11th July 2022
Bite-sized business news from the UK and beyond
Good morning If you’re wondering where the 0.000000001% were this past week, they were in the state of Idaho for the 37th annual Sun Valley Conference aka “summer camp for billionaires”: For five days, the moguls listened to speeches, sat in on panels about politics, healthcare and the economy, and joined in on group activities from golf to fishing, hiking and cycling.
- Petrol prices ‘cause for concern’ says watchdog
- Musk backs out of Twitter takeover
Petrol prices ‘cause for concern’ says watchdog
The CMA found that rising pump prices this year have been driven by:
- Soaring crude oil prices, which jumped following Russia’s invasion of Ukraine in March to $128 a barrel. Since then it’s eased back to just over $100 but has accounted for around a third of the jump in forecourt prices.
- About 40% of the current growth in fuel prices was down to increases in how much refineries are charging retailers for wholesale diesel and gas.
Other stories to keep you in the loop
- Conservative leadership race heats up as Tories clash over tax plans
- Massive leak reveals how top politicians secretly helped Uber
- Tesco and Heinz reach deal after ketchup and baked beans vanish from stores
- Sri Lanka: Protesters 'will occupy palace until leaders go'
- Lawyers gearing up for ‘wave of litigation’ due to crypto crash
- Canadian pension fund backs $5.8bn 'buy now pay later' giant Klarna
- Russia's McDonald's replacement runs low on fries
- Luxury brand Tom Ford up for sale
Musk backs out of Twitter takeover
On Friday Elon Musk announced his intent to back out of his deal to buy Twitter for $44bn.
Rewind: In April Musk agreed to buy Twitter just weeks before tech stocks collapsed. Since then, he's raised questions about the presence of spam bots on the platform. The world’s richest man and Tesla CEO is claiming that Twitter is in “material breach” of its contract with him, and therefore he’s seeking to terminate the deal.
Musk has made this complaint before, and demanded access to the "firehose" of tweets on the platform—the company gave it to him.
Yes, but: A deal’s a deal, and Twitter could sue to force Musk to go through with it even though he'd prefer to bail.
- Musk would need to clear a pretty high legal bar to win a court battle, having to prove that Twitter intentionally misled investors in its public disclosures.
- This may also be a negotiating tactic to pressure Twitter's board to accept a sale at a lower price.
What’s next: Don’t expect Twitter to let Musk walk away without a fight... without a deal on the table, the company’s shares are already falling and it has a strong incentive to push Musk to complete the acquisition.
Stat of the day
The US economy created 372,000 jobs in June, an indicator of resilience despite signs of slowing economic growth
Interesting links from around the web