World Street | Fed remains steady, Tesla tanks, Saudi surprises with status quo and more

World Street offers a sneak peek into the world of business and economy.

As the US Federal Reserve continues to hold interest rates steady, analysts speculate tentative rate-cut timelines. Musk sees a massive blow to his pay package, leading to Tesla shares falling, while regional banks in the US witness turbulence. All this and more on the February 1 edition of World Street.

Fed Holds Steady

The Federal Reserve decided to hold interest rates steady, sending a lukewarm confirmation it has completed its hiking monetary policy. However, a reversal in its policy in March is looking increasingly unlikely, per experts.

Tesla Tanks

A Delaware judge tossed out Elon Musk's record-breaking $56 billion Tesla pay package, calling the compensation granted by the EV maker's board "an unfathomable sum" that was unfair to shareholders. Shares of Tesla dropped about 3% in extended trade, and some investors seized on the ruling in hopes it might prompt Tesla to overhaul its governance.

Chip Woes

High-flying semiconductor stocks slipped in trade in the US after Advanced Micro Devices' disappointing current-quarter revenue forecast added to investor worries over sluggish demand for non-AI chips.

AMD targets revenue of $5.4 billion, plus or minus $300 million for the first quarter, below analysts' estimate of $5.73 billion, according to LSEG data.

Saudi Surprise

Saudi Arabia's surprise reversal of its oil expansion plan was at least six months in the making and spurred by uncertainty over the market's need for additional spare capacity, Reuters reported.

State oil giant Aramco was ordered by the Saudi energy ministry on Tuesday to halt plans to boost its maximum sustainable capacity to 13 million barrels per day (mbpd), returning to the previous 12 mbpd target.

Fashionable Exit

H&M surprised investors on Wednesday with a new CEO, Daniel Ervér, taking over with immediate effect as the Swedish fashion retailer struggles to boost sales in a fiercely competitive market.

Outgoing CEO Helena Helmersson said she had decided to leave the company after four years in the top job, adding the role has been "very demanding at times for me personally".

Beijing Bottleneck

Some Chinese automakers have had to delay deliveries of flagship models due to production issues with a computing unit made by tech giant Huawei, according to Reuters.

Changan Auto and Chery Auto - both of which have partnered with Huawei in developing their premium electric vehicle (EV) brands - have lodged complaints and are in talks to resolve the issue.

Mega Meta Apology

CEO of Meta Mark Zuckerberg apologised to families at a US Senate hearing, which discussed the impact of social media on children. "I'm sorry for everything you have all been through. No one should go through the things that your families have suffered," said Zuckerberg.

Regional Banks Fall

Regional US bank shares plunged 46 percent after the regional lender New York Community Bancorp cut its dividend and posted a surprise loss. The KBW Regional Banking Index slipped 4 percent, with concerns further compounding over the uncertainty of the US Federal Reserve's interest rate trajectory.