Image of the week: Red August
When the screens outside a stock exchange attract a bit of a crowd, including a man with a television camera, the chances are it’s a sign that something bad is happening.
That was certainly the case in Tokyo on Monday when the Nikkei 225 index plunged shortly after the market opened and finished the trading session down a whopping 12.5 per cent. This meant it had its worst one-day slump since the Black Monday crash of 1987. Globally, it went on to be a rocky day of trading, replete with red stock tickers, as worries about the stability of the US economy spiked.
The Nikkei rebounded 10 per cent the next day, and markets elsewhere rallied as the Federal Reserve sought to calm nerves with assurances that the US is not about to slide into recession. The Bank of Japan, which was blamed for the market chaos thanks to its late July interest rate hike, ruled out a further rise while markets remain unstable.
Global markets were still edgy, nevertheless, with the Vix index, a Wall Street measure of volatility better known as its “fear gauge”, sticking close to its highest level in almost two years on Tuesday, and investors remaining wary. Could a red August lie in wait?
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In numbers: A deal a day
$25 billion
Market capitalisation of Kellanova, the Pringles maker that was spun off from cereal-maker Kellogg last year. This has swollen in recent days after a surge in its share price.
16.2%
Climb in the share price of New York-listed Kellanova on Monday after Reuters reported that Mars Inc was in talks to buy the snacks company in what would be one of the biggest deals this year.
£534 million
The price recently paid by Mars for the British premium chocolate company Hotel Chocolat. According to the Wall Street Journal, Kellanova could be valued at about $30 billion (€27 billion). Once you pop, though, you can’t stop.
Getting to know: Allianz Stadium
Not to be confused with Allianz Stadium in Sydney, Allianz Arena in Munich or Allianz Parque in São Paulo, this Allianz Stadium is in London — Twickenham, to be precise. Because it is Twickenham. The Rugby Football Union, the governing body for rugby union in England, has sold the naming rights to its home for the first time in the stadium’s 117-year history. Are people happy about this? Of course not. Former player and coach Clive Woodward led the backlash, claiming the RFU had “sold its soul” by agreeing the 10-year deal, which he described as an “almighty blow”. An injection of cash might be needed, he conceded, but the total removal of Twickenham from the venue name from September represented “a very sad and poignant day”.
The list: Elon Musk’s lawsuit
Elon Musk, the owner of X, is suing advertisers in a Texas court for not advertising on his social media platform — or, to be precise, participating in what he alleges is an “illegal boycott”. It’s a bold move; let’s see if it pays off for him. But which companies and organisations are in his line of legal fire, exactly?
- World Federation of Advertisers: According to Musk, advertisers acted through this trade association, via an initiative it runs called the Global Alliance for Responsible Media, to withhold “billions of dollars” in revenue from X. Sounds responsible, to be fair.
- Unilever: The household goods group, one of the world’s largest advertisers, has been named in the lawsuit. “We tried peace for two years, now it is war,” tweeted Musk, who last year told advertisers to “go f**k yourself”.
- Orsted: The Danish wind farm operator has been pulled into this ridiculous legal manoeuvre for some reason.
- CVS Health: The private healthcare company is also named.
- Mars: The confectionery group is kind of busy chasing the maker of Pringles at the moment (see above), but Musk doesn’t care — he’s added Mars to the lawsuit. Anyone for a Twix?
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