Bloomberg News

World's Wealthiest Lose $83 Billion as Global Stocks Drop

June 21, 2013

World’s Wealthiest Lose $83 Billion Amid Global Rout in Equities

Larry King, left, speaks with billionaire Carlos Slim at the annual Milken Institute Global Conference in Beverly Hills, California, on April 29, 2013. Photographer: Patrick T. Fallon/Bloomberg

The world’s 200 richest people lost $83 billion from their collective net worth this week after global markets tumbled amid the biggest selloff in stocks since September 2011.

One of the biggest losers was Mexico’s Carlos Slim, 73, whose fortune fell by $5 billion, according to the Bloomberg Billionaires Index. The telecommunications tycoon’s net worth has plunged $13.6 billion this year as his main holding, a 44 percent stake in America Movil SAB, the largest mobile-phone operator in the Americas, declined 15.4 percent.

“Emerging markets have to take the pain of the unwind,” said Rick Fier, director of equity trading at New York-based Conifer Securities LLC, which oversees $8 billion. “Our aggressive moves made the U.S. the safe haven. Now rates are going up, and going up a whole lot more for those guys. They’re being whiplashed because of everything we’ve done.”

Ten-year U.S. Treasury yields rose above 2.5 percent for the first time since 2011 amid concern the Federal Reserve will reduce bond purchases and rates on German bunds touched a 14-month high. The Standard & Poor’s 500 Index dropped 2.11 percent during the week to close at 1592.43 in New York. The Stoxx Europe 600 Index sank 3.69 percent, closing at 280.40.

Bill Gates, 57, remains the richest person on the planet with a $69.6 billion fortune, even as shares of Microsoft Corp. (MSFT:US) plummeted 3.3 percent for the week. The Redmond, Washington-based software maker canceled an early stage project looking at ways to combine its Bing Web search with shopping, the company said in a statement.

Kamprad, Ortega

Ingvar Kamprad is Europe’s richest person. The 87-year-old Swedish resident controls IKEA, the world’s largest furniture retailer, through a series of trusts and foundations. The company generated more than $36 billion in revenue and $4 billion in net income in 2012. He has a $52 billion fortune.

Kamprad is $1.5 billion ahead of Amancio Ortega, Spain’s richest man. The 77-year-old owns 59 percent of Inditex, the world’s largest clothing retailer and parent of the Zara chain.

Billionaire Masayoshi Son, 55, said SoftBank Corp. (9984)’s plan to spend more than $40 billion upgrading its network and acquiring Sprint Nextel Corp. (S:US) will help transform Japan’s No. 3 mobile carrier into the world’s No. 1.

At the company’s annual shareholder meeting, Son worked to convince investors his $21.6 billion bid for Sprint will generate growth for the Tokyo-based company as it faces a shrinking population at home. SoftBank inched closer to the acquisition after Dish Network Corp. (DISH:US) passed on making a new offer by the U.S. carrier’s deadline earlier this week.

Ellison’s Drop

Son is No. 63 on the Bloomberg ranking with a net worth of $13.9 billion.

Larry Ellison, the founder of Oracle Corp. (ORCL:US), dropped $3.1 billion yesterday as the largest maker of database software fell to a seven-month low after sales missed estimates for a second straight quarter. The shares slumped 9.3 percent. Fiscal fourth-quarter sales were $11 billion, Oracle said June 20, missing analysts’ average estimate of $11.1 billion, according to data compiled by Bloomberg.

Dalian Wanda Group, the Chinese developer controlled by billionaire Wang Jianlin, 58, is investing 1 billion pounds ($1.6 billion) in a British yachtmaker and a London site to build Western Europe’s tallest residential tower.

James Bond

Wanda will spend 700 million pounds on a 62-story luxury hotel and apartment building on the land on the South Banks of the Thames. It also agreed to pay 320 million pounds to buy 92 percent of Sunseeker International Ltd. whose yachts have been featured in James Bond movies, it said in a statement today.

Wang controls a $7.3 billion fortune and is 159th on the ranking.

The Bloomberg Billionaires Index takes measure of the world’s wealthiest people based on market and economic changes and Bloomberg News reporting. Each net worth figure is updated every business day at 5:30 p.m. in New York and listed in U.S. dollars.

To contact the reporter on this story: Alex Cuadros in Sao Paulo at acuadros@bloomberg.net

To contact the editor responsible for this story: Matthew G. Miller at mmiller144@bloomberg.net


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