The daily business briefing: June 20, 2019

1. Fed keeps interest rates steady, but leaves door open for future cuts

The Federal Reserve voted to keep interest rates steady this week while also giving hope for future cuts this year. St. Louis Fed President James Bullard was the lone objector, marking the first dissent during Jerome Powell's tenure as chairman. Lowering the benchmark interest rates, which are currently hovering between 2.25 percent and 2.5 percent, has been a primary concern of President Trump, who has been putting mounting pressure on the Fed and Powell. Fed officials could potentially make one or two cuts during the remainder of the year, or they could continue to keep rates steady. In its statement on Wednesday, the Fed removed a reference to being "patient" about lowering rates. Next week's G-20 summit in Japan will likely influence a future decision, as Trump and Chinese President Xi Jinping are slated to have an "extended meeting" to discuss trade.

CNN ABC News

2. Slack exceeds expectations in NYSE debut

Slack made its debut on the New York Stock Exchange Thursday, with stocks opening at $38.50, which is 48 percent higher than its expected $26 a share. In contrast to the majority of tech companies, Slack is not filing an initial public offering but using a direct offering instead. By going the route of a direct offering, Slack is allowing its current shareholders to immediately sell their shares into the market instead of offering new shares. Direct offerings can be more beneficial for immediate trading, and they can also avoid underwriting fees, which are accrued in an IPO. Slack follows in the footsteps of Spotify, which popularized direct offerings after filing its own in 2018. Its strong start put the company's valuation at about $23.2 billion.

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Fortune The Wall Street Journal

3. Fed Chairman Powell says he 'fully intends' to serve remainder of his term

Federal Reserve Chairman Jerome Powell on Wednesday made it clear he plans to serve out the remainder of his term. "I think the law is clear that I have a four-year term, and I fully intend to serve it," Powell said in Washington. The statement comes after reports this week saying the White House has explored possibly demoting the chairman. Trump, who nominated Powell to the position in 2017, previously said the stock market might be doing better "if we had somebody different" heading the Fed. But Trump's comments didn't seem to change Powell's course for the central bank, which decided to keep interest rates steady this week instead of lowering them at Trump's request.

CNBC

4. Dow poised to have biggest opening since October

Stock futures surged Thursday morning in the wake of the Federal Reserve's announcement indicating possible interest rate cuts in the future. Fed Chairman Jerome Powell said Wednesday that "the case for somewhat more accommodative policy has strengthened." The Dow Jones Industrial Average was on track to open at its highest point since October, with an increase of 223 points. The S&P 500 had a 25-point increase, and Nasdaq futures surged 95 points. Stocks had modest increases on Wednesday following the Fed's announcement, with the S&P 500 ending the day up 0.3 percent, and the Dow increasing by 29 points following a 350-point jump the day prior. The Nasdaq was up 0.4 percent.

MarketWatch

5. Renault, Nissan team up with Waymo to pursue driverless car options

Renault and alliance partner Nissan Motor Co. will work with Waymo, the self-driving technology unit of Alphabet Inc., to explore driverless car options in France and Japan, with the possibility of expanding to other markets. The initial plans include developing a "framework for deployment of mobility services at scale," which will then hopefully turn into physical tests and car deployments, Renault-Nissan Alliance business development chief Hadi Zablit said. Renault and Nissan plan to set up 50-50 joint ventures in their home countries of France and Japan where they will develop the products. The agreement prevents either company from working with competitors and will have an undisclosed time limit.

Reuters The Wall Street Journal