Musk takes over at Twitter + US earnings face USD 10 bn hole in 3Q thanks to stronger greenback
Musk is now officially chief twit: Elon Musk has closed his USD 44 bn acquisition of Twitter after a six-month saga that almost hashed out in court in a high-profile trial. Following the acquisition, Musk ousted Twitter’s CEO and CFO, and sources told Reuters that he plans to become interim CEO. Musk had for months cast doubt over his intentions to buy the company, claiming it had failed to adequately disclose the number of spam bots and fake accounts on the platform, leading Twitter to sue the b’naire. (CNBC | Bloomberg | Financial Times | Associated Press | Washington Post)
The surging USD is weighing on US corporate earnings: The red-hot greenback is expected to erase more than USD 10 bn from US 3Q earnings, the Financial Times reports. Tightening financial conditions have sent the USD surging to 20-year highs this year, hurting US companies’ overseas sales. Each 8-10% rise in the USD index knocks one percentage point from S&P 500 earnings per share, according to Jonathan Golub, Credit Suisse’s head of US equity strategy.
|EGX30||11,072||+4.9% (YTD: -7.3%)|
|USD (CBE)||Buy 22.86||Sell 23.00|
|USD at CIB||Buy 22.90||Sell 23.00|
|Interest rates CBE||13.25% deposit||14.25% lending|
|Tadawul||11,710||-0.8% (YTD: +3.8%)|
|ADX||10,287||-0.1% (YTD: +30.8%)|
|DFM||3,349||-0.5% (YTD: +4.8%)|
|S&P 500||3,901||+2.5% (YTD: -18.1%)|
|FTSE 100||7,048||-0.4% (YTD: -4.6%)|
|Euro Stoxx 50||3,613||+0.2% (YTD: -16.0%)|
|Brent crude||USD 95.77||-1.2%|
|Natural gas (Nymex)||USD 5.68||-3.3%|
|BTC||USD 20,851||+1.2% (YTD: -54.8%)|
THE CLOSING BELL-
The EGX30 rose 4.9% at Thursday’s close on turnover of EGP 2.3 bn (55.1% above the 90-day average). Local investors were net sellers. The index is down 7.3% YTD.
In the green: Egypt Kuwait Holding-EGP (+9.7%), QNB Al Ahly (+9.3%) and CIB (+9.2%).
In the red: Housing and Development Bank (-2.2%), Madinet Nasr Housing and Development (-1.5%) and Heliopolis Housing and Development (-1.3%).