Federal Reserve Chair Jerome Powell to Speak in Jackson Hole
Investors will be closely watching the speech this morning by Federal Reserve Chair Jerome Powell at the annual Jackson Hole symposium for signals that the Fed is on course to cut its benchmark interest rate from a 23-year high when policymakers next meet in September. The minutes from the Fed’s July policy meeting on Wednesday showed increasing support for a rate cut at the policy committee’s next meeting, and investors will be looking for signals from Powell on both the pace and the magnitude of cuts this year. While the Fed’s high interest rates have helped bring inflation closer to its annual target rate of 2%, recent data that showed the July unemployment rate jumped to 4.3% have sparked policymakers’ concerns about the strength of the labor market.
CN Ends Lockout, CPKC Prepares to Restart After Canada Intervenes
One of Canada’s two biggest freight railroad operators ended its lockout of unionized workers while the other prepared to resume operations after Ottawa ordered an end to their stoppages, which threatened trade with the U.S. and the national economy. Canadian National Railway (CNI) said it ended its employee lockout effective at 6 p.m. ET Thursday, while Canadian Pacific Kansas City (CP) said it is “preparing to restart railway operations.” The two had locked out nearly 10,000 workers just after midnight Thursday after unsuccessful negotiations with the Teamsters Canada union. The Canadian government ordered the end to the lockouts after less than a day, and said an arbitrator would negotiate between the rail operators and the union.
Skydance Reportedly Demands Paramount Stop Bronfman Talks
The saga for control of Paramount Global (PARA) continues, with Skydance Media reportedly demanding that the entertainment giant stop negotiating with Edgar Bronfman Jr. Skydance, in a letter from its lawyers, said Paramount’s special committee breached the terms of its takeover agreement for Shari Redstone’s media empire by extending the “go-shop” deadline to Sept. 5, according to The Wall Street Journal. Paramount on Wednesday extended the deadline to assess bids rivaling Skydance’s after receiving Bronfman’s reported $6 billion offer for Redstone’s National Amusements and a minority stake in the entertainment giant. Skydance said Bronfman’s bid isn’t superior and therefore the deadline shouldn’t have been extended, the Journal reported. Paramount shares are slipping more than 1% in premarket trading.
Workday Stock Surges on Strong Earnings, International Growth
Workday (WDAY) shares are soaring more than 12% in premarket trading after the human resources and capital management software provider reported better-than-estimated quarterly results and pointed to growth opportunities in international markets. The company’s stock, which is down around 25% from its record close through Thursday, has come under investor scrutiny this year over concerns that enterprise customers have trimmed spending on premium software subscription services amid macroeconomic uncertainty.
Nestle Stock Slips After Chocolate Maker Replaces CEO
Nestlé SA (NSRGY) shares are falling 2% in Swiss trading after the chocolate maker replaced Chief Executive Officer (CEO) Mark Schneider amid slowing sales. Schneider, who also is resigning from the board, will be replaced on Sept. 1 by veteran company executive Laurent Freixe, who heads its Latin American operations. During his eight years with Nestle, Schneider focused the Swiss firm “on high-growth categories like coffee, pet care and nutritional health products,” the company said. But Nestle shares have fallen 10% this year amid declining sales as increasingly frugal consumers watch their spending.
In conclusion, investors are eagerly awaiting Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium for insights into potential interest rate cuts. Additionally, Canada’s rail operators have ended their lockout, Skydance Media is demanding an end to Edgar Bronfman Jr.’s bid for Paramount Global, Workday’s stock is surging after strong earnings, and Nestlé is experiencing a stock slip after replacing its CEO. These developments will likely impact the stock market today.
