The Market News Today: Fed Decision and Major Tech to Apparel Earnings in Focus

Busy Economic Week Ahead: Interest Rate Decisions and Key Earnings on the Horizon

This week is packed with economic updates. The National Association of Home Builders, Bank of Japan, and Reserve Bank of Australia kick off with interest rate decisions and housing market insights. Key US housing data follows, alongside earnings from major firms like Micron Technology and Nike. Midweek, the Federal Reserve’s interest rate decision and economic projections take center stage. The week concludes with more earnings, the Bank of England’s rate decision, and several significant US economic reports.

Fed Rate Cut Timing Uncertain Amid Inflation Concerns and Election Year

Wall Street’s expectation of an imminent Federal Reserve rate cut has been dashed by persistent inflation. Traders predict a possible cut by June, yet economic data may push this to fall, complicating matters with the upcoming US presidential election. Stubborn inflation, particularly in housing and services, keeps the Fed cautious. Despite political pressures, the Fed remains focused on economic indicators, with Chair Jerome Powell emphasizing its apolitical stance and commitment to data-driven decisions. (CNN)

Apple in Talks with Google for AI Integration in Upcoming iPhone Update

Apple is negotiating with Google to integrate Gemini, Google’s AI engine, into the iPhone, as reported by Bloomberg. Gemini offers a range of AI tools, including chatbots and coding assistants. These discussions come as Apple prepares to unveil iOS 18 at its June Worldwide Developer’s Conference. Apple also explored collaborations with OpenAI but has yet to finalize any AI partnership terms or implementation strategies. Both Apple and Google have not responded to requests for comment on this matter. (Bloomberg)

Uber Settles Australian Lawsuit for $178 Million, Taxi Operators Claim Victory

Uber agrees to a $178.3 million settlement in Australia, resolving a lawsuit filed by over 8,000 taxi and hire car operators. The case accused Uber of aggressive market entry, causing loss of income for local drivers. Maurice Blackburn Lawyers highlighted the hard-fought legal battle, while Uber views the settlement as closing a contentious chapter. The deal awaits court approval, marking a significant outcome in the ongoing global tension between traditional taxis and ride-hailing services. (BBC)

Hertz CEO Steps Down Amid Shift Away from EV Rentals

Hertz Global Holdings Inc. announces CEO Stephen Scherr’s resignation effective March 31. Leading Hertz for over two years, Scherr departs as the company rethinks its electric vehicle (EV) strategy, grappling with high repair costs and low demand for EV rentals. Hertz recently decided to sell a significant portion of its EV fleet and refocus on gasoline vehicles, marking a pivot from its earlier EV investment hailed by the Biden administration. The move follows Hertz’s largest quarterly loss since 2020. (CNN)