Weekly Market Update - 24 October 2022

Picking Up The Pieces

Rishi Sunak will meet King Charles III on Tuesday to formally replace Liz Truss as UK Prime Minister after she spent just seven weeks in the hot seat. The day marks an extraordinary turnaround in Sunak’s political fortunes, after he spent the summer’s leadership battle warning of the economic consequences if she were chosen over him to lead the Conservative Party. Now it’s down to him to pick up the pieces. At 42, Sunak will become the UK’s youngest prime minister in more than two centuries, and the first from an ethnic minority. He has warned the UK faces a “profound economic challenge.”

Source: Bloomberg

Make Me A Star

SoftBank-backed Jellysmack, which helps content creators become YouTube and TikTok stars, is launching a spending spree for growth in Asia, following staff cuts earlier this year. The New York-based startup, formally known as Keli Network, said it’s partnering with Kuala Lumpur-based WebTVAsia to invest $30 million in up-and-coming influencers, most of whom are on the media giant’s roster. That money is part of a $500 million package Jellysmack has earmarked to fund social media personalities as it bets on their long-term growth.

Source: Bloomberg

Asia’s Biggest Buyout?

A consortium led by Japan Industrial Partners is considering a takeover of Toshiba at a valuation of about 2.4 trillion yen ($16.1 billion) in what could be Asia’s biggest buyout this year, sources say. The JIP-led group plans to provide 1 trillion yen in cash, while seeking financing totaling 1.4 trillion yen from banks along with a committed line of credit of 200 billion yen in working capital. Shares of Toshiba have risen about 17% this year, giving the conglomerate a market value of about $15.7 billion.

Source: Bloomberg