What You Need To Know This Week — May 25th, 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.
RATES ON HOLD AS FOMC STANDS PAT ON RATES FOR THE TIME BEING
Minutes of the Federal Open Market Committee meeting were released this week and detailed the FOMC’s desire to leave interest rates where they are. Some of the central bank’s officials raised concerns about what happens if inflation remains below their 2% target level. Inflation continues to come in below the Fed’s expectations, fueling market speculation of a potential future rate cut.
HEDGE FUND LEGEND DAVID TEPPER RETIRES
The Goldman Sachs trader turned distressed-debt hedge fund manager officially hung up his gloves as his hedge fund, Appaloosa, announced plans to return investor money and convert to a family office. Tepper founded Appaloosa in 1993 and it reportedly returned 25% annually since inception.
GOOGLE SUSPENDS HUAWEI FROM ITS ANDROID PLATFORM AS U.S.-CHINA RELATIONS WORSEN
Google cut off Huawei from its Android mobile phone operating system after the Chinese company was banned by President Trump. Huawei claimed it’s stuck in the middle of the U.S.-China trade war, while the U.S., along with other nations, grow increasingly concerned that Huawei is being used as a tool of the Chinese Communist Party. Huawei said it would be able to roll out its own operating system “very quickly”.
FCC CHAIRMAN RECOMMENDS APPROVAL OF T-MOBILE’S ACQUISITION OF SPRINT
The Federal Communications Commission Chairman Ajit Pai recommended that the FCC approve T-Mobile’s $26 billion merger with Sprint. The approval from the FCC bodes well for the last remaining approval of the deal, which requires a nod from the Department of Justice. However, sources indicate that the DOJ may be leaning against the deal.
Recommended Articles, Podcasts, Books and Tweets
“Are IPOs the New Ponzi Scheme?” J. David Stein debates on the Money For the Rest of Us podcast.
Lions Gate rejected a $5 billion offer for premium cable channel Starz from CBS.
Transat’s takeover by Air Canada would sharply reduce competition, according to business school professor.
Former Tesla bull, Morgan Stanley analyst Adam Jonas, turned bearish on the richly-valued electric vehicle maker’s stock.
Qualcomm stock fell the most in more than two years after a judge ruled it violated antitrust law by abusing its dominant position in cellphone chips.
U.K Prime Minister Theresa May resigned after her failure to deliver on Brexit.
Endeavor Group, the parent company of the UFC, filed for an IPO.
The TSX suffered its worst day of 2019 on Thursday, falling -1%.
CIBC shares fell nearly -5% after it reported flat Q2 results that disappointed investors.
-The Accelerate Team
