By Emma Tucker
Donald Trump's allies are drafting plans for the Federal Reserve, proposals that would attempt to erode the central bank's independence if the former president wins a second term. Meanwhile, U.S. states are taking action to block Chinese land purchases, factory plans and research, moves they say are in the best interest of national security. And after hearing that an iPhone survived a 16,000-foot fall without a scratch, we did our own tests to find out how that was possible.
Today's Headlines
March inflation figures due today are set to solidify what data showed Thursday: Inflation has been firmer than expected, making rate cuts less likely anytime soon.
Secretary of State Antony Blinken met with Chinese leader Xi Jinping as the U.S. urged Beijing to cut back on its extensive support for Russia's defense industry.
The CEOs of OpenAI, Nvidia, Microsoft and Alphabet are joining a new federal board that will advise on the secure use of AI within America's critical infrastructure.
The University of Southern California canceled its main commencement ceremony as universities around the U.S. cracked down on intensifying pro-Palestinian protests.
Live From The Markets
Google and Microsoft's latest results managed to take some of the sting out of the rising price tag of artificial intelligence.
Mining giant Anglo American rejected a $39 billion takeover proposal from rival BHP.
Read It Here First
Trump allies have plans to blunt the Fed's independence.
Ex-Trump administration officials and other supporters of the presumptive GOP nominee have in recent months discussed a range of proposals that challenge the Fed's authority, WSJ's Andrew Restuccia, Nick Timiraos and Alex Leary report. Among them is a policy vision in which the president should be consulted on rate decisions, Fed regulations subjected to White House review and the Treasury Department used more forcefully as a check on the central bank.
States are taking on China in the name of national security.
Local politicians impatient with Washington's actions against Beijing are putting forth their own proposals, laws and regulations, invoking national security to block Chinese individuals and companies from acquiring land, winning contracts, working on research, setting up factories and otherwise participating in the U.S. economy. WSJ's James T. Areddy explores the efforts that have pushed some state officials to override traditional local interests such as drawing investment and creating jobs.
Expert Take
Q: Could universities divest from companies that do business with Israel?
Pro-Palestinian student protesters roiling college campuses across the U.S. have a common demand: that their universities dump holdings in companies with business links to Israel. We asked WSJ education reporter Matt Barnum and finance reporter Juliet Chung why schools are rejecting those calls.
A: "So far, there's no indication that universities will accede to these divestment demands, and a number have explicitly said they won't.
Calls to divest have been a hallmark of student protests for decades, but universities are reluctant to weigh in on an issue as divisive as the war in Gaza. Divesting would amount to a political statement. Earlier this year, a committee at Columbia University rejected Israel divestment demands because there was no 'broad consensus' to do so within the university's community.
Practical challenges add a complication. Israel isn't an asset class that endowments invest in, unlike equities, bonds or real estate. And as endowment portfolios have become more complex and endowments hold fewer investments directly, universities' ability to sell out of specific investments has become more circumscribed.
Then there is the mission of university endowments, which are meant to get an investment return to support generations of students in perpetuity. At New York University, a spokesperson told us they weren't considering divestment. Why? 'The University's strategy is to maximize return in endowment to meet the University's needs,' he said.
That said, the schools are in a tough spot -- not taking a stance is why protesters have upended campuses across the country."
See The Story
Air conditioning and AI are demanding more of the world's power -- and renewables can't keep up.
In the U.S., energy-guzzling artificial intelligence is the latest industry demanding more power, following the rise of electric vehicles, heat pumps and other devices designed to reduce fossil-fuel use. In the developing world, the boom is driven by industrialization and basics like lights and air conditioning. That means more fossil fuels, including coal, the worst emissions offender.
Happening Today
The Commerce Department reports on personal income and consumer spending in March at 8:30 a.m. ET, including the Fed's preferred measure of inflation, the personal consumption expenditures price index.
Campaigning President Biden and court-bound Donald Trump will both be in New York City.
Earnings: Exxon Mobil, Chevron, AbbVie, HCA Healthcare, Colgate-Palmolive, Charter Communications
Number of the Day:
5.96 million
The average daily number of clients' trades handled by Charles Schwab in the first quarter, the most since the second quarter of 2022 and up 15% from the last quarter of 2023. Trading activity at Morgan Stanley, which owns E*Trade, and Robinhood Markets has also reached highs last seen in 2022. Amateurs flocked to trading platforms during the pandemic but pulled back in 2022 when the market dropped. When stocks climbed to new highs in 2024, many jumped back in -- and had fun trading once more.
And Finally...
We dropped phones from 300 feet to see if they'd survive.
An iPhone that flew out of an airplane at 16,000 feet survived without a scratch. To find out how that's even possible, WSJ's Joanna Stern dropped Apple and Samsung phones from a drone.
(END) Dow Jones Newswires
April 26, 2024 06:14 ET (10:14 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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