This week ahead || Nov 20th - Nov 24th 2023
OpenAI drama continues: Sam Altman may be mulling a return to the company
In a surprising turn of events, there are reports suggesting that OpenAI's board is reconsidering the firing of CEO Sam Altman and has asked him to return. Altman is said to be considering the offer. The abrupt firing of Altman, who favoured aggressive AI development, was reportedly due to tensions with the board, which preferred a more cautious approach. The company's co-founder and president, Greg Brockman, also left the company in the aftermath. The reversal could have significant implications for the future of OpenAI and the development of AI technologies.
Investors are pushing bank stocks higher. Analysts are urging caution.
Investors drove bank stocks higher last week, fueled by optimism that the Federal Reserve might halt interest rate hikes and a "soft landing" for the US economy was possible. The KBW Nasdaq US bank index and the KBW Nasdaq US regional bank index are on track to show their best monthly returns in nearly three years, surging about 13% since early November. However, analysts remain cautious, pointing out that many banks still face challenges, including elevated interest rates, bond yields, and proposed new capital requirements. The industry's ability to earn robust profits remains a concern, and uncertainties about the economic outlook persist.
Top 5 things to watch in markets in the week ahead
In the upcoming week, investors will closely watch the minutes of the Federal Reserve's latest meeting for insights into future interest rate decisions. Black Friday marks the beginning of the holiday shopping season, and retailers are preparing for potential challenges amid concerns about the resilience of the consumer-driven U.S. economy. Equities have seen optimism in recent weeks, with markets rebounding, and Nvidia's earnings report will be a focus. Oil prices, after a recent rebound, continue to face challenges from factors like rising U.S. crude inventories. Eurozone data, including purchasing manager indexes and consumer confidence, will be monitored for signs of economic activity. ECB President Christine Lagarde is scheduled to make appearances during the week.
Exclusive-GM's Cruise CEO offers apology, will allow share sales
The CEO of Cruise, General Motors' robot taxi unit, issued an apology to employees for the situation the company is facing after an accident led to the suspension of its self-driving vehicle operations. In an email to staff, Cruise CEO Kyle Vogt expressed regret and took responsibility for the situation, emphasizing the need to focus on safety, transparency, and community engagement. The company also announced a new tender offer, allowing employees to sell shares, after canceling a previous offer. The move followed backlash from employees who were concerned about tax burdens after the cancellation of the share sale program. Cruise aims to address safety concerns and improve its relationship with regulators, the press, and the public.