Investor Relations Week: Markets Swing Wildly, Russian Stocks Plunge Amid Ukraine War
– Stock markets saw wild swings after Russia launched a full-scale attack on Ukraine, reports CNBC. On Thursday, the S&P 500 was down 2.6% at one point, but ended the day up 1.5%.
– Russian stocks fell significantly on Thursday amid the threat of heavy sanctions, with the Moex index dropping 33%, according to the FinancialTimes (pay wall). London-listed Russian companies also saw their shares fall, with Sberbank plunging 72%.
– Two former European politicians quit the boards of Russian companies “in response to Russia’s invasion of Ukraine”, reported the Guardian. Esko Aho, the former Prime Minister of Finland, resigned as a director of Sberbank, while former Italian Prime Minister Matteo Renzi left the board of Delimobil.
– Western countries have discussed cutting Russia off from the Swift payment network but have not yet agreed to do so, the BBC. Banning Russia would hurt the country’s access to funds, but could also hurt other countries that do business with Russia, the article explains.
– CNN reported that a number of companies had suspended production or limited manufacturing in Ukraine due to the Russian invasion. Companies taking such action include Carlsberg, a Coca-Cola bottling company, Mondelez and steelmaker ArcelorMittal.
– According to Reuters, Volkswagen and its largest shareholder have reached a preliminary agreement to list Porsche. Analysts believe Porsche could be valued at up to 90 billion euros ($100 billion) in an IPO.
– The FT reported that Canada-based Brookfield Asset Management is in direct talks with shareholders over its bid to acquire AGL Energy and early shutdown of its coal-fired power plants, an offer that the head of the Australian utility called him “opportunistic” and unworthy of commitment.
– Reuters said that according to a report by As You Sow, more frequent shareholder revolts show that directors should be reluctant to raise the CEO’s salary during tough times. Proxy votes against executive pay at S&P 500 companies have become more common in the past year and have often been triggered by “questionable practices and measures”, such as when companies relaxed their performance targets during the pandemic. of Covid-19, according to the report.