Shares of Japan's metro operator, Tokyo Metro, skyrocketed 45 percent after a stellar market debut. Starbucks suspended its 2025 guidance after sales plunged for a third consecutive quarter. Norway’s sovereign wealth fund, one of the largest in the world, reported third-quarter profit of 835 billion Norwegian kroner ($76.3 billion). Bankrupt brand Tupperware agreed to lender takeover of its business, canceling its plans for an open-market auction of its assets. All this and more in the October 23 edition of World Street.
Moving like a tracer bullet
Shares of Japanese subway operator Tokyo Metro surged nearly 45 percent following its stellar public listing. The company raised 348.6 billion yen ($2.3 billion), becoming Japan's largest IPO in six years. Priced at the upper end of the 1,100 yen to 1,200 yen range, Tokyo Metro is a major player in Japan's subway industry and the largest operator in Tokyo. Currently, the company is co-owned by Japan's national government (53.4 percent ) and the Tokyo metropolitan government (46.6 percent ).
Cold and dry
Starbucks Corp. has withdrawn its 2025 guidance after reporting a third consecutive quarter of sales decline, spotlighting challenges for new CEO Brian Niccol. The coffee giant saw same-store sales drop 7 percent in Q4 ending September 29, with US transactions down 10 percent and a 14 percent fall in comparable sales in China. Starbucks noted that pulling its guidance will give Niccol time to evaluate the business and establish a turnaround plan.
Bad decisions
McDonald’s shares fell 7 percent in extended trading overnight after the CDC linked an E. coli outbreak to the company’s Quarter Pounder burgers, resulting in 10 hospitalizations and one death. The outbreak, reported across 10 states, primarily affected Colorado and Nebraska. McDonald’s responded by removing slivered onions, suspected to be the source, from affected locations and halting their distribution from a single supplier.
Happy times
General Motors shares soared 10 percent overnight, posting their largest single-day gain since the volatile trading days of March 2020 during the onset of the pandemic. The upmove in the stock came after GM smashed Wall Street’s third-quarter earnings expectations and upped its guidance for 2024. Additionally, GM reaffirmed its commitment to rewarding shareholders with returns, further bolstering market sentiment. Outside of the pandemic, this rally marked GM’s best day since May 2018, according to FactSet.
Minting money
Norway’s sovereign wealth fund, the Government Pension Fund Global--one of the largest in the world, reported a third-quarter profit of 835 billion Norwegian kroner ($76.3 billion) on Tuesday, fueled by stock market gains linked to falling interest rates. The Government Pension Fund Global's total value reached 18.870 trillion kroner by the end of September. The fund posted a 4.4 percent return for the quarter, slightly underperforming its benchmark index by 0.1 percentage points. The benchmark is based on the FTSE Global All Cap index for equities and Bloomberg Barclays indexes for fixed income.
Taking the road mostly taken
Tupperware Brands, the bankrupt food storage company, has agreed to sell its business to a group of lenders for $23.5 million in cash and more than $63 million in debt relief. This deal cancels plans for an open-market auction of its assets. The agreement was announced at a bankruptcy court hearing in Delaware, where US Bankruptcy Judge Brendan Shannon said the sale was likely the best outcome considering the company's "difficult and challenging circumstances." Tupperware filed for bankruptcy last month with $818 million in debt, aiming to find a buyer within 30 days.
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