Fed vs. inflation
Fed leaves interest rate unchanged after disagreement
As expected, the Federal Reserve left interest rates unchanged in the range of 3.50-3.75 percent for the third consecutive meeting. The central bank assesses that the economy continues to grow at a stable pace, while job growth remains low. The fact that inflation is elevated partly reflects the fact that global energy prices have risen recently, the Fed writes in the statement, which deletes an earlier formulation about "slightly elevated".
The members disagreed, with Donald Trump's confidant Stephen Miran, just as before, advocating a 25-point cut. In addition, the three members Beth Hammack, Neel Kashkari and Lorie Logan reserved their position against including a signal of easing in the statement. The Wall Street Journal notes that the central bank has not been so divided over a statement since 1992.
Report flood
Meta report plunges – lowered by investment forecast
Meta's stock plunged 10 percent after yesterday's report that came after the close. Sales rose by 33 percent, above analysts' expectations. Earnings per share also beat expectations and came in at 62 percent higher than last year.
The stock was weighed down by the company's forecast for its investments and lack of growth in users, writes CNBC. Bloomberg reports that the investment figures create fear that the now historically large investments in AI will not pay off in the end.
Apple's future
Apple's record quarter beat expectations for everything – except iPhone sales
Apple's sales increased by over 16 percent and earnings per share by almost 22 percent in the second quarter of the company's broken fiscal year, which was presented after the stock market closed on Thursday evening. Both figures were higher than expected. Sales in all segments, except for the important iPhone sales, also increased by 22 percent. This was largely in line with estimates.
At the same time, revenue in China increased by 28 percent compared to the same quarter last year. A year ago, Apple instead noted a decline in the heavy market.
– Our strong performance during the March quarter generated more than $28 billion in operating cash flow and led to record levels for both cash flow and earnings per share, Apple's CFO Kevan Parekh said in a statement.
Apple also decided on a new share buyback program for up to $100 billion.
The stock was traded cautiously in after-hours trading.
The New Space Race
Musk will not be able to be removed as Space X CEO
The Space X listing application states that Elon Musk can only be fired as CEO through a vote among the B-shareholders, which are intended for senior people within the company, writes Reuters. There, Musk himself will own a majority of the votes, which would give him a veto over any attempts to remove him.
The arrangement is unusual, according to Harvard professor Lucian Bebchuk.
– Usually it is the board that decides to remove the CEO, he tells Reuters.
