Bloomberg - Evening Briefing - Hoping inflation goes away

Bloomberg Weekend Reading

To tackle soaring inflation, central banks have kicked off a campaign of interest rate hikes aimed at stabilizing prices while supporting growth. The Federal Reserve is to undertake the most aggressive hikes since the mid-2000s. Fed Chair Jerome Powell said he thinks the U.S. economy “can handle” the tighter monetary policy and avoid a recession. But there could be a rub. “Once inflation gets going, it’s hard to stop,” Allison Schrager writes in Bloomberg Opinion. “The Fed appears to be hoping that inflation will go away on its own if it stops accommodating and the supply chain and oil market work out their kinks.”

What you’ll want to read this weekend

The U.S. offered Ukraine $800 million in new weaponry this week, including drones, to help it fight Russia as President Joe Biden called Vladimir Putin a “war criminal.” On Friday, Biden warned China’s Xi Jinping against supporting Russia’s invasion while Xi assured Biden his country didn’t want the war. Putin is growing more desperate, Hal Brands writes in Bloomberg Opinion, which makes everything more dangerous. “There are major perils ahead,” Brands said.

The world’s food system is in jeopardy because of the war on Ukraine. Global food prices, already at record highs, could surge another 22% as the conflict stifles trade and slashes future harvests from key grain-growing regions, the United Nations warned. The result could be a full-blown hunger crisis. While Ukrainian refugees flood other European nations, soaring costs could prompt another surge of migrants from Central America to the Mexican and U.S. borders.

A customer packs canisters of cooking oil purchased from a store on the outskirts of New Delhi. The UN is warning that Russia’s war on Ukraine could trigger a global hunger crisis. Photographer: Anindito Mukherjee/Bloomberg

Two years ago, New York City followed China’s lead by locking down to try and limit the spread of the coronavirus. And now? Urban centers in China are again shut down and half of China’s GDP and population could be affected. Cases in Europe tied to the omicron variants are on the rise and the situation “could very well be a preview for the U.S.,” said Yale School of Medicine’s Akiko Iwasaki. A wastewater network is indicating that cases are once again climbing in many parts of the U.S. 

Germany for years feared a decline in industrial jobs because its carmakers dragged their feet on going electric. Then Elon Musk announced Tesla would build an EV factory near Berlin, and slowly but surely, Germany began turning into a major hub for supplying and producing electric vehicles. Meantime, a judge has spared Musk from testifying in a case that blames Tesla Autopilot for a fatal crash.

In a rare show of bipartisanship, the U.S. Senate passed legislation to make Daylight Saving Time permanent. The policy of changing clocks from standard to DST was adopted during World War I to conserve electricity, but studies have found it can be disruptive to people’s sleep and health. However, Bloomberg’s editors write, lawmakers would do good to remember the last time DST was made permanent: Energy savings were negligible and kids got hurt in accidents as they went to school in the dark.

What you’ll need to know next week

What you’ll want to read in Businessweek

Why Sanctioning Billionaires Won’t Sway Putin

Mikhail Fridman, one of the original post-Soviet tycoons, is worth about $10 billion on paper. Now he may be reduced to a monthly allowance of less than $3,500—his assets frozen because of sanctions meant to pressure Putin to end his war. But oligarchs have no influence over the Russian leader, Fridman argues. “Those who are making this decision understand nothing about how Russia works.”

Mikhail Fridman greets Vladimir Putin at a U.K.-Russia energy summit in London in 2003. Between them is then-British Prime Minister Tony Blair. Photographer: John Stillwell/AFP/Getty Images

Older messages

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Bloomberg Evening Briefing View in browser Bloomberg Russia repeated its threat to target arms convoys sent by NATO allies as the Kremlin again fired missiles into the far west of Ukraine, near the

Biden’s warning for China

Thursday, March 17, 2022

Bloomberg Evening Briefing View in browser Bloomberg US President Joe Biden will try to persuade Xi Jinping to ratchet up pressure on Vladimir Putin to end the war on Ukraine. Biden will tell Xi by

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Wednesday, March 16, 2022

Bloomberg Evening Briefing View in browser Bloomberg President Joe Biden said the US would send Ukraine drones as well as thousands of anti-aircraft and anti-tank missiles, a pledge of a robust new

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Tuesday, March 15, 2022

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Monday, March 14, 2022

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Thursday, May 19, 2022

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Are you missing out on potential returns?

Thursday, May 19, 2022

Here's my advice. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

The Daily StockTips Newsletter 05.19.2022 (AMKR & SAFM REMOVED)

Thursday, May 19, 2022

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Fintech News Issue #364

Thursday, May 19, 2022

Recent events in the crypto space. Even stablecoins were affected by the recent downturn in the market See Online Issue #364 - Did Terra Luna Disrupt The Queen's Plans? 2022-05-19 This number of

Retail calamity

Wednesday, May 18, 2022

Bloomberg Evening Briefing View in browser Bloomberg US consumers are shifting their spending from merchandise to services, a worrying trend for retailers that spent the past two years profiting from a

😳 China comes crawling back

Wednesday, May 18, 2022

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Wednesday, May 18, 2022

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A kind of mortgage that helped cause the housing crash is surging in popularity. Here's why it's different this time.

Wednesday, May 18, 2022

The 2008 housing crash was triggered, in part, by adjustable rate mortgages. Experts say the mortgage industry is in a much more solid place today. View in browser Business Insider Business Insider

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Wednesday, May 18, 2022

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America’s ‘domestic terrorism’

Tuesday, May 17, 2022

Bloomberg Evening Briefing View in browser Bloomberg The Biden administration is poised to fully block Russia's ability to pay US bondholders after a deadline expires next week, a move that could