Today’s ESG Updates

  • S&P 500 +0.38% and Nasdaq +0.79:  Investors look past hawkish Fed talk and weigh shutdown risks.
  • Electronic Arts To Go Private In $55B Deal: Silver Lake, PIF, and Affinity Partners to acquire the gaming giant.
  • Jaguar Land Rover Restarts After Cyber Attack: UK carmaker begins phased recovery with £1.5B loan guarantee support.
  • Gold Prices Hit Record High: Gold rose above $3,850 per ounce as investors flee to safe havens amid US shutdown fears, Fed cuts, and global tensions.

S&P 500 and Nasdaq Gain as Investors Brush Off Fed Hawkishness

U.S. stocks rose on Monday, with the S&P 500 up 0.38% and the Nasdaq gaining 0.79%, while the Dow slipped 0.04%. Investors looked past hawkish comments from Cleveland Fed President Beth Hammack, who urged tighter policy to curb inflation. Markets still price in a 91% chance of a 25 bps rate cut at the next Fed meeting. Semiconductor stocks led gains, pushing the SOX index to a record high, while energy shares dragged. Attention now shifts to the looming U.S. government shutdown, set to begin Wednesday unless Congress reaches a deal. Analysts warn a shutdown could delay key data releases, including Friday’s jobs report.

 

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Further reading: S&P 500, Nasdaq rise as investors look past hawkish talk, await shutdown clarity

Electronic Arts To Be Taken Private In Record $55B Buyout
Electronic Arts’ $55B deal marks the largest leveraged buyout in history, led by Silver Lake and partners. Photo Credit: King Robson

Electronic Arts, maker of The Sims and Madden NFL, will be taken private in a record $55 billion deal, the largest leveraged buyout ever attempted. The agreement, announced Monday, involves Silver Lake Partners, Saudi Arabia’s PIF, and Affinity Partners, run by Jared Kushner. Shareholders will receive $210 per share, ending EA’s 36 years as a public company. Going private gives EA more freedom to restructure without quarterly investor pressure, though buyouts often lead to cost cuts. The deal follows Microsoft’s $69B purchase of Activision in 2023 and highlights intensifying competition from mobile game makers like Epic Games. EA employs about 14,500 people worldwide.

 

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Further reading: Video game maker Electronic Arts to be taken private in record $55bn mega-deal

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Jaguar Land Rover To Restart Output After Cyber Attack
Jaguar Land Rover begins a phased restart of operations following a crippling cyber attack. Photo Credit: Matthew Wiebe

Jaguar Land Rover will restart parts of its manufacturing after a cyber attack forced it to halt production and sales worldwide since August 31. The company said it is carrying out a “controlled, phased restart” with its Wolverhampton engine plant expected to be the first back online. The UK government has provided a £1.5B loan guarantee through UK Export Finance to support JLR’s supply chain, though the funds come from private banks. JLR, owned by India’s Tata Group, employs 33,000 people and makes some of Britain’s most expensive cars, including the £120,000 Range Rover. The attack has disrupted suppliers across the UK, but JLR stressed recovery is under way with cybersecurity experts and officials involved.

 

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Further reading: Jaguar Land Rover to restart some manufacturing after cyber-attack

Gold Prices Hit Record $3,850 Amid US Shutdown Fears
Gold surged above $3,850 per ounce as investors sought safe havens during US budget turmoil. Photo Credit: Jingming Pan

Gold prices climbed to a record high of more than $3,850 per ounce on Monday as investors turned to safe-haven assets amid fears of a possible US government shutdown. The precious metal has risen over 45% since January, supported by a weaker dollar, global tensions, and expectations of further Federal Reserve rate cuts. Earlier this month, the Fed lowered rates to 4–4.25% and signaled more reductions this year, making non-yielding assets like gold more attractive. Analysts say demand is also fueled by central bank purchases and reduced confidence in US bonds. Political uncertainty in Washington has further boosted gold’s appeal as a stable store of value.

 

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Further reading: Gold prices hit a record high as uncertainty mounts in the US

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