Our snapshot for this week is coloured red to mirror the events of August. The sight of a bustling crowd, complete with a TV cameraman, around the displays outside a stock exchange usually foreshadows something dire. This was starkly exhibited in Tokyo early this week after the Nikkei 225 index took a massive plunge soon after the opening bell, closing the trading day at a stunning 12.5% loss. This was the worst one-day plummet since the infamous Black Monday crash in ’87. Global stock trading for the day continued to be turbulent, with alarmingly red tickers indicative of surging concerns about the stability the US economy.
However, the next day saw the Nikkei 225 bounce back by 10% and other markets also revived their spirits as the Federal Reserve tried to pacify panic with assurances that the US was not on the downward slope into recession. In the midst of the chaotic market, the Bank of Japan, previously criticised for the disequilibrium due to its July end interest rate increase, dismissed the possibility of another hike amid the market instability. Despite these measures, the edginess of global markets persisted, with the Wall Street’s “fear gauge” or the Vix index, holding close to its peak levels seen in nearly two years as of Tuesday, and investors remained on high alert. Could this be the onset of a crimson tinged August?
Let’s look at some number crunching: A deal a day scenario
Kellanova, the company responsible for Pringles, which was a spin-off from cereal brand, Kellog, last year, currently stands at a market value of $25 billion. Their shares have seen a recent swell due to a price surge.
A whopping 16.2% jump was observed in Kellanova’s share price on the New York Stock Exchange after reports came in about possible acquisition talks with Mars Inc. This could make it one of the biggest deals of the year.
The British luxury chocolate brand, Hotel Chocolat, had been bought by Mars for the sum of £534 million recently. The Wall Street Journal suggests that Kellanova could be valued at around $30 billion (€27 billion). Remember, once you start, you can’t stop.
In other news: Get acquainted with Allianz Stadium.
The Allianz Stadium to be noted here is not the one seen in Sydney, Munich, or São Paulo – instead, it resides in Twickenham, London. For the first time in its 117 years, the Rugby Football Union, the English governing body for rugby union, has opted to sell the naming rights to its London-based stadium. This decision has sparked discontent among many, with former player and coach Clive Woodward expressing particular ire, labelling it an “almighty blow” and suggesting the RFU has forfeited its identity through the 10-year contract. While Woodward accepted a cash injection might be beneficial, he deems the erasure of Twickenham from the stadium’s moniker in September a poignant moment of melancholy.
Elon Musk, the proprietor of company X, is currently embroiled in a legal battle in Texas, alleging companies and advertisers of an “illegal boycott” for not fraternising with his social media platform. On his ‘defendants’ list are:
– The World Federation of Advertisers: Musk claims they acted through their initiative, the Global Alliance for Responsible Media, to divert “billions of dollars” from company X. He deems this action responsible, as a matter of fact.
– Unilever: The multinational consumer goods company, one of the largest advertisers globally, is one of the businesses called out in Musk’s lawsuit. Musk’s approach has shifted from peace to war, as reflected in his fiery statement on Twitter.
– Orsted: This Danish company operating wind farms has also been implicated in Musk’s court proceedings, despite seeming to have no direct connection.
– CVS Health: The private healthcare company finds its name in the litany of the accused.
– Mars: Despite being embroiled in business concerns with the Pringles makers, the confectionery titan has also been added by Musk to his lawsuit. All’s fair in love and legal disputes for Musk – maybe someone should offer him a Twix to sweeten the deal?