According to minutes from its March meeting, the Federal Reserve plans to start cutting down its $9T balance sheet as soon as next month. Officials agreed to reduce its bond holdings at a maximum monthly pace of $95B – $60B in Treasuries and $35B in mortgage-backed securities. This amounts to asset reductions of just under $1T a year. Some officials didn’t want a cap on the amount of monthly reduction, while others said they were fine with “relatively high” limits. More: - Officials also discussed a more aggressive interest rate increase, possibly an increase of 50 basis points, at its next meeting.
- Some officials noted that one or more 50-basis-point increases in the target range could be appropriate at future meetings, especially if inflation continues to rise.
- Stocks fell for a second day on Wednesday after the Fed gave more guidance on its quantitative tightening plans.
- The Dow lost 144.67 points to close at 34,496.51.
- The Nasdaq dropped 2.22% to 13,888.82 and the S&P 500 fell 0.97% to 4,481.15.
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The U.S. announced a new slate of sanctions against Russia, including sanctions on President Putin’s two adult daughters. The U.S., together with the EU and G-7 countries, imposed new sanctions on Russia following reports of war crimes in Bucha and other areas in Ukraine. President Biden also said he would sign a new executive order banning Americans from making any new investment in Russia. The ban will apply to both U.S. residents and those living abroad. More: - For the first time, two of Russia’s largest banks, Sberbank and Alfa-Bank, will be subjected to full blocking sanctions except for energy purchases.
- Several Russian state enterprises will also be subjected to full blocking sanctions. The Treasury Department will announce the specific entities later this week.
- The U.S. imposed sanctions on Putin’s daughters, Katerina Tikhonova and Mariya Putina, believing that Putin hides many of his assets with family members.
- Other Russian individuals sanctioned included former President and Prime Minister Dmitry Medvedev and Prime Minister Mikhail Mishustin.
- The U.S. also sanctioned Russia’s Foreign Minister Sergey Lavrov’s wife and daughter.
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Uber says it will add trains, planes, buses, and car rentals to its U.K. app this year. The ride-hailing company would not provide the travel services itself but would allow users to book them through its app through software integration with other platforms that sell the tickets. The move is part of the company's previously announced strategy to transform the Uber app into a one-stop-shop travel "super app" that would eventually include hotels. More: - Uber is launching the service first in the U.K., one of its largest markets outside North America, before rolling it out to other markets.
- Uber registered 20 million users in the U.K. in 2021 across its ride-hailing and food delivery businesses.
- Uber CEO Dara Khosrowshahi first shared the company's plans to expand its mobility options in 2018; however, when the COVID-19 pandemic disrupted the travel and transport industry, Uber focused on expanding its food delivery business.
- Uber aims to partner with existing travel-booking services and possibly take a cut on each booking. The company plans to announce its partners in the coming months.
- Last month, Uber received a new 30-month license from London's transport authority to operate in the city, ending a years-long battle with the regulator.
- On Wednesday, Uber shares were down about ~2% to $34.20 a share in premarket trading.
NOTE: Inside.com's founder and CEO, Jason Calacanis, is an investor in Uber.
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Crypto startup Blockchain.com launched a new asset management service on Wednesday called Blockchain.com Asset Management (BCAM). The startup is partnering with investment firm Altis Partners to offer market-regulated crypto investment products to institutional investors, family offices, and high-net-worth individuals. Blockchain.com would power BCAM, and Altis would manage the investments. More: - Blockchain.com’s chief strategy officer, Charlie McGarraugh, will oversee the platform through Altis, serving as its chief investment officer while maintaining his current role at Blockchain.com.
- Altis’ founding principals, Stephen Hedgecock and Alex Brunwin, will also be managing BCAM.
- Hedgecock will oversee operations and compliance, and Brunwin will lead research and technology.
- Some of the products offered under BCAM include Bitcoin Tracker and Bitcoin Smart Beta.
- Bitcoin Tracker tracks the price of bitcoin versus the U.S. dollar.
- Bitcoin Smart Beta offers an algorithm-based risk-managed exposure to bitcoin that aims to reduce volatility and drawdowns.
- Last month, Blockchain.com announced it had raised new funding at a $14B valuation.
- The startup did not disclose the amount raised; however, the round was led by Lightspeed Venture Partners and Baillie Gifford, which invested $100M in the round.
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Boeing has signed a multi-year cloud service agreement with Amazon, Microsoft, and Google. The plane manufacturer plans to upgrade its current system of hosting and maintaining software applications through a network of servers as well as provide its airplane designers and software developers with more tools. Boeing did not disclose the terms of the agreement; however, last May, The Information reported that Amazon, Microsoft, and Google were bidding for a $1B Boeing deal. More: - Boeing hopes the upgrade will help address quality control issues and production mishaps that drive up the costs of developing new aircraft.
- Boeing's chief information officer, Susan Doniz, shared that the company is investing in tools like digital twins, a virtual replica of actual hardware, to model the performance of new aircraft concepts and the assembly lines that would build them.
- Boeing would be able to test an aircraft or new system hundreds of times before deploying it.
- Boeing has worked with all three cloud providers on a limited basis and said keeping all three would avoid disrupting existing cloud-supported products.
- Amazon, Microsoft, and Google are the top three cloud service providers in the U.S., holding 33%, 22%, and 9% of the market, respectively.
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On Wednesday, Philadelphia Federal Reserve President Patrick Harker echoed similar remarks made by Fed Governor Lael Brainard and San Francisco Fed President Mary Daly on Tuesday concerning inflation and interest rate hikes. Harker told the Delaware State Chamber of Commerce he was acutely concerned about inflation running at a 40-year high and expects the Fed to respond by raising rates and reducing the amount of bonds on its balance sheet. More: - During a Minneapolis Fed webinar on Tuesday, Fed Governor Lael Brainard said the Federal Open Market Committee, which sets interest rates, would continue tightening monetary policy through a series of interest rate increases and by reducing assets the central bank has on its balance sheet starting in May.
- Following Brainard's remarks, the 10-year Treasury note yield rose to 2.56%, its highest level since May 2019.
- The Dow lost 280.7 points, closing at 34,641.18, the Nasdaq fell 2.26% to 14,204.17, and the S&P 500 fell 1.26% to 4,525.12.
- Speaking to the Native American Finance Officers Association, San Francisco Fed President Mary Daly said inflation running at a 40-year high is as harmful as not having a job.
- Daly assured the group that the Fed would raise interest rates, and she does not believe it would cause a recession.
- Last month, the Fed raised interest rates by 25 basis points, the first interest rate hike since lowering rates to near zero at the beginning of the pandemic.
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Quick Hits - Toshiba’s second-largest shareholder, Singaporean hedge fund, 3D Investment Partners, wants the company to resume talks on a take-private deal after Bain Capital revealed it is interested in buying the Japanese conglomerate for $17B.
- On Wednesday, U.S. Treasury Secretary Janet Yellen warned that the war in Ukraine “will have enormous economic repercussions for the world.” Yellen said the International Monetary Fund and the World Bank are working together to provide aid to Ukraine and sanction Russia.
- Volkswagen plans to stop producing dozens of its combustion engine models by the end of the decade. The car company plans to build fewer cars, focusing on its profitable premium vehicles.
- Forbes magazine released its annual billionaire’s list on Tuesday, with singer Rihanna making the list with $1.7B, becoming Barbados’ first billionaire. Tesla CEO Elon Musk retained the top spot with $219B, followed by Amazon founder Jeff Bezos at $171B.
- Instagram has cut down the amount it pays to creators of short videos called Reels. Instagram launched the feature last year to compete with TikTok. Creators say Instagram has cut down payment for views by as much as 70% in the last few weeks.
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 |  | Vanessa Omeokachie is a Researcher at Inside. Her interests include finance, tech, and startups. In her free time, she enjoys reading, hiking, attending music festivals, and traveling. Connect with her on Twitter @VanessaOmeo or through email at vanessa@inside.com |  | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 Ford. | |
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