Here are the key news highlights that should grab the attention of investors as they prepare to kick off their trading day:
1. Bond Market Surges
Investors are bracing for a rough week on Wall Street as signs the Fed could raise interest rates later this year hurt the economy. The S&P 500 and tech-heavy Nasdaq fell 2.7% and 3.5%, respectively, for their best weekly performance since March.
Notably, both indexes are headed for their third weekly decline.
On the other hand, the Dow Jones Industrial Average performed relatively well, falling less than 1.6%. Bond yields rose on the news; The benchmark 10-year Treasury yield rose 15 basis points to 4.498%, its highest level since 2007. At the same time, the two-year interest rate exceeded 5.2%, reaching its highest level since 2006. Please follow the market in real time.
2. Rupert Murdoch Reign
World-famous media mogul Rupert Murdoch announced his resignation from Fox Corporation and News Corporation. But that didn’t cut things off completely. According to the statement made by the company, Erdoğan, who will serve as the honorary president of each organization, said that although he is 92 years old, he enjoys working every day in the world of news, nature and new ideas.
During the transition period, his son Lachlan Murdoch will take over News Corp. While he continues to serve as chairman and CEO of Fox. The decision comes after years of turmoil for the Fox network, which agreed to pay a whopping $787.5 million to settle a lawsuit filed by Dominion Voting Systems. Additionally, Fox News experienced the sudden departure of popular anchor Tucker Carlson earlier this year.
3. New Announcements From Microsoft
At an event held in New York on Thursday, Microsoft presented many new developments, including new Surface PCs and more information about Windows 11. The company also announced plans to use artificial intelligence tools. In addition to basic applications such as Word and Excel. In the new functionality, users can look forward to installing a snipping tool that helps extract text directly from screenshots and recover sensitive data such as phone numbers.
Among the new Surface computers, the top-of-the-line model is the Surface Laptop Studio 2. It has a new chip, a 14.4-inch screen and is easy to use as a tablet. The price of this model starts at $1,999. The entry-level Surface Laptop Go 3 starts at $799 and has a 12.4-inch touch screen and a lighter design than the previous model.
4. Cisco and CyberSecurity
In its most significant acquisition to date, Cisco announced it will acquire network security software company Splunk for $157 per share, for total revenue of approximately $28 billion. The acquisition cost accounted for approximately 13% of Cisco’s total market value. The deal is expected to be completed in the third quarter of 2024.
Cisco, the world’s largest manufacturer of computer networking equipment, actively promotes its impact on network security. In contrast, Splunk focuses on technologies that help businesses monitor and analyze data to reduce the risk of security breaches and enable competitive solutions. While Splunk’s shares rose after the news and finished the day up 21%, Cisco’s shares finished the day down 4%.
5. More McMoney
As a development, McDonald’s uses price increases for franchisees; This is his first change in nearly three decades. Starting Jan. 1, franchisees who open new restaurants will be required to pay a 5 percent fee, on top of the previous 4 percent fee. It is worth noting that this change will not affect entrepreneurs running existing restaurant businesses.
Franchises play a key role in operating approximately 95% of the McDonald’s network of approximately 13,400 restaurants in the United States. They are responsible for many obligations, including rent, monthly salary, and other expenses. McDonald’s local business is experiencing good growth this year, although the company’s relationship with its U.S. franchisees has faced some challenges in recent years.
Summary
Investors have faced stress this week due to rising financial markets and inflation concerns from the Federal Reserve. Rupert Murdoch’s resignation has reshaped media giants Fox and News Corp. While Microsoft was announcing new technologies, Cisco’s $28 billion purchase of Splunk drew attention to cybersecurity. McDonald’s is adjusting franchise fees as local business booms. Calm down.
