Markets: Close

Blue chips fall sharply | Twitter ready for Musk


5pm: Blue chips fall

The FTSE 100 closed firmly lower as traders remained anxious over inflation and a global recession.

The UK’s blue chip index ended the session down 108.56 points at 7,277.30, while Wall Street staged a mild rally following its plunge on Tuesday.

7am: Inflation dips

The UK inflation rate eased slightly as petrol and diesel prices fell back, though the cost of food and energy continue to rise.

Inflation fell to 9.9% in the 12 months to August, from 10.1% in July, the Office for National Statistics said.

Businesses are demanding more detail on the proposed energy cap.

Full story here

7am: Artisanal Spirits Company sales rise

Premium whisky curator The Artisanal Spirits Company, owner of The Scotch Malt Whisky Society, said revenue for the half year to the end of June increased 25% to £9.9 million (H1-21: £7.9 million).

The company has seen significant growth in UK venues, Europe and China and gross margin of 63%, ahead of the 61% achieved in FY21.

The loss before tax came in at £1.1 million (H1-21: £0.9 million loss).

Full story here

Twitter showdown

Twitter shareholders have approved Elon Musk’s $44 billion bid to buy the social media company and take it private, effectively setting the stage for a courtroom showdown with the Tesla billionaire.

The vote came as Musk seeks to scrap the deal, casting doubt on Twitter’s self-reported percentage of fake accounts and alleging the company was not as forthcoming as it should have been with its explanation of the calculation.

Twitter and Musk will now argue their cases in the Delaware Courts. The trial is set to start on 17 October, though analysts believe there is a high chance of a negotiated settlement.

Global Markets

Stock markets fell sharply after US inflation data showed prices rose 8.3%, above the forecast of 8.1%, make a 75bps rise in interest rates at the next meeting of the Federal Reserve almost certain.

The figure was down from 8.5% in July and a cyclical peak of 9.1% in June.

Asian shares tumbled, the dollar held firm and two-year Treasury yields hit a new 15-year high as Wall Street saw its steepest fall in two years.

The Dow Jones Industrial Average plunged 3.94%, the S&P 500 lost 4.2%, and the Nasdaq Composite dropped 5.16%.

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