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The Fed said it would begin to reduce its approximately $4.2 trillion in holdings of U.S. Treasury bonds and mortgage-backed securities - acquired in the years after the 2008 financial crisis - from October. While the central bank left rates unchanged, it cited low unemployment, growth in business investment and an economic expansion that has been moderate but durable this year to build its case for another rate hike in 2017. Interest rate futures are now pricing in about a 70 percent chance of a December hike, according to CME's FedWatch tool, up from above 50 percent prior to the Fed meeting.
Apple Inc. was one of the winners Wednesday when Japanese tech giant Toshiba said it would sell its lucrative chip business for $18 billion to a a group that also includes Bain Capital, Dell Technologies and Cupertino-based hardware company Seagate Technologies. Apple's support — and $3 billion in cash — reportedly swayed the deal in favor of the Bain-led group and away from Western Digital Corp., a San Jose-based hard-drive maker that has an existing joint venture with Toshiba. Toshiba's announcement also marked the end of a fraught, months-long negotiations process that brought out bitter rivalries between some of Silicon Valley's biggest tech names. The biggest player of them all, though,
Tesla (TSLA) is teaming up with AMD (AMD) to develop its own AI chip for self-driving cars, according to a report by CNBC. On the other hand, Nvidia (NVDA) shares are falling on the news, since a partnership with AMD would make Tesla less reliant on the company. Grocery chain Albertsons has reached a deal to buy meal-kit delivery company Plated.