—— China Approves Tesla’s Driving System; Surge in End-of-Day Trading; WeWork Restructuring Deal; Suspected Yen Intervention; Blackstone Acquires Hipgnosis; Cravath Moves to Hudson Yards; Coca-Cola Bottler Plans IPO
1. China Approves Tesla’s Driving System
Sources revealed that after Tesla CEO Elon Musk visited China, the company secured a major regulatory breakthrough.
China has conditionally approved Tesla’s use of its driver-assistance system in the country, though specific requirements have not been disclosed.
Tesla also signed a deal with Chinese tech giant Baidu to use its mapping and navigation systems. In addition, the company has met strict data privacy and security standards.
Following the news, Tesla shares surged over 12% in early trading, approaching the long-unseen $200 mark.
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2. Surge in End-of-Day Trading
Data from trading algorithm developer BestEx Research shows that nearly one-third of S&P 500 trades now occur in the final 10 minutes of the trading day.
This phenomenon is largely driven by index funds, which typically adjust positions at market close.
According to Bloomberg, U.S. passive index fund assets have grown by $11.5 trillion over the past decade, leading to more trades executed in the closing minutes.
Many traders now follow suit, capitalizing on heightened volatility and liquidity before the bell.
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3. WeWork Restructuring Deal
Bankrupt WeWork’s legal team announced today that the company has reached a restructuring agreement with its senior bondholders. The deal includes $450 million in liquidity in exchange for equity in the reorganized firm.
Cupar Grimmond, having pledged the largest portion—$337 million—would become WeWork’s new majority shareholder. The remaining $112 million comes from WeWork’s own lending group.
After completing Chapter 11 proceedings, SoftBank will hold at least a 16.5% stake.
WeWork has rejected an offer from former CEO Adam Neumann.
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4. Suspected Yen Intervention
Today, after the yen weakened by 1.2% to a 34-year low of 160.17 per dollar, it rebounded more than 2%.
The sharp U-turn has raised suspicion that the Japanese government intervened to support its currency.
The yen’s recent slide is due to expectations of delayed U.S. rate cuts. If Fed Chair Jerome Powell maintains a hawkish stance at this week’s meeting, the yen may continue to weaken.
Year-to-date, the yen has lost 10% against the dollar, and Japanese officials have repeatedly warned against further depreciation.
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5. Blackstone Acquires Hipgnosis
Hipgnosis Songs Fund announced today that it accepted a $1.30-per-share buyout offer from Blackstone, valuing the company at approximately $1.6 billion.
Previously, Blackstone had been in a heated bidding war with Apollo-backed Concord, which offered a competing $1.5 billion deal.
Blackstone Senior Managing Director Qasim Abbas said the firm offers a stronger platform and management capability to help Hipgnosis grow.
Founded in 2018, Hipgnosis pioneered music copyrights as investable assets.
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6. Cravath Moves to Hudson Yards
Cravath, the elite law firm with a 205-year history, announced it will leave its aging Midtown office for a newly built 58-story tower in Hudson Yards.
The firm had occupied its current location for 35 years but first announced plans to move before the pandemic.
Some older employees who commute from upstate opposed the change, as they previously had easy access to Grand Central Station.
To attract younger staff accustomed to hybrid work, Cravath signed a 20-year lease and will become the anchor tenant in its new building.
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7. Coca-Cola Bottler Plans IPO
Sources say Coca-Cola Beverages Africa is considering a dual IPO in Johannesburg and Amsterdam, with a potential valuation exceeding $8 billion.
Coca-Cola owns 66.5% of the bottling company, with the remainder held by Gutsche Family Investments.
Coca-Cola originally announced its IPO intentions in 2021, but the plan was shelved in 2022 due to market volatility.
Coca-Cola Beverages Africa is the eighth-largest bottling partner by revenue in the global Coca-Cola system.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.