Welcome back,

US banks are sending billions into the EU, markets are red, and an update on US-China economic relationship.

Let’s keep it concise.

Market Headlines 👀

• SpaceX attempts to send its biggest rocket ever into space, but blows up minutes after launch.

• Yellen warns decoupling US from China could be “disastrous”.

• Biden is aiming to propose China investment curbs with G-7 backing.

• US, Ukraine allies are considering a near-total ban on exports into Russia.

• US banks are shifting hundreds of billions in assets to the EU upon a request from the ECB.

• Alphabet (GOOGL) looking to deploy generative AI to assist with ad campaigns.

• Alphabet (GOOGL) will be combining AI units Brain and Deepmind.

• Alibaba (BABA) grocery arm prepares for a Hong Kong based IPO.

• Bank of Japan says it is wary to tweak YCC after the recent banking crisis.

• Canada has $13b in order flow for a record dollar deal.

• US jobless claims come in at 245k for the week; est 240k.

• US March existing home sales come in at 4.44m; est 4.5m.

• Deutsche Bank (DB) will be cutting jobs and shrinking its board.

• Saudi Telecom to buy United Group Towers for 1.2b.

• Canada matches US subsidies to win Volkswagen battery plant.

• Tesla (TSLA) cuts prices for its vehicles prior to earnings yesterday.

  • Updated pricing:

Earnings 💸

• American Express (AXP)

  • EPS: $2.40 mises (exp. $2.68)

  • Revenue: $14.28b beats (exp. $14.03b)

• AT&T (T)

  • EPS: $0.60 beats (exp. $0.59)

  • Revenue: $30.14b misses (exp. $30.27b)

• Blackstone (BX)

  • EPS: 0.97 meets (exp. 0.97)

  • Revenue: 2.49b misses (exp. 2.57b)

S&P 500 Heap Map

Recap Around the Street 🧠

Higher for longer is the consistent message from the Fed as projected from the board members dot plot forecasts, in contrast to whats priced into Fed funds futures. As of 4/19/2023, Fed funds futures were pricing in a terminal Fed funds rate of 5.25% and one to two rate cuts by the end of the year despite pushback from Fed officials not to expect a rate cut until “meaningful progress” has been made on the inflation front. Keep in mind during the depths of the mid-March banking crisis, Fed Funds were pricing in a terminal rate of 4.75% and anywhere from four to five rate cuts by the end of the year. So, Fed funds have been all over the map chasing the latest data point like a cat chasing a red laser point. (contributed by Benjamin Lavine, CIO at 3D/L Capital)

Market Preview 🎞️

• Friday, April 21: Bloomberg April US economic survey, S&P Global Manufacturing, services and composite PMIs, OPEX

That’s all for today, folks! We’ll be back around the same time Monday with a curated list of important news, economic data and market highlights. 

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