BOJ will hike rates if trend inflation accelerates, gov Ueda says (2 min read)

The Bank of Japan's governor, Kazuo Ueda, indicated that interest rates might be raised again later this year if inflation trends towards the 2% target as anticipated. Although the central bank plans to keep rates unchanged in the upcoming policy meeting, expectations are set for a rate increase from the current near-zero levels if inflation persists. Ueda emphasized that any rate adjustments would depend on future economic data and the trajectory of trend inflation.

Venezuela Looks to Crypto for Oil Sales As Sanctions Return (1 min read)

Venezuela, facing the reimposition of oil sanctions and the need to conclude sanctioned transactions by the end of May, is transitioning its oil sales to the digital currency Tether. This move aims to prevent the freezing of oil sale revenues in foreign bank accounts. PDVSA, the state-run oil company, began using Tether in 2023 and now requires oil purchasers to maintain a digital wallet, although this method complicates compliance for traders.

Tesla reports biggest revenue slide since 2012, announces renewed push for affordable model (2 min read)

Tesla reported a 9% drop in Q1 revenue, the steepest since 2012, with net income plunging about 55%. This decline in revenue and earnings is attributed to ongoing price cuts and weaker vehicle deliveries. Despite these challenges, Tesla remains focused on launching new, more affordable vehicle models, and aims for at least 50% of the production growth in 2023. Tesla's stock rose 8% in the extended trading yesterday but is still down about 40% this year.

FTC sues to block Coach parent Tapestry’s acquisition of Capri Holdings (3 min read)

The FTC has filed a lawsuit to block Tapestry’s $8.5 billion acquisition of Capri Holdings. The potential merger would put six major US luxury brands under one roof — Tapestry’s Coach, Kate Spade, and Stuart Weitzman and Capri’s Versace, Jimmy Choo, and Michael Kors — and could be poised to better compete with European luxury names like Burberry or LVMH. However, the FTC argues that this would harm competition and potentially lead to higher prices for consumers.

TLT, Bond ETFs Face Big Test With PCE This Week (2 min read)

After several months of disappointing inflation reports, the US bond market faces a critical test with the upcoming release of the Fed’s favorite inflation measure, the PCE price index. Bond prices have fallen amid rising prospects of prolonged high interest rates. This directly impacted long bond ETFs like TLT which plunged over 10% this year. Any surprise increase in the PCE this week could further depress TLT’s price, while a lower-than-expected reading could boost it.

Hedge Funds Snap Up Japan Rates Traders in Bet on Comeback (4 min read)

The volatility from the Bank of Japan's shift away from nearly a decade of negative-rate policy has led to an exodus of rates traders from banks to hedge funds, attracted by the prospect of higher pay. As a rising number of hedge funds aim to capitalize on the changing market conditions, they are aggressively hiring traders who can navigate the new environment, offering significantly higher bonuses compared to banks.

68% of Warren Buffett's $372 Billion Portfolio Is Invested in Just 4 Stocks (6 min read)

As of the last SEC filing, the four largest holdings in Warren Buffett’s Berkshire Hathaway portfolio are Apple, Bank of America, American Express, and Coca-Cola. Collectively, they account for over two-thirds of the overall portfolio. This article provides a brief breakdown of the possible rationale for why Buffett is so heavily invested in these companies.

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