What we’re reading (10/4)
“Twitter Shares Surge 22% After Elon Musk Revives Deal To Buy Company At Original Price” (CNBC). “Elon Musk has reversed course and is again proposing to buy Twitter for $54.20 a share, according to a regulatory filing on Tuesday. Twitter shares closed up more than 22% on the news. The social media company issued a statement saying it had received the letter and said, “The intention of the Company is to close the transaction at $54.20 per share.”
“Dow Surges More Than 800 Points In Second Day Of Big Gains” (Wall Street Journal). “The S&P 500 surged 112.50, or 3.1%, to 3790.93, its best day in more than four months. The technology-heavy Nasdaq Composite climbed 360.97, or 3.3%, to 11176.41. The gains were broad-based, spanning different sectors, and encouraged market optimists hoping for a more enduring recovery.”
“Credit Suisse CDS Hit Record High As Shares Tumble” (Financial Times). “Credit Suisse’s five-year CDS soared by more than 100 basis points on Monday, with some traders quoting it as high as 350bp, according to quotes seen by the Financial Times. The bank’s shares tumbled to historic lows of below […] 3.60, down close to 10 per cent when the market opened, before paring losses. The market moves were even more dramatic in the bank’s shorter-term CDS, with one trading desk quoting Credit Suisse’s one-year CDS at 440bp higher than on Friday at 550bp.”
“The First Global Deflation Has Begun, And It’s Unclear Just How Painful It Will Be” (New York Times). “The outline of this pattern is familiar. But the breadth is new. We now find ourselves in the midst of the most comprehensive tightening of monetary policy the world has seen. While the interest rate increases are not as steep as those pushed through by Paul Volcker as Fed chair after 1979, today’s involve far more central banks.”
“Ray Dalio Makes His Exit From Bridgewater” (Institutional Investor). “Dalio turned Bridgewater into the best money manager of all time, according to an annual list compiled by by Rick Sopher, chairman of LCH Investments in London. As of the end of last year, Bridgewater had made investors $52.2 billion since 1975, according to Sopher — even though Bridgewater’s returns in 2021 were only $5.7 billion on assets under management of $99.2 billion.”
