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The World
Saudi Arabia and other members of the Opec+ group announced surprise oil production cuts totaling more than 1mn barrels a day, putting Riyadh on a collision course with the US as the kingdom attempts to boost prices amid fears of weaker demand. Saudi Arabia will implement a “voluntary cut” of 500,000 b/d, or just under 5 per cent of its output, in “co-ordination with some other Opec and non-Opec countries”, it said on Sunday. Russia, a member of Opec+, said it would extend its existing 500,000 b/d production cut until the end of the year. Moscow’s reduction was first announced in March in retaliation for western countries’ moves to impose a price cap on its seaborne oil exports. The Saudi-led initiative is unusual as it has been announced outside a formal Opec+ meeting, suggesting an element of urgency by the members taking part in the cuts. (Financial Times)
60% of Americans Would Be Uncomfortable With Provider Relying on AI in Their Own Health Care: On the positive side, a larger share of Americans think the use of AI in health and medicine would reduce rather than increase the number of mistakes made by health care providers (40% vs. 27%). And among the majority of Americans who see a problem with racial and ethnic bias in health care, a much larger share say the problem of bias and unfair treatment would get better (51%) than worse (15%) if AI was used more to do things like diagnose disease and recommend treatments for patients. But there is wide concern about AI’s potential impact on the personal connection between a patient and health care provider: 57% say the use of artificial intelligence to do things like diagnose disease and recommend treatments would make the patient-provider relationship worse. Only 13% say it would be better. (Pew Research Center)
Finland’s centre-right opposition clinched victory in Sunday’s parliamentary elections, inflicting defeat on centre-left prime minister Sanna Marin, Europe’s youngest leader. The National Coalition party, led by Petteri Orpo, was poised to come first with 48 seats, followed by the eurosceptic populist Finns party on 46, both notching up strong gains, with 99 per cent of the vote counted. Orpo said the results amounted to a “major victory” for the National Coalition and a “strong mandate for our politics”. He said he would start negotiations on forming a coalition. (Financial Times)
Pro-Russian party shakes up Bulgarian politics: Revival has attracted voters by rehashing Kremlin propaganda and urging delay to introduction of euro in run-up to election. (Financial Times)
India Is Arming Villagers in One of Earth’s Most Militarized Places: The government is reviving local militias in the Jammu part of the restive Kashmir region, laying bare the limits of its military approach there. (New York Times)
Israeli Air force combat helicopters and planes downed an unidentified aircraft that appeared to have crossed into Israeli airspace from Syria on Sunday, the military said. The incident came amid escalating tensions between Israel and Iran related to Iran’s presence on Israel’s northern border, and after a series of airstrikes attributed to Israel in Syria. (Times of Israel)
Israel authorized a national guard sought by far-right security chief Itamar Ben-Gvir to focus on Arab unrest, but held off on giving him direct command after political rivals voiced concern the force could become a sectarian "militia." (Reuters)
Another Round of Severe Storms Expected Tuesday From Texas to Illinois: After a storm system tore through parts of at least seven states on Friday and Saturday, forecasters said tornadoes, hail and strong winds were possible on Tuesday in the South and Midwest. (New York Times)
Economy
Individual investors are losing their appetite for U.S. stocks, leaving equity markets without a dependable leg of support after a rocky first quarter. They bought beaten-down shares with a fury at the start of 2023 and chased the momentum as the S&P 500 climbed. Net purchases of U.S. equities by individuals reached a monthly record in February, according to Vanda Research data going back to 2014. But individuals’ stock purchases have slowed sharply in recent weeks, falling to levels not seen since November 2020, Vanda data show. Individuals bought about $8.9 billion of U.S. equities on a net basis in the 10 trading sessions ended Thursday, down from a peak of $17 billion in the comparable period ended Feb. 16. (Wall Street Journal)
Japan business mood sours for 5th straight quarter: Japan's business sentiment soured in January-March to hit the worst level in more than two years, a closely-watched central bank survey showed on Monday, as slowing global growth clouds the outlook for the export-reliant economy. The service-sector mood, by contrast, recovered as easing border controls and an end to COVID-19 curbs heightened hopes for a rebound in tourism and consumption, the Bank of Japan's tankan survey showed. (Nikkei Asia Review)
Silicon Valley Bank’s risk model flashed red. So its executives changed it. Flush with cash from a booming tech industry, Silicon Valley Bank executives embarked on a strategy in 2020 to juice profits that quickly triggered an internal alarm. In buying longer-term investments that paid more interest, SVB had fallen out of compliance with a key risk metric. An internal model showed that higher interest rates could have a devastating impact on the bank’s future earnings, according to two former employees familiar with the modeling who spoke on the condition of anonymity to describe confidential deliberations. Instead of heeding that warning — and over the concerns of some staffers — SVB executives simply changed the model’s assumptions, according to the former employees and securities filings. The tweaks, which have not been previously reported, initially predicted that rising interest rates would have minimal impact. The episode shows that executives knew early on that higher interest rates could jeopardize the bank’s future earnings. Instead of shifting course to mitigate that risk, they doubled down on a strategy to deliver near-term profits, displaying an appetite for risk that set the stage for SVB’s stunning meltdown. (Washington Post)
FTX failure forces rethink on global sports sponsorship: Future of big-ticket deals between top-flight clubs and digital assets industry hangs in the balance. (Financial Times)
Can Apprenticeships Work in the US? Employers Seeking New Talent Pipelines Take Note. Many American companies have made a four-year degree a default qualification for entry-level jobs, elevating an expensive university education—with a smattering of internship experience—above paths that might prepare young talent for today’s workforce better. In a new report, Joseph Fuller, Professor of Management Practice at Harvard Business School, examines an alternative route for American teenagers and companies alike: The apprenticeships popular in many European countries. Looking closely at a successful US apprentice program in which high school students commit to work part-time while in school with the option to join the company when they graduate, Fuller’s analysis finds that three-quarters of employers wind up happy with their trainees and two-thirds of apprentices go on to college or career. (Harvard Working Knowledge)
Net-Zero Homes Aren’t Just for Millionaires: A Colorado initiative is betting that the cheapest housing will also be the greenest. (The Atlantic)
Technology
Apple Is Just Two Months Away From Debuting Its First Reality Headset: Apple has chosen June 5, 2023, as one of the most important days in its history. That’s the date it’s planning to debut its first mixed-reality headset, which it sees as the beginning of a post-iPhone era. The headset will be a risky, but potentially monumental launch for Apple. It will herald mixed reality as its next major product category, offering a glimpse of a future where people are interacting with the world via headsets and not pocketable touch screens. (Bloomberg)
Twitter removed the “verified” badge from the New York Times’ main account, a move that billionaire owner Elon Musk pushed for overnight after learning that the news organization would not pay for its Twitter Blue service. The move continues Musk’s years-long grudge against U.S. journalists who have reported critically on him, and it will raise the risks of impersonation. It also contradicts an internal plan, first reported by the Times on Thursday, to keep the badges on for the 10,000 most-followed organizations, regardless of whether they paid. (Washington Post)
Tesla posts record deliveries but misses estimates as competition weighs: Tesla missed estimates for first-quarter deliveries as rising competition and a bleak economic outlook overshadowed the electric-vehicle maker's efforts to prop up demand with price cuts. Tesla deliveries were 36% higher than a year ago, but below the 52% growth rate that was projected by Chief Executive Elon Musk early this year. Investors have been watching Musk's gamble that cutting prices would stimulate sales, although they worry about eroding margins. (Reuters)
VCs rain money on indoor farming, but open fields beckon: Many venture firms have deemed indoor farming the future of agriculture, plowing hundreds of millions into the subsector. But wide-open fields still receive the majority of funding, with investors eager to apply new technology to open farms’ famously low-tech and tech-resistant operations. (Crunchbase News)
The first commercially available human-shaped robots designed for warehouse work were unveiled last week by a company called Agility Robotics, for delivery in 2025. Details: Digit, which is built to work alongside humans, can lift and move plastic bins in a warehouse or distribution center. Fully self-charging, Digit — who is a slim 5'9" and 140 pounds — will walk over to its own charging dock, click itself in, and return to the workplace for another shift after it's juiced up. "Everything we do is about building a robot that can work in human spaces and do human workflows," Jonathan Hurst, CTO of Agility Robotics, said. (Axios)
Smart Links
Spring housing market ‘stalling’ as record low inventory plagues buyers. (Chicago Tribune)
Your Next Greece Getaway Could Be at a Hotel Owned by Goldman Sachs. (Wall Street Journal)
WWE near deal to be sold to UFC parent Endeavor, sources say. (CNBC)
AI and robots fuel new job displacement fears. (Axios)
In Reversal, Instacart Hikes Its Valuation 18%. (The Information)
UK travelers face third day of holiday disruption at Dover. (Financial Times)
Bed Bath Begins Three-Week Countdown to Possible Bankruptcy. (Bloomberg)