Okta CEO Defends Outlook After Earnings Disappointment
Okta's first-quarter earnings beat expectations, but its outlook fell short of investor expectations. Okta CEO Todd McKinnon joins Caroline Hyde and Ed Ludlow on "Bloomberg Technology." (Source: Bloomberg)
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Fed's Waller Outlines Path to Rate Cuts Later This Year
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'Assuming that the effective tariff rate settles close to my lower tariff scenario, that underlying inflation continues to make progress to our 2% goal, and that the labor market remains solid, I would be supporting 'good news' rate cuts later this year,' Waller said in remarks prepared for a Bank of Korea conference in Seoul on Monday. Waller referenced a speech he gave in mid-April, in which he outlined two scenarios for how trade policy may unfold. His 'large-tariff' scenario assumed an average trade-weighted tariff on goods of 25% that remained in place for 'some time.' The 'smaller-tariff' scenario assumed a 10% average tariff, and that higher country and sector-specific duties would be negotiated lower over time. In both scenarios, Waller expects the impact of tariffs on inflation would be temporary. He also anticipates the levies will cause an increase in the unemployment rate that will 'probably linger.' That said, job cuts would likely be 'modest,' he said, under the smaller-tariff option. 'Reported progress on trade negotiations since that speech leaves my base case somewhere in between these two scenarios,' Waller said. He now estimates a 15% trade-weighted tariff on goods imports. During Waller's dialogue with Bank of Korea Governor Rhee Chang-yong, he attributed recent increases in long-term treasury yields to rising concerns over the US fiscal deficit. He said markets had expected some progress toward fiscal consolidation, but estimates now suggest the federal deficit will remain near $2 trillion — about 6% of gross domestic product — for the foreseeable future. 'If there's going to be a lot more debt issuance than the markets thought, they'll buy it — but at a much lower price, unfortunately,' he told Rhee. 'It's not a question of whether it will sell, but the price they're willing to pay.' He added that recent trade and geopolitical developments, including tariff announcements and signals from the White House, have fueled risk aversion among foreign investors. Some institutional buyers are reassessing their exposure to US assets, which could weigh on demand and push yields higher. Inflation Expectations Waller largely dismissed a 2025 surge in the University of Michigan's gauge of consumers' inflation expectations over the next five to 10 years. He said he prefers to look at market-based measures of inflation compensation and professional forecasters' expectations, which have not seen a similar increase. Waller said the 'strong' labor market and recent progress toward the Fed's 2% inflation goal offer policymakers time to see how trade negotiations unfold, echoing many of his colleagues. Fed officials have largely indicated rates are in a good place while they await further clarity on President Donald Trump's policies — particularly tariffs — and their impact on the economy before adjusting borrowing costs. Waller underscored that considerable uncertainty remains around the ultimate level of duties imposed on other countries and sectors. Trump announced Friday that he would be increasing tariffs on steel and aluminum to 50%, from 25%. 'As of today, I see downside risks to economic activity and employment and upside risks to inflation in the second half of 2025, but how these risks evolve is strongly tied to how trade policy evolves,' Waller said. Stablecoin Implications Waller also weighed in on stablecoins, describing them as a potential tool to introduce competition into payments system. 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Yahoo
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Drug maker Indivior to abandon London stock market for the US
Drug maker Indivior has announced plans to delist its shares from the London Stock Exchange (LSE), marking the latest company to abandon the UK market for the US. However, the LSE welcomes Anglo-American's platinum spin-off Valterra after becoming independent from the mining giant. Indivior's exit comes after the company moved its primary listing to the US's Nasdaq index last year. It said cancelling the secondary listing in London eliminates 'cost and complexity' and better reflects the business – with more than 80% of its revenues generated in the US. It also said liquidity on the Nasdaq now 'far outweighs' that of the LSE with a greater level of trading. The US-based pharmaceutical firm makes prescription medicines to treat opioid addiction, and has a market capitalisation of £1.2 billion. 'A single primary listing on Nasdaq best reflects the profile of Indivior's business,' chairman David Wheadon said. 'We appreciate the support received from shareholders for this initiative and look forward to capitalising on the expected benefits of this move, including reductions in cost and complexity.' The LSE faced the largest exodus of companies since the global financial crisis in 2024, according to EY analysis. There were 88 companies to delist or transfer their primary listing from the main market – the most since 2009. At the same time, the LSE struggled to attract as many new companies to fill the gaps – with 18 new listings in total last year. Nevertheless, Indivior's exit, which will take effect from July 25, comes as Valterra Platinum makes its debut on the London market. Anglo American spun off its platinum business into the new entity, which has become the world's most valuable producer of the metal. Valterra will have its secondary listing on the LSE, with its primary on the Johannesburg Stock Exchange. Duncan Wanblad, Anglo American's chief executive, said: 'Valterra Platinum has been a major part of the company for many years but now is the right time for it to optimise its value creation prospects on an independent path – it's an outstanding business and team and I have every confidence that Valterra Platinum will thrive as a leader in the global platinum group metals industry.' Sign in to access your portfolio
Bloomberg
25 minutes ago
- Bloomberg
Bloomberg Daybreak: Europe 06/02/2025
Bloomberg Daybreak Europe is your essential morning viewing to stay ahead. Live from London, we set the agenda for your day, catching you up with overnight markets news from the US and Asia. And we'll tell you what matters for investors in Europe, giving you insight before trading begins. Today's Guests: Charu Chanana, Chief Investment Strategist at Saxo & Larry Culp, GE Aerospace Chairman & CEO (Source: Bloomberg)
