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Inflation is still much higher than the Fed’s target and economists are warning it may be stickier than markets are expecting. WSJ’s Dion Rabouin breaks down what the April CPI showed and what matters for markets and the economy. Photo: Andrew Harrer/Bloomberg NewsFederal Reserve officials were already leaning toward taking a summer vacation from interest rate increases to see if they have done enough to slow the economy and inflation. Wednesday’s inflation report makes that easier because it showed price pressures aren’t worsening and might soon be slowing as muted growth in rental-housing costs feed through to official inflation gauges.
Converting gas cars into electric vehicles is becoming more common, with several companies offering ways to ‘upcycle’ classic cars and fleet vehicles. WSJ’s George Downs explores why retrofitting isn’t more widespread. Illustration: George DownsTOKYO— Toyota Motor’s new management, looking to make up lost ground in electric vehicles, said it would add billions of dollars in spending to reach EV targets. Toyota said Wednesday it would invest an additional ¥1 trillion, equivalent to $7.4 billion, in EVs through 2030, bringing Toyota’s total planned outlays for the period to around $37 billion.
Can Inflation Fall Fast Enough for the Fed?
  + stars: | 2023-05-10 | by ( Justin Lahart | ) www.wsj.com   time to read: 1 min
WSJ’s Nick Timiraos explains how 2% became the central bank’s sweet spot, and what happens when the U.S. economy strays from it. Photo Illustration: Preston JesseeInflation is still too high. That probably won’t lead Federal Reserve policy makers to raise rates when they meet next month, but unless inflation comes down significantly in the months ahead, Fed policy makers will lace up their boots and start hiking all over again. Maybe it will.
Converting gas cars into electric vehicles is becoming more common, with several companies offering ways to “upcycle” classic cars and fleet vehicles. WSJ’s George Downs explores why retrofitting isn’t more widespread. Illustration: George DownsTOKYO— Toyota Motor ’s new management, looking to make up lost ground in electric vehicles, said it would add billions of dollars in spending to reach EV targets. Toyota said Wednesday it would invest an additional ¥1 trillion, equivalent to $7.4 billion, in EVs through 2030, bringing Toyota’s total planned outlays for the period to around $37 billion.
We May Be Getting Used to High Inflation, and That’s Bad News
  + stars: | 2023-05-10 | by ( Greg Ip | ) www.wsj.com   time to read: 1 min
Inflation is slowly easing, but it’s still far from the Federal Reserve’s 2% target. WSJ’s Nick Timiraos explains how 2% became the central bank’s sweet spot, and what happens when the U.S. economy strays too far from it. Photo Illustration: Preston JesseeLast fall, Americans were obsessed with inflation. One in five respondents called it the nation’s most important problem, according to Gallup. Just 9% of Gallup respondents now call inflation the most important problem, behind government leadership and the “economy in general” and just ahead of immigration and guns.
Inflation is slowly easing, but it’s still far from the Federal Reserve’s 2% target. WSJ’s Nick Timiraos explains how 2% became the central bank’s sweet spot and what happens when the U.S. economy strays too far from it. Photo Illustration: Preston JesseeA closely watched April inflation reading Wednesday could influence the Federal Reserve’s strategy over whether to pause its interest-rate increases. Inflation has cooled from its recent peak but remains stubbornly elevated. The Fed aggressively raised rates for more than a year to try to tame inflation by slowing economic activity, and indicated last week that it might be done lifting them for now.
How Clean Are Electric Cars? It Depends Where You Live
  + stars: | 2023-05-10 | by ( William Boston | ) www.wsj.com   time to read: 1 min
Converting gas cars into electric vehicles is becoming more common, with several companies offering ways to “upcycle” classic cars and fleet vehicles. WSJ’s George Downs explores why retrofitting isn’t more widespread. Illustration: George DownsBERLIN—Electric cars are only as clean as the power they use to charge their batteries, and how clean that is varies greatly from country to country, according to an analysis of data on power-sector emissions in 2022. Car sales around the world show more people buying electric vehicles that emit no climate-warming CO2 when they are driven around. But the impact of an electric vehicle replacing a traditional, combustion-engine car on overall emissions depends on how the power used to charge the car’s battery is produced.
Driving an EV Is Getting Greener, Especially in the U.S.
  + stars: | 2023-05-10 | by ( William Boston | ) www.wsj.com   time to read: 1 min
Converting gas cars into electric vehicles is becoming more common, with several companies offering ways to “upcycle” classic cars and fleet vehicles. WSJ’s George Downs explores why retrofitting isn’t more widespread. Illustration: George DownsBERLIN—Electric cars are only as clean as the power they use to charge their batteries, and how clean that is varies greatly from country to country, according to an analysis of data on power-sector emissions in 2022. Car sales around the world show more people buying electric vehicles that emit no climate-warming CO2 when they are driven around. But the impact of an electric vehicle replacing a traditional, combustion-engine car on overall emissions depends on how the power used to charge the car’s battery is produced.
After a year of maneuvering on both sides, Walt Disney Co. is suing Florida Gov. Ron DeSantis. WSJ’s Arian Campo-Flores explains what’s behind the lawsuit. Photo Composition: Rachel RogersWalt Disney Co. said it would make Hulu content available within Disney+ in the U.S. by the end of the year, the latest effort by newly returned Chief Executive Robert Iger to get the company’s streaming business to profitability. “We will soon begin offering a one-app experience domestically that incorporates our Hulu content via Disney+,” Mr. Iger said during a call with investors to discuss the company’s latest quarterly results.
Inflation Eased in April but Remains Stubbornly High
  + stars: | 2023-05-10 | by ( Gabriel T. Rubin | ) www.wsj.com   time to read: 1 min
Inflation is still much higher than the Fed’s target and economists are warning it may be stickier than markets are expecting. WSJ’s Dion Rabouin breaks down what the April CPI showed and what matters for markets and the economy. Photo: Andrew Harrer/Bloomberg NewsInflation edged slightly lower in April, likely keeping the Federal Reserve on course to pause interest-rate increases at its next meeting. The consumer-price index rose 4.9% in April from a year earlier, the Labor Department said Wednesday, down from March’s 5% increase. The inflation reading has declined from a recent peak of 9.1% in June 2022, but remains historically high.
After a year of maneuvering on both sides, Walt Disney Co. is suing Florida Gov. Ron DeSantis. WSJ’s Arian Campo-Flores explains what’s behind the lawsuit. Photo Composition: Rachel RogersWalt Disney Co. dramatically reduced losses in its streaming business, largely the result of price increases for Disney+ and other products implemented in December, as newly returned Chief Executive Robert Iger continues to overhaul the entertainment giant’s finances. The company’s direct-to-consumer segment, which includes streaming, lost $659 million in the quarter ended April 1, far less than the $845 million loss that analysts polled by FactSet had anticipated.
Google’s new AI chatbot Bard is more restricted than OpenAI’s ChatGPT and Microsoft’s Bing. Google’s Sissie Hsiao discusses it all with WSJ’s Joanna Stern. Photo illustration: Preston Jessee for The Wall Street JournalGoogle unveiled conversational features for its search engine and made its chatbot Bard widely available for English speakers, a show of force as it races Microsoft and a growing number of startups to win over consumers with artificial-intelligence products. Calling the moment a new era in search, Google introduced a set of features—called Search Generative Experience—that use AI programs to provide lengthier summaries in response to a range of queries. The features invite follow-up questions, opening a new interface allowing users to hold conversations with the search engine.
Betting Against Banks Brings Reward and Backlash
  + stars: | 2023-05-09 | by ( Matt Wirz | Ben Foldy | ) www.wsj.com   time to read: 1 min
The FDIC seized First Republic Bank in early May and struck a deal to sell the bulk of its operations to JPMorgan Chase. WSJ’s Ben Eisen explains what led to the bank’s failure and what it means for customers, investors and the industry. Illustration: Preston JesseeShort selling is back in vogue on Wall Street, rewarding some who bet against banks while triggering a backlash. Short selling, or betting that securities prices will fall, surged over the past year as many investors braced for market turbulence. The approach helped hedge funds beat major stock indexes last year for the first time since 2008.
After a year of trying to outmaneuver each other, Walt Disney Co. is suing Florida Gov. Ron DeSantis. WSJ’s Arian Campo-Flores explains what’s behind the lawsuit. Photo Composition: Rachel RogersWalt Disney Co. has fired back at Florida Gov. That measure, which seeks to retroactively void a contract that Disney signed to lock in planning approvals to potentially expand its theme parks and hotels in Florida, escalated a year-long fight between Disney and Florida Republicans.
The FDIC seized First Republic Bank and struck a deal to sell the bulk of its operations to JPMorgan Chase. WSJ’s Ben Eisen explains what led to the bank’s failure and what it means for customers, investors and the industry. Illustration: Preston JesseeWhen there is turmoil in the banking industry, there is an urge to point fingers. Warren Buffett weighed in Saturday: Blame the chief executives of recently failed banks. Blame the board of directors, too, for failing to hold the executives accountable.
WSJ’s Patricia Kowsmann explains how the UBS-Credit Suisse deal unfolded. Photo: Hannah McKay/ReutersZoltan Pozsar , a widely followed Credit Suisse markets guru, has left the bank, part of an exodus of staff that started in the months before the lender’s shotgun takeover by rival UBS. The Hungarian-born economist became a financial-world rock star for his analysis of mysterious market dynamics and behind-the-scenes accounts of how money flows through the plumbing of the global financial system.
First Republic Seized and Sold: Why It Happened and What Comes Next The FDIC seized First Republic Bank early Monday and struck a deal to sell the bulk of its operations to JPMorgan Chase. WSJ’s Ben Eisen explains what led to the bank’s failure and what it means for customers, investors and the industry. Illustration: Preston Jessee
Banks Are in the Grips of Investor Crisis of Confidence
  + stars: | 2023-05-07 | by ( Telis Demos | ) www.wsj.com   time to read: 1 min
WSJ’s Ben Eisen explains what the bank’s crisis means for customers, investors and the industry. Illustration: Preston JesseeFirst Republic Bank ’s seizure and sale to JPMorgan Chase was supposed to be a cathartic moment for American banks, the denouement of the financial system’s latest crisis of confidence. The relief lasted for barely a day. On Tuesday, shares of regional banks were plunging, with a handful of them dropping by double-digit percentages. At one point on Thursday, the KBW Nasdaq Regional Banking Index was down by 15% from the prior week, though it rallied back on Friday to finish the week down 8%.
New AI voice and video tools can look and sound like you. WSJ’s Joanna Stern replaced herself with her AI twin for the day to find out. Photo illustration: Elena ScottiKIGALI, Rwanda—Amid growing talk of the promise and peril of artificial intelligence, more than 2,000 researchers and engineers from around the world gathered in Rwanda this week to debate contrasting visions for the technology’s future. One vision is to build ever-more-powerful systems such as ChatGPT that aim to exceed human intelligence to boost worker productivity and economic growth. The other is to create more-targeted, small-scale AI solutions to local and global challenges, including tackling climate change, improving healthcare and preserving biodiversity.
E37Why Fungi Are the Next Big Global Health Threat As certain fungi like Candida auris become more widespread throughout the U.S., deaths related to severe fungal infections are rising. WSJ’s Daniela Hernandez explains what you should know. Composite: Noah Friedman
WSJ’s Ken Thomas breaks down how the political landscape has changed since 2020 and what challenges President Biden will face in 2024. Photo illustration: Ryan TrefesWASHINGTON—President Biden is staring down a rough month just as his re-election campaign is getting off the ground. The White House faces a series of wrenching issues that could weaken his political standing and distract from his effort to sell his accomplishments, including a clash with Republicans over raising the debt ceiling and an expected surge of migrants along the U.S. southern border as the pandemic-era Title 42 policy comes to an end May 11. The recent seizure of another failing bank could add to voters’ uncertainty about the health of the economy.
Google’s new AI chatbot Bard is more restricted than OpenAI’s ChatGPT and Microsoft’s Bing. Google’s Sissie Hsiao discusses it all with WSJ’s Joanna Stern in an exclusive interview. Photo illustration: Preston Jessee for The Wall Street JournalGoogle is shifting the way it presents search results to incorporate conversations with artificial intelligence, along with more short video and social-media posts, a departure from the list of website results that has made it the dominant search engine for decades. The changes represent a response to big shifts in the way people access information on the internet, including the emergence of AI bots like ChatGPT. They would nudge the service further away from its traditional format, known informally as the “10 blue links,” according to company documents and people familiar with the matter.
The U.S. and the Philippines have carried out the largest-ever annual military exercises amid an escalation of Chinese military activity around Taiwan. WSJ’s Shelby Holliday explains what makes this year’s drills different. Photo: Jes Aznar/Getty ImagesWASHINGTON—Taiwan has begun preparing for a sharp rise in economic tension with China, stepping up efforts to encourage businesses to look for investments in the U.S. and other countries. Businesses from the island are facing a sprawling Chinese trade investigation involving nearly 2,500 goods, including agricultural products, metals, plastics, chemicals and minerals. The probe, which Beijing has said is in response to “trade barriers,” threatens to disrupt commerce to Taiwan’s top export destination.
Strong Labor Market Data Sparks Bond Selloff
  + stars: | 2023-05-05 | by ( Eric Wallerstein | ) www.wsj.com   time to read: 1 min
The April jobs report provides an update on the health of U.S. consumers and how companies are responding to higher borrowing costs. PHOTO: Bryan Tarnowski/Bloomberg NewsA midweek bond rally fueled by worries over the economy and banking system was cut short on Friday when the labor market again proved surprisingly resilient. Yields on U.S. Treasurys climbed after jobs data showed hiring remains strong and wages continue to rise, sparking a selloff in the Treasury market. The two-year yield surged to a recent 3.926% from 3.727% on Thursday, according to Tradeweb . The yield on the 10-year note was recently at 3.454%, up from 3.350% on Thursday.
The FDIC seized First Republic Bank early Monday and struck a deal to sell the bulk of its operations to JPMorgan Chase. WSJ’s Ben Eisen explains what led to the bank’s failure and what it means for customers, investors and the industry. Illustration: Preston JesseeShares of under-fire regional banks surged to recover some of their lost ground on Friday, though many were still on track to end the week nursing hefty losses. Bankers and government officials hoped the sale of First Republic Bank to JPMorgan Chase on Monday would draw a line under upheaval from the collapse of Silicon Valley Bank and Signature Bank in March. But investors continued to hunt for weak links for much of the week, dumping shares of midsize and smaller banks.
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