Top Overnight News
President Trump on Thursday demanded Iran stop charging tolls for tankers to cross the Strait of Hormuz, as Iran's supreme leader promised the country would control the crucial waterway. Axios
The truce remained shaky, as Kuwait reported overnight drone attacks. Israel is preparing for talks with Lebanon but said it’ll continue strikes on Hezbollah, with Trump’s push for an exit straining relations. BBG
President Donald Trump told NBC News on Thursday that he was “very optimistic” a peace deal with Iran was within reach as a diplomatic delegation led by Vice President JD Vance prepared to head to Pakistan for high-stakes talks aimed at ending the nearly six-week conflict. NBC
Volodymyr Zelenskiy’s top negotiator with Russia said he sees Ukraine nearing a peace deal with Vladimir Putin. “They all understand the war needs to end,” Kyrylo Budanov said in an April 4 interview with Bloomberg. BBG
While every administration crafts its own defense strategy, Trump’s second is making the unusual move of discarding a policy that was formulated by his first. That bipartisan approach sanctioned by Trump 1.0 characterized China as the most consequential U.S. adversary. The Trump 2.0 framework is instead a seismic shift in U.S. policy, trade practices and rhetoric toward Beijing driven by a new mantra: Don’t rock the boat. WSJ
China made a rare diplomatic foray in the Iran war, nudging Tehran to agree to sit down for talks with the U.S. Beijing’s role wasn’t decisive, but Chinese leader Xi Jinping now has something valuable: diplomatic capital with President Trump. WSJ
China's factory-gate prices rose for the first time in more than three years in March, in an early sign that the war in Iran is feeding cost pressures into the world’s second-largest economy. China’s PPI came in a bit firmer than anticipated at +0.5% Y/Y (vs. the Street +0.4% and up from -0.9% in Feb) while the CPI ran a touch cooler at +1% (vs. the Street +1.1% and down from +1.3% in Feb). RTRS
Trump administration reportedly considering a new crackdown on Chinese telecom Carriers' US operations, according to the agency.
Artificial intelligence lab Anthropic is exploring the possibility of designing its own chips, three sources said, as the company and its rivals respond to a shortage of AI chips needed to power and develop more advanced AI systems. Also, Scott Bessent and Jerome Powell summoned Wall Street CEOs to warn of potential cyber risks from Anthropic’s new AI model and others. RTRS, BBG
CPI Preview: We expect a 0.28% increase in March core CPI (vs. +0.3% consensus), corresponding to a year-over-year rate of 2.69% (vs. +2.7% consensus). We expect a 0.87% increase in headline CPI (vs. +1.0% consensus), reflecting sharply higher energy prices. Our forecast is consistent with a 0.23% increase in core PCE in March. Goldman
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