Wednesday, June 13, 2018
What to watch today
At 2:00 p.m. ET, the Federal Reserve will release its latest policy statement, which is expected to indicate the central bank raised the target range for its benchmark interest rate to 1.75%-2% at its two-day meeting which kicked off on Tuesday. Along with the policy statement the Fed will also release an updated summary of its economic projections, which includes the “dot plot” that indicates where Fed officials see interest rates in the future. This plot showed Fed officials in March were roughly split on whether two or three additional rate hikes would be warranted this year. On Wednesday, this plot will likely show that either one or two rate hikes is the median forecast among Fed officials. Wednesday’s statement and projections will also be followed by a press conference with Fed Chair Jerome Powell, which is set to begin at 2:30 p.m. ET.
Judge approves AT&T-Time Warner merger: A federal judge on Tuesday approved AT&T’s (T) $85 billion acquisition of Time Warner (TWX), in a case that has captivated deal-watchers because it involves a vertical merger, a type of deal that rarely faces challenges from antitrust regulators. Time Warner’s stock was up roughly 5% to around $101 in after-hours trading, and AT&T’s stock was down 2% to $33. The judge, Richard Leon, did not attach any conditions to his approval, in a blow to the Justice Department, which challenged the deal. [Yahoo Finance]
Comcast bid for Fox is next after favorable AT&T ruling: Comcast (CMCSA) will likely bid for Fox’s entertainment business as early as Wednesday now that a federal judge has cleared AT&T’s $85 billion takeover of Time Warner. If Comcast succeeds in outbidding Disney (DIS) for Fox, a major cable distributor would control even more channels on its lineup and those of its rivals. There are fears that it could lead to higher cable bills or hinder online alternatives. [AP]
Tesla cuts 9% of workforce in search for profit: Electric car maker Tesla Inc. (TSLA) is cutting several thousand jobs across the company as it seeks to reduce costs and become profitable without endangering the critical production ramp-up for its Model 3 sedan. Chief Executive Elon Musk said on Tuesday that the cuts were part of a simplification of Tesla’s management structure promised last month. [Reuters]
Toyota to buy $1B Grab stake: Toyota Motor Corp. (TM) will buy a $1 billion stake in Grab in one of the largest investments by a carmaker in a ride-hailing provider, underscoring the push by the auto industry to move from manufacturing to services. [Bloomberg]
Online clothing retailer prepares IPO: Revolve, the Los Angeles-based online clothing retailer, is preparing for an initial public offering of stock in late 2018, according to people familiar with the company’s plans. The retailer, known for selling designer brands through its website, last week met with bankers who came to pitch for roles underwriting the company’s IPO, the people said. The deal is expected to value Revolve well in excess of $1 billion. [The Wall Street Journal]
For more of the latest news, go to Yahoo Finance
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