Stocks take a roller-coaster ride Stocks saw a wild rally, with the major averages experiencing a historically significant yet spectacular turnaround. Core CPI inflation rose faster than anticipated, which had all the makings of a significant selloff, but the whole market recovered by more than five percentage points on an intraday basis. Bulls appeared to be back in control as shares rose, but inflation raised its ugly head again on the final trading day. Inflation forecasts for the next year increased, according to a study by the University of Michigan, for the first time since March. The S&P (SP500) closed down 1.6% when the dust settled, and earnings are now expected to determine the direction of the market moving ahead. New superpower in the supermarkets Early on Friday morning, the firms announced that Kroger and Albertsons, a rival grocer, had reached an agreement for a takeover Kroger has agreed to buy rival grocer Albertsons for $24.6 billion. Together, the two b...
Twitter takeover Due to the recent seizing of the debt markets, banks led by Morgan Stanley may lose roughly $500 million in their efforts to finance Elon Musk's $44 billion acquisition of Twitter (TWTR). For the acquisition, lenders such as Morgan Stanley (MS), Bank of America (BAC), Barclays (BCS), and Mitsubishi UFJ initially pledged $13 billion in debt financing. Bloomberg estimates that these banks would now lose approximately $500M if they had to sell the debt. It's unlikely that investors would want to buy the debt in the current markets, despite the fact that they initially promised to fund the purchase even if they couldn't sell the debt. High International tensions The US Congress's approval of the Inflation Reduction Act in August has been hailed as one of the most important pieces of environmental legislation in a generation. Still, its effects on international relations have however been poisonous. Margrethe Vestager, the head of the European Union's...