Bloomberg Surveillance for Tuesday, June 20, 2023
It’s shaping up to be a negative start to the holiday-abbreviated trading week south of the border as the Americans get back to business after markets were closed yesterday in observance of Juneteenth. Futures on the three main indices are slipping about 0.4 per cent across the board as investors assess a potential slowdown in economic growth and the rate path for the U.S. Federal Reserve, and wouldn’t you know it, await commentary from some key fed officials through the middle of the week. Today, we’re expecting to hear from St. Louis Fed president Jim Bullard and New York president John Williams, but the real action gets underway tomorrow when Chair Jay Powell begins two days of testimony before Congress.
SURPRISE SHAKEUP AT ALIBABA
Alibaba is making some major changes to its C-suite as the company looks to reignite growth in the post-COVID era. The ecommerce firm is replacing eight-year veteran Daniel Zhang as chief executive with Eddie Wu, who currently serves as chair of Alibaba’s Taobao and Tmall divisions. Executive Vice Chair Joseph Tsai moves into the chair’s seat as part of the shuffle, which comes in the wake of Alibaba’s plan for a complicated restructuring to try to boost growth.
OTHER NOTABLE STORIES
- Investment Management Corp. of Ontario is investing US$400 million in Swedish sustainable battery company Northvolt to help fund its expansion in Europe.
- Oil prices are posting some modest gains – West Texas Intermediate is up the better part of half a per cent – as investors assess Beijing’s gradual roll-out of measures to boost economic growth.
- Notable data: U.S. Housing Starts, U.S. Building Permits
- Notable earnings: FedEx, La-Z-Boy