Global Market developments include Recent global business developments include the US disinflation drag, AWS CEO resignation, OpenAI co-founder Ilya Sutskever’s exit, and a renewed meme stock rally.
Federal Reserve Chair Jerome Powell reports gradual inflation slowing, affecting policy decisions. Amazon CEO Adam Selipsky resigns, OpenAI co-founder Ilya Sutskever leaves, and meme stocks AMC and GameStop rally.
US inflation
US Federal Reserve Chair Jerome Powell stated that inflation is falling more slowly than expected, and will keep the central bank on hold for an extended period, despite not expecting rate hikes.
Amazon CEO will step down
Amazon CEO Adam Selipsky will step down next month, with Matt Garman taking his place. Selipsky left AWS after 14 years to spend time with his family, expressing optimism for the future of the cloud business.
US wholesale inflation
US wholesale inflation reached its highest in a year in April, reaching 2.2%, according to the Bureau of Labor Statistics. This increase, higher than March’s revised 2.1%, could delay the Federal Reserve’s plans for rate cuts.
OpenAI co-founder
OpenAI co-founder Ilya Sutskever is leaving the Microsoft-backed startup, expressing excitement for a personally meaningful project, following a leadership crisis involving co-founder Sam Altman.
Air carriers and Biden clash
Major US airlines, including Airlines for America, have filed a lawsuit against the US Transportation Department over a new rule requiring upfront fee disclosure, amidst a policy pushback against the Biden administration.
MicroStrategy
MicroStrategy Inc., known for accumulating $13 billion Bitcoin, will be included in a key global equity index following a rally in its shares, outpacing the digital asset, according to Bloomberg.
Japanese Yields and Yen
China’s People’s Bank of China extended a key policy loan at the same borrowing cost, aiming to aid economic recovery without putting pressure on the yuan.
Meme Effect
AMC Entertainment raised $250 million in new equity capital through the sale of 72.5 million shares, capitalizing on the revival of the meme stock trade. The move follows the re-emergence of Keith Gill, known as “Roaring Kitty,” who boosted GameStop’s shares.
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