Summary: Global share prices are falling sharply again this morning on fears the Fed could hike interest rates as many as seven times this year to squash higher-than-expected inflation. Also, Microsoft announced the world’s biggest cash takeover bid for Call of Duty owner Activision Blizzard, and ExxonMobil pledged to go carbon net zero by 2050.
Fed to deploy bazooka? US stocks were down 1.4% to 2.5% at 8am NZ time as investors returning from the Martin Luther King Jr holiday long weekend refreshed their fears about how much the US Federal Reserve might tighten monetary policy. Highly influential banker, JP Morgan CEO Jamie Dimon, mused over the weekend that six or seven rate hikes were possible this year, which is much more than the three or four priced in on Friday. Some have even suggested the Fed’s first hike might be a ‘bazooka’-sized 50 basis points in March. Lower-than-expected Goldman Sachs profits also hit sentiment.
Closed for now MBIE announced overnight it had indefinitely postponed tomorrow’s release of new MIQ rooms for March and April because extra omicron cases and the potential for extra local omicron cases being quarantined at MIQ hotels had used up spare capacity. There was no immediate indication of when new slots would be available. Essentially, the ‘hermit kingdom’ just pulled up the drawbridge completely in the hope of keeping omicron out for just a little bit longer.
Not so micro Microsoft announced early this morning its biggest-ever takeover and the biggest-ever all-cash takeover in history, bidding US$68.7b for Activision Blizzard, which makes Call of Duty, World of Warcraft and Candy Crush. Microsoft already owns Minecraft and the deal is seen as a massive bet on the future of the ‘metaverse’. (Guardian).
Headed for zero too The world’s second-most-valuable oil producer, ExxonMobil, joined Shell and BP in pledging last night to cut its global net carbon emissions to zero by 2050. The milestone comes almost a year after climate change activist funds forced the removal of three directors from ExxonMobil’s board. (Reuters)
Fresh on BusinessDesk this morning
Dan Brunskill reports from research showing that 'buying-the-dip' can be less risky, but tends to deliver lower returns.
Pattrick Smellie interviews IRD Commissioner Naomi Ferguson about a massive IT system change that seemed to work.
Henry Burrell reports on the success of Kiwi tech entrepreneur Alex Kendall’s Wayve autonomous vehicle startup in London, which just raised US$200m in a Series B funding round.
