Dow tumbles more than 500 points, Nasdaq sheds 3% as Apple slides [CNBC]
A stronger-than-expected jobless claims report didn’t help sentiment, building on the notion that the Federal Reserve will keep doing aggressive rate hikes to fight inflation without concern it’s going to hurt the labor market.
The 10-year U.S. Treasury yield rebounded to trade at about 3.79%. A day prior, it posted its biggest one-day drop since 2020 after briefly topping 4%.
Truss says she has ‘right plan’ on economy and will not change course [Guardian]
In a round of interviews with BBC local radio stations, her first public statements since warnings from the International Monetary Fund and the [Bank of England’s] intervention to prevent a run on pension funds, the prime minister said people would feel the benefits in the longer term…. Pressed repeatedly by the presenters about why her government had cut taxes primarily for richer people in Friday’s mini-budget despite inflationary pressures, prompting a decline in the pound and a rise in the cost of government debt, Truss rejected any idea of error.
Porsche shares rise in landmark Frankfurt debut [CNBC]
Shares of the iconic sports car brand initially traded at 84 euros ($81) on Thursday morning after they had been priced at the top end of their range late Wednesday, at 82.50 euros. It values the company at roughly 75 billion euros…. “The Porsche AG has completely decoupled itself from the negative market trends,” one investor told Reuters….
Two large Hong Kong IPOs drop in trading debut: China EV maker Leapmotor plunges, Onewo shares dip [CNBC]
Leapmotor’s shares tumbled as much as 41.6% from its offer price of 48 Hong Kong dollars ($6.11) per share to 28.05 Hong Kong dollars at session lows. In the afternoon session, the stock recovered slightly, but still closed 33.5% lower at 31.90 Hong Kong dollars…. The retail tranche of shares for both initial public offerings were undersubscribed, according to their respective filings. Around 82% of Onewo’s shares for the local market were bought, and only 16% of Leapmotor were purchased, the filings said.
New U.S. National Security Rule Requires Firms to Disclose Key Owners [WSJ]
By requiring certain companies to identify their primary owners, officials say they aim to penetrate the shield of anonymity that has enabled drug traffickers, terrorists, corrupt officials and other bad actors to keep their illicit activities hidden…. The ability to create such so-called shell companies made the U.S. “the best place to hide and launder ill-gotten gains,” Treasury Secretary Janet Yellen said before the Treasury Department proposed the rule last year.
McKinsey Is a Consulting Powerhouse. But Is It a Force for Good? [NYT]
McKinsey has worked with opioid makers, hostile autocratic governments, cigarette companies and U.S. immigration authorities responsible for the family separation policy at the southern border. Reading Bogdanich and Forsythe’s account, one has a hard time imagining any paying client the firm would turn away. Many of the company’s recommendations follow a predictable Milton Friedman-inspired playbook, centering on “right-sizing,” an absurdist euphemism for laying off workers, and other forms of cutting costs, such as reducing expenditures on food, medical care and the supervision of detainees at the border.