US Treasury Secretary Janet Yellen testifies before the Senate Appropriations Financial Services and General Government Subcommittee on President Biden’s proposed budget request for the Treasury Department for fiscal year 2024, on Capitol Hill in Washington, March 22, 2023.
Evelyn Hockstein Reuters
Here are the most important news investors need to start their trading day:
1. Double whammy
The Federal Reserve decided to raise its benchmark rate by a quarter point Wednesday, as expected. The Fed has also scaled back its rate hike ambitions, saying one more is on the way this year. The market seems to take everything in stride. But Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen, who testified on Capitol Hill, said there were some things that investors were not comfortable with. Powell, speaking to reporters after the big announcement, said a rate cut was not in the Fed’s “base case” and noted that the recent collapse of Silicon Valley Bank could hurt the financial situation. Yellen, meanwhile, told lawmakers that regulators are not considering a blanket guarantee for all US deposits without congressional approval. The Dow, S&P 500 and Nasdaq all ended the day down at least 1.6%. Follow live market updates.
2. Ford’s profit engine does the EV biz
Ford CEO Jim Farley announced at a press conference that Ford Motor Company will partner with the world’s largest battery company, a China-based company called Contemporary Amperex Technology, to create an electric vehicle battery plant in Marshall, Michigan, on February 13, 2023 in Romulus , Michigan.
Bill Pugliano | Getty Images News | Getty Images
Ford changing the way it reports financial results, which will put the electric vehicle business in the bigger spotlight. The company said its EV unit lost about $2.1 billion last year on operations, and expects an adjusted loss of $3 billion in 2023. However, as the Detroit automaker gains traction in the EV market, its plans depend heavily on the engine internal combustion and legacy fleet businesses, which generated $10 billion in operating profit last year. The outlook is better for this year: Ford expects an adjusted profit of $7 billion for the ICE unit and $6 billion for fleet operations.
3. New CEO, old problem at Starbucks
Starbucks CEO Howard Schultz backstage with soon-to-be Starbucks CEO Laxman Narasimhan at Starbucks Headquarters during Investor Day in Seattle, Washington on Tuesday, September 13, 2022.
Melina Mara Washington Post Getty Images
It was the first week of Laxman Narasimhan as Starbucks The CEO and he has presided over a shareholder meeting that will be full of hot button issues. Among the proposals shareholders will vote on Thursday is a plan to conduct an independent investigation into the company’s labor practices, as baristas at nearly 200 Starbucks cafes have voted to unionize. It comes ahead of former CEO Howard Schultz’s showdown next week with pro-union Sen. Bernie Sanders on Capitol Hill. Another big proposal involves succession planning, which may be an awkward topic for Narasimhan, who has only been on the job for a few days. But Schultz, who built the coffee company into a global giant, is still around, so some shareholders want to lead a fourth round for the olive oil coffee mogul and one-time presidential candidate.
4. Going to trial?
Members of Rise and Resist participate in the weekly “Truth Tuesday” protest at News Corp headquarters on February 21, 2023 in New York City.
Michael M. Santiago Getty Images News | Getty Images
Attorney for the Dominion Voting System and Fox Corp. have said that piece, and now they are waiting for a Delaware judge to rule whether the $1.6 billion case will lead to a trial next month. Dominion is suing Fox for defamation, because the media company’s right-wing cable networks, Fox News and Fox Business, have repeatedly made false claims that Dominion’s voting machines were rigged against Donald Trump in the 2020 election, despite executives and many of their hosts in private. reject them. Fox argued that he had the First Amendment on his side. The judge, Eric Davis, has referred questions to both sides this week and appears reluctant to rule in favor of either. There are no signs of a potential settlement, either. A trial, which is scheduled to start on April 17, could mean big names like the Chairman of Fox Corp. Rupert Murdoch take the stand.
5. War for eastern Ukraine
Ukrainian tanks fire on Russian positions near Kreminna, Luhansk, in January. Kreminna is one area where Russian forces “failed to gain more than an additional tactical advantage,” according to ISW.
Anatoly Stepanov AFP Getty Images
It looks like Russia’s attempt to take Bakhmut in eastern Ukraine is stalling, according to military analysts. For a while, it looked like Kremlin forces and pro-Putin mercenaries were going to claim the territory, but Ukraine’s military is struggling to hold the line, even as President Volodymyr Zelenskyy faces criticism for heavy losses. In neighboring Luhansk, however, Russian forces have appeared to be making gains amid heavy fighting, according to analysts. Follow live battle updates.
– CNBC’s Tanaya Macheel, Jesse Pound, Christina Wilkie, John Rosevear, Lillian Rizzo contributed to this report.
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