Key events
A quick check in on European equity markets, where major indices are trading higher at the start of trading:
FTSE 100 is up 0.36%
FTSE 250 is up 0.2%
Germany’s Xetra Dax is up 0.68%
France’s Cac 40 is up 0.7%
Italy’s FTSE MIB is up 0.6%
Dan Ives, a managing director of equity research at US investment firm Wedbush Securities, says Musk’s willingness to step back may be linked to the fact that controversies linked to Twitter have started to damage his “golden child”: Tesla.
While clearly unconventional the Musk CEO poll is a sign that the noise is growing louder and louder given the spider web of Twitter and Tesla weakness. Poll results will dictate if Musks stays officially CEO of Twitter….a big moment for this Twitter situation
— Dan Ives (@DivesTech) December 18, 2022 Ives told BBC Radio 4’s Today programme this morning that while Musk has not necessarily followed through with the decisive calls of Twitter polls in the past, this time is different:
The last few weeks, few months, [have] been a black eye for Musk and a black eye for Tesla, and I think ultimately that’s the golden child: that 90% plus of his wealth.
And that’s why I think the writings on the wall, and I think ultimately in the next 24 hours, Musk will probably name a temporary CEO of Twitter.
Ives said it’s clear that Musk needs to stick to his strengths:
He can build rockets and create electric cars. That’s why he is who he is. But when it comes to social media and to Twitter, I think this is a diff type of animal, and he’s realised he can’t balance this as well as Tesla and Space X.
And I think the writing’s on the wall that he cannot be CEO of Twitter.
And as for how quickly we could see changes enacted, Ives reckons the executive overhaul could be triggered within hours.
I think the pressure was building, I think ultimately, probably in the next 5-6 hours, it’s going to be the end of Musk reining as CEO of Twitter.
Nadeem Badshah
Full story: Musk sets up Twitter poll asking if he should step down as head
Elon Musk has asked Twitter users whether he should step down as the head of the company, promising to abide by the results of his poll.
Musk assumed the role of CEO at the end of October after firing a host of senior executives and dissolving its board of directors. Within minutes of posting the poll, more than one million people had voted.
After 20 minutes of polling, when the yes vote gained a double-digit lead, Musk responded to a suggestion that he had already picked a new CEO, saying: “No one wants the job who can actually keep Twitter alive. There is no successor.”
Introduction: Elon Musk pledges to honour poll over his potential resignation as Twitter CEOGood morning, and welcome to our rolling coverage of the economy, business and the financial markets.
Less than two months after Elon Musk controversially bought Twitter for $44m and installed himself as CEO of the company, he is putting his fate in the hands of its users.
Following a string of controversies over layoffs, new posting policies and temporary journalist bans, the billionaire issued a Twitter poll in the early hours of Monday morning, asking users “Should I step down as head of Twitter? I will abide by the results of this poll”
Should I step down as head of Twitter? I will abide by the results of this poll.
— Elon Musk (@elonmusk) December 18, 2022 As of the time of writing, the poll had already attracted more than 14 million votes, with around 57% voting for his resignation.
The poll is set to close around 11am GMT, though it is not clear how quickly Musk would step down if the majority of voters call for his ousting.
It is also unclear who would replace Musk as chief executive.
He said in a separate tweet, Musk said: “No one wants the job who can actually keep Twitter alive. There is no successor.”
No one wants the job who can actually keep Twitter alive. There is no successor.
— Elon Musk (@elonmusk) December 19, 2022 Meanwhile, it’s relatively quiet on the economics front in the lead up to the Christmas weekend, with the CBI industrial trends survey for December due later this morning.
Stay tuned!
The agenda 9am GMT: German IfO business climate index for December
11am GMT: UK CBI industrial trends survey for December