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Article written by Lauriann Azzopardi
U.S. stocks came off intraday lows but still closed down Wednesday as worries surrounding Turkey’s currency crisis and continued trade tensions weighed on investors’ confidence. A sharp fall in oil prices sent the energy sector skidding. The Dow Jones Industrial Average fell 0.5%, to 25,162.41. The blue-chip index had shed more than 300 points during the session to fall below the 25,000 mark but subsequently reclaimed the key level. The S&P 500 index dropped 0.8%, to 2,818.37. The Nasdaq Composite Index declined 1.2%, to 7,774.12.
European stocks closed sharply lower on Wednesday, with losses accelerating throughout the session, with energy and commodity-related stocks among the biggest decliners of the day. The Stoxx Europe 600 fell 1.4% to 379.70 with Germany’s DAX 30 falling 1.6% to 12,163.01. France’s CAC 40 took the biggest hit and lost 2.1% to close at 5,289.41.
Tesla Subpoenaed by SEC
The U.S. Securities and Exchange Commission has sent subpoenas to Tesla Inc regarding Chief Executive Elon Musk’s plans to take the company private and his statement that funding was “secured”. Musk stunned investors and sent Tesla’s shares soaring 11 percent when he tweeted early last week that he was considering taking Tesla private at $420 per share and that he had secured funding for the potential deal.
The 47-year old billionaire’s tweet about secured funding may have violated U.S. securities law if he misled investors. On Monday, lawyers told reporters that Musk’s statement indicated he had good reason to believe he had funding but seemed to have overstated its status by saying it was secured. The electric carmaker’s shares, which fell as much as 4 percent on the news of subpoenas, were last down 1.9 percent at $341.00 on Wednesday. Subpoenas typically indicate the SEC has opened a formal investigation into a matter. Tesla and the SEC declined to comment.
UK Regulator Confirms its Stance on Sky for Disney
Britain’s Takeover Panel confirmed its ruling that Walt Disney might have to offer at least 14 pounds a share to buy UK pay-television group Sky. Disney would only be forced to make such an offer if it completes a deal to buy Twenty-First Century Fox’s TV and film assets, which include a 39 percent stake in Sky, before either Fox or rival Comcast succeed in taking control of the British broadcaster.
The price is designed to reflect the level of the offer Disney is making for Fox, and its holding in Sky. The regulator had set the level of a possible mandatory Disney offer for Sky at 14 pounds a share on July 13, but it has had to hold a series of hearings since then to review the level after a number of groups appealed the decision.
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