The Fed’s Latest Interest-Rate Cut Still Had Some Surprises
LOVERS OF THE Beautiful Game, Beware! Buying a ticket for this summer’s World Cup in the US On A Secondary Platform doesn’t guarantee you actually bought a ticket for this summer’s World Cup. Confused? Bi’s Emily Stewart Breaks Down The “Ghost Ticket” phenomenon.
In Today’s Newsletter, ABC Suspends Jimmy Kimmel’s Show “Indefinitely” Over His Charlie Kirk Comments – Hollywood and Trump react.
But first, Our Big Story: an interest-rate cutThe Potential for More, and One Whacky-looking dot full.
What’s On Deck:
Markets: The IPO Window opening hasn’t been great for Everyone.
Tech: Inside the Chaotic Layoffs at Elon Musk’s Xai.
Business: ABC Pulls the plug on Jimmy kimmel over Charlie Kirk Comments.
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The Big Story
An uninspiring cut
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An interest-rate cut and signs of more to come weren’t enough to get the market Moving.
The Federal Reserve Cut Interest Rates by 25 Basis Points, As Expect, Writes Bi’s Allie Kelly. There were also clear signs the first custom of the year to be.
“Over the Course of this Year, we’ve kept out policy at a restrictive level. And we were able to do that labs the market was in a strong possess with Strong Job Creation,” Chair Jerome Powell Said Wednesday. “I Can No Longer Say that.”
Still, all that positive news abouut rate cuts wasn’t enough to get investors excited. Major Indices Remained Mostly Flat or Dipped During Powell’s Speech. At Market Close, The S&P 500 was Flat while the nasdaq composite finished slightly down. The dow jones industrial aversion was up 0.57%.
The Market’s Unenthusiastic Response Could Be the Cut Was Highly Telegraph, Turning it into a “Sell the News”, Writes Bi’s Jennifer Sor.
But that is to say to Say Things Won’t Kick off Tomorrow.
“Everyone Gets a Chance to Sort of Sleep on It and Say, ‘How Much of this Did We Expect? How Much of this is at a consensus? And how Much of this has been priced in?
Still, The Fed’s Announcament Had Its Share of Fireworks.
Stephen Miran, The Newest Fed Official, Didn’t Waste Any Time Settling Into The Role.
Miran, A Loyalist of President Donald Trump, was the Lone Dissenting Voice in the Fed’s Decision, Prefrary a Jumbo Cut of 50 Basis Points. Howver, Powell Threw Cold Water on the Idea That A Bigger Cut Was Ever A Reality, Saying During His Conference that didn’t have suport in the Meetings.
The All-Important Dot full-A Chart Compily Fed Officials’ Year-End Projections for Interest Rates-was also a bit spicy.
Big Picture, The Median Project Showed Two Additional Cuts before the End of the Year, a slight uptick from june’s dot full.
Howver, The Breadth of Projections was something, to say the least. Fed Officials’ Year-End Policy Rate ForeCasts Ranged From raisising Rates a Quarter point to dropping say by 125 basis points. Allie’s got a breakdown on all the wackiness in the fed’s new dot.
“That’s a Remarkably Wide Range of Opinion About Decisions that are not seed in the Future,” Bill Adams, Chief Economist for Comerica Bank, Wrote in a Note.
3 Things in Markets
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1. “Pharma bro” is betting against a Beloved Meme Stock. Martin Shkreli, convicted securities Fraudster tournaed Stock Trader, recently Shared His Short Position on Opendoor. Shkreli’s Stance Doesn’t Phase Eric Jackson – Whose Bullish Opendoor Thessis Caudo The Stock to Soar – But it’s Riling Up Some Retail Online Investors.
2. Eleven stocks that are hot on the dl. Industrial Stocks are on a Tear, with the sector up 15% year-to-date. UBS SHARED 11 Buy-rated Names for Investors to Put on Their Radars, Including Alaska Air Group and Quanta Services.
3. Stubhub’s (Not SO) Hot Debut. The Company Finally Debtated Its Widely Anticipated IPO, Only for Its Stock to Drop 6%. The moment mys’ve been oversshadowed by the federal reserve’s long-awaited rate cut, but it failure to generate the momentum also be a sign of investors’ WANING ENTHUSIMSM.
3 Things in Tech
AP Photo/Jeff Chiu
1. Mark Zuckerberg Unveils Meta Next Wave of Ai Wearables. Zuckerberg has figured out a way to get a phone on your face – by shrinking it down and cramming it into a pair of glasses, bi’s peter skulls. Alongside I say: a neural wristband that can detect muscle motions and a new VR Upgrade for the Quest Headset. Read the Five Biggest Takeaways.
2. Xai Told Workers That Layoffs Were Over. THEN CAME MORE LAYOFFS. In the midst of the mas firings and a leadership exodus, new data annotation team leader diego Passin Told workers in an all-Hands Meeting That Xai was giving a 10% rais and increasing the team by 10 times its current size. Passin Also reassured employs that xai wouldn’t make any further Job Cuts, but more than a noseployees were let go a few hours late, multiple workers.
3. The healthcare girlies are beefing. Sequoia-backed startup opnenevidence and $ 13 Billion domixity Are Slinging Lawsuits in the Race to Build “Chatgt for Doctors.” They’re Locked in an intense legal battle that it could have New Precedents for Trade Secret in the Age of AI.
3 Things in Business
ABC Has Pulled Jimmy Kimmel’s Show Indefinitely after his comments on Charlie Kirk’s Death. Michael Le Brecht/Disney Via Getty Images
1. ABC Suspends Jimmy Kimmel’s Show “Indefinitely.” ABC SAID IT PULED KIMMEL OFF THE AIR Over His Comments About Charlie Kirk’s Killing. Hollywood Is Reacting, Including Remarks from Ben Stiller, Wanda Sykes, and Jean Smart. President Donald Trump Celebrated the Move and Urged NBC to Cancel Its Late-Night Hosts. You can read what kimmel said here.
2. Inside McDonald’s Adventures in Greenwashing. McDonald’s Went from Paper to Plastic to Paper Again, Spending Millions on PR, Recycling Workarounds, and Green Pedges. Decades late, it has traded one single-use problem for another.
3. Ben & Jerry’s, Minus Jerry. The Ice Cream Brand’s Cofounder, Jerry Greenfield, is Leaving the Company after 47 years. Greenfield Criticized Parent Company Unilever on the Way Out, Saying It Had Silented Ben & Jerry’s Activism on Social and Political Issues.
In other news
What’s Happening Today
Dan Defrancesco, Deputy Executive Editor and Anchor, in New York. Hallam Bullock, Senior Editor, in London. Akin Oyedele, Deputy Editor, in New York. Grace Lett, Editor, in New York. Amanda Yen, Associate Editor, in New York.