Markets Defused is an easy-to-understand and straightforward recap of the day’s most engaging business and stock market news.
- Summer stock sell-off … here’s what the market said
- Rolls-Royce is working mini-nuclear stake sale, reports say
- Wood Group plummeted after takeover suitor pulled out
- Lloyds Bank upped its AI efforts, hiring Amazon exec
- Pringles owner Kellanova surged on reports of Mars takeover talks
- Apple share price was in doldrums after Buffett sales
Summer stock sell-off … here’s what the market said
The global stock markets took a dramatic downturn on Monday, as multiple bearish signals hit sentiments.
Sharp declines in big-tech stocks, fears of a looming US recession, and volatility spikes have painted a grim picture for investors.
In London, the FTSE 100 gave up just over 2% to trade down to 8,008.
The Dow Jones lost 850 points, 2.14%, to 38,886 and the S&P 500 dropped 125 points, 2.37%, to 5,219 and the Nasdaq was down 419 points,2.28%, to 18,007.
Apple Inc (NASDAQ:AAPL, ETR:APC) stock was down 4% lower at $211, and NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) was down 5.8% at $101.04.
Here, read what the market had to say about Monday’s volatility.
Rolls-Royce is working mini-nuclear stake sale, reports say
Rolls-Royce Holdings PLC (LSE:RR.) shares closed Monday’s trade on the back foot, losing 6% in volatile markets, though investors also eyed reports that the British engineer may be working on a stake-sale for its small modular reactor (SMR) business.
Such a deal would unlock new funding for the business which has great promise for significant growth, but also requires continuing capital investment.
Talks are taking place with potential investors, including infrastructure investors, clean energy funds, hedge funds, and other nuclear power companies – that’s according to a report by The Sunday Telegraph over the weekend.
In London, Rolls-Royce shares were priced at 435.5p marking a 6% decline for the day.
Wood Group plummeted after takeover suitor pulled out
Shares in John Wood Group PLC (LSE:WG.) plummeted on Monday, losing around 37%, after it announced that Dubai-based suitor Sidara had withdrawn its takeover bid.
Sidara cited geopolitical risks and financial market uncertainty for the decision.
Wood Group, in its statement, said it remained confident in its strategic direction and reaffirmed its guidance for the current and next financial year, emphasising its forecast significant cash flow in the coming year.
It comes after Sidara made several offers to acquire Wood Group, with the last valuing the company at 230 pence per share.
In London, Wood shares fell 74p or 37% to finish Monday’s trading at 122.8p.
Lloyds Bank upped its AI efforts, hiring Amazon exec
Lloyds Banking Group PLC (LSE:LLOY) announced the hiring of Rohit Dhawan as the Group Director of AI and Advanced Analytics, with a mandate to scale the bank’s AI capabilities and integrate ‘AI outcomes into business priorities’.
Reporting to Lloyds chief data and analytics officer Ranil Boteju, Dhawan will shape the bank’s overall AI, ML, and advanced analytics strategy.
He’s joining from Amazon Web Services (AWS) where he was the head of data and AI strategy for the Asia-Pacific region.
Currently, Lloyds is trialing over 50 AI use cases aimed at improving customer experience – including customer service and support, as well as account supervision functions like detecting early fraud warning signs.
In London, amidst market-wide volatile trading, Lloyds shares finished Monday’s session spme 3.3% lower at 53.48p.
Pringles owner Kellanova (NYSE:K) surged on reports of Mars takeover talks
Pringles owner Kellanova (NYSE:K), the snacks holding company ‘spun-out’ of Kelloggs last year, was among very few bright sparks on Wall Street on Monday, with the stock up on reports that Mars is in ‘advanced talks’ to buy the company in a potentail “megamerger”.
A deal could see Kellanova - which also owns the Pop Tarts, Cheez-It, and Eggo brands among others – valued at nearly $30 billion, that’s according to a Reuters report over the weekend.
It would be one of the largest ever deals in the packaged food sector.
Nonetheless, the Reuters report pointed out that Kellanova shares are valued at a discount compared to snack peers Hershey and Cadbury-owner Mondelez.
Reuters added that there was no certainty that a deal would advance, and noted that another suitor may yet also approach Kellanova.
In New York, Kellanova shares gained $9.00 or 14.3% to trade at $71.96.
Apple share price was in doldrums after Buffett sales
Apple Inc (NASDAQ:AAPL, ETR:APC) stock was in the doldrums on Monday, not just because the market was in a broad selling mode, but also following the news that Warren Buffett’s Berkshire Hathaway sold around half of its holdings in the iPhone-maker.
The investment group cashed out to the tune of $88 billion in recent months, according to its second quarter report, as it sold around 390 million shares and lifted its cash reserves to $277 billion.
Given that Buffett is probably the market’s most famous and influential investor, the reports evidently had sway in terms of investor sentiments – which are also steered currently by wider economic concerns and fears of a recession.
In New York, Apple shares lost around $9.00 falling 4% to trade at $210.98.