Good morning investors! Elections in India and other countries are impacting global markets.
Today we cover:
Elections in India.
Changes in the stock market.
Airlines industry outlook improves.
📊 Economy and News
Elections in India
Local exit polls over the weekend suggested Prime Minister Narendra Modi and his Bharatiya Janata Party-led alliance was set for a rare third consecutive term in power.
The BJP-led National Democratic Alliance is expected to secure around 365 out of the 543 seats in the lower house of India’s parliament, according to local news channel NDTV’s exit poll summary.
This helped stock gauges in India hit intraday record highs Monday, with both the Nifty 50 index and BSE Sensex rising more than 3%. However, the situation is looking different today.
Indian stocks tumbled Tuesday in volatile trading, leading Asia markets lower as the country continued vote counting for its 2024 general election.
The Nifty 50 index fell about -6% and the BSE Sensex dropped -6%, as early projections suggested a closer-than-expected contest between the BJP-led NDA and the Congress-led I.N.D.I.A bloc.
Global hits:
Paramount and Skydance agree to terms of a merger deal that will be announced in a few days.
Turkey’s inflation passes 75% in what economists believe is peak.
Australian Treasurer Jim Chalmers has ordered several China-linked investors to dispose of shares in rare earths miner Northern Minerals on national interest grounds.
Also check: Australia lifts minimum wage as families grapple with higher living costs
📈 Stocks
S&P 500 5,283.40 (+0.11%)
DJIA 38,571.03 (-0.30%)
NASDAQ 16,828.67 (+0.56%)
BRENT CRUDE 77.22 (-1.45%)
* Prices as of Jun 4th, 12:20 AM UTC
Things that happened yesterday
Here’s yesterday’s recap:
AMD on Monday revealed new AI chips at the Computex tech conference in Taipei. This comes a day after Nvidia unveiled its next generation of AI chips named “Rubin” to succeed the previous “Blackwell” model, which was announced just months earlier in March. 🖥
Moderna and Merck said their experimental vaccine in combination with the therapy Keytruda improved survival and showed durable efficacy in a midstage study in patients with a deadly form of skin cancer. Nearly 75% of patients who took the combination were alive without any signs or symptoms of their cancer returning at the 2½-year mark. The overall survival rate of patients who took the vaccine in combination with Keytruda was 96% after 2½ years. 💊
GameStop rallied again Monday on speculation Keith Gill, who goes by Roaring Kitty on X and YouTube, could have a huge position in the video game retailer. Gill, who also goes by DeepF------Value on Reddit, reappeared Sunday night, posting a screenshot of what could be his portfolio holding a significant amount of GameStop common shares and call options. The trader holds 5 million shares of GameStop worth $115.7 million as of Friday’s closing price, according to the account snapshot posted on Reddit’s r/SuperStonk forum. 😮
Spotify on Monday announced it is increasing the cost of its premium subscription plans. The company last hiked its prices in July of last year. Spotify said it is raising prices so the company can “continue to invest in and innovate on our product features.” 🎧
GSK shares plunged -9% Monday after the Delaware State Court ruled that expert witnesses can present scientific evidence in the roughly 75,000 cases relating to the discontinued heartburn drug Zantac. The drug was manufactured and sold by several companies from the 1980s until 2020, when it was recalled over concerns it contained a probable carcinogen called NDMA. Pharmaceutical firms including GSK deny there is a scientific consensus that the drug increases the risk of any cancer, and said they would appeal the decision. 😢
Shares in the struggling French IT firm Atos tumbled on Monday as the company said it would pick between two rescue deals by Wednesday, June 5. The two restructuring deals on the table are led by Czech billionaire Daniel Kretinsky and key Atos shareholder David Layani. Both proposals would see debt reduction and significant dilution of existing shareholders. 😔
New York Stock Exchange had a bizarre glitch yesterday that showed Berkshire Hathaway down 99.97%. Did it have you worried? 😟
Good to know: Jeep expects to grow plug-in hybrid SUV sales by as much as 50% in 2024.
Money in airline? The International Air Transport Association raised its profit forecast for the airline industry in 2024 and predicts a revenue of $996 billion — a record high and a 9.7% jump on the previous year.
Total expenses for global airlines are also projected to reach a record high, keeping returns on invested capital lower than the cost of capital.
“Earning just $6.14 per passenger is an indication of just how thin our profits are—barely enough for a coffee in many parts of the world,” said IATA director Willie Walsh.
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