Markets Defused gives an easy-to-understand and straightforward recap of the week’s most engaging business and stock market news.
- Trump stock soared in first trading since assassination attempt
- Macy’s dropped after buyout talks were ditched
- Goldman Sachs stock boosted by soaring profits
- Audi teamed up with BP as it preps F1 entry
- Labour Government continued NatWest stake sales
- Burberry plummeted as CEO exited on fresh profit warning
Trump stock soared in first trading since assassination attempt
Trump Media & Technology Group Corp (NASDAQ:DJT) shares surges by over 35% in the first trading day following the failed assassination attempt on former President Donald Trump, who is the largest shareholder in the company.
The company, which owns the Truth Social platform, traded up to $41.95 – and earlier today peaked as high as $46 – and has increased the NASDAQ quoted company’s value by more than $1 billion.
The attack, which occurred at a rally in Pennsylvania, is perceived to have increased Trump's chances of winning the upcoming presidential election.
Market commentators suggest the event may draw more users to Truth Social, boosting the platform's engagement.
Rumble, an alternative to Youtube that’s popular by conservative and right-wing content creators, also experienced saw significant gains, climbing more than 14%.
Macy’s dropped after buyout talks were ditched
Macy's, Inc. (NYSE:M) stock dropped close to 12% on Monday after the American department store operator terminated buyout discussions with Arkhouse Management and Brigade Capital Management.
The latest offer of $24.80 per share that valued Macy's at $6.9 billion was not sufficiently compelling, according to Macy’s.
Buyout talks began in December and since than there have been multiple revised offers from the bidders.
Despite the increased bids, Macy's team has decided to focus on its own turnaround strategy aimed at enhancing shareholder value.
It intends to close 150 stores and monetise some $750 million worth of assets.
Macy's, meanwhile, said it remains open to exploring all paths to enhance shareholder value but concluded that the current proposal lacked the certainty and value needed.
Goldman Sachs stock boosted by soaring profits
Goldman Sachs Group Inc (NYSE:GS, ETR:GOS) stock traded higher on Monday after the American bank showed strong quarterly financials, with profit jumping 150% compared to this time last year.
Net income came in at $3.04 billion, or $8.62 per share which was comfortably better than the $8.34 forecast by analysts. Revenues for the quarter reached $12.73 billion, up 17% from last year.
The bank pointed to a strong performance in debt underwriting, fixed-income trading, and asset management. Meanwhile, investment banking fees rose 21% to $1.73 billion, and, fees from mergers and acquisitions advisory business grew by 7%.
Goldman Sachs chief executive David Solomon said that the bank is benefitting from a resurgence in capital markets and M&A activity.
In New York, Goldman shares were up $9.78 or 2.04% changing hands at $489.66.
Audi teamed up with BP as it preps F1 entry
BP PLC (LSE:BP.) on Monday announced a strategic partnership with Audi for the German car brand’s upcoming entry to F1 racing, in the 2026 season.
It sees the oil company become the first official partner of the future Audi team.
As part of the collaboration, BP will develop FIA-compliant advanced sustainable fuel to for Audi's F1 cars, while Castrol, the BP owned lubricants business, will develop high-performance lubricants and EV fluids for Audi's V6 turbo engine and electric motor.
BP and its subsidiary brands Castrol, and Aral, will have marketing and branding rights with the team.
Not only will 2026 see Audi join the F1 roster, it will also see new the start of an FIA rule mandating a 65% reduction in greenhouse gas emissions for the fuel used in F1 cars.
“Audi and bp have always worked together successfully in motorsport. We are delighted that we can take this special partnership to the next level in Formula 1,” said Andreas Seidl, chief executive of Audi F1.
“It is a strong signal for Audi’s future F1 factory team that we have been able to establish this partnership at such an early stage.”
Labour Government continued NatWest stake sales
A change of government has evidently not altered plans for the UK government’s divestment of its stake in NatWest Group PLC (LSE:NWG).
The latest round of share sales has seen the government’s stake drop beneath 20%.
NatWest bought back the shares held by the government to bring its holding to 19.97%, which means the government interest has now nearly halved since December.
The divestment process paused during the UK general election.
Burberry plummeted as CEO exited on fresh profit warning
Burberry Group PLC (LSE:BRBY) share price plummeted on Monday after the British fashion house replaced its chief executive and spooked investors concerned over slowing sales.
Joshua Schulman replaces Jonathan Akeroyd as the brand’s new chief executive.
The company is grappling with significant sales decline according to the fresh profit warning issued on Monday.
Burberry reported a 23% drop in sales in both the Americas and Asia Pacific regions and a 16% decrease in Europe, the Middle East, India, and Africa.
The company has decided to suspend dividend payouts to shareholders.
And it revealed it plans to cut jobs, mainly in its UK corporate office.
In terms of strategy, the marketing plan is to refocus on so-called timeless classic products such its iconic trench coats and scarves.
It also plans to reconnect with the brand's core customers and revitalize its market position.
“We are taking decisive action to rebalance our offer to be more familiar to Burberry's core customers whilst delivering relevant newness,” Burberry chair Gerry Murphy said in a statement.
“We expect the actions we are taking, including cost savings, to start to deliver an improvement in our second half and to strengthen our competitive position and underpin long-term growth."
In London, Burberry was down 143p or 16.17% changing hands at 743.20p.