- China won’t save the global economy this time: Macquarie.
- Aramco in talks with Sinopec on $10 billion gas deal.?
- Chinese consumers are spending again—mostly at home.
- Tesla resumed taking orders for its Model 3 Long Range edition. Production was halted last year due to a backlog of orders.
- James Dyson will open a new plant in Singapore to make next-gen batteries for new products as it ramps up software, AI and product development globally.
- The EU wants more scrutiny on commodity traders after Russian war exposed risks
- British lender Lloyds Banking’s earnings add to sense that UK has weathered economic storm
- House Democrats are trying to speed up a vote on the US debt ceiling as a possible default looms as soon as June 1.
- The US, Europe and other key allies of Ukraine are preparing fresh penalties against Russia to close sanction loopholes.?
- Britons brave enough to buy a home in the midst of the housing downturn have 66% more properties to choose from this year.
- So-called golden visas offering residency for sale to rich immigrants are getting harder to come by in Europe.
- Russia says it foiled drone attack aimed at Putin.
- Economists say UK rate hikes almost over.
- The EU pledged €500 million to boost manufacturing of artillery shells, missiles and gunpowder in an effort to speed up production of ammunition for Ukraine and galvanize the bloc’s defense industry.
- The UK may loosen IPO rules to counter a dramatic drop in London listings.?
- The Fed hikes, but signals this may be it. China’s holiday travel surges
- Big hedge funds face a new 72-hour deadline to report losses.
- Senate Democrats will introduce a bill to compete with China.
- And the US is too reliant on Chinese minerals, an official said.
- The banking crisis has stuck investors with over $54 billion of losses.
- PacWest sank on a report it’s weighing strategic options, including a sale.
- US companies unexpectedly increased payrolls in April by the most in nine months.
- US service industry expands at a modest pace as activity cools.
- The US capital of shale won’t spend anything on itself.
- Another US bank teeters on the brink.?
- Saudi Arabia offers bankers rich rewards
- Ukraine denies sending drones to strike Putin’s Kremlin.
- China sends drones circling Taiwan in new surveillance tactic.
- Tesla’s swelling inventory suggests Musk will keep cutting prices.
- A pause is in the cards. The Fed raised rates by 25 bps and hinted it may be the final move of the cycle. “We’re no longer saying that we anticipate” further increases, Jerome Powell said. It’s possible the US will have a mild recession, the chair added, but his forecast remains for modest growth. The hike took the fed funds rate to a 16-year high.
- The US Federal Reserve did what almost everyone said it would do,
raising interest rates by a quarter percentage point and hinting it could be the final move in the most aggressive tightening campaign since the 1980s. With a slight tweak to its language, the central bank let the world know that the time to step back and watch may have arrived. Fed Chair Jerome Powell has made it his mission since the days of “Team Transitory” to thread the needle of a soft landing. With America’s long-thrumming economy finally showing signs of lassitude, the question now is whether the inflation fight went too far, or not far enough, or ends up being just right. Throw in the wild cards of the banking crisis and the GOP’s threat to let the US default, and it may make for an interesting summer for the economy. “The committee will closely monitor incoming information and assess the implications for monetary policy,” the Federal Open Market Committee pledged. —Natasha Solo-Lyons and David E. Rovella BB
- slow the pace of rate increases after its preferred measure of inflation dipped for the first time in 10 months. Economists expect a rise in the deposit rate by 25 basis points to 3.25%, and this week’s report on bank lending cemented such forecasts by showing firms are curbing credit in the real economy. Still, there’s plenty to discuss. Hawks may continue to focus on core inflation that, at 5.6%, remains well above the 2% target. Tensions in the banking sector also appear to have limited impact in the euro area so far. One solution could be to accompany a smaller rate hike with a signal that more is to come — even if the ECB insists it takes decisions meeting by meeting. BB
- The dust may be starting to settle on First Republic Bank’s troubles, but a tumble in US regional lenders has sparked renewed anxiety over financial stability. Multiple volatility halts were seen on PacWest and Western Alliance Bancorp, and financials were down across the board on Tuesday as traders were spooked by doubts over regional banks, recession risks and a potential US debt default. Former Federal Reserve Bank of Dallas President Robert Kaplan has added to the unease, saying the US regional banking crisis is far from over and calling for the Fed to pause rate hikes. BB
- Another US bank
teetering on the brink after the collapse of several rival lenders has been weighing a range of options including a sale, according to sources. Beverly Hills-based PacWest has also been considering a breakup or a capital raise. PacWest tumbled 58% in late New York trading, following a 28% slump on Tuesday as investors retreated from regional bank stocks following JPMorgan’s deal for the failed First Republic Bank. US regional banks have been in turmoil after a run on deposits struck several lenders, ultimately leading to the collapse of three California-based banks and one in New York. BB
