The International Energy Agency (IEA) said that oil demand will not pick up until 2018. Crude has traded around $50 for the past two months. It has recently dropped below $46 as U.S. shale production continues to rise and OPEC output has been slightly higher than expected. The news also raises concern that there will be little improvement in the world economy.
The Federal Reserve is expected to bump up interest rates, which it has hinted about at recent meetings. The economy is strong enough to support the action, although there is very little sign of inflation. The Fed’s move has been encouraged by falling unemployment, rising corporate profits, residential real estate activity and strong consumer confidence.
Boeing Co. (NYSE: BA) will dump about 50 management people as its works to cut costs at its defense business. The move is the latest in a series of cost reductions meant to streamline decision-making and lower expenses, even as Boeing’s share price trades near a 52-week high.
Uber board member David Bonderman resigned after making a sexist comment, further destabilizing a board and management transition that has included the decision of CEO Travis Kalanick to take a leave of absence. According to CNBC, Bonderman said:
I directed a comment to my colleague and friend Arianna Huffington that was careless, inappropriate, and inexcusable.
Having worked with the company for some months on the Holder report, I recognize the importance of implementing the requirements of the report.
Uber is examining the issues with its culture, making significant changes and working to right what has been done wrong, which is extremely important for the future of the company. I do not want my comments to create distraction as Uber works to build a culture of which we can be proud.
Former U.S. Attorney General Eric Holder will lead an investigation into the company’s culture, which includes concerns about sexism.
Verizon Communications Inc. (NYSE: VZ) has completed its buyout of Yahoo, which will be merged with AOL. The merged entity will be rebranded Oath.
Fiat Chrysler Automobiles N.V. (NYSE: FCAU) has begun the search for a CEO to replace long-time chief Sergio Marchionne.