Biden will send new weapons to Ukraine. The search for New York City ends. Sri Lanka is waiting for China's help. Here is what you need to know.
President Joe Biden is sending Ukraine $800 million in new weaponry that will test the limits of how far aid can go without drawing the U.S. directly into the war. The personal wealth of Putin and his family is being targeted by the U.S. Department of Justice. Western governments have long suspected that the Russian president has amassed a secret fortune through corrupt means. The world's largest superyacht was seized in Germany after it was determined that it was owned by the sister of a Russian billionaire.
Frank James was arrested in connection with Tuesday's shooting at a subway station that injured more than two dozen people. He is facing a federal terrorism charge. A man from Syria said he spotted the suspect on a security camera and ran after him.
Following a tech rally that helped Wall Street snap a three-day drop, futures for Japan, Australia and Hong Kong are up. The yield curve steepened and bond traders dialed back aggressive bets on Fed hikes. Oil remained above $100 a barrel on renewed concerns about a global supply deficit.
One step above default, Sri Lanka was upgraded deeper into junk by the ratings agency. S&P cut its score to CC, the third-lowest level. The government said Tuesday it will no longer service external debts to conserve foreign currency for crucial imports, such as fuel, as the country is rattled by power cuts, food shortages and a currency in free fall. There have been calls for the President and Prime Minister to step down. China has yet to respond to Sri Lanka's pleas for credit support.
China is focused on its own economy and the central bank is expected to cut its key policy interest rate for the second time this year. The amount of cash that banks must hold in reserve is likely to be reduced by the Bank of China.
Even for the safest global companies, the rise in bond yields is starting to bite. Around the time of the global credit crisis, the cost of borrowing to refinance maturing debt climbed to the highest since 2009. For the first time in over a decade, the spread between the average yield and the current coupon on the Global Aggregate Corporate Index jumped into positive territory this year.
That is a sign that financing conditions are becoming more challenging, as noted by my colleagues Tasos Vossos and Josyana Joshua on Tuesday. It is the latest in a series of cracks appearing in the credit market, though none have yet reached levels that would spill into other asset classes, or disrupt the plans of central bankers. Higher refinancing costs have negative implications for stock investors. They eat into corporate margins, which are already under pressure from the surge in commodity prices and the impact of the supply chain crisis.
Cormac is a deputy managing editor in the Markets team.
The newsletter will be taking a break for the Easter holiday and will be back in your inbox on Tuesday.
With assistance from Cormac Mullen.
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