[Macro Matters] April 4th

 


1. Economic Data



2. Central Bank

With inflation progress slow, Fed's Daly says rate cuts may need to wait | Reuters


Daly: There is no reason to lower the policy rate urgently. We aim for one crucial goal: Price stability. 

Uncertainty has not stalled out activity, she commented.


Fed's Goolsbee hopes US not moving to where monetary independence is questioned - CBS 'Face the Nation' | Reuters


Goolsbee showed concerns over Trump’s attempt to expel Jerome Powell from the Fed 

as the stability and credibility of monetary policy might be questioned as a result.


China’s Benchmark Lending Rates Left on Hold Again - WSJ


BOJ chief Ueda to visit Washington for G20, IMF meetings | Reuters


Trump Warns US Economy Could Slow If Powell Doesn’t Cut Rates

Trump: “There is virtually No Inflation,” pointing to lower energy and food prices.

“But there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers 

interest rates, NOW,” 

ECB’s Muller Warns Tariffs, German Spending May Boost Inflation

ECB’s Rehn Sees Tariffs Pushing Inflation Down in Short Term - Bloomberg


Rehn: The tariffs will cause inflation to rise in the US, but the EU might face deflation in 

the short term.


Hawkish BOE Rate-Setter Greene Says US Tariffs Disinflationary - Bloomberg


Trump says he has no plans to fire Fed's Powell; market jumps | Reuters


Trump: "I have no intention of firing him”

Trump expressed optimism that a trade deal with China could "substantially" cut tariffs.


Fed's Kashkari says 'too soon to judge' interest rate path | Reuters


His stance was same as usual: No hurry to judge interest rate path


Why Trump Decided Not to Try to Fire Jerome Powell - WSJ


According to WSJ, White House lawyers actually reviewed whether it’s available to oust Powell. 

 

Those discussions appear to have stalled after Trump denied any intention to fire Powell. 


Fed's Hammack sees more runway for Fed balance sheet cuts | Reuters

Hammack says now is not the time to change monetary policy.


Russian central bank keeps key rate on hold at 21% | Reuters


The Russian central bank maintained its key interest rate at 21% due to the inflation risk.




3. Politics / World

Russian President Vladimir Putin announces an Easter ceasefire in Ukraine


Putin ordered that all military actions be stopped during Easter. Russia is about to take 

over the Kursk region in total.


US Supreme Court temporarily halts deportations of Venezuelan migrants under wartime law | Reuters

 

China Warns Against Trade Deal With U.S. at Beijing’s Expense - WSJ


EU Delayed Punishing Apple, Meta Just Before Trade Talks Started - WSJ


Kyiv and Moscow accuse each other of countless violations of one-day Easter ceasefire | Reuters

Kyiv and Moscow blamed each other for violations of the Easter ceasefire respectively. 

Putin did not show any intent to extend further the temporal ceasefire declared on Easter.

Despite numerous violations of one-day ceasefire, military actions along the frontline actually 

decreased, according to the military officials and bloggers.


Israel's military finds 'professional failures' in killings of Gaza medics | Reuters

Exclusive: EU explores tweaking methane rules for US gas to help trade talks, sources say | Reuters


(Reuters)EU to ease regulations on imports of US gas to help trade talks.


If Trump Delisted Chinese Stocks, Here’s How It Would Work - WSJ


Vance set to visit India for bilateral talks on economic, trade and geopolitical ties | AP News


US tariffs will weaken global economy and trigger inflation but not a global recession, IMF says | AP News


Ishiba Says Japan Won’t Just Keep Conceding in US Tariff Talks - Bloomberg


Ishiba vows to defend Japan’s interests against tariff threats from the US. Furthermore, 

He denied a plan to ‘sacrifice’ national agricultural industries to comply with Trump’s demand.


China sanctions US congress members, officials and NGO heads | Reuters


Pope Francis, first Latin American pontiff, dies at 88 | AP News


Kremlin says U.S. position ruling out NATO membership for Ukraine gives satisfaction | Reuters


The Kremlin expressed satisfaction over the U.S idea to exclude NATO membership for Ukraine. 

Nevertheless, it did not mention the timeline or ongoing negotiations about truce.


 

Ishiba Pens Letter to Xi as Japan Aims to Avoid Trade Crossfire

Japan to deliver a letter to Xi amid rising trade tensions.

U.S. Slaps Steep Tariffs on Southeast Asian Solar Imports - WSJ

Tariffs of up to 3,521% on imports of solar cells from Cambodia, Thailand, Vietnam.

The US government suspects China shipped solar cells to Southeast Asian countries 

in order to avoid tariffs. 

 

China urges Japan to help fight US tariffs together, Kyodo reports | Reuters

China calls on UK to uphold international order in face of 'rampant unilateral bullying' | Reuters


Bessent Expects Tariff Standoff With China to De-Escalate - Bloomberg

Bessent said that the trade war between China and the US can’t be sustained. Although the actual 

negotiations between both sides were not held, Bessent expressed optimism that 

the trade tensions would be cooled down within months. 

 

Ukraine’s Zelensky Pushes Back on U.S. Peace Plan - WSJ


Ukraine will not recognize Russia's occupation of Crime, Zelensky said. 

 

IMF Warns of New Global Debt Surge as Economic Growth Weakens - Bloomberg


Elevated interest rates of the US and pressure to ease monetary policy to cushion the impact 

induced by trade wars might cause more countries to have larger amounts of debt, IMF warned. 

Additionally, geopolitical conflicts around the world also demand countries to borrow more even

if trade conflicts ease.


White House would consider lower China tariffs pending talks, source says | Reuters

Tariffs on China could come down from their current level of 145% to between 50% and 65%, 

but only if China is willing to discuss, Reuters reported.


Israeli airstrikes kill 10 in school housing displaced families, hit children's hospital, medics say | Reuters


India will pursue perpetrators of Kashmir attack to "ends of earth", Modi says | Reuters


After the attack on civilians in Kashmir killed 26 people, the diplomatic crisis between India and 

Pakistan escalated. India suspended the water treaty and canceled special visas issued to Pakistanis. 

Pakistan denounced those actions as an ‘act of war’ and retaliated by halting trade and suspending 

airlinks.

 

Russian attack on Kyiv kills at least eight, Ukrainian officials say | Reuters


After the Russian attack by missiles and drones on Kyiv killed at least eight, 

Trump posted: "Vladimir, STOP!".


Trump and Zelenskiy clash again and US warns it could abandon Ukraine talks | Reuters


South Korea expressed concern over Chinese structure in disputed area of sea | Reuters


China pushes for tariff cancellation to end US trade war | Reuters


Chinese commerce ministry: US should cancel out unilateral tariffs against China 

to start conversation. There are no ongoing negotiations on tariffs between the US and China.

Trump plans to exempt carmakers from some tariffs, FT reports | Reuters


China waives tariffs on some U.S. goods, but denies Trump's claim that talks are underway | Reuters


China exempts some U.S imports from the 125% tariffs, however Beijing said that there were 

no ongoing negotiations between the US and China.


China's Xi calls for self sufficiency in AI development amid U.S. rivalry | Reuters


China Reiterates Hitting 2025 Growth Target Amid Trade Tension - Bloomberg


China’s finance minister pledged to achieve the annual growth target 

by proactive monetary policies.

 

 

4. Business / Market

China pits humanoid robots against humans in half-marathon | Reuters


21 Humanoid robots participated in the half-marathon held in Beijing.


China Plastic Plants Face Closure Risk as Tariffs Hit US Ethane - Bloomberg


Chinese plastics factories that rely on US-imported ethane face potential shutdowns due to tariffs 

in the ongoing trade war.


Volvo to Cut Up to 800 US Jobs Amid Tariff Uncertainty: Reuters - Bloomberg


TSMC Warns of Limits of Ability to Keep Its AI Chips From China - Bloomberg


TSMC cited the difficulties in complying with US regulations set to keep AI chips from China. 

According to the annual report from TSMC, some semiconductor products might have flowed into 

China due to limitations on tracking shipments.

Exclusive: Huawei readies new AI chip for mass shipment as China seeks Nvidia alternatives, sources say | Reuters


(Exclusive: Reuters) Huawei already started shipments of its 910C GPUs to replace NVIDIA chips 

prohibited in China, Reuters reports.


At China auto show, EV makers to grapple with autonomous-tech crackdown, launch Tesla 'killers' | Reuters


South Korea's LG Energy Solution pulls out from Indonesia EV battery investment | Reuters


LG Energy Solution to withdraw its $8.45 billion project to build battery production facilities 

in Indonesia due to market conditions.


Crypto Knocks on the Door of a Banking World That Shut It Out - WSJ


(WSJ)Some crypto firms plan to apply for bank licenses, according to people familiar with matters. 

SC/ Deutsche Bank in study to expand crypto operations to the US, WSJ reported.

Instagram tries using AI to determine if teens are pretending to be adults | AP News


Amid growing concerns over mental issues of adolescents induced by social platforms, 

Instagram now tries to detect underage users pretending to be adults by data analysis on 

their contents, interactions etc.


CATL Teases Five-Minute EV Charge With Longer Range Than BYD - Bloomberg


CATL unveiled a brand-new battery that takes only 5 minutes for 520 km range. 

Also, CATL claimed that its sodium-ion battery can withstand under extreme circumstances. 

Due to the abundance and stability of sodium compared to lithium, CATL expects its sodium-based 

battery to capture up to 50% of the market shares.


JD.com, Meituan Shares Plunge as Delivery Competition Heats Up


Lockheed Martin's quarterly profit rises on resilient defense demand | Reuters

RFK Jr. Unveils Plan to Phase Out Artificial Food Dyes - WSJ


The exclusive news reported by WSJ turned out to be true: The Trump administration starts 

to remove petroleum-based dyes from the food supply by the end of this year.



Apple, Meta Hit by Modest EU Tech Fines After Trump Threats - Bloomberg


Philip Morris Lifts Outlook as Zyn Popularity Holds Strong


Philip Morris stock price reached record high due to the strong demand for its nicotine pouch, Zyn. 

 

Intel to lay off more than 20% of workforce, Bloomberg News reports | Reuters


According to Bloomberg, Intel is ready to cut more than 20% of its workforce.

 

Chinese e-commerce platforms to end refund-without-returns amid weak economy, sources say | Reuters


Chinese authorities urged e-commerce platforms not to demand sellers to refund 

without any returns, Reuters reported.


Nvidia Supplier SK Hynix’s Profit Soars 158% on AI Demand Boost - Bloomberg


SK Hynix’s quarterly report showed second highest revenue and operating profit. 

SK Hynix maintained its HBM shipment guidance despite the uncertainty around the economy. 

 

Chinese Firms Rush to Announce Buybacks as Tariff War Deepens - Bloomberg

Share repurchases pledged by 139 companies in Shanghai and Shenzhen 

amounted to 44.1 billion yuan ($6 billion) as of Thursday.

 

Nintendo Says Demand for Switch 2 Console in Japan Overwhelming - Bloomberg


Nintendo President apologized that the company couldn't fulfill overwhelming 

demands for Switch 2 in Japan. 

 

Adobe adds AI models from OpenAI, Google to its Firefly app | Reuters


Adobe to add AI models on its Firefly app to enable image generation and video clips.


PepsiCo lowers full-year earnings forecast on tariff costs and lower consumer spending | AP News


Chinese Copper Inventories Post Record Weekly Drop


Copper inventories saw a significant drop that indicates demand in industries is still robust.


China's Baidu says its Kunlun chip cluster can train DeepSeek-like models | Reuters


Baidu says its self-developed P800 chips can train DeepSeek-like models. Also, Baidu claimed that 

its latest model showed the best performance in several benchmark tests.




 



5. Indices & Commodities


DXY and US Treasuries showed resilience after Trump said he has no intention to fire Powell. 

 

The stock market and Bitcoin performed well, supported by Trump's comment that he has no intention of dismissing Powell and optimism over easing U.S.-China trade tensions.

  

Exclusive: OPEC+ to consider another accelerated oil output increase for June | Reuters

7. Opinion

  • Despite the statements from Trump, I don't expect trade tensions around the world would be eased in short terms. Trump couldn't retreat from his stance over world trade and tariffs to maintain the hegemony.

 

  • Military conflicts around the world seem to soar. Frankly speaking, I do not rule out the possibility of war between India and Pakistan. I think momentum among defence companies strengthens amid rising tensions.

 

  • I currently invest in cryptocurrencies, as I expect emerging stablecoins supported by the White House will perform as some sort of 'M2' especially for crypto markets. One example: Paypal recently announced the plan to offer annual interest on stablecoin deposits. 

 

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