The daily business briefing: July 6, 2016

1. Crude prices drop on fear Brexit fallout will hurt demand

Oil prices fell by nearly five percent on Tuesday due to continuing fear that Britain's looming departure from the European Union will hurt the world economy, decreasing energy demand in the middle of a global oil glut. Brent futures fell by $2.14, or 4.3 percent, to $47.96 a barrel, while U.S. crude dropped by $2.39, or 4.9 percent, to $46.60. The news of an increase in stocks at an Oklahoma supply hub for oil futures also contributed to downward price pressure.

Reuters

2. Hostess buyer to take snack-cake maker public

Hostess Brands, maker of Twinkies, said Tuesday that it will be purchased by a private equity firm that plans to take the company public. The buyer, an affiliate of private equity company Gores Group, is acquiring the Missouri-based snack-cake maker for $725 million, although Hostess debt that will come with the deal will bring its total value to $2.3 billion. Investment firms Metropoulos & Co. and Apollo Global Management LLC, which bought Hostess brands in the twice-bankrupt company's 2013 liquidation, stand to make a huge profit on their $185 million investment.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up

The Wall Street Journal The New York Times

3. Chipotle executive charged with cocaine possession

Chipotle chief marketing and development officer Mark Crumpacker turned himself in Tuesday to face cocaine possession charges, his lawyer said. Crumpacker was leading the Mexican grill chain's efforts — including incentives and coupons — to win customers back after a 2015 E.coli outbreak caused its sales to plummet. Crumpacker was among 18 alleged customers of a cocaine ring named in an indictment filed by New York City prosecutors. He was released on $4,500 cash bail, and Chipotle put him on leave.

The Associated Press

4. Soccer star Lionel Messi gets 21 months for tax fraud

A Spanish court on Wednesday sentenced soccer player Lionel Messi, a star striker for Barcelona FC and Argentina's national team, to 21 months in prison for tax evasion, although he is unlikely to go to jail because under Spanish law, sentences under two years can be served on probation. Messi's father, Jorge Messi, also got 21 months for defrauding the Spanish government out of $4.5 million in taxes from 2007 to 2009. Lionel Messi said at trial that he "knew nothing" of taxes, and was busy "playing football."

MarketWatch Reuters

5. World Cup tickets hit record prices

World Cup ticket prices have risen above $1,000 for the first time, FIFA said Tuesday. The top ticket price for the 2018 final in Moscow will be $1,100, up from a cap of $990 for the 2014 final in Rio de Janeiro. In Moscow, other tickets will be priced at $710 and $455. There also will be a special category for Russian residents, who will be able to see the match for $110. Fans will be able to see a first-round game for $105 to $210, up from a range of $90 to $175 in 2014.

Bloomberg