Weekly Market Update - 27 May 2024

UK General Election

British Prime Minister Rishi Sunak called a UK general election for July 4, a major gamble on an earlier-than-expected vote as his Conservative Party trail far behind Keir Starmer’s opposition Labour Party in opinion polls. “I cannot and will not claim that we have got everything right. No government should,” he said. “Now is the moment for Britain to choose its future.” Sunak had been widely expected to wait until the autumn — the deadline was January — to allow more time for a cost-of-living crisis to recede before Britons cast their ballots. Labour has held a poll lead of about 20 points for months, meaning few expect the Tories to extend their 14 years in power. A YouGov survey showed 71% have a negative view of Sunak. Source: Bloomberg

Starlink In Indonesia

Elon Musk inaugurated SpaceX’s Starlink internet services in Indonesia on Sunday as the world’s largest archipelago seeks to boost connectivity to its most remote areas. The billionaire, clad in a green batik and mobbed by onlookers in Bali, said he was excited to bring Starlink to Indonesian villages with no connectivity or very low bandwidth, adding “this can really be a lifesaver.” Indonesian President Joko Widodo has long been courting Musk to cap off his decade-long bid to make Indonesia a destination of choice for foreign investors. Musk said in Bali that it’s likely his other companies “will invest in Indonesia in the future,” without giving details.

Source: Bloomberg

JPMorgan Succession Preparation

Jamie Dimon has long joked that his retirement is five years away, no matter when he’s asked. But not on Monday. The JPMorgan CEO told shareholders the timetable is “not five years anymore,” in response to a question about how long he planned to remain at helm. JPMorgan, he said, is “well on the way” with its succession plans. Earlier this year — about halfway through Dimon’s five-year retention package — the 68-year-old, who has held the top job since 2006, moved some of his top lieutenants into new roles, positioning them for more experience running the firm’s operations. The bank raised its net interest income forecast for the year, its biggest source of revenue, on expectations the Federal Reserve will lower interest rates at a slower pace than previously predicted.

Source: Bloomberg