Key headlines from global financial media overnight and this morning include:
1. Trump Indicates Ceasefire Extension Unlikely, Pressures Tehran for Peace Deal 2. Fed Chair Candidate Walsh Vows Monetary Policy Independence, Says Trump's Comments Not a Threat 3. Apple Announces Leadership Change: Ternus to Succeed Cook as CEO 4. Amazon to Invest Up to $25 Billion Additional in Anthropic, Deepening AI Infrastructure Partnership 5. Citigroup: Oil Could Reach $110 if Strait of Hormuz Disruption Lasts Another Month 6. Wall Street Banks Remain Optimistic on US Corporate Earnings Despite Iran Conflict
**Trump Indicates Ceasefire Extension Unlikely, Pressures Tehran for Peace Deal** US President Donald Trump stated that he is unlikely to extend the two-week ceasefire with Iran, increasing pressure on negotiators to reach a peace agreement swiftly. In a telephone interview on Monday, Trump said the ceasefire, which he announced on April 7, would expire "Wednesday night, Washington time," and he is "highly unlikely to extend" it if a deal is not reached by then. He remarked, "I won't rush into a bad deal. We have plenty of time." Trump reiterated that the Strait of Hormuz would remain blocked, stating, "The Iranians very much want it open. I won't unblock it until a deal is signed."
**Fed Chair Candidate Walsh Vows Monetary Policy Independence, Says Trump's Comments Not a Threat** The US Congress will hold the first confirmation hearing for Federal Reserve Chair nominee Kevin Walsh on Tuesday. Walsh will pledge to lawmakers to maintain strict independence on interest rate matters. However, he will assert that President Trump's expressed views on monetary policy do not threaten the central bank's independence. According to prepared opening remarks obtained by Politico, Walsh stated: "Let me be clear: monetary policy independence is crucial. Monetary policymakers must act in the national interest... Decisions should be based on rigorous analysis, thorough deliberation, and sober, independent judgment." He noted in his remarks that he believes the practical independence of monetary policy is not substantially threatened when elected officials like the President, Senators, or Representatives express opinions on rates. Instead, he attributed the Fed's independent status to its own discipline and rigorous approach.
**Apple Announces Leadership Change: Ternus to Succeed Cook as CEO** Apple Inc. announced on Monday that John Ternus will succeed Tim Cook as Chief Executive Officer effective September 1. Cook will transition to the role of Chairman of the Board. Ternus, currently Senior Vice President of Hardware Engineering, will join Apple's Board upon becoming CEO. On the same day, Apple's non-executive Board Chairman, Art Levinson, will assume the role of Lead Independent Director. In an official news release, Apple stated that Cook will continue as CEO through the summer, working closely with Ternus to ensure a smooth transition.
**Amazon to Invest Up to $25 Billion Additional in Anthropic, Deepening AI Infrastructure Partnership** Amazon.com announced it will make an additional investment of up to $25 billion in Anthropic to enhance its artificial intelligence infrastructure portfolio. This follows several years of prior investment totaling $8 billion into the AI startup. In an announcement released Monday, Anthropic stated it plans to invest over $100 billion in Amazon Web Services technology products over the next decade, encompassing existing and future generations of Amazon's custom AI chips, Trainium. Additionally, Anthropic has secured access to up to 5 gigawatts of computing capacity for training and deploying its Claude large language model. Amazon CEO Andy Jassy said in a statement, "Anthropic's commitment to run its large language models on AWS Trainium chips for the next decade validates our collaborative achievements in custom silicon. We will continue providing customers with the technology and infrastructure needed for generative AI development."
**Citigroup: Oil Could Reach $110 if Strait of Hormuz Disruption Lasts Another Month** Citigroup stated that oil prices could climb to $110 per barrel if the disruption to navigation through the Strait of Hormuz persists for another month. The firm indicated that if this critical shipping channel remains blocked for the next four weeks, the global loss of crude oil and refined product inventories resulting from the US-Iran conflict could potentially rise to 1.3 billion barrels. The firm also noted that even if a ceasefire extension is signed this week and shipping through the strait, along with crude production, gradually resumes throughout May, global inventories for crude and refined products are still expected to decline by approximately 900 million barrels in total. This includes 500 million barrels already lost and an anticipated further loss of 400 million barrels due to delayed production ramp-ups and conflict-related damage. Citigroup added that a two-month extension of the strait's disruption could result in a loss of around 1.7 billion barrels, pushing oil prices to $130 per barrel.
**Wall Street Banks Remain Optimistic on US Corporate Earnings Despite Iran Conflict** Against the backdrop of a strong start to the first-quarter earnings season, strategists at some major Wall Street banks maintain an optimistic outlook for US corporate profits, despite the impact of the Iran conflict. Strategists at Morgan Stanley noted that S&P 500 earnings per share growth is accelerating both historically and on a forward-looking basis, which they see as a sign of a continuing profit recovery. A team at JPMorgan Chase also suggested that this earnings season is expected to deliver reassuring results. "Despite geopolitical risks, the earnings recovery continues, driven by operating leverage turning positive," Morgan Stanley's Michael Wilson said in a report, adding that sales growth outpacing cost increases is boosting profits. The S&P 500 has climbed to record highs, largely disregarding concerns about potential economic shocks from the Iran conflict. Soaring energy prices have improved the profit outlook for oil companies, while renewed optimism about artificial intelligence spending has bolstered confidence in certain technology stocks.
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