avid fans displeased. Many complain that their stat records have been wiped out. Others are frustrated they can’t play at all anymore, as the game is now available only in the US, UK, Canada, Ireland, Australia, and New Zealand.

While acknowledging the slip-ups that have occurred in the initial days following the acquisition, Spotify also explained the company’s hopes and plans for the new deal. The app will remain free and the interface will not change. Heardle will continue to be further integrated into the Spotify platform, facilitating the opportunity for listeners to connect more with the artists they love and to interact with friends.

As with most new endeavors, there are some small bumps in the road and a whole lot of excitement and potential.

Nutritional Labels Found to Stump Shoppers

Consumerism, Health Care, Lifestyle, , , ,

The good news is most American consumers want to eat healthy; the bad news is companies are not making that easy. In a recent study conducted by Attest, research showed that 60% of 2,000 surveyed shoppers are committed to living healthy lifestyles. They aim to buy nutritious products but 52% of the participants were concerned about the steep prices of foods said to contain special, healthy ingredients.

The survey also showed that food labels are highly misunderstood by consumers. Participants were asked to identify which of six different cereal bars was the healthiest choice. Only 9% chose the correct one, while 13% actually indicated the least healthy of the six options. Marketing slogans, such as “whole grain,” “100 calories,” or “naturally favored,” contributed to the confusion that the participants felt.

Jeremy King, founder and CEO of Attest, remarked that the results should be seen as a call to action for the food and beverage industry to reevaluate their marketing and labeling practices. King concluded: “This data shows that identifying real, healthy products appears to be a serious difficulty for American shoppers, as packaging messages simply aren’t accessible enough for consumers. With six-in-ten consumers actively looking to buy healthy food and beverage products, addressing this issue will be of significant benefit to the industry.”

When asked what would be most helpful in gaining clarity, shoppers agreed that packaging labels with straightforward nutritional information was a priority. Some added that coupons may entice people to try a product for the first time. Others wanted to see a stamp of approval from certified health officials on the product labels.