World Street | Fed's rate-cut forecast, NASDAQ stake sale, Hindenburg's new target and more

World Street offers a sneak peek into the world of business and economy.

The US Federal Reserve hints at three rate-cuts in 2024, NASDAQ's biggest holder plans a stake sale, Hindenburg Research goes short on data centre company Equinix, Intel lays out mega capital expenditure plan — all this and much more on World Street.

Hopes intact

The Federal Reserve held interest rates steady after its much awaited monetary policy meeting but indicated that it still seeks to reduce them by three-quarters of a percentage point by the end of 2024.

The hopes for three rate cuts in 2024 comes as a respite to investors as the indication came at a time when sticky inflation resulted in sluggish moves towards the central bank’s 2 percent inflation target.

Stake on offer

US stock exchange operator NASDAQ said on March 20 that Borse Dubai would unload shares worth $1.6 billion in the company. The stake sale will result in Borse Dubai ceding its spot as NASDAQ’s top shareholder to private equity firm Thoma Bravo.

Borse Dubai will offload nearly 27 million Nasdaq shares at $59 each, a discount of more than 5 percent to the stock's last closing price.

The deal will slash Borse Dubai's stake in Nasdaq to 10.8 percent from 15.5 percent, making it the company's second-largest shareholder after Thoma Bravo’s 12.5 percent ownership.

Hindenburg attack

Hindenburg Research disclosed on March 21 it has taken a short position in data centre firm Equinix while alleging exaggerated profitability metric amid intense competition.

Shares of Equinix slumped after the American short-seller said the REIT was using an accounting trick to boost its adjusted funds from operations. Hindenburg Research had made accusations of stock manipulation against India’s Adani Group last year. The Indian firm denied the  charges but that did little to prevent erosion its market capitalisation.

Spending spree

Intel is planning a $100-billion spending spree across four US states in a bid to expand it manufacturing capacity. The firm plans to build and expand factories after it secured $19.5 billion in federal grants and loans while it hopes to receive another $25 billion from tax breaks.

Intel's five-year spending plan focuses on turning empty fields near Columbus, Ohio, the largest AI chip manufacturing site in the world, planned to start as early as 2027.

Big buys

Switzerland-based contract drug manufacturer Lonza revealed plans to buy one of the world's largest biologics manufacturing sites in California from US drugmaker Roche in a deal worth $1.2 billion.

Moreover, the Swiss company also plans to spend another 500 million Swiss francs ($562.3 million) to upgrade the facility in Vacaville to produce a new generation of drugs, the company said in a statement.

New milestones

Shares of Chipotle Mexican Grill topped the $3,000 mark for the first time after surging 8 percent on March 20 after the burrito chain's board approved a 50-for-1 stock split. The move aims to make the stock less expensive for potential investors and improve liquidity in the counter.

Bullishness over the company’s strong earnings and solid demand have lifted shares of the burrito company to record levels over the past year.