banner
Business

U.K. election fallout; Verizon/Yahoo deal; Uber crisis; Rate hike?

Posted June 11

1. U.K. election fallout: All eyes will be on Prime Minister Theresa May as she tries to cobble together a new government after last week's election shocker.

May wants to strike a deal with a tiny Northern Ireland party, the Democratic Unionist Party, after losing a conservative majority in Parliament. The Democratic Unionist Party holds 10 seats that could make or break her coalition.

Whether or not May can create a new government will have a big impact on how the Brexit divorce happens. Brexit negotiations begin June 19, which also happens to be the first day of Britain's new parliament and the day May is expected to outline her legislative program.

Related: 5 reasons why Theresa May's troubles have only just begun

Related: What the UK election means for the economy

2. Yahoo/Verizon deal to close: After nearly a year since the initial acquisition was announced, the Verizon/Yahoo deal is finally expected to close Tuesday. The deal will mean the end of the iconic YHOO ticker and the birth of Oath, a new digital company under Verizon.

With Oath comes expected layoffs at Yahoo and Verizon-owned AOL. Sources tell CNNMoney that as many as 2,100 employees will be let go, or about 15% of the staff.

Related: Verizon's Yahoo deal closes next week, layoffs coming

Related: Yahoo and AOL will form new company called ... Oath

3. Will the Fed raise interest rates? The Fed is expected to raise interest rates again when it meets Wednesday. A June rate hike would still leave rates relatively low, which keeps the economy happy.

Fed chief Janet Yellen is trying to keep Wall Street running smoothly amid a string of major world events, including the U.K. election and fired FBI chief James Comey's testimony last week.

But the recent jobs report showed signs the economy may be losing steam. The unemployment rate dropped to 4.3%, its lowest level since May 2001. Some economists say that's too low, making it harder for employers to hire the workers they want. And only 138,000 jobs were added, less than the 174,000 jobs gained in April.

Related: Brexit? Trump vs. Comey? Who cares? Stocks up again

Related: No Fed rate hike in May; but officials see more ahead

4. Uber's growing crisis: On Tuesday, an internal investigation led by former DOJ chief Eric Holder will be released, and the results could spell trouble for CEO Travis Kalanick.

Uber has had a tough few months. Last week, it fired 20 employees as part of an investigation into alleged sexual harassment within the company. Then, several news outlets reported that a top executive obtained medical files of a woman who claimed she had been raped by an Uber driver in India. Kalanick did not believe her account, suggesting her story was planted by a rival to sabotage Uber, sources said.

To make bad situation worse, Recode dug up a company-wide email Kalanick sent in 2013 in which he outlined, among other things, when it is okay for employees to have sex with each other.

Related: Uber's CEO is under fire. Can he hold onto his job?

Related: Uber hires Eric Holder to investigate sexism allegations

Related: Arianna Huffington's role helping Uber try to clean up its mess

5. Coming this week:

Tuesday - Verizon/Yahoo deal set to close; Senate could release new health care bill

Wednesday - Fed announcement; Marijuana industry conference

Comments

Please with your WRAL.com account to comment on this story. You also will need a Facebook account to comment.

Oldest First
View all