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| Uber CEO resigns; Saudi power shift; Toshiba deal |
By Ivana Kottasová
Wednesday, June 21st, 5:55am |
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| 1. Uber's CEO is out: Travis Kalanick has resigned as the chief executive of Uber. |
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| The move comes after the co-founder failed to defuse a growing crisis over his leadership and demands from investors that he resign from the $68 billion startup. |
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| "I love Uber more than anything in the world and at this difficult moment in my personal life I have accepted the investors request to step aside so that Uber can go back to building rather than be distracted with another fight," he said in a statement late Tuesday. |
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| The startup had brought in former U.S. Attorney General Eric Holder to investigate allegations that its managers didn't adequately address reports of sexual harassment. |
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| His recommendations, published last week, included reevaluating Kalanick's responsibilities at the company and boosting the board's independence. |
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| 2. Saudi shake up: Saudi Arabia's king has removed his nephew as crown prince and replaced him with his son, Mohammed bin Salman bin Abdulaziz. |
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| Mohammed bin Salman, who has spearheaded the kingdom's economic reform plans, will now be first in line to succeed King Salman as ruler of the key U.S. ally. |
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| His plan, dubbed Vision 2030, includes selling part of Aramco, the world's top oil producer. |
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| The move comes amid a major diplomatic crisis in the Middle East that has seen Saudi Arabia and its allies seek to isolate the tiny Gulf country of Qatar. |
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| 3. U.K. parliament opens: Prime Minister Theresa May will set out her legislative priorities as part of the State Opening of Parliament on Wednesday. |
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| May has been badly bruised after losing her majority in an election two weeks ago. |
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| The prime minister called the election in hopes of strengthening her position, but she now depends on the support of a fringe party as crucial Brexit negotiations with the EU get underway. |
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| Getting her legislative agenda through parliament will be a crucial test of May's leadership. |
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| 4. Oil jitters: Investors will be closely watching for new oil market data on Wednesday after crude futures slipped into bear market territory. |
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| The main worry is continued oversupply. |
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| "The challenge is well understood -- OPEC-led output restraint and the current price levels have not been sufficient to reduce global oil supply enough to make a dent into inventory levels," Kit Juckes, strategist at Societe Generale, wrote in a note to clients. |
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| Data on crude inventories in the U.S. will be published at 10:30 a.m. ET. Oil declined 0.5% to trade at $43.30 per barrel. |
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| 5. Global market overview: U.S. stock futures were trading lower early on Wednesday. |
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| European markets opened down, while markets in Asia finished the session mixed. |
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| The Shanghai Composite gained 0.4% after MSCI announced that it will include Chinese stocks in its benchmark emerging market index. |
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| The Dow Jones industrial average closed 0.3% lower on Tuesday, while the S&P 500 declined 0.7% and the Nasdaq shed 0.8%. |
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| 6. Stock market movers -- Adobe, CA, CenturyLink: Adobe Systems shares moved higher in after-hours trading on better-than-expected results. |
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| Shares in software firm CA Technologies rose in extended trading after Bloomberg reported it is talking to BMC Software about a potential merger. |
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| Carmax shares were also down ahead of its earnings report. |
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| Takata shares plummeted another 25% in Tokyo as investors digested multiple reports indicating it's on the verge of bankruptcy. The stock has shed 50% this week. |
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| Toshiba announced plans to sell its prized memory chip business to a group of investors led by the Japanese government as it races to raise money to stave off financial ruin. |
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| The bid, from a state-backed consortium led by the Innovation Network Corporation of Japan, is worth about 2 trillion yen ($18 billion). |
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| 7. Earnings and economics: Carmax is set to release earnings before the opening bell, while Oracle is set to publish results after the close. |
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| U.S. home sales data are expected at 10 a.m. ET. |
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