Wednesday Briefing: Janet Yellen on Interest Rates, Brexit

June 22, 2016

The EU referendum where the U.K. will decide whether or not to remain in the EU will take place tomorrow. Thus, it’s appropriate for figures such as the Federal Reserves Chairwoman Janet Yellen to mention the Fed’s anticipation and readiness for whatever the outcome of the votes might be in her semiannual testimony to Congress. She also touched on the rate hike and when the market can expect it. Such comments have helped her dominate the top spot on Sentifi Top Attentions list. Tesla and Elon Musk also made it to the list with their recent bid for SolarCity. The market is full of news, so read on to see what else is being discussed on Sentifi.

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1/ Janet Yellen: Exercise cautious about future rate hike and policy decision [3,888 messages in the last 24h]

The chairwoman of the Federal Reserve, Janet Yellen, explained the Fed’s cautious approach to the rate hike by saying the Fed is carefully monitoring the inflation and the growth of the U.S. economy. She further said it is better to match the rate hike with the growth rate to support the economy and the labor market. With the EU referendum happening very soon, she made it clear that the Fed is ready for any economic fallout of the result.

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SolarCity is the last piece of Elon Musk’s puzzle. (BidnessEtc)

2/ SolarCity Corp: Receives an offer from Tesla [2,163 messages in the last 24h]

Tesla has made an offer of $2.8 billion for SolarCity to finish Elon Musk’s ambition of building an empire on three pillars: electric cars, solar energy and space travel.

 

 

 

3/ SoftBank: Loses its chief operating officer [1,590 messages in the last 24h]

Nikesh Arora, the president and chief operating officer of SoftBank, has stepped down from his post. This is due to the fact that founder Masayoshi Son said he will not become the CEO in the near future because Son wishes to run the company for a few more years. Arora didn’t exactly have a good reputation at the company because he is also a senior adviser to private equity firm Silver Lake, which raises the question about conflict of interest. A group of investor and the board of Sprint had asked to have him removed from his position.

4/ Elon Musk: Aims for a sustainable energy company [1,303 messages in the last 24h]

Tesla recently made an offer to buy SolarCity, where Elon Musk is the chairman and principal shareholder. This deal represents Musk’s ambition to build an empire of electric cars and sustainable energy, to offer clean cars and energy to the masses while using clear energy to power the car innovations. It’s a type of self-sustainable business that will give Tesla lots of advantages in the future.

5/ Adobe Systems: Disappoints investors with not-better-than expected revenue forecast [965 messages in the last 24h]

The company just recently released its revenue forecast for the second quarter and the full year, and it disappoints the investors because it is more or less in line with their expectations. Investors are looking for growth potential, which Adobe doesn’t provide. Shares dropped 4.1% as a result.

6/ FedEx Corporation: Face the challenge of integrating TNT Express [864 messages in the last 24h]

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FedEx is heading into fiscal year 2017 with expectations for another good year, with the integration of TNT Express being one of the main growth drivers.

The fiscal year 2016 has been good for FedEx, with earning per share exceeding Wall Street’s expectation and the acquisition of the Netherlands-based TNT Express. Due to the fact that the acquisition happening so late in the last fiscal year, TNT hasn’t had much opportunity to plan a business roadmap for the integration of TNT into its business. That said, 2017 is expected to be another good year for FedEx in terms of revenue and cost synergies if it can integrate TNT smoothly.

 

 

 

7/ Tencent: Officially bought Supercell [740 messages in the last 24h]

The Chinese gaming company Tencent has officially bought out the Finnish game studio Supercell for $8.6 billion. Supercell is the developer of the super popular mobile games “Clash of Clans” and “Clash Royale.” The acquisition will give Tencent 84.3% stake in Supercell. It’s a win-win deal as it will cement Tencent’s reputation as a leading game publisher, and it will provide Supercell with an opportunity to expand in the Western market as well as leeway and creative space.

8/ Rio Tinto: Plans a BHP-style spinoff [715 messages in the last 24h]

The company is planning to spinoff its less focused units, including coal, uranium salt, borates and iron, under a new energy and minerals business that will worth $9 billion. Aside from the rumor, Rio Tinto is said to further cut its gross debt by $3 billion,

9/ George Osborne: Warns against Brexit [544 messages in the last 24h]

With borrowing having reached a worse-than-expected level of £9.7 billion, Chancellor George Osborne missed his debt target last month. And now a Brexit would ruin his plan to shore up England’s finances and his promise to return the U.K. to a surplus by 2020.

10/ Mario Draghi: Calls for economic reforms in the EU [470 messages in the last 24h]

Mario Draghi, the president of the European Central Bank, called for a push through economic reforms and an increase in public investment to support the economic recovery in the eurozone. He also announced that the ECB already has contingency plans in place for every possible outcome of the EU referendum.

Cover Image: AP

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