How’s it going?
Is it just me? or it seemed like it rained every day in Lagos last week 
Y’all know how things can get when it rains in Lagos 
Outside of our Lagosian audience though, how are folks doing?
Hold Up! We have something super exciting for you! We will be hosting Doyinsola Toye, a seasoned finance expert on our Twitter Spaces on Saturday, October 1st at 5pm!!!
Off we go into the stories for the day!!! *insert dance steps in here*
BOEING TO PAY $200M IN SETTLEMENT CHARGES
Boeing, a top aviation company, is set to pay the US (SEC) Securities and Exchange Commission about $200M in charges because it misled investors about one of its aircraft – the 737 MAX. This plane was grounded for almost two years after it had two fatal crashes that killed nearly 350 people. Not sure if you remember but both crashes were about four months apart.
The SEC investigated Boeing and (if you know anything about an SEC investigation) they left no stone unturned in looking into all the statements the company made. The SEC has a policy that enforces companies to reveal accurate information regardless of whether it could affect company’s share price.
The SEC found that after the first crash, Boeing knew that a part of the plane continued to pose an ongoing airplane safety issue, but the company kept assuring the public that the 737 Max airplane was ‘as safe as any airplane that has ever flown the skies.’ BUT, after the second crash, Boeing again reassured the public that there were no slips or gaps in the certification process of the plane parts despite being aware of contrary information.
I mean, that’s just unfair!
It was found that these crashes had some connections to a flight control system known as The “Maneuvering Characteristics Augmentation System” (MCAS) in the Boeing 737 Max. The SEC said that after the first crash, Boeing was well aware that this system posed a huge risk but misled the public by saying the plane was safe to fly.
At the end of the week, Boeing stocks were down by about 5.4% and these two crashes have cost the company more than $21bn, including settlement charges and payments to families of those killed in the crashes.
…but no money would ever be sufficient to replace the life of a loved one.
THE DRAMA: ELON MUSKTWITTER
As y’all probably know, your boy Elon aka the richest man on the planet has been trying to back out of the $44 billion deal to buy Twitter. Just recently, he accused Twitter of fraud by hiding information about their ‘faulty’ data security and that they overlook the security problems they have. I guess anything just to back out of the deal, right Elon?
Twitter to Elon:
Twitter, however, has come out to say that this is false.
It would appear that Elon is really about getting out of this Twitter deal, y’all. Elon’s lawyers have come out to say that Twitter didn’t come clean with information both parties agreed would be exchanged, such as the total number of daily users Twitter has.
However, Twitter management:
Twitter management is speculating (cos no one really knows for sure) that Elon is trying to back out of the deal because Tesla stocks fell by almost 40% this year; hence, the purchase has become even more expensive for Elon. They also believe that Elon thinks that he can be indecisive, belittle the company, destroy stockholder value, and just walk away!
Not Twitter taking a dig at Elon
Despite all the drama that happened, Twitter shares were up by 0.6%.
There will be more to come and I’ll be here to give you all the gist as the drama unfolds!
STARBUCKS, WHAT’S UP?
I reported on Starbucks recently, if you remember but now Starbucks shares has tanked by ~8.18%! Even with about 34,000 stores in about 80 countries, the company maintains the rhetoric that the demand for its products has significantly reduced, and it’s affecting its profitability.
Let’s all be hopeful that this is for a short phase. As much as businesses are bearing the brunt of the crumbling economy due to inflation, it is very possible that this is just for a while.
To tackle this problem, the company laid out a financial roadmap, with the goals of delivering 7% – 9% comparable sales growth year-on-year, 10% – 12% revenue growth, and 15% – 20% growth in adjusted earnings. This roadmap looks like it’s going to cost a lot of money, but hey! it’s Starbucks we’re talking about! They’re financially capable, especially with its 15,000 stores in the US. The company plans to increase the staff pay, focus on drive-through orders, and increase its store count in China by 50%
So you see, the company has a reasonable plan! but errhh why China?
US STOCKS RISE
On Monday, the US stock market experienced some modest gains – the S&P 500 climbed by 0.7%, the Dow Jones Industrial Average rose by 0.6% and the Nasdaq composite increased 0.8%. This might seem a tad little but it is pretty good news, compared to where we’ve been
.
The real drivers of this positive momentum were banks, tech stocks, retailers, and industrial companies. Bank of America saw a 1.7% gain, Apple ascended by 2.5%, Home Depot rose by 1.6% and United airlines had one of the highest increases at 3.3%. On the other hand, real estate stocks and pharmaceuticals didn’t do as well. Welltower and Pfizer closed less by 2.2% and 1.3% respectively.
Looking ahead, the major thing Wall Street seems focused on is how to manage the inflation rate and the Federal Reserve’s ultimate plan to increase the interest rate.
…And there you have it!
It’s a wrap!
What are you waiting for?!?!
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Have a week full of sunshine
Your dearest and favorite Stocks Market Gist Partner,
Tomi, From Trove 
