WOLF RICHTER reports the shocking print:

"(PPI), which tracks inflation in prices that companies pay each other, spiked by 1.38% in April vs. March (+17.8% annualized)...the worst since the historic one-month spike in March 2022, driven by services and energy. 

...already spiked by 8.7% annualized in March – and by 7.0%, 6.6% annualized in February and January before the energy price spike hit (blue in the chart).

Year-over-year, it spiked by 6.0%, the worst since December 2022, according to data from the Bureau of Labor Statistics today (red in the chart).

The shocker is the spike in services, and services dominate the PPI. The services PPI weighs 68% of the overall PPI, and it completely blew out – that was in addition to the spike in energy prices, and it also shows how some of the energy price increases have moved into other parts of the economy."

IMPLICATION: RATE CUTS OFF THE TABLE in fact, a 56% chance of rate RISES by April. Or earlier. Mr. Market will now severely test Mr. Warsh.

THE UNSPOKEN  "B" in the mix is automaker BYD; already taking  Europe. Affordable, decent quality; (mostly) Western IP in design. Efficiently produced by "workshop of the world". A merger (a Big Three or Tesla ?) is plausible. 

???????? EXPORTS DEFLATION now, so tighter industrial-financial integration with the USA would provide an inflation offset. Their $20T financial crater notwithstanding. Which is why bankers are at the Xi-gotiation table in Beijing.

YEARS SINCE THEY BOUGHT a Boeing jet. State owned COMAC has not been able to clear a 1,000+ frame backlog. So, Boeing steps in to fill the gap. [comment]. In a tit for tat world, there must be a key bargaining chip.

THAT "LAST MINUTE" CHIP IS Jensen Huang---the H200 chip of the "Hopper" series is an AI game changer . JH hid behind Elon on the tarmac.

MOST OF ALL, global monetary reset mimics the CNH "offshore renminbi" and "domestic CNY" architecture. USD no longer uniquely American. $300B+ USD-Pegged Stablecoins are used in emerging markets, providing a stable currency alternative where local currencies cannot. $ survives to fight anew.