The world this week--Business
Stockmarkets endured another punishing stretch, as investors fretted about the Federal Reserve’s aggressive moves to tighten policy, high inflation and slowing growth.
After its longest weekly losing streak since 2011 the S&P 500 closed below the 4,000 mark for the first time in 14 months.
The Nasdaq Composite plummeted to its lowest finish since November 2020.
Apple’s share price dropped by 12% over five days.
The sell-off extended to stocks in Europe and Asia.
Cryptocurrencies took a pummelling amid the commotion, as investors pulled back from speculative assets.
Bitcoin shed 30% of its value over a week.
Coinbase, the biggest crypto-exchange in America, lost more than 2m users in the second quarter, a fifth of its customer base.
America’s annual rate of inflation as measured by the consumer-price index fell to 8.3% in April, from 8.5% in March, the first drop in eight months.
But most economists had been expecting April’s figure to fall to 8.1%.
Christine Lagarde, the president of the European Central Bank, gave the clearest signal yet that it will raise interest rates in July or September when she suggested that she expects such a move in the third quarter.
The bank has maintained a negative rate on its deposit facility since 2014.
BlackRock, which two years ago warned about the risks of climate change to investments and pushed for green-friendly shareholder proposals at company meetings, said it would support proportionately fewer of them this year because they are not consistent with its clients’ interests.
The world’s biggest asset manager gave several reasons, including a regulatory change in America that has increased the number of proposals of “varying quality” and the impact of the war in Ukraine on energy markets.
And it won’t support shareholder votes that are intended to micromanage companies.
FIFA, football’s global governing body, and Electronic Arts, a video-game publisher, announced an end to a three-decade deal by which FIFA lent its name to an annual series of games.
The deal had brought in $150m a year for FIFA, making it the organisation’s biggest commercial venture besides the World Cup.
SoftBank said its tech-focused investment funds posted a loss of￥3.7trn ($33bn) for the year ending March 31st, pushing the Japanese conglomerate to an overall annual loss of ￥1.7trn.
The value of SoftBank’s stakes in companies such as Coupang, Didi Chuxing, DoorDash and Grab have plummeted over the year, as their share prices have tumbled.