Nike (NKE)
Nike shares plunged over 11% in pre-market trading as the sneaker giant announced plans to axe costs by $2bn over the next three years and lowered its sales outlook.
Adjusted earnings per share of $1.03 topped Wall Street expectations of $0.85, but revenue of $13.39bn (£10.5bn) was just shy of the estimates $13.46bn.
“We are seeing indications of more cautious consumer behavior around the world,” Nike’s finance chief Matthew Friend said on a post-earnings call.
He pointed to “increased macroeconomic headwinds” in greater China and Europe, the Middle East and Africa.
Read more: FTSE and European stocks struggle as UK flirts with recession
For its fiscal 2024 ending in May, Nike expects full-year revenue growth of “approximately 1%”, down from its earlier outlook of mid-single-digit growth.
Shares in Tencent Holdings, the world’s biggest gaming company, tumbled 12% as China unveiled plans to curb gaming spend.
Beijing’s gaming regulator published draft rules broadly designed to clamp down on practices that encourage players to spend more money and time online. The decision sparked an $80bn selloff in some of China’s biggest online names.
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Online games will now be banned from giving players rewards if they log in every day, if they spend on the game for the first time or if they spend several times on the game consecutively.
China already has one of the world’s most restrictive video game regulations, limiting people under the age of 18 to playing between 8pm and 9pm on Friday, Saturday, Sunday and statutory holidays.
Mullen (MULN)
Shares in Mullen Automotive skyrocketed by 78% after it announced a 1-for-100 reverse stock split.
The surge has left most investors baffled as reverse splits are generally viewed with negative sentiment.
The company said the primary reason for the split was to bring the company in compliance with the $1.00 minimum bid requirement to stay listed on the Nasdaq exchange (^IXIC).
The automotive maker also delivered another 38 Class 3 electric vehicles to Randy Marion Automotive Group, which should result in Mullen recording $2.5m.
HSBC said the sale of its business in Canada to Royal Bank of Canada (RY.TO) has been approved by the Canadian government.
The deal is conditional on RBC establishing a global banking hub in Vancouver, waiving fees associated with the transfer of mortgages from HSBC to RBC and protecting HSBC’s Canadian workforce.
Royal Bank struck the C$13.5 billion (£8bn/$10.2bn) agreement to buy HSBC Canada, the country’s seventh-largest bank, in November 2022. It represents the largest acquisition in Royal Bank’s history.
Royal Bank CEO Dave McKay called the approval an “important milestone” and said the bank would work to close the transaction in the first quarter of 2024.
Watch: China issues rules to curb gaming spend
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