Global markets suffered losses yesterday as bourses dropped into the red and fears of an oncoming recession began to take hold. US stock markets closed at the lowest level in more than a year while the JSE didn’t come out unscathed either but may be better off than its global peers for now. Meanwhile, Elon Musk will for the first time meet with Twitter employees this week ahead of his anticipated acquisition of the company.
S&P 500 confirms bear market as recession worry grows – Reuters
The US stock market tumbled yesterday as the S&P 500 closed 3.9% down, solidly in a bear market. The S&P 500 closed at its lowest level since January 2021 with the sell-off, sparked by inflation, accelerating. The drop indicates a grim outlook for the economy as the US Federal Reserve tries to curb inflation further. Read more here.
JSE hit by ugly global sell-off – but still sitting prettier than major markets – Fin24
The JSE has not been spared from the fallout of the global sell-off and lost over 2% by close yesterday. But the local bourse is still performing better than other major markets. Ninety One portfolio manager Hannes van den Berg says the South African Reserve Bank will want to get a grip on inflation and instead of back-to-back 50 basis point hikes, it might opt for three 50 bps hikes in a row. He said some investors might want to move their money from equities to less risky assets like cash. Read more here. (for subscribers)
Elon Musk to address Twitter staff for first time – Daily Maverick/Reuters
The world’s wealthiest man, Elon Musk, is set to address Twitter staff for the first time since the Tesla chief executive made a bid to acquire the social media network. The company-wide meeting is scheduled for Thursday and Musk will take questions from employees. Twitter CEO Parag Agrawal has had to deal with employees’ anger at the proposed Musk takeover with threats of a mass exodus from the company. Last week, Musk threatened to pull the plug on the sale if Twitter could not provide data on fake and spam accounts. Read more here.
Here’s a round-up of what else we’re reading:
Dollar towers as traders brace for hawkish Fed – SABC News
Comair flies into liquidation with assets of R3.5bn – Business Day (for subscribers)
First major dam fails as Nelson Mandela Bay battles near certain water disaster – Daily Maverick
Is it time for Oceana to review its board? – Daily Maverick
If surrendered to SA, Guptas may face more music – Mail & Guardian
Cyber fraud is reaching new highs in SA – and it’s the apps on your phone putting you at risk – Business Insider
