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HomeLatest NewsGlobal NewsGlobal Market Watch: Fed's Rate-Cut Prediction, NASDAQ Stake Sale, and Hindenburg's Targeting...

Global Market Watch: Fed’s Rate-Cut Prediction, NASDAQ Stake Sale, and Hindenburg’s Targeting Spark Market Debate.

Global Market Watch

Major global developments include the Federal Reserve’s rate-cut trajectory, Intel’s capital expenditure plans, Lonza’s deal with Roche, and Chipotle Mexican Grill’s milestone.

The US Federal Reserve suggests three rate cuts in 2024, NASDAQ’s largest stakeholder plans a sale, Hindenburg Research shorts Equinix, and Intel plans a massive capital expenditure plan on World Street.

Rate cuts on the way

The Federal Reserve has maintained steady interest rates following its monetary policy meeting, but plans to reduce them by three-quarters of a percentage point by the end of 2024. This comes as investors await relief from sluggish progress towards the central bank’s 2 percent inflation target.

Nasdaq/Borse deal

NASDAQ announced that Borse Dubai will sell $1.6 billion worth of shares in Nasdaq, causing it to lose its position as the top shareholder to Thoma Bravo. The deal will sell 27 million Nasdaq shares at a discount of over 5% to the stock’s last closing price, reducing Borse Dubai’s stake to 10.8%, making it the second-largest shareholder after Thoma Bravo’s 12.5% ownership.

Hindenburg’s new target

Hindenburg Research has taken a short position in Equinix, accusing it of exaggerating profitability amid intense competition. Shares of Equinix slumped after the short-seller claimed the REIT was using an accounting trick to boost adjusted funds. Hindenburg Research previously accused India’s Adani Group of stock manipulation, which did little to prevent erosion of its market capitalisation.

Intel’s move

Intel is planning a $100-billion spending spree across four US states to expand its manufacturing capacity. The plan follows $19.5 billion in federal grants and loans, and $25 billion from tax breaks. The five-year plan aims to turn empty fields near Columbus, Ohio, the world’s largest AI chip manufacturing site, into productive areas by 2027.

Lonza plan

Switzerland-based contract drug manufacturer Lonza plans to buy a $1.2 billion biologics manufacturing site in California from US drugmaker Roche. The Swiss company also plans to spend an additional 500 million Swiss francs ($562.3 million) to upgrade the facility in Vacaville for new drug production.

In blue sky zone

Chipotle Mexican Grill’s shares surged by 8% on March 20 following a 50-for-1 stock split, aiming to make the stock less expensive for investors and improve liquidity. The company’s strong earnings and solid demand have lifted shares to record levels over the past year, boosting its overall value.

My best read on trading is this Book GGlobal Market Watchlobal Market Watch Global Market Watch Global Market Watch

Petrobras (NYSE:PBR) shares fell 13% after the firm reported a smaller-than-expected net profit and fewer shareholder distributions, suggesting its dividends may stop. The board authorized Q4 dividends of 1.10 reais per share, totaling 14.2B reais ($2.9B), with no special payments for the year. Analysts predicted $3.7B dividends and $3B special dividends. Petrobras CEO Jean Paul Prates said rising investment on wind, solar, and biofuel programs made him more cautious about payouts.

Petrobras (NYSE:PBR) shares fell 13% after the firm reported a smaller-than-expected net profit and fewer shareholder distributions, suggesting its dividends may stop. The board authorized Q4 dividends of 1.10 reais per share, totaling 14.2B reais ($2.9B), with no special payments for the year. Analysts predicted $3.7B dividends and $3B special dividends. Petrobras CEO Jean Paul Prates said rising investment on wind, solar, and biofuel programs made him more cautious about payouts.

WGovernment aid and bailouts for the struggling Chinese real estate market are unlikely. Chinese officials have said individuals who damage the public would be punished. “Real estate companies that are seriously insolvent and have lost the ability to operate should go bankrupt or be restructured, per the law and market principles,” stated the Chinese housing and urban-rural development minister.all Street Roundup Wall Street Roundup

Estancia Capital Partners LP is buying a minority stake in UK Savings Fintech Flagstone, a cash deposit platform, to boost its savings services. Flagstone said the private equity firm’s £108 million ($139 million) investment will help it consolidate and expand domestically and internationally.

This investment will also reward Flagstone’s investors. The sale did not reveal Estancia’s interest in the Arizona firm.

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