Sothebys, Dow Chemical Provide Double Wins for Dan Loeb

In a surprising move, China's Central Bank cut its benchmark interest rates for the first time since 2012, aiming to counteract its slowest annual growth in over two decades. This unexpected decision, along with comments from ECB President Mario Draghi about Europe's low inflation, caused global stock markets to rise. Draghi emphasized the need for the ECB to address the low inflation to avoid a deflationary spiral, and the ECB began buying asset-backed securities. Meanwhile, the Gap lowered its profit forecast due to declining sales, and Sotheby's announced a leadership change following a proxy fight with activist investor Dan Loeb.

What was the primary reason for China's Central Bank to cut its benchmark interest rates?

• To stabilize the currency

• To increase exports

• To address slow economic growth

• To reduce inflation

How did global stock markets react to China's interest rate cut?

• They became volatile

• They increased

• They declined

• They remained unchanged

What action did the ECB take to combat low inflation in Europe?

• Increased interest rates

• Started buying asset-backed securities

• Implemented tax cuts

• Decreased government spending

What was the reason behind The Gap's reduced profit forecast?

• Increased competition

• Lower sales at its namesake brand

• Supply chain disruptions

• Higher production costs

What was the outcome of the proxy fight involving Sotheby's?

• Sotheby's was acquired by another company

• Sotheby's expanded its operations in Asia

• Sotheby's appointed Dan Loeb and two of his candidates to its board

• Sotheby's increased its dividend payout