In today’s top stories, BP makes one of its biggest bets on renewable energy yet and an activist investor pressures Zendesk’s CEO to step down. Meanwhile, Warren Buffett donates $4bn to charity, Cathie Wood expects tech to bottom before the broader market and Bill Ackman calls for a 75 bps hike this week.
BP’s big green bet
BP [BP.L] has bought a 40.5% stake in an Australian renewable energy project, Asian Renewable Energy Hub, for an undisclosed amount. “AREH is set to be one of the largest renewable and green hydrogen energy hubs in the world and can make a significant contribution to Australia and the wider Asia Pacific region’s energy transition,” said Anja-Isabel Dotzenrath, BP’s executive vice president of gas and low carbon energy.
Tech to bottom first
Technology stocks are likely to hit their bottom before the broader market, ARK Invest’s Cathie Wood said. Speaking at an investor webcast on Tuesday, she explained that the Nasdaq Composite recovered before the S&P 500 in the aftermaths of both the dot-com bubble and 2008 financial crash. Even if her prediction is wrong, “innovation tends to gain traction during very difficult times,” CNBC reported Wood as saying.
Ackman suggests 100 bps hike
Pershing Square’s [PSH.L] founder Bill Ackman took to Twitter [TWTR] on Monday night calling for the Fed to act aggressively and quickly. Its failure to do so far has “allowed inflation to get out of control”. He said that the Fed should ideally target 75 bps this week and in July — even better would be a 100 bps hike. This would restore the confidence the equity and credit markets have lost.
Buffett continues donation pledge
Warren Buffett donated $4bn to charitable causes on Tuesday as part of his ongoing pledge to gradually give away 99% of his wealth. Berkshire Hathaway [BRK-A] said more than 14 million of its Class B shares, which were priced at $277.64 at the close on Tuesday, will go to charities including the Bill & Melinda Gates Foundation as well as the foundation set up in the name of Buffett’s late first wife, the Susan Thompson Buffett Foundation.
Zendesk CEO under pressure
Mikkel Svane, the CEO of Zendesk [ZEN], could step down as part of settlement talks with Jana Partners, The Wall Street Journal learned on Tuesday. Jana said change was “abundantly clear” to avoid Zendesk from being sold. The activist investor previously got the software firm to drop its acquisition of Momentive [MNTV], arguing it was “the wrong path forward” and “shareholders are simply unwilling to take the same “leap of faith” in approving the transaction.
Ted Baker loses bidder
Ted Baker’s [TED.L] share price has fallen 14.9% since reports that Reebok-owner Authentic Brands had pulled out of talks to buy the high street fashion retailer on 7 June. Since taking over in 2020, Ted Baker CEO Rachel Osborne has been doing some “heavy lifting” to improve the company’s long-term prospects, including raising equity, cutting costs and selling its London headquarters.
Jefferies upgrades Anglo American
The mining sector is currently undervalued, but Jefferies analysts are expecting stocks to dig themselves out of their rut as demand from China recovers, which should spark an increase in global demand. They upgraded Anglo American [AAL.L] to ‘buy’ following the announcement of a joint venture with Arc Minerals [ARCM.L] to explore for copper in Zambia. The analysts also upgraded BHP [BHP] and Rio Tinto [RIO].
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