Morning Reads
- Getir Quits US, Europe Markets After Pressure to Cut Losses
- Wall Street Goes Long Lira in Optimism on Turkey Policy Reversal
- How the US Is Trying to Counter China’s Trade ‘Coercion’
- Yen Rebounds Strongly After First Slide Past 160 Since 1990
- What 60,000 Headlines Say About the Fed’s Next Move
- Even If the Fed Cuts, the Days of Ultralow Rates Are Over
- Auditors Balk at Regulator’s Push to Expand Their Role
- Fulton Financial Buys Failed Republic First Bank, Announces Stock Offering
- Here’s How Immigration Will Boost the US Economy, From Strong Hiring to More Housing
- Biden Strategy to Tame Gas Prices Is in Peril as Iran Sanctions Pressure Mounts
- Shell Earns $1 Billion a Year from US Crude Trading, Court Filing Shows
- In the Heart of a Global Methane Hotspot, Signs of Progress
- BHP Mega Bid and $10,000 Copper Expose Mining’s Biggest Problem
- Say Goodbye to Potatoes Being as Cheap as Chips
- Rising Food Prices Send More Shoppers to Aldi
- Friends From the Old Neighborhood Turn Rivals in Big Tech’s A.I. Race
- A.I. Start-Ups Face a Rough Financial Reality Check
- Apple’s iPad Hit by EU’s Digital Dominance Crackdown
- France Moves to Rescue Atos as Former IT Crown Jewel Struggles to Stay Afloat
- Musk Leaves China With Tesla Driving Software Hurdles Cleared
- Who Gains from Elon Musk’s Visit to China?
- How to Book a Rocket Ride: Advice From a Space Travel Agent
- Executive Flights on Corporate Jets Worth Millions More Than Reported
- Auto-Safety Regulator Notified of Two Ford Driver-Assistance System Incidents
- A Billion-Dollar Hack Puts UnitedHealth’s Empire Under the Microscope
- How Supplement Stores Are Trying to Tap Into the Ozempic Boom
- Redstones, Ellison Seek to Appease Angry Paramount Investors
- Xi Warns Blinken Against ‘Vicious Competition’ Between US, China
- Bank of Japan Holds Rates Steady, Expects Inflation to Stay Around 2%
- Yen Swings With Traders on High Alert for Intervention
- U.K. Consumers Get Spring in Step as Confidence Mounts
- Global Equity Funds Face Fourth Week of Outflows Amid Dampened Fed Rate Cut Hopes
- Investors Brace for 5% Treasury Yields as US Inflation Worries Mount
- With Inflation This High, Nobody Knows What a Dollar Is Worth
- Only Half of Global Rate Hikes Set to Be Taken Back by End-2025
- Billionaire Stephen Ross Believes in South Florida—and Is Spending Big to Transform It
- What Is a ‘Decent Wage’? France’s Michelin Raises a Debate
- ‘Net Neutrality’ Faces a Stiff Judicial Test
- Why Are Shares of Intel Stock Crashing After Earnings?
- A Chinese Firm Is America’s Favorite Drone Maker. Except in Washington
- Rosenbush’s Take: Rubrik IPO Reflects Increasingly Difficult Path Startups Face to Going Public
- Thoma Bravo to Buy U.K. AI Cybersecurity Company Darktrace for $5.3 Billion
- Air Conditioning and AI Are Demanding More of the World’s Power—Renewables Can’t Keep Up
- Apollo Global to Buy U.S. Silica in $1.85 Billion Deal
- Anglo Rejects BHP Takeover Bid as Significantly Undervalued
- Rising Copper Demand Spurs Search for Alternative Climate Solutions
- Bonjour, New York? French Oil CEO Sees a Climate Path Out of Paris
- Exxon, Chevron Fall After Disappointing First-Quarter Showings
- Railroad CEO Isn’t Ruthless Enough for Investors After Toxic Crash
- China to Pay Consumers Up to Nearly $1,400 to Replace Old Cars
- Regulators Probing Tesla Recall Tied to Autopilot
- Used-Car Sales Have Moved Online—Here’s Why Both Customers and Dealers Are Happy
- Americans Went All-In on Self-Storage. That Demand Is Suddenly Cooling
- The Long, Slow Death of Urban Nightlife
Options
PREMIUM
Prepper
Tesla (TSLA) is steadily moving ahead with its plan to roll out its self-driving technology in China, reportedly reaching a deal with Baidu (BIDU) to access the local search giant's mapping license for data collection on Chinese roads. Baidu is expected to also provide its lane-level navigation system to Tesla. The news sent shares of Tesla jumping around 8% before the bell on Monday, while Baidu's ADRs soared close to 6%. To note, both companies already have a partnership, under which the automaker's vehicles use the Chinese company's navigation map in China.
Musk in China: The latest agreement was a result of Tesla CEO Elon Musk's trip to China, where he met with Chinese Premier Li Qiang and other officials, just over a week after the billionaire cancelled his planned India visit citing "very heavy Tesla obligations." Musk also reportedly sought approvals for the launch of Tesla's driver assistance system - Full Self Driving - in China and permissions to transfer local data abroad. Transferring data is an important part of training Tesla's algorithms for self-driving. Since 2021, Tesla has kept data collected in China on servers in Beijing and hasn't sent it to the U.S. to comply with Chinese regulation.
Dig deeper: China requires that all driving assistance systems get a mapping service license before operating on public roads in the country. For this, foreign companies need to partner with any of the dozen local firms that are licensed. Baidu is among the Chinese companies that have this license. The license would legally allow Tesla to operate its FSD software on Chinese roads, and gather data on road layouts and nearby buildings. It is not immediately clear if the collected data will belong to Tesla or Baidu.
FSD hopes: In the backdrop of slowing demand and growing competition, Tesla last week slashed FSD prices by a third to $8,000 in the U.S. Launching FSD in China would be a significant step as Chinese EV makers pose a real threat to Tesla's market share. Musk recently said Tesla may bring the software to China very soon. "While the company has yet to have successes that justify its valuation, a breakthrough with FSD or something else, could turn that around," Investing Group Leader The Value Portfolio recently said. (18 comments)
Yen intervention?
The Japanese yen strengthened against the U.S. dollar on Monday, a public holiday, with traders speculating that it's likely due to intervention by authorities to support the currency after it hit its lowest level in over three decades last week. The yen strengthened to trade around 155 against the dollar (USD:JPY), from as high as 160 earlier today. "... these moves have all the standard characteristics of currency intervention: the 'line in the sand' at 160, the sharp increase in volume and the size of the move," said Francesco Pesole, FX strategist, ING. It remains unclear if this was a one-off move or part of an intervention campaign. (1 comment)
AI-powered iPhone
Apple (AAPL) and OpenAI resumed talks on integrating the startup's generative AI capabilities into the new iPhone, expected later this year. The discussions mark a renewed attempt by the tech giant to add the AI features to iOS 18, the next iPhone operating system. Talks with Microsoft (MSFT)-backed OpenAI about a potential deal began earlier this year, following similar discussions with Alphabet (GOOG, GOOGL) to add Gemini to the iPhone. Apple may opt for a deal with both OpenAI and Alphabet, or prefer one over another. Apple's Q2 results are due on Thursday, and traders will closely watch for comments on its strategy to integrate genAI functionality into the iPhone. (46 comments)
Final offer
Skydance Media reportedly made its "best and final" offer in its bid to merge the company with Paramount Global (PARA), whose shareholders have opposed the deal and called for the consideration of other offers. The Redstone family and David Ellison made concessions to make a change in control at Paramount more amenable to smaller investors. The company's CEO Bob Bakish is also expected to be fired as early as this morning over his reported opposition to the merger. Paramount’s special committee is still undecided about agreeing to a deal with Ellison. The media giant is scheduled to report Q1 earnings after the close on Monday. (49 comments)
Today's Markets
In Asia, Japan closed. Hong Kong +0.5%. China +0.8%. India +1.3%.
In Europe, at midday, London +0.5%. Paris +0.1%. Frankfurt -0.1%.
Futures at 7:00, Dow +0.1%. S&P +0.2%. Nasdaq +0.3%. Crude -0.2% to $83.65. Gold +0.2% to $2,352.10. Bitcoin -1.9% to $62,400.
Ten-year Treasury Yield -1 bp to 4.63%.
Today's Economic Calendar
10:30 Dallas Fed Manufacturing Survey
Companies reporting earnings today »
What else is happening...
Biden administration imposes sweeping regulations on power plants.
U.S. to rush Patriot missiles to Ukraine as part of $6B aid package.
BHP may improve Anglo American (OTCQX:AAUKF) bid after rejection.
Republic First Bank (OTC:FRBK) shut in 2024's first bank failure.
Disney (DIS) character workers in California move to unionize.
WHO picks dominant variant JN.1 for next set of COVID vaccines.
Turkey, Exxon (XOM) in talks for multibillion dollar LNG supply deal.
Elliott Management builds big stake in Warren Buffett-backed Sumitomo.
Credit card delinquency rates fall in March as consumers keep spending.
Cannabis retailer MedMen (OTC:MMNFF) files for bankruptcy in Canada.