US inflation peaks? – The New York Times

Inflation in the United States has been hovering around 7.5 percent since March, the highest level in more than 40 years, according to new data released yesterday.

Surprisingly, this has led to optimistic responses from some economists who warned about inflation last year. “These numbers probably represent some of the top,” said Gregory Deco, chief economist at EY-Parthenon.

Several market observers see signs that inflation may easeThe Times’ Jenna Smilek reports:

  • In a wave The price of gas Responsible for a lot of price jumps last month. Exclude gas and food like many economists, and so-called core inflation actually declined from February to March.

  • Commodity prices that have driven up inflation in recent times, e.g. Used car And Consumer electronicsDropped or increased less than expected, a sign that the snarled supply chain may be easier.

  • There are also Foundation effect“A confusion about how numbers are reported can affect how much inflation there is. Prices really started to pop up last spring, which means that after spring this year, changes will be measured against numbers or bases a year earlier.”

But policy makers are not sitting still. New Zealand’s central bank has surprised economists with the expected half-point interest rate hike today, a move that other central banks could follow. The Federal Reserve is expected to announce a major rate hike today, and the Fed and Bank of England will likely do the same next month. (In today’s issue, Britain’s inflation rate has reached a 30-year high.)

And not everyone buys the “peak inflation” description. The data is not accurate with the recent rapid rise in prices of some segments like furniture. Wages have also risen, raising costs for employers and potentially motivating them to continue raising prices (and many workers’ pay checks are still not keeping pace with inflation). The epidemic shutdown in China threatens the global supply chain and the war in Ukraine adds a huge dose of uncertainty.

The subway gunman in New York is still at large. Police have identified an “interested person” in the shooting of 10 people on a Brooklyn train yesterday. He seems to have posted long, orthodox comments on social media, some criticizing New York City Mayor Eric Adams’ policy. The Times has a live briefing with the latest developments.

JPMorgan Chase kicks off revenue season for big banks It somewhat missed its first-quarter profit expectations, which were about 40 percent lower than the same period last year, hitting nearly $ 500 million in losses on the impact of Russian assets and other war-related markets. Citigroup, Goldman Sachs, Morgan Stanley and Wells Fargo are scheduled to earn tomorrow.

The airline beat the Wall Street forecast as a travel rebound. Delta reported a narrow loss in the first quarter and predicted a return to profit in the second quarter. American told investors yesterday that it expects slightly higher revenue than previously forecast. The Boeing 737 also reported a return to sales with strong orders for the Max.

Mark Zuckerberg has said he will no longer donate to the local election office. He gave nearly half a billion dollars to build voting infrastructure during the 2020 epidemic. Some conservatives have claimed that, without evidence, the money helped President Biden win.

Lockdown in China could sharply reduce global demand for oil. In its latest monthly assessment, the International Atomic Energy Agency said China’s sanctions could ease the supply crisis due to sanctions on Russia. Emergency reserve releases and increased production from the Middle East and the United States could also help, but the outlook is “immersed in uncertainty,” the agency said.

Technical firms have long been leaders in giving employees the flexibility to work remotely. But they have spent billions upon billions upon billions of office spaces that they see as crucible of collaboration and creativity. And as the epidemic unfolds, they are trying to bring balance back to the office, using both carrots and sticks.

The industry’s appetite for office space is strong: Meta plans to add about 300,000 square feet to Manhattan, and Google announced this morning that it is investing an additional .5 9.5 billion this year in U.S. offices and data centers, particularly outside California in areas such as Atlanta, Austin, Pittsburgh and Portland.

Technology companies want their employees to be happy about their return, so they’re offering benefits, Report by the Times’ Daisuke Wakabayashi, Erin Griffith and Kate Conger. Pop star Lizo will perform for Google employees this month at the company’s headquarters in Mountain View, California. When Microsoft reopened its office, it offered classes in live music, beer and wine tasting, and terrarium making.

But many employees are expecting a full refund. In New York, yesterday’s subway attack and the overall rise in crime on the train could raise security concerns. According to Nick Bloom, a professor of economics at Stanford, one-third of the workers he surveyed never want to return. “Employees don’t come regularly just for the job,” he said. The main draw is to meet colleagues.

Technical agencies are making it clear that in many cases returning to the office is mandatory. After several suspensions, Google began its hybrid work schedule on April 4, requiring most employees in the United States to be in their office a few days a week. Apple has begun making it easier for employees to return to the office on Monday, with employees currently expected once a week. Microsoft reopened its offices in Redmond, Wash., On a hybrid basis in late February.


– Ye Qing, a Chinese lawyer known by his pen name Xiao Han, in an article that was quickly deleted. Many in China fear that the government’s costly “Zero Covid” policy has become obsolete Mao-style political propaganda.


Mayev Duvali, Goldman Sachs’ longtime communications executive, is retiring from the bank in June after nearly 18 years of running. Duvali is not going too far – he will advise Goldman Sachs as a consultant, focusing on both corporate communication and diversity and inclusion. Jack Sewart, Coms chief who led the firm’s reputation change after the financial crisis, retired more than a year after Warburg Pincus left.

Duvali broke the boundary. She came out as a transgender during her tenure, a move the bank supported. Duvali recently recalled his decision: “Coming out to work was probably one of the happiest days of my life and I never looked back.” Andrea Williams, the bank’s current chief commissar, said in a memo announcing Duvali’s retirement that “Maeve has been a significant contributor to the firm’s LGBTQ + activities, including client events and recruitment.”

He managed some clever stories during the financial crisis, When the bank faced a flood of criticism for handling its mortgage-backed securities. “Goldman has worked on some of the most challenging stories about Shakespeare, with a focus on protecting the reputation of Maive Farm,” Williams wrote. Duvali joined Goldman Sachs from Merrill Lynch in 2004 and became managing director in 2010.


Crypto developers working on decentralized financing, or DeFi, say that their automated platforms are governed by code, not humans. But the basis for their hands-off decentralization is being challenged by regulators, technology experts and aggrieved investors in a proposed class action lawsuit recently filed in federal court in New York. The lawsuit alleges that a leading decentralized exchange, the founders and supporters of Uniswap, controlled the protocol and was responsible for “massive fraud.”

Is decentralized exchange actually controlled internally? The allegations against Uniswap Labs and venture capital firm Andresen Horowitz, Paradigm and Union Square Ventures are allegations that the groups are illegally selling unregistered securities and leaving investors in the dark about risks that must be disclosed in a traditional exchange. “They will argue that there is no one behind Unisap and that it is decentralized,” James Ceritella, the plaintiff’s attorney, told Dilbook. But people write code that governs the activities of the exchange and its system of governance is designed to favor insiders, he argued.

The regulators have indicated their interest in the matter, SEC Chair Gary Gensler suggested that DeFi platforms are not immune from surveillance. The agency is reportedly investigating Unisap, but Ceritella said lawyers must “bring these issues to court” because enforcers are moving slowly and investors are losing out. “These allegations are unqualified and the allegation is riddled with actual error,” a spokesman for Uniswap Labs said in a statement to Dilbuk. “We plan to strongly defend this case.” Paradigm and Union Square Ventures did not immediately respond to a request for comment; Andresen Horowitz declined to comment.

If someone doesn’t control a program, things go awry, but no one is responsible. A group of global market regulators recently studied DeFi services and concluded that they largely “replicate more traditional financial services and activities, but with weaker regulation and increased risk for investors.” It “casts doubt on a key claim by Defy inventors that it is a peer-to-peer marketplace controlled by no centralized insiders,” regulators found. This is similar to the allegation of Jack Dorsey, a bitcoin enthusiast who co-founded Twitter and now runs Block (formerly Square), who is arguing online with Mark Andreessen of Andresen Horowitz.

Russia-Ukraine war

  • Vittal, the world’s largest independent oil trader, wants to stop buying and selling Russian crude oil by the end of the year. (Bloomberg)

  • Russia’s technology industry has suffered a major blow as thousands of workers have fled the country. (NYT)

  • “Incredible Bouncing Rubles” (Project Syndicate)

Deal

  • BlackRock and Fidelity have joined a $ 400 million funding round for the stablecoin issuing circle. (TechCrunch)

  • Credit Suisse has reportedly formed a “strategic DSPAC committee” to evaluate its involvement in blank-check deals before the new regulations. (Bloomberg)

  • GlaxoSmithKline pharmaceutical company Sierra Oncology is being bought for 1.9 billion as it faces pressure from an active shareholder to strengthen its drug pipeline. (Reuters)

Policy

  • A Twitter shareholder has filed a lawsuit against Elon Musk alleging securities fraud. (Protocol)

  • Apple CEO Tim Cook argued in a rare public speech that forcing the company to relax its hold on its App Store would hurt customers. (WAPO)

  • Google’s first consumer protection lawsuit against puppy fraud. (NYT)

  • The CFPB has sued credit-reporting firm Transunion and one of its former executives, alleging that they violated an order to stop using fraudulent sales tactics. (NYT)

The rest is the best

  • According to internal records obtained by the Times, McKinsey allows his advisers to advise both drug manufacturers and drug regulators at the same time. (NYT)

  • CNN’s streaming news platform CNN + started at a slow pace and faced potential cuts two weeks after launch. (Axios)

  • Substack wants to be more than just a self-publishing newsletter company. (NYT)

  • “The real cost of a bad manager” (quartz)

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