What happened this week

Minneapolis Fed President Neel Kashkari said on Monday that he cautioned against reading too much into a June pause in the current rate-hiking cycle.Markets currently are putting about an 83% probability that the FOMC will hold off on the 11th consecutive increase, the committee is set to meet June 13-14. “If we were to skip in June, that does not mean we’re done with our tightening cycle. It means to me we’re getting more information,” he said.

The world’s largest seven economies are meeting at a summit in Japan to discuss how to de-risk and diversify their supply chains away from China. De-risking refers to easing some of the dependencies on China, rather than totally breaking the relationship. Since the Corona virus pandemic and more recently the Ukrainian war there has been growing concern amongst western countries of economic coercion and intricacies of the supply chain reliance on China. The overall message from the summit sought to stress a De-risking strategy rather than a De-coupling; citing that isolating China would be impossible and dangerous.

JPMorgan this morning raised its net interest income by $7 billion this morning in an all-day investor presentation, following this announcement the spurred the financial’s highest earnings day stock bump in 20 years. JP Morgan emerged as one of the largest beneficiaries of the recent regional banking crisis; it was one of the only institutions which saw deposits rise as panicked investors looked for security in larger banks. Shares are up 1.3% on market open. 

 Apple shares fell on market open after being downgraded from, buy to hold by Loop Capital, who said Monday it expects Apple to fall short of June revenue expectations. 

Meta has been fined a record 1.2 billion euros by European privacy regulators over the transfer of EU user data to the US. Meta used a mechanism called standard contractual clauses to transfer personal data in and out of the EU. Meta is contesting the fine.