Israel Confirms Iran Fired Missiles Into Its Territory
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Iran has started its retaliatory attack on Israel, firing drones and missiles into the country. A number of countries in the region have closed their airspace in response. The Israeli war cabinet, chaired by Prime Minister Benjamin Netanyahu, is discussing the drone attack. The areas of Nevatim, Dimona, and Eilat have been instructed to remain close to shelters, indicating that Iran may be targeting military targets. The US has expressed its support for Israel's security.
https://www.bloomberg.com/news/live-blog/2024-04-13/iran-attack-on-israel
Summers Warns About Avoiding a ‘Large and Egregious Error’ in Monetary Policy
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Larry Summers warns about avoiding a 'large and egregious error' in monetary policy. He suggests that the Federal Reserve should leave interest rates where they are based on the latest inflation data. The inflation data shows sticky price pressures, indicating an economy growing faster than potential with low unemployment and fiscal stimulus fueled by budget deficits. Summers believes that the neutral Fed funds rate is way above the 2.6% level that the Fed has been using as a North Star.
Japan’s Kishida Hails His Visit to US as a Diplomatic Success
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Japanese Prime Minister Fumio Kishida touted diplomatic success during his weeklong visit to the US while pledging to keep close ties with South Korea, despite an election loss for the nation’s president. His official visit to Washington, the first in nine years by a Japanese leader, resulted in initiatives that will improve military operations between the two countries and build a stronger alliance with the Philippines to counter an assertive China. Kishida also used the trip to convince American companies to invest in Japan and showcase the positive impact that his nation has on the US economy as the biggest foreign investor. Kishida wanted to send a message about the kind of future Japan and the US want to build, and he believes he was able to convey that message to the US Congress, American people, and the world. Kishida emphasized the importance of expanding cooperation between Japan and South Korea in a multi-faceted manner, despite an election loss for South Korean President Yoon Suk Yeol. The US trip may help Kishida restore his fragile public support following a party slush fund scandal. He has pledged to reform political funds regulations and is not currently considering a snap election.
#Japan #Us #Diplomacy #FumioKishida #SouthKorea #Election #MilitaryOperations #Alliance #China #Investment #SlushFundScandal #PoliticalFundsRegulations #SnapElection
US Set to Ring Alarm Bells Over Chinese Industry on World Stage
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US Treasury Secretary Janet Yellen warns China's manufacturing power is a threat to global economic stability. The US is expected to rally other countries to voice concerns over China's output and exports at the upcoming spring meetings of the International Monetary Fund and the World Bank. The US is concerned that China will flood US and European markets with electric vehicles, similar to what it did with solar panels and steel industries. G-7 allies and other countries have also expressed concerns over Chinese exports. The US has signaled it's exploring tariffs on Chinese EVs, and the European Commission is moving towards imposing additional tariffs on the vehicles.
#Us #China #Manufacturing #Exports #ElectricVehicles #Tariffs #G7 #Imf #WorldBank
Reality Check: The Bloomberg Close, Americas Edition
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JPMorgan, Citi, and Wells Fargo posted mixed results amid an interest-rate outlook muddied by persistent inflation.
Dollar Eyes Best Run in 18 Months on Fed Rethink, Haven Demand
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The US dollar is on track for its biggest weekly gain in over a year and a half due to the strength of the US economy and its safe-haven status. The dollar has gained roughly 1.3% since Monday's open, driven by hotter-than-expected inflation data and a report that Israel was preparing for an Iranian attack. Traders are pushing back the timing of the first Fed rate cut, contributing to the dollar's strength. The dollar's weekly advance is the largest since September 2022.
US Consumer Sentiment Slips on Dimmer View of Inflation Outlook
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US consumer sentiment declined in early April to 77.9 from last month's 79.4, according to the University of Michigan's preliminary April consumer sentiment index. This is lower than the median estimate of 79 in a Bloomberg survey of economists. Inflation expectations increased, indicating Americans' frustration with high prices.
Tata Communications Plans To Introduce AI Cloud Soon, CEO Says
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Tata Communications CEO, Amur Lakshminarayanan, discusses the company's plan to introduce an AI cloud. The company aims to pivot to a digital fabric, which includes a network fabric, a cloud in the edge fabric, an interaction fabric, and an IoT fabric. They will soon be launching their own cloud. The CEO highlights the potential of the network fabric and the challenges of cloud networking. The company has made investments in building capabilities and platforms, including acquisitions in the media and customer interaction businesses. Tata Communications is also partnering with Nvidia to build the AI cloud, and they are engaging with potential customers to offer a full platform. The CEO expresses confidence in the company's profitability and expects margins to improve in the next couple of years. The partnership with Nvidia is expected to be ready in the next couple of quarters. The CEO also discusses the spin-off of Tata Communications' digital services into a separate company, which aims to deliver products and services that are not typically telecom-oriented. The CEO is optimistic about the prospects of the company's customers in the UK, as they focus on getting their foundational digital foundation right. Overall, Tata Communications is positioning itself for growth in the digital space.
Big Bets on Fed Rate Cuts Look Like Fantasies
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State Street Global Advisors made a big call on Fed rate cuts; however, it looks unlikely to happen. The Federal Reserve Chairman, Jerome Powell, spoke at the Macroeconomics and Monetary Policy Conference on March 29, 2024. The article is written by Katie Greifeld and was published on April 12, 2024. The article discusses the skepticism surrounding the possibility of Fed rate cuts and questions the validity of the big bets made on this outcome.
https://www.bloomberg.com/news/newsletters/2024-04-12/big-bets-on-fed-rate-cuts-look-like-fantasies
Lots More on America's Electrical Components Crisis
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The US economy experienced historic shortages of various goods in 2021 and 2022. While most shortages have eased, there is still a shortage of electrical components, specifically transformers and switchgears. These components are crucial for connecting new construction developments to the power grid. Commercial real estate developer Chris Hatch, partner at Forza Development, discusses how the shortage is impacting his business. The delays caused by the shortage are proving to be costly.
US Military Warns Ukraine Is in Dire Need of Aid
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The US military warns that Ukraine is in dire need of military aid. Kremlin forces have destroyed the biggest power plant in the Kyiv region, putting Ukraine at a disadvantage. Ukraine is short of ammunition and soldiers, and without more aid, it may suffer significant territorial losses. Republicans in Congress have blocked a $60 billion military aid package, demanding concessions on immigration. However, a compromise has been reached that addresses many of their border enforcement demands. General Christopher Cavoli, head of US European Command, warns that Ukrainians are outshot by the Russians 5 to 1, and that ratio will increase to 10 to 1. UnitedHealth Group Chairman Stephen Hemsley and three senior executives made a combined $101.5 million from stock sales during a federal antitrust investigation. The sales occurred between October 16 and February 26, when the public became aware of the investigation.
#Ukraine #MilitaryAid #Russia #Republicans #Congress #Immigration #GeneralChristopherCavoli #UnitedhealthGroup #StockSales #FederalAntitrustInvestigation
Amazon Needs Electric Trucks, Not Drone Swarms
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Amazon CEO Andy Jassy released his shareholder letter, emphasizing the need for electric trucks instead of drone swarms. The company's unmanned aircraft can only carry orders up to five pounds and fragile items may not survive a 12-foot drop. The article suggests that Jassy's letter may not effectively convey his personality and highlights the importance of a well-written shareholder letter.
Lagarde Feels Pull of Fed’s Tractor Beam as ECB Plans Rate Cut
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Christine Lagarde, President of the European Central Bank (ECB), is taking a less defiant tone on the influence of US policy as the ECB plans an interest-rate cut. Lagarde refrained from speculating much beyond a prospective move in June and acknowledged the gravitational pull of events in the US. The ECB has been debating a path of future easing, and Lagarde's remarks offer more nuance than those in March. Lagarde recognizes the US as a very large market and a sizable economy.
#Ecb #InterestrateCut #UsPolicy #ChristineLagarde
Lagarde Feels Pull of Fed’s Tractor Beam as ECB Plans Rate Cut
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Christine Lagarde, President of the European Central Bank (ECB), is taking a less defiant tone on the influence of US policy as the ECB plans an interest-rate cut. Lagarde refrained from speculating much beyond a prospective move in June and acknowledged the gravitational pull of events in the US. The ECB has been debating a path of future easing, and Lagarde's remarks offer more nuance than those in March. Lagarde recognizes the US as a very large market and a sizable economy.
#Ecb #InterestrateCut #UsPolicy #ChristineLagarde
Stubborn US Inflation Upends Forecasts for Rate Cuts
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US inflation is higher than expected, causing revisions in Fed rate cut forecasts. The article discusses the impact of inflation on the Federal Reserve's decision-making process. The author, Chris Anstey, highlights the wave of forecast revisions and the uncertainty surrounding future rate cuts. The article invites readers to provide feedback and tips via email or through the Bloomberg Terminal.
BOE’s Greene Joins Hawkish Voices Warning Against Early Rate Cut
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Megan Greene, a Bank of England rate-setter, stated that interest rate cuts in the UK "should still be a way off" due to the higher risk of persistent inflation compared to the US and other countries. This indicates Greene's hawkish stance within the UK central bank's Monetary Policy Committee. The committee is currently considering when to lower interest rates from their highest level in 16 years.
Buffalo, Syracuse Saw Biggest Economic Impact From Solar Eclipse Tourism
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Buffalo and Syracuse experienced the biggest economic impact from solar eclipse tourism. The solar eclipse occurred on April 10, 2024. The article discusses the economic benefits of solar eclipse tourism in these two cities. The author and source of the article are not provided. The article is from Bloomberg. The content is in English. The primary location related to the content is Buffalo and Syracuse. The article falls under the genre of News. The article does not provide a publication time. The article is not flagged as bot-generated, promotional, a placeholder, or behind a paywall.
Wall Street Sees Earnings Propelling Defiant Stock Rally Onward
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Wall Street analysts are optimistic about the upcoming earnings season, expecting strong results to continue driving the stock market rally. The S&P 500 is projected to report a 24% increase in earnings for the first quarter of 2024. Analysts believe that robust earnings growth will outweigh concerns about rising interest rates and inflation. The stock market has remained resilient despite recent volatility, with investors focusing on the positive outlook for corporate profits. The upcoming earnings reports from major companies will be closely watched as they provide insights into the health of the economy and the sustainability of the market rally.
China Tells Mid-to-High-End Hotels to Accept Foreign Bank Cards
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China has instructed mid-to-high-end hotels to accept foreign bank cards as part of efforts to boost tourism. The move is aimed at making it easier for foreign tourists to pay for their accommodations in China. The directive was issued by the People's Bank of China and the Ministry of Culture and Tourism. The policy applies to hotels with a star rating of three or above, and failure to comply could result in penalties. The new rule is expected to benefit both foreign tourists and the Chinese tourism industry.
#China #Tourism #ForeignBankCards
China Tells Mid-to-High-End Hotels to Accept Foreign Bank Cards
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China has instructed mid-to-high-end hotels to accept foreign bank cards as part of efforts to boost tourism. The move is aimed at making it easier for foreign tourists to pay for their accommodations in China. The directive was issued by the People's Bank of China and the Ministry of Culture and Tourism. The policy applies to hotels with a star rating of three or above, and failure to comply could result in penalties. The new rule is expected to benefit both foreign tourists and the Chinese tourism industry.
#China #Tourism #ForeignBankCards