Kimbal Musk sold Tesla shares the day before his brother asked Twitter if he should sell
The US Securities and Exchange Commission has reportedly opened an investigation into whether recent stock sales by Tesla CEO Elon Musk and his brother Kimbal Musk violated insider trading rules.
The SEC inquiry – first reported by the Wall Street Journal on Thursday – was sparked in part by the Tesla CEO’s own tweets.
Continue reading...European stock markets tumble as crisis fuels near-40% rise in gas price and pushes oil to $105 per barrel
Global markets were thrown into turmoil on Thursday as the arrival of war on European soil sent prices of commodities such as oil, gas and wheat surging, while stock market plunged.
The ramifications of a potentially prolonged conflict involving Europe’s primary supplier of gas sent a chill through markets, affecting prices across a phalanx of asset classes and investments.
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The reopening of hospitality venues, and higher demand for premium spirits, has boosted drinks maker Diageo.
Diageo, whose brands include Johnnie Walker whisky, Smirnoff vodka, Tanqueray gin and Baileys Irish Cream, grew its sales by 15.8% in the second half of 2021.
The positive price/mix benefit was primarily driven by mix, reflecting the strong growth of premium plus brands, particularly in scotch, tequila and Chinese white spirits, as well as the continued recovery of the on-trade channel in Europe and North America and the partial recovery of Travel Retail.
There was also a price benefit, primarily from price increases in Latin America and Caribbean, Africa and North America.
“Diageo has produced a great set of results with a strong increase in sales, margin, and profits over the past six months.
The continuing shift by consumers to spirits consumption has benefited the company, as this is a sector of the drinks market that it dominates.
Continue reading...After Jeremy Grantham’s warning, analysts fear more volatility ahead – and will be watching tech’s latest results with interest
The tech sector led US stock markets on a pandemic boom last year. Now markets are whipsawing on fears that the Federal Reserve will end the era of easy money, all while a potential war in Ukraine looms. Some warn of a bigger correction to come on a scale not seen since the dotcom collapse of the late 1990s.
On Monday, US stock markets crashed then rallied. The Dow Jones at one point lost more than 1,000 points before ending up just over 100. Tuesday was more of the same with the Dow losing 800 points only to gain most of it back. Analysts expect more volatile days ahead. The Fed on Wednesday issued its latest update on its plans to raise rates in order to curb inflation, and the world’s largest tech firms are preparing to issue their latest results to investors, who appear to have grown more skeptical about their prospects.
Continue reading...New year trading pushed Apple shares to a new high of $182.80 after tripling in value in under four years
Apple became the first US company to be valued at over $3tn on Monday as the tech company continued its phenomenal share price growth, tripling in value in under four years.
A pandemic-era surge in tech stocks has driven the major US tech companies to new highs, pulling US stock markets with them. Apple became the world’s first trillion dollar company in August 2018, passed $2tn in 2020 and hit its new high as trading began after the holidays and its shares passed $182.80 a piece before dipping lower to end the day valued at over $2.9tn.
Continue reading...Territory’s financial sector risks reputational damage and diplomatic sanctions if complex regulations of crypto hub fail
On the southern Mediterranean coast, nestled in the shadow of the Rock’s sheer limestone cliffs and its tangle of wild olive trees, the Gibraltar Stock Exchange (GSX) is quietly preparing for a corporate takeover that could have global consequences for the former naval garrison.
Less than half a mile away, next to the blue waters of Gibraltar’s mid-harbour marina, the peninsula’s regulators are reviewing a proposal that would prompt blockchain firm Valereum to buy the exchange in the new year – meaning the British overseas territory could soon host the world’s first integrated bourse, where conventional bonds can be traded alongside major cryptocurrencies such as bitcoin and dogecoin.
Continue reading...Xi Jinping’s mission is not only to control the housing bubble, but rein in untethered industries and foreign capital
China’s economy has become heavily dependent on property development over the last decade. High-rise apartments have mushroomed across hundreds of cities to house a growing white-collar workforce, while glass and steel office blocks are dominating city centres, mimicking Shanghai’s glittering skyline.
Valued at more than $50tn after 20 years of rapid growth, Chinese real estate is worth twice as much as the US property market and four times China’s annual income.
Continue reading...As debt-laden Chinese property giant enters 30-day grace period, officials look to limit unrest and job losses
The embattled Chinese property developer Evergrande is inching closer to the potential default that investors fear, after missing an interest payment deadline.
The company, which has total debts of about $305bn (£222bn), has run short of cash, and investors are worried that a collapse could pose systemic risks to China’s financial system and reverberate around the world.
Continue reading...Embattled Chinese property giant allays some market concerns despite lack of guidance over $83.5m due on a separate offshore debt
Chinese property developer Evergrande has said it would pay some of the bond interest due on Thursday, allaying fears of an imminent and messy collapse that had spooked investors.
Markets in Taiwan and China reopened lower after a two-day break, catching up with a sharp sell-off around the world triggered by concern over Evergrande’s predicament.
Continue reading...Rolling coverage of the latest economic and financial news
Earlier:
Time to wrap up....
Here’s today’s main stories:
Related: Alibaba shares plunge as Beijing ‘seeks to break up Ant’s Alipay’
Related: Stock market pullback likely by year end, Deutsche Bank survey finds
Related: Evergrande investors face 75% hit as company edges closer to restructure
Related: UK cancels Covid vaccine deal with French firm Valneva
Related: Higher taxes could leave low-paid frontline workers £1,000 worse off
Related: EU Brexit controls are pointless bureaucracy, says M&S chairman
Related: Brexit trade barriers added £600m in costs to UK importers this year
Related: Primark hit by ‘pingdemic’ but it says supply crisis won’t lead to shortages
Related: West End theatres bank on staging a revival with big-budget productions
Related: All Sainsbury’s stores to stay shut on Boxing Day as a ‘thank you’ to staff
Related: UK to offer £265m in subsidies for renewable energy developers
European stock markets have shrugged off growth fears and talk of a stock market pullback, to end the day higher.
In London, the FTSE 100 gained 39 points or 0.55% to end at 7068 points. Royal Mail (+3%), Lloyds Banking Group (+2.8%), and hedge fund management group Pershing Square (+2.6%) led the risers.
Spain's Ibex up 1.3%. German Dax up 0.6%
The major European indices are ending the day with gains across the board:
German DAX, +0.56%
France's CAC, +0.2%
UK's FTSE 100, +0.55%
Spain's Ibex, +1.3%
Italy's FTSE MIB, +0.9%
In other markets as European/London traders look to exit:
Investors worry resurgence of Covid-19 cases will slow economic growth and stall global recovery
Fears that the fast-spreading Delta variant of Covid-19 will hurt the global recovery sent stocks sliding on Thursday, as investors worried that economic growth could be slowing.
Shares fell sharply in London and across other European exchanges, after losses in Asia-Pacific markets, on concerns that the economic rebound from the shock of the pandemic may have peaked, and on signs of a slowdown in China.
Continue reading...Shares rise by more than 30 points as China reports record economic growth
The FTSE 100 has closed above 7,000 for the first time since the Covid-19 pandemic triggered a collapse in global markets last year, driven by rising hopes for the world economy after record growth in China.
The index of leading UK company shares ended the day up 36 points on Friday, or 0.5%, at 7,019, the highest level since late February 2020 when the first wave of Covid-19 sent shock waves through financial markets around the world.
Continue reading...Singapore-headquartered firm offers one-stop shopstyle service, including ride hailing, banking and food delivery
South-east Asian “super app” Grab, which offers services from ride hailing and food delivery to online banking, is to float in the US in a record deal with a so-called Spac investment company that values the business at almost $40bn (£29bn).
Singapore-headquartered Grab, which intends to list on Nasdaq in the US, has struck a $39.5bn merger deal with US-based Altimeter Growth Corp. It is by far the biggest deal to date involving a special purpose acquisition company (Spac) – a so-called “blank cheque” shell company that raises money first and seeks businesses to buy later – which has become the latest trend in global finance over the last year.
Continue reading...E-commerce firm feels penalty by Chinese regulators means focus on company is at an end
Shares in Alibaba surged on Monday after the e-commerce company said that a record $2.8bn fine handed down by Chinese regulators marked the end of an investigation into anti-competitive practices at the company.
Top executives at the company, founded by the billionaire Jack Ma, told investors that while Chinese regulators continued a wider investigation into the sprawling conglomerates in the country’s tech industry, they believed the multibillion dollar fine announced at the weekend marked the end of the focus on Alibaba. The company is listed in Hong Kong and its shares climbed as much as 9% on the management’s comments.
Continue reading...Twelve months after the pandemic struck the Guardian’s economic tracker reveals real risk of lasting damage
When Boris Johnson announced the first stay-at-home order, effectively shutting down whole sections of the economy, it was hoped the tide could be turned within 12 weeks. As many months later, lockdown measures are being relaxed for a third time and Britain still faces a lengthy road to recovery from the worst recession for 300 years.
As restrictions ease, the chief economist at the Bank of England, Andy Haldane, warned that despite the reopening of the economy, the risk of a “jobs equivalent of long Covid” remains for workers across the country.
Continue reading...Collapse of Archegos has reportedly prompted SEC and FCA inquiries into Credit Suisse, Goldman Sachs, Nomura and others
UK and US regulators are looking into whether global investment banks breached rules by holding group discussions shortly before launching a fire sale of nearly $20bn worth of assets belonging to the distressed hedge fund Archegos Capital Management, according to reports.
The Securities Exchange Commission is said to have requested further information from major US banks Goldman Sachs, Wells Fargo and Morgan Stanley, as well as Japan’s Nomura and Swiss lender Credit Suisse about a meeting with Archegos founder Bill Hwang on Thursday.
Continue reading...Liquidation of Bill Hwang’s Archegos Capital Management sparked a fire sale of more than $20bn assets
Financial regulators across the world are monitoring the collapse of the New York-based billionaire Bill Hwang’s personal hedge fund.
The sudden liquidation of Hwang’s Archegos Capital Management sparked a fire sale of more than $20bn assets that has left some of the world’s biggest investment banks nursing billions of dollars of losses.
Continue reading...The companies in line for the biggest gains – and the shareholders who have already made fortunes
The arrival of Covid-19 vaccines promises a return to more normal life – and has created a global market worth tens of billions of dollars in annual sales for some pharmaceutical companies.
Among the biggest winners will be Moderna and Pfizer – two very different US pharma firms which are both charging more than $30 per person for the protection of their two-dose vaccines. While Moderna was founded just 11 years ago, has never made a profit and employed just 830 staff pre-pandemic, Pfizer traces its roots back to 1849, made a net profit of $9.6bn last year and employs nearly 80,000 staff.
Continue reading...Decline wipes billions off Elon Musk’s fortune as investors fear firm is vastly overvalued
A sharp decline in Tesla’s share price has wiped more than $250bn (£193bn) off the value of the electric car company, and dragged down the value of an Edinburgh-based investment fund that is one of Tesla’s biggest backers.
The shares dropped by 7.5% in early trading in the US on Friday to $575 – setting them on course to close down 16% this week and 35% below their record peak of $883 on 26 January.
Continue reading...UK FTSE was down 2.5%, its biggest one-day fall in percentage terms since the end of October
Global stock markets ended February deep in the red, as fears of higher inflation prompted a sell-off in government bonds and spread anxiety across financial markets.
The UK’s FTSE 100 index fell 168 points to 6,483, a 2.5% drop – the biggest one-day fall in percentage terms since the end of October.
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