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The World
China Plans to Conduct Intensive Military Drills Amid US Tensions: China’s military plans to conduct at least five drills in various areas that include waters off its coast and in the South China Sea, amid simmering tensions with Taiwan and the US. One of the announced military exercises will be held for three days in waters off the port city of Qingdao, home to a major naval base for the People’s Liberation Army, according to a statement by China’s Maritime Safety Administration Thursday. Unspecified “major military activities” were conducted in the same area from 9 a.m. till noon Tuesday. (Bloomberg)
US Treasury secretary Janet Yellen has warned any effort to decouple from China would be “disastrous”, saying national security measures targeted at Beijing were not designed to “stifle” the Chinese economy. In a major speech, Yellen called for a “constructive and fair” economic relationship between China and the US, as Washington seeks to repair badly fraying relations between the two economic powers. (Financial Times)
German Foreign Minister Annalena Baerbock has described parts of her recent trip to China as "more than shocking." The minister did not elaborate on specifics, but the comment was made after she noted that China has become more repressive internally and aggressive externally. Baerbock made the remarks addressing the Bundestag, Germany's lower house of parliament. She said China has been seen as a trade partner, competitor and a systemic rival to Germany, but her impression is now "that the systemic rivals aspect is increasing more and more." (Deutsche Welle)
As Xi Befriends World Leaders, He Hardens His Stance on the U.S.: China has rebuffed calls to restart high-level talks with the United States, raising the risk of confrontation in contested areas like the Taiwan Strait. (New York Times)
France and Germany, which are among dozens of nations reported to host a network of alleged overseas stations used by Chinese security forces to monitor and harass dissidents, are probing potential operations on their own soil in connection with the issue. Such sites, as Newsweek reported in December, appear to exist on both U.S. territory and in more than 50 countries around the world. They've drawn increased attention since the FBI's arrest of two Chinese nationals accused of operating an "illegal overseas police station" on behalf of the Chinese Ministry of Public Security in Manhattan on Monday. When it comes to his own country, French Interior Minister Gérald Darmanin said in comments shared with Newsweek, "under no circumstances will France tolerate attacks on its sovereignty." (Newsweek)
Despite outcry, Michigan passes US$175 million for Chinese-owned battery plant: By a 10-9 vote, the state senate appropriations panel passes the incentives for the Gotion Inc plant, which is expected to create more than 2,300 jobs in rural Michigan. Opponents have charged that Gotion has ties to the Chinese Communist Party that make it a threat to US national security. (South China Morning Post)
Republican Voters' Concerns About China Have Reached New Heights: The share of GOP voters who rank U.S.-China relations among America's top five most pressing foreign policy priorities has risen 5 points since January (from 31% to 36%), marking a tracking high. Half of Republicans now think it is "very important" for the United States to address the issue, up from a tracking low of 39% last year. (Morning Consult)
The EU, bowing to pressure from Poland and Hungary, is preparing to impose emergency curbs on cheap Ukrainian grain imports after the two countries acted unilaterally to protect their own agricultural sectors. The measures would bar imports of Ukrainian wheat, maize, oilseeds and sunflower seeds into Poland, Hungary, Romania, Slovakia and Bulgaria until June. (Financial Times)
The Biden administration is reportedly preparing a sanctions package targeting members of the Sudanese Armed Forces and its rival Rapid Support Forces, which are currently engaged in pitched battles for control of Khartoum and other Sudanese cities. But some U.S. officials fear the package will be inconsequential, amid a broader debate about whether the Biden administration has been too timid in pursuing sanctions for human rights violations in Africa. (Foreign Policy)
McCarthy at risk of falling short on GOP votes for debt ceiling bill: House Republicans are feeling a debt ceiling hangover, with senior GOP sources worrying they’re significantly short on votes now that members have read the 320-page bill. "The whip count on this is not good," a senior GOP source told Axios Thursday afternoon. Much of the skepticism is coming from swing-district Republicans such as Reps. Nancy Mace (R-S.C.) and Tony Gonzales (R-Texas), who have both indicated they are unhappy. "The Freedom Caucus plan is wagging the conference dog," one House Republican told Axios, referring to the right-wing members who pushed McCarthy hard to include their priorities. (Axios)
Economy
Home Prices in March Posted Biggest Annual Decline in 11 Years: Home sales fell across the U.S. in March, a sluggish start to the crucial spring selling season as higher mortgage rates squashed momentum from the previous month. U.S. existing-home sales decreased 2.4% in March from the prior month to a seasonally adjusted annual rate of 4.44 million, the National Association of Realtors said Thursday. March sales fell 22% from a year earlier. March marked the 13th time in the previous 14 months that sales have slowed. (Wall Street Journal)
Fed Officials Back Another Hike While Watching Banking Fallout: Mester says Fed close to end of the tightening cycle; Bostic confirms he’s still ‘one and done’ on rate hikes. (Bloomberg)
Japan's core consumer prices rose 3.1% in March from a year earlier, staying above the central bank's target of 2% as companies continued to pass on rising costs to households. The data may keep alive market expectations that the Bank of Japan could phase out later this year a massive stimulus program that has drawn public criticism for distorting bond markets and crushing financial institutions' margins. (Nikkei Asia Review)
Japan, which ranks 116th in the World Economic Forum’s Global Gender Gap Index, is looking into how its banks may be "gender washing" their managerial stats. Japan's Financial Services Agency official says companies may be promoting women in name but not giving them managerial compensation or duties. (Bloomberg)
SL Green says decline in office occupancy is accelerating: Demand for workspace continues to erode even as crowds return to the city’s hotels, theaters and restaurants. Related: Bank failures spell more grim news for New York office landlords. (Crain’s New York)
Whole Foods plans to lay off several hundred corporate employees. (CNBC)
Technology
Google plans to introduce generative artificial intelligence into its advertising business over the coming months, as big tech groups rush to incorporate the groundbreaking technology into their products. According to an internal presentation to advertisers seen by the Financial Times, the Alphabet-owned company intends to begin using the AI to create novel advertisements based on materials produced by human marketers. According to the presentation, advertisers can supply “creative” content such as imagery, video and text relating to a particular campaign. The AI will then “remix” this material to generate ads based on the audience it aims to reach, as well as other goals such as sales targets. (Financial Times)
Alphabet is combining its DeepMind and Google Brain AI research units, ending a long-running internal rivalry between the London and Silicon Valley-based groups as it tries to make up lost ground in generative AI against Microsoft and OpenAI. (Financial Times)
Meta Platforms Chief Executive Mark Zuckerberg told employees that he won’t rule out future layoffs and said he doesn’t expect the social-media company to hire as quickly as it did before the layoffs that began late last year. Zuckerberg told employees that approximately 4,000 employees, primarily in the company’s tech divisions, were affected by the latest cuts, according to a recording of the employee town hall. Meta will backfill positions that have been vacated, but in terms of net growth, Mr. Zuckerberg told employees they should not expect more than 1% to 2% year over year “from this point forward.” (Wall Street Journal)
Web3 Funding Continues To Crater — Drops 82% Year To Year. (Crunchbase News)
In a move that brings to a close a pioneering era of online journalism, BuzzFeed is shutting down its namesake news division. It’s a sobering end for a publication once seen as a serious challenger to legacy media outlets that had been slow to adapt to the internet. It was also the final chapter of a venture capital-fueled digital period that left an indelible mark on how journalism is produced and consumed. Mr. Peretti told the workers that he had failed them, the staff member said. “It is clearly a massive failure on my part, and I am deeply sorry for it,” Mr. Peretti said in the meeting, according to the person. Mr. Peretti was asked if he would resign, and he said he was staying on at the company. “I own this decision,” he said, according to the person in the meeting. “Nothing that is happening today is about the work of this team.” (New York Times)
Insider to lay off 10% of US-based staff to stay ‘healthy and competitive’. (Press Gazette)
Smart Links
Why this rusting industrial city could be Greece’s next tourism hotspot. (CNN)
Coinbase gets Bermuda license, plans to launch offshore exchange in coming weeks. (Fortune)
Oakland A’s Say They’re Leaving for Las Vegas. (Wall Street Journal)
Why your iPhone 17 might come with a recycled battery. (MIT Technology Review)
Elon Musk’s Wealth Plunges $13 Billion as Drama Unfolds Across Empire. (Bloomberg)
West Coast dockworkers reached a tentative agreement with employers regarding automated machinery at cargo terminals. (Wall Street Journal)