The week of business: the Twitter deal

Elon Musk on Monday reached an agreement to buy Twitter for about $ 44 billion, a deal that was unanimously approved by Twitter’s board. The price is $ 54.20 per share, a 38 percent premium to the company’s stock price in April, before Mr Musk revealed he had bought a 9 percent stake in Twitter. Within a few weeks, Mr Musk, the richest person in the world, took his bid from something that investors shrugged off for a serious proposal. The turning point came when he submitted documents showing he had the funding to support his offer. Now, according to data from Dealogic, it could be the biggest deal to take a company privately for at least 20 years. Yet it is very uncertain how the mercury billionaire will carry out his vision of a platform with less restraint.

The latest chapter in one of the most high-profile Wall Street investigations in years unfolded on Wednesday when federal agents arrested Bill Hwang, the owner of investment firm Archegos Capital Management, and its former CFO, Patrick Halligan, in their homes. . The two were charged with vandalism conspiracy, securities fraud and wire fraud, all in connection with a scheme, according to a 59-page indictment that involved deliberately misleading banks and manipulating stock prices. To begin with, they were able to evade control due to the loose rules around “family offices” like Archegos – companies that manage investments for the ultra-rich. But the company imploded last year, and $ 100 billion in shareholder value almost disappeared overnight. Through their lawyers, the men did not plead guilty.

The U.S. economy declined in the first three months of the year, with gross domestic product declining 0.4 percent in the first quarter, adjusted for inflation, or 1.4 percent year-on-year. The decline was largely due to slower growth in inventories and a growing trade deficit, as US exports were far surpassed by imports. Without these, an underlying growth target rose 0.6 percent in the first quarter, and the White House preferred to focus on the data without what President Biden called the “technical factors” of inventory and trade. Mr. Biden also pointed to bright spots in Thursday’s GDP report, which showed strong consumer spending and continued business investment – signs that the economic recovery is still resilient.

The job numbers for April are published on Friday and they are expected to look like those from March. Analysts expect an increase of about 385,000 jobs – US employers added 431,000 in March – and an unchanged unemployment rate of 3.6 percent. Last month, some economists suggested that jobs “might be approaching their near-perfect moment” and that factors such as rapid inflation and higher interest rates could soon slow the labor market. The economy has regained more than 90 percent of the 22 million jobs lost on top of pandemic shutdowns in the spring of 2020, but Federal Reserve interventions and other forces are threatening to cut those gains.

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