Good morning. US stock futures moved lower in Friday morning trading as investors gear up for inflation data and the Federal Reserve’s policy announcement in the coming week.

"You should welcome a bear market since it puts stocks back on sale"

Jason Zweig

Top News

US household wealth jumps in Q1

WHAT: Recession? What recession?! Looks like Americans are getting wealthier! According to data released by the Federal Reserve, US household wealth climbed to the highest level in a year in the first three months of 2023, largely boosted by the stock market’s rally from last year’s bear market.

WHY: Household wealth rose by more than $3 trillion in the first quarter to $148.8 trillion, with holdings of equities increasing by about $2.4 trillion.

US, UK to collaborate on AI safety

WHAT: The US and UK have joined forces to tackle the ever-illusive challenge of artificial intelligence safety. “Today, the President and I agreed to work together on AI safety. The UK also looks forward to hosting the first global summit on AI safety this year” British Prime Minister Rishi Sunak said as he delivered comments at the White House.

WHY: Governments from around the world have been weighing the risks of artificial intelligence tools on society and trying to find ways to mitigate against the potential downsides.

SEC Chair: Crypto companies consciously flouted rules

WHAT: In a fiery defense against accusations of “crypto-crushing”, US Securities and Exchange Commission (SEC) Chair Gary Gensler declared that many crypto firms made calculated moves to flout the SEC’s rules. Speaking at a Piper Sandler event, Gensler once again reiterated that crypto tokens and securities should face the SEC’s registration process.

WHY: Crypto companies started out in a regulatory gray area, but the SEC under Gensler has steadily asserted its jurisdiction over the industry, arguing most tokens are securities and should be subject to the same disclosure rules.

In Other News

Not today doggo!

 WHAT: Every dog has his day, but the Supreme Court said “not today” as it ruled in favor of liquor brand Jack Daniel’s in its trademark dispute with dog accessory company VIP Products over use of the company’s famous black-label whisky bottle image to promote its “Bad Spaniels” chew toy.

WHY: Lower Courts had ruled in favor of VIP Products after applying what is called the Rogers Test which has allowed artists to lawfully use another’s trademark when doing so has artistic relevance to their work and would not explicitly mislead consumers about its source.

We’re not going back so easily…

WHAT: In a battle of workstyles, Google employees are rebelling against a mighty decree that demands their physical presence in the office for three days per week. “Overnight, workers’ professionalism has been disregarded in favor of ambiguous attendance tracking practices tied to our performance evaluations” Chris Schmidt said in a statement released by the Alphabet Workers Union.

WHY: Google previously planned to bring employees back to the office three days a week in April of last year. In 2021, during the Covid-19 pandemic, the company had said that about 20% of employees would be able to work remotely full time.

It’s tough being anti-ESG

WHAT: The “anti-ESG” fund crowd might be having a bit of a mini-crisis. According to data from research firm Morningstar, funds that market themselves as being opposed to environmental, social or governance considerations have seen a fall of in new investors deposits, with deposits shrinking by more than 50% for the first quarter of 2023 as compared to Q4 2022.

WHY: Anti-ESG funds have drawn attention as US Republican politicians, often from energy producing states, attack the growing attention paid to ESG factors by companies and investors.

Key Economic Events

•  Friday - No Major Economic News

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