Gold miners, India, FED: This Week's Top Financial Tweets - Week 38
#7. WeWork CEO to step down?
On Sunday, there were rumors of WeWork CEO Adam Neumann possibly stepping down next week, CNBC reports. People familiar with the matter said that Softbank’s Masayoshi Son is believed to be in favor of removing Neumann.
According to the same CNBC article, the news comes after an eventful week in which WeWork postponed its IPO roadshow and an expose on its CEO in the Wall Street Journal. Softbank and its Vision Fund are WeWork’s largest external shareholder.
If Neumann does step down, this will be the second enormous Benchmark/SoftBank investment that replaces its CEO before going public (see: Uber). https://t.co/ZmkqBo9Bkl— Alex Sherman (@sherman4949) September 22, 2019
#6. Gold miners stay cool
In the past, when gold prices went up, miners spent a lot of money on deals and expanding their production. This time, however, they’re taking a more conservative approach, planning to pay off debt and return money to their shareholders, the Wall Street Journal reports.
Gold prices have gone up around 25% over the past 12 months to a six-year high, trading above 1500 USD per ounce.
When gold prices soar, miners typically splurge on deals and expand production. Not this time.— The Wall Street Journal (@WSJ) September 22, 2019
#5. Few major banks sign UN Principles for Responsible Banking
Only 2 of the world’s 10 biggest banks decided to join a coalition of 130 global financial firms that agreed to align their business with international efforts to fight climate change, Bloomberg reports. Citigroup and the Industrial and Commercial Bank of China were among the ones to join the pledge.
Only two of the world’s 10 biggest banks joined the coalition of 130 global financial firms in agreeing to align their business with international efforts to address climate change https://t.co/sxxq1A88Gf— Bloomberg (@business) September 22, 2019
#4. Amazon’s electric delivery trucks order
In other environmental news, Amazon is stepping up its efforts to reduce its climate impact. On Thursday, CEO Jeff Bezos announced that the company will order one hundred thousand electric delivery trucks from Michigan’s Rivian as part of this commitment, TechCrunch reports.
Amazon wants to try and meet its goal of becoming carbon-neutral by 2040.
#3. India not to cut spending (yet)
On Friday, India cut its corporate tax rates in a surprise move. The idea is to woo manufacturers, boost private investment and lift the country’s growth that is at a six-year low and has caused major job losses, Reuters reports.
While the tax cut could mean the government needs to borrow more to meet its spending needs, India has no plans to revise its fiscal deficit target or cut its spending at this moment, according to the same Reuters article.
#2. A $7.1 trillion payoff
Ahead of the UN climate summit next week there is a lot of climate-related news. In a new report, the Global Commission on Adaptation, led by Bill Gates, Ban Ki-Moon and Kristaline Georgieva, concludes that a 1.8 trillion USD investment is needed by 2030 to make sure that social and economic systems can face the consequences of climate change, Bloomberg reports.
This considerable investment, however, would generate no less than 7.1 trillion USD in benefits, according to the same report.
The world must invest $1.8 trillion by 2030 to prepare for the effects of global warming.— Bloomberg (@business) September 22, 2019
And that would yield $7.1 trillion in benefits, according to a group led by Bill Gates and Ban Ki-moon. https://t.co/Xm4xwe7IG2
#1. Fed gives mixed signals
On Wednesday, the Federal Reserve cut its interest rates by a quarter of a percentage point (as expected), but gave mixed signals about its next move, Reuters reports. The Fed believes a continued economic growth and strong hiring to be ‘the most likely’ outcomes, but also said it will be ‘aggressive’ if necessary.
Well, there you have it, the 38th week of 2019 captured in 7 Tweets. As always, we’ll continue to track Twitter and bring you the top financial micro-messages from the web. See you back here next week.