And there? (April 24th to 30th)
Elon Musk buys Twitter
Elon Musk reached an agreement on Monday to buy Twitter for about $44 billion, a deal that was unanimously approved by Twitter’s board. The price comes in at $54.20 a share, a 38 percent premium to the company’s April share price, before Musk revealed he had bought a 9 percent stake in Twitter. In a matter of weeks, Musk, the richest person in the world, accepted his offer of something that investors shrugged their shoulders for a serious proposition. The turning point came when he submitted documents showing he had the funding to back his offer. Now, it could be the biggest deal to take a company private in at least 20 years, according to Dealogic data. Still, much remains unclear as to how the mercurial billionaire will carry out his vision of a platform with less restraint.
Inventory Handling Charges
The latest chapter in one of Wall Street’s most important investigations in years unfolded on Wednesday, when federal agents arrested Bill Hwang, owner of investment firm Archegos Capital Management, and his former chief financial officer, Patrick Halligan, in their houses. . The two were charged with racketeering conspiracy, securities fraud and wire fraud, all related to a scheme, according to a 59-page indictment, which involved deliberately deceiving banks and manipulating stock prices. Initially, they managed to escape scrutiny because of lax regulations around “family offices” like Archegos – companies that manage investments for the ultra-rich. But the company imploded last year and $100 billion in shareholder value disappeared almost overnight. Through their lawyers, the men pleaded not guilty.
Economy shrinks but remains resilient
The US economy contracted in the first three months of the year, with gross domestic product falling 0.4 percent in the first quarter when adjusted for inflation, or 1.4 percent on an annualized basis. The decline was largely to do with slower growth in inventories and a widening trade deficit as US exports far exceeded imports. Without that, an underlying growth measure rose 0.6 percent in the first quarter, and the White House preferred to focus on data without what President Biden called “technical factors” from inventories and trade. Biden also pointed to positives in Thursday’s GDP report which showed strong consumer spending and continued business investment – signs that the economic recovery is still resilient.
What is the next? (May 1st to 7th)
A job report that might look familiar
Jobs numbers for April will be released on Friday, and are expected to be similar to those for March. Analysts expect a gain of about 385,000 jobs – US employers added 431,000 in March – and an unchanged unemployment rate of 3.6%. Last month, some economists suggested that jobs “may be getting closer to their peak as possible” and that factors such as rapid inflation and higher interest rates could soon slow the job market. The economy has regained more than 90% of the 22 million jobs lost at the peak of the pandemic lockdowns in spring 2020, but interventions by the Federal Reserve and other forces threaten to dampen those gains.