Bloomberg

Lead Story

US inflation surged by the most in nearly four years as the ongoing war with Iran sent gasoline prices skyrocketing, dragging consumer sentiment to a record low of 47.6. The hotter-than-expected data threatens to erode bets on a Federal Reserve rate cut this year, just as a US delegation led by Vice President JD Vance heads to Islamabad for high-stakes ceasefire negotiations to permanently reopen the Strait of Hormuz.

Markets & Economics

• US CPI Surges in March, as War Sends Gas Prices Higher: The consumer price index rose 0.9% in March from the previous month, fueled by the Middle East energy shock. The data triggered a selloff in Treasuries, eroding market bets that the Federal Reserve will lower interest rates this year.
• US Consumer Sentiment Drops to Record Low on Price Concerns: The preliminary April consumer sentiment index plummeted to 47.6 from 53.3, a record low, reflecting widespread public anxiety over persistent inflation.
• Hungary Assets Rally Into Sunday’s Election on Orban-Exit Bets: Hungarian bonds and currency rallied to the brink of multi-year highs ahead of pivotal elections this weekend. Investors are betting that independent candidate Peter Magyar’s Tisza party could successfully oust Prime Minister Viktor Orban after 16 years in power.

Business & Industries

• Anthropic Model Scare Sparks Urgent Bessent, Powell Warning to Bank CEOs: Treasury Secretary Scott Bessent and Fed Chair Jerome Powell summoned Wall Street leaders to an urgent meeting to address severe cybersecurity risks posed by Anthropic’s new “Mythos” AI model, which is reportedly capable of exploiting vulnerabilities in major operating systems.
• TSMC’s Sales Beat Estimates After War Fails to Dent AI Demand: Taiwan Semiconductor Manufacturing Co. posted a 35% jump in quarterly revenue, proving that global demand for AI chips remains highly resilient despite the Middle East conflict and geopolitical turbulence.
• Blackstone Files for IPO of Data Center Acquisition Firm: Blackstone is pursuing a $2 billion initial public offering for a new vehicle designed to acquire leased data centers that are poised to benefit from the ongoing artificial intelligence boom.
• Uniqlo Owner’s Shares Hit Record on Global Profit Outlook: Fast Retailing Co. shares surged to an all-time high after the Japanese retailer lifted its full-year operating profit outlook, driven by robust demand for Uniqlo apparel across the US and Europe.

Policy & World

• Trump Warns on Reopening of Hormuz Before US-Iran Peace Talks: Vice President JD Vance is leading a US delegation to Islamabad for peace talks with Iranian officials brokered by Pakistan. Ahead of the summit, President Donald Trump escalated pressure on Tehran, demanding the immediate and full reopening of the Strait of Hormuz for ship traffic.
• EU and US Near Critical Minerals Deal to Combat Chinese Control: Washington and Brussels are close to finalizing a pact to coordinate the production and securing of critical minerals, part of a broader transatlantic effort to reduce reliance on Chinese supply chains.
• Xi Tells Taiwan’s Main Opposition Chief That China Wants Peace, Unification: Chinese President Xi Jinping held a landmark meeting with the leader of Taiwan’s KMT opposition party, reiterating Beijing’s sovereignty claims while calling for cross-strait peace and cooperation.

Opinion & Analysis

• Has Netanyahu’s Lobbying Over Iran War Cornered Trump?: Columnist Marc Champion argues that while years of lobbying by Israeli Prime Minister Benjamin Netanyahu successfully drew Donald Trump into a conflict with Iran, those same geopolitical fault lines are now making it difficult for the US president to find a clean diplomatic exit.
• It’s Not Just Oil. A Blocked Hormuz Risks Hiking the Price of Nearly Everything You Buy: Analysis highlights how the closure of the Strait of Hormuz is creating severe global supply chain bottlenecks that threaten to remake the flow of various critical commodities far beyond crude oil.