Federal data is expected to show a slower pace of bank lending, and the White House is considering a proposal that airlines compensate passengers for avoidable delays. Here’s what investors need to know today.
1. Federal Lending Survey Expected to Point to Coming Credit Crisis
Federal Reserve Senior Loan Officer Opinion Survey (SLOOS), the quarterly assessment of bank lending, is expected to show a slower pace of lending and tightening standards after today’s release. Fed Chairman Jerome Powell reviewed the survey results last week and noted that a slowdown in lending would help curb inflation. It will be released at 2:00 PM ET.
2. The White House will review airline compensation for flight delays
The White House will consider whether to require airlines to compensate passengers for “controllable airline cancellations” or delays. Transport Secretary Pete Buttigieg will announce the proposal as his department has come under fire for a a series of flight delays and Annulment for the last year. Canada and the European Union already require airlines to offer some compensation for avoidable travel delays.
3. Yellen urges Congress to act before Biden talks on debt limit
Treasury Secretary Janet Yellen said the U.S. already uses “emergency measures” to avoid default and that the US economy will suffer a “precipitous economic downturn” if Congress does not raise the debt ceiling before the June 1 deadline. President Joe Biden is scheduled to meet with congressional leaders on May 9 to discuss raising the US debt limit.
4. AMC reaches settlement on APE shareholder lawsuit
Cinema chain AMC Entertainment Holdings AMC (AMC) said it had reached an agreement with shareholders to avoid litigation over the proposed stock conversion. AMC shareholders approved the conversion plan in March AMC Preferred Equity (APE) units into common stock, along with a 10-to-1 reverse stock split, but a subset of investors filed a lawsuit to block the move. AMC shares were down more than 4% in premarket trading.
5. Occidental Petroleum shares fall after Buffett says he won’t take control
Berkshire Hathaway will not take control of Occidental Petroleum (OXY), despite the firm’s growing stake in the company, Warren Buffett said this weekend. Occidental shares were lower in premarket trading weekend comments from Buffettwhose Berkshire Hathaway owns 24% of the oil company and has been approved by regulators to take full control of the energy firm.