Global stock markets are extremely edgy today as investors worry about rising tensions in the Middle East. Last weekend’s attack on Saudi Arabia’s massive oil facility at Abqaiq, and America’s threat of military response, has knocked shares around the world and driven oil prices alarmingly higher. Fears of supply shortages drove crude prices alarmingly higher on Monday, up over 14%. US crude finished at $62, the biggest one-day move since the financial crisis.
Higher crude prices could mean slower global growth — hurting banks, industrial firms and consumer goods makers. Last night, the US Dow Jones lost 142 points, or 0.5%. Stocks have fallen in Asia overnight, with China’s CSI 300 index losing 1.7% and Hong Kong’s Hang Seng dropping by 1,5%. Donald Trump has insisted that he doesn’t want war in the Middle East, but Washington are also insisting the attacks has Tehran’s fingerprints on it.
Donald J. Trump Remember when Iran shot down a drone, saying knowingly that it was in their “airspace” when, in fact, it was nowhere close. They stuck strongly to that story knowing that it was a very big lie. Now they say that they had nothing to do with the attack on Saudi Arabia.
All the while, nervously evaluating the possibility of a joint military response from the U.S. and Saudi Arabia. The office sharing firm once valued itself at $47bn , but was forced to slash its ambitions as Wall Street baulked at its heavy losses, complicated corporate structure, and founder Adam Neumann’s grip on the company. It had been planning an investor roadshow to market the shares this week, ahead of a trading debut next week – but this is now on pause.
As the Financial Times puts it
The delay to the IPO will also block WeWork from accessing a $6bn loan that had been provided by a consortium of banks, contingent on a successful IPO this year. If WeWork is unable to finalise its listing in 2019 it could be forced to draw up new financing plans. Eleven of Britain’s top judges will hear today whether Boris Johnson acted unlawfully when he advised the Queen to suspend parliament for five weeks .
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