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I read the FED minutes for March. The FED says the banking system is “sound and resilient”. But we had the 2nd and 3rd largest bank failures in US history happen within 3 days of each other in March.
🏦 FOMC minutes reveal the Fed expects the banking crisis to lead to a recession this year.
💳 New BofA data shows household card spending moderated in March to the slowest pace since February 2021.
📊 Headline and core inflation increased by 0.1% and 0.4% in March, respectively.
Both were down from February’s increases.
A big drop in energy prices was more than offset by a gain in shelter costs.
Closely watched by the Fed, Supercore inflation declined but remains elevated.
💰 Walmart borrowed $5 billion in the corporate bond market yesterday.
Corporate bond issuance all but disappeared in March after the collapse of multiple banks.
As of last week, the supply in the US investment-grade market was still 15% below last year’s volumes.
💻 Apple is considering moving its production of its MacBooks to Thailand.
🤑 LVMH Moet Hennessy Louis Vuitton earnings suggest wealthy consumer demand remains strong.
📉 Shares of Alibaba slumped following a report that SoftBank has sold most of its stake in the company.
🛢️ US crude inventories rose unexpectedly last week, by 597k barrels.
Analysts expected a 600k barrel drop.
The build was partially driven by a release from the Strategic Petroleum Reserves.
Energy Secretary Jennifer Granholm said the government might start refilling reserves in the second half of the year.
Amidst turmoil in the banking sector, JPMorgan, Citigroup, Wells Fargo, and PNC will kick off what could be the most important earnings season since 2008 tomorrow.
👀 What we’re watching today:
Delta Air Lines
Twitter departure: National Public Radio announced it is quitting Twitter following jabs from Elon Musk.
Twitter stocks: Twitter is partnering with eToro to offer stock trading through its app.
EPA: The US is proposing to cut vehicle emissions by 56% over 2026 requirements.
Vaping: JUUL will pay $462 million to settle lawsuits related to its marketing of products to underage users.
Junk bonds: Investors are avoiding the riskiest US corporate debt as recession fears mount.
The nerve: JPMorgan will require managing directors to come into the office 5 days a week.
Espionage charges: The Russian arrest of WSJ reporter Evan Gershkovich was personally approved by Vladimir Putin.
VR battle: TikTok parent ByteDance is trying to lure away virtual reality developers from Meta with financial incentives.
Shanghai: Ethereum has jumped ~6% following the successful execution of its Shanghai update.
Unstaking: Kraken leads the queue for Ethereum unstaking with 62% of validators exiting.
Crackdown: The US government has been able to identify criminal activity on the blockchain and has seized over $10 billion worth of crypto in the past 2 years.
Double down: Crypto policy advocate group Blockchain Association is reaffirming its support of US-sanctioned Tornado Cash.
Ripple: The SEC has argued that a recent court case weakens Ripple Labs’ “fair notice” defense.
Arm IPO: Masayoshi Son is taking the first formal step with Nasdaq to list Arm for an IPO as early as his autumn.
Infrastructure: Germany is re-examining approval for Chine state-owned Cosco to acquire a stake in one of Hamburg’s port terminals.
Cloud: The European Commission says Broadcom’s $61 billion takeover of VMware could restrict competition.
NFL: Jeff Bezos is out of the running for the NFL’s Washington Commanders.
Containers: Brookfield Infrastructure Partners will buy Triton International in a $4.7 billion deal.
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