Lamer

  1. Asian Stocks Slip as Rate Cut Hopes Begin to Fade: Markets Wrap
    Stocks in Asia declined Wednesday after solid economic readings and higher commodities prices spurred
    speculation that major central banks will keep interest rates higher for longer. Benchmarks in South Korea and
    Hong Kong led the region’s decline. Mainland Chinese shares resumed their slide after a report showing
    expansion in the Caixin purchasing managers’ indexes didn’t provide a fresh catalyst. Contracts on US equities
    edged lower after the S&P 500 fell 0.7% in Tuesday trading.
  2. Disney Moving Closer to Win Over Trian With Vanguard Backing
    (Bloomberg) — Walt Disney Co. and Chief Executive Officer Bob Iger are poised to triumph over Nelson Peltz’s
    Trian Fund Management in a costly, months-long proxy battle, according to people with knowledge of the
    matter. With more than 60% of the votes counted, Vanguard Group Inc. is backing Disney’s slate of board
    nominees at a much-anticipated meeting set for Wednesday according to the people, who asked not to be
    identified discussing confidential information.
  3. Biden Escalates Criticism of Israel After Aid Worker Deaths
    (Bloomberg) — President Joe Biden said Israel hadn’t done enough to protect civilians after the death of seven
    aid workers, in some of his sternest criticism yet of the country’s conduct in the months since it launched a
    military campaign against Hamas in Gaza.
  4. Fed’s Mester Wants More Data Before Cutting Three Times in 2024
    (Bloomberg) — Federal Reserve Bank of Cleveland President Loretta Mester said she wants to see more
    evidence that inflation is headed lower before cutting interest rates, but noted recent figures have generally
    aligned with her expectation for slower progress on price growth. Mester, a voter on this year’s policy-setting
    committee, said the higher-than-hoped inflation.
  5. Yuan Pressure Mounting as Green Shoots Fail to Lift Mood
    (Bloomberg) — The yuan is a whisker away from the weak end of its onshore trading band, the latest sign that
    a recent slew of upbeat economic data hasn’t been enough to bolster the Chinese currency. China’s currency
    slid to a four-month low against the dollar in onshore trading Tuesday and came within a few pips of the lower
    end of the trading range.
  6. Australia’s PM Expresses Anger to Netanyahu Over Gaza Death
    (Bloomberg) — Prime Minister Anthony Albanese said he expressed “anger and concern” over the death of an
    Australian aid worker during a telephone call with Israeli counterpart Benjamin Netanyahu.
  7. Biden, Xi Discussed TikTok Divestment Push, White House Says
    (Bloomberg) — President Joe Biden and Chinese leader Xi Jinping on Tuesday discussed efforts to force the sale
    in the US of TikTok Inc. during a wide-ranging discussion. “TikTok came up today, yes,” White House spokesman
    John Kirby told reporters following the call, the first one-on-one conversation between the leaders since
    November.
  8. Real Rates Have No Room to Go Lower Before Fed Cuts: Macro View
    (Bloomberg) — Real rates in the US will remain buoyant through the second quarter as still-stubborn inflation
    means that the Federal Reserve will be unable to cut interest rates as quickly or by nearly as much as the
    markets expect. The yield on 10-year inflation-protected Treasuries is now around 1.97%, which is 61 basis
    points lower than the Fed’s real policy rate.
  9. Health Insurer Shares Sink as Medicare Holds Firm Line on Rates
    (Bloomberg) — The Medicare payment decision that rocked health insurer stocks Tuesday sets up a high-stakes
    election year gamble for the Biden administration as seniors could end up seeing cutbacks in their health plans
    right before Election Day. President Joe Biden’s administration held firm on proposed Medicare Advantage
    rates Monday.
  10. Tesla shares fell 4.9% Tuesday, after the electric-vehicle maker reported first-quarter deliveries that
    missed the average analyst estimate
    .
    FIRST QUARTER RESULTS: Deliveries 386,810, estimate 449,080. Model 3/Y deliveries 369,783, -10% y/y,
    estimate 426,940. Production 433,371 vehicles, estimate 452,976. Model 3/Y production 412,376, estimate
    439,194. Other models production 20,995. RBC analyst Tom Narayan (outperform) says it was a much softer
    than expected result for 1Q. Adds that investors were probably calling for ~400-420k, so even in that context,
    the result is a miss. Says a “perfect storm of one-timers complicating the overall demand story here”. Notes
    that the release calls out the early phase of the production ramp of the updated Model 3, factory shutdowns
    due to shipping diversions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin among the
    reasons for the weak numbers.
  11. Europe’s Stoxx 600 Energy Index led gains in Europe, as oil advanced to a fresh five-month high.
    Heightened geopolitical risks in the Middle East and tighter supply from Mexico are helping to buoy crude
    prices. Total Energies rose 3.9% and Shell rose 3.5% respectively.
  12. President Joe Biden’s administration held firm on proposed Medicare Advantage rates Monday, a break
    with recent practice that means health insurers are now facing lower payments than they’d anticipated for
    2025.

    As a result, insurers may recalibrate the benefits they offer and the prices they charge for Medicare Advantage
    plans that cover 31.6 million seniors and people with disabilities. The 2025 plans will hit the market in October,
    just weeks before the presidential election.
  13. PVH Corp. shares plunged 22.2% after the company gave full-year sales guidance that fell short of
    expectations.

    The clothier, which owns the Tommy Hilfiger and Calvin Klein brands, said it expects revenue this year to
    decrease 6% to 7%, compared with a 2% increase last year. While some of the expected decrease stems from
    the sale of Heritage Brands, its women’s intimate’s business, the company also noted a difficult
    macroeconomic backdrop, particularly in Europe. PVH has been working to execute a transformation plan
    focused on strengthening Calvin Klein and Tommy Hilfiger, which have lost momentum among shoppers in
    recent years. In the fourth quarter, which includes the crucial holiday season, profitability exceeded the
    average analyst estimate, thanks in part to better inventory management.
  14. Intel shares fell more than 4% in afterhours trading after revealing details about its new Foundry unit.
    Intel Foundry, a new division of the company responsible for manufacturing, had sales of $18.9 billion in 2023,
    down from $27.5 billion the previous year, the company said late Tuesday. The operating loss at the new unit
    widened to $7 billion from $5.2 billion. The company expects 2024 to be the peak of its losses and that Intel
    Foundry will be profitable, on an operating level, “midway between now and the end of 2030.” The chipmaker
    also named Lorenzo Flores as chief financial officer of the division.
  15. US-Europe Gripes on China Overcapacity Aren’t All Backed by Data
    (Bloomberg) — In Washington and Brussels, there’s a consensus that China is experiencing a surge of excess
    capacity that could wipe out overseas industries, spurring protectionist measures to stem the
    damage. “China’s overcapacity distorts global prices and production patterns,” US Treasury Secretary Janet
    Yellen said ahead of her visit to the country this week.

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