• Fed seen revving up inflation fight with sharp rate hike
Federal Reserve policymakers on Wednesday are expected to deliver the biggest U.S. interest-rate hike in decades, along with forecasts for more hefty rate hikes this year, their best guesses for how quickly inflation could subside, and at what cost to jobs.
• Global oil demand set to rise 2% to new high in 2023, says IEA
World oil demand will rise more than 2% to a record high of 101.6 million barrels per day (bpd) in 2023, the International Energy Agency said, although sky-high oil prices and weakening economic forecasts dimmed the future outlook.
• Biden demands oil companies explain lack of gasoline as prices rise
U.S. President Joe Biden demanded oil companies explain why they aren't putting more gasoline on the market, sharply escalating his rhetoric against industry as he faces pressure over rising prices.
• More than 100 CEOs urge U.S. Congress to pass China competition bill
Chief executives from Alphabet, Amazon.com and Microsoft called on Congress to pass legislation aimed at boosting U.S. economic competitiveness against China, including in chip manufacturing.
• Qualcomm wins fight against $1 billion EU antitrust fine
U.S. chipmaker Qualcomm won its fight against a $1.05 billion fine imposed by EU antitrust regulators four years ago, dealing a major setback to EU antitrust chief Margrethe Vestager's crackdown on Big Tech.
BEFORE THE BELL
Futures for Canada's main stock index were up, tracking Wall Street futures as investors waited to see how high the Federal Reserve would raise interest rates to quell inflation at its policy meeting. European stocks jumped, with banks leading the gains, after the ECB said it will hold an emergency meeting to discuss the recent sell-off in government bond markets. In Asian equity markets, Japan's Nikkei index ended at a more than one-month low, while Chinese shares closed up after data showed surprising growth in industrial production. Gold prices rose, bolstered by a pullback in the U.S. dollar and U.S. Treasury yields as Fed verdict looms. Oil prices fell on concerns about fuel demand and global economic growth.
STOCKS TO WATCH
• Thomson Reuters Corp: The global media and services company has suspended work with a South African subcontractor following a newspaper report that focused on an alleged conflict of interest related to the awarding of a $14 million government IT contract. South African newspaper The Sunday Times reported that Thomson Reuters, having won a contract from the Office of the Chief Justice (OCJ) to supply court software, subcontracted 30% of the deal, as South African law requires, to a local company called ZA Square. As a result, the OCJ and Thomson Reuters have launched probes into the paper's allegations that the three directors set up ZA Square and got a slice of the lucrative deal because of their knowledge of the contract.
Baby formula makers raced for FDA approval. They may be waiting a while
to ease the U.S. shortage of baby formula, Nature's One and Holle are poised to ship hundreds of thousands of pounds, if not millions of pounds, of additional formula into stores, company executives told Reuters. They may be waiting a while.
• Blackline Safety Corp: National Bank of Canada cuts target price to C$6 from C$9, following the company's soft second-quarter results due to continued supply chain challenges.
• Bombardier Inc: CIBC cuts target price to C$36 from C$45, to reflect the de-rating in other cyclical industries (i.e., autos) despite the near- to medium-term outlook for business jets remaining favourable.
• Guru Organic Energy Corp: CIBC cuts target price to C$10 from C$14, citing concerns of moderating short- and medium-term sales growth.
ECONOMIC EVENTS (All timings in U.S. Eastern Time)
0815 (approx.) Housing starts annualized for May: Expected 252,600; Prior 267,300
COMPANIES REPORTING RESULTS
June 15 & 16:
No major companies are scheduled to report.
CORPORATE EVENTS (All timings in U.S. Eastern Time)
0800 Restaurant Brands International Inc: Annual Shareholders Meeting
Alamos Gold Inc: Amount $0.02
AltaGas Ltd: Amount C$0.26
CCL Industries Inc: Amount C$0.24
Franco-Nevada Corp: Amount $0.32
Methanex Corp: Amount $0.14
(All analysts' estimates are according to I/B/E/S Refinitiv data.)