Economic Highlights: Fed Policy, Tech Collaborations, Legal Settlements, and Hertz CEO Resignation

This week brings a flurry of economic updates, starting with interest rate decisions and housing market insights from the National Association of Home Builders, Bank of Japan, and Reserve Bank of Australia. The focus then shifts to key US housing data and earnings reports from major firms like Micron Technology and Nike. Midweek, all eyes turn to the Federal Reserve's interest rate decision and economic projections. Finally, the week concludes with more earnings releases, the Bank of England's rate decision, and several significant US economic reports.

Wall Street's expectations of an imminent Federal Reserve rate cut have been dampened by persistent inflation, with traders now eyeing a possible cut by June. However, economic data could influence this timeline, complicating matters against the backdrop of the upcoming US presidential election. Stubborn inflation, particularly in housing and services, has kept the Fed cautious. Despite political pressures, Fed Chair Jerome Powell has emphasized the Fed's commitment to data-driven decisions, maintaining its apolitical stance.

In other news, Apple is reportedly in talks with Google to integrate Gemini, Google’s AI engine, into the iPhone. Gemini offers various AI tools, including chatbots and coding assistants. These discussions coincide with Apple's preparations to unveil iOS 18 at its June Worldwide Developer’s Conference. While Apple has also explored collaborations with OpenAI, no partnership terms or implementation strategies have been finalized yet. Both Apple and Google have declined to comment on the matter.

Meanwhile, Uber has reached a $178.3 million settlement in Australia, resolving a lawsuit filed by over 8,000 taxi and hire car operators. The lawsuit accused Uber of aggressive market entry, leading to loss of income for local drivers. The settlement, awaiting court approval, marks a significant development in the ongoing tension between traditional taxis and ride-hailing services.

Additionally, Hertz Global Holdings Inc. announced the resignation of CEO Stephen Scherr, effective March 31. Scherr's departure comes as Hertz rethinks its electric vehicle (EV) strategy due to high repair costs and low demand for EV rentals. Hertz recently opted to sell a significant portion of its EV fleet and refocus on gasoline vehicles, a pivot from its earlier EV investment. This decision follows Hertz’s largest quarterly loss since 2020.