What You Need To Know This Week — June 22nd, 2019
What You Need To Know This Week
A weekly recap to keep you informed on the most important events this week impacting markets, business, tech and the global economy.
THE FED HINTS AT RATE CUTS AND THE MARKETS REJOICE
Fed Chairman Jay Powell indicated his willingness to support the U.S. economy through monetary policy, hinting at future rate cuts and stating “an ounce of prevention is worth more than a pound of cure.” For now, the Federal Open Market Committee decided to keep rates steady but noted of “uncertainties” about the outlook. Eight of the Fed’s seventeen officials are now forecasting lower rates this year.
FACEBOOK ANNOUNCES ITS LIBRA CRYPTOCURRENCY
Facebook unveiled its plans for a global digital coin called Libra which could be used to make instant and low-cost money transfers around the world from mobile devices. Libra will be a “stablecoin”, or a digital currency backed by a reserve of global fiat currencies. The new digital currency project has the support of a number of large companies including Visa, Mastercard, Lyft and Spotify.
SLACK GOES PUBLIC THROUGH DIRECT LISTING, DEFYING CONVENTION
Messaging app startup Slack made its stock market debut with a direct listing instead of a typical IPO. Its shares soared at the market open to $38.50, nearly 50% above the reference price of $26.00 per share. The public market valued Slack at $20 billion, nearly triple its last private funding round valuation of $7.1 billion in 2018.
ACTIVIST INVESTOR SKEWERS HBC AS IT SEEKS A SUBSTANTIAL INCREASE IN THE GO-PRIVATE OFFER
In a letter, Hudson’s Bay investor and noted activist Land & Buildings Investment Management blasted HBC’s special committee, noting that the $1.74 billion go-private offer from insiders “materially undervalues the exceptional assets the company owns.” The activist investor indicated that the buyout group could boost its $9.45 offer to $18.00 per share just by using proceeds from recent asset sales.
Recommended Articles, Podcasts, Books and Tweets
Listen to entrepreneur, angel investor and philosopher Naval Ravikant on the Joe Rogan Experience.
Lawyers determined that Canada’s formerly largest cryptocurrency exchange, Quadriga, “was a fraud”. Its CEO was using customer funds to trade his own account and the vast majority of the exchange’s assets have disappeared.
Canada’s inflation rate increased to 2.4% in May led by higher prices for vegetables and durable goods.
A profile on leading cannabis company Canopy Growth’s CEO, Bruce Linton. “We’re disrupting everything from veterinarian care, vet medicines, vegan proteins, OxyContin, opioids, sleep aids, geriatric care, alcohol, sports drinks.”
Quant funds are having a rough go of it lately due to the underperformance of the value factor.
Private equity firms raise mega-funds as investors clamor for demand. “There is a wall of cash desperate to be assigned to a private equity fund.”
How did WeWork CEO Adam Neumann turn the coworking startup into a $47 billion company?
A former New York detective is now worth $400 million after prescient, long-term bets on Brooklyn real estate.
-The Accelerate Team
