Prime Minister Benjamin Netanyahu on Thursday announced that his cabinet would begin ceasefire and Hezbollah disarmament talks with Lebanon "as soon as possible," in light of the current active warfront between the IDF and Hezbollah and the upcoming peace talks with Iran in Islamabad.

"The negotiations will focus on disarming Hezbollah and establishing peaceful relations between Israel and Lebanon," the prime minister said.

This announcement came just minutes before Hezbollah launched a barrage of rockets, triggering sirens in northern Israel.

The negotiations, expected to begin next week, will be conducted between Israeli ambassador to the United States Yechiel Leiter and Lebanese ambassador to the United States Nada Hamadeh Moawad, Israeli sources told The Jerusalem Post. (Jerusalem Post – Continue Reading)

This week’s US data should help policymakers better assess the emerging global energy shock and its implications for inflation expectations.

On Friday, the Bureau of Labor Statistics will release March consumer price data. Analysts expect headline CPI to rise 3.3% y/y, accelerating from 2.4% previously. On a monthly basis, CPI is seen increasing 0.9%, up from 0.3% in February.

Core CPI, which excludes food and energy, is forecast to edge up to 2.6% y/y from 2.5%, while the m/m pace is expected to hold at 0.2%.

Citi economist Veronica Clark said headline inflation likely picked up further in April on the back of stronger energy prices, but emphasised that markets will remain focused on underlying core dynamics.

“Core goods prices could be firmer in March compared with recent months, with a 0.27% increase in our forecast. However, this largely reflects a 1.8% rise in used car prices, which have lagged wholesale trends and should begin to catch up. Other goods categories should remain relatively subdued.” (LiveSquawk – Continue Reading)

Severe stress scenarios for global energy markets appear less likely following the announcement of a two-week ceasefire in the Gulf and high-level US-Iran talks, Fitch Ratings says. However, the ceasefire is already under intense strain, and uncertainty around developments remains high.

Key unknowns include the outcome of the talks (if any), the post-conflict regional security and business environment, and the speed of recovery for energy flows and supply chain logistics. Our adverse scenario remains an appropriate benchmark to assess and signal the potential for downgrades.

If the ceasefire is effective and holds, it will remove near-term escalation risks, such as a major land invasion of Iran, disruption to Red Sea shipping (particularly important if the Strait of Hormuz remains closed), or offensive operations against Iran by Gulf Cooperation Council member states. (Fitch – Continue Reading)

Democrats unsuccessfully attempted to pass a measure limiting President Trump’s ability to conduct military operations in Iran during a pro forma session of the House on Thursday.

Rep. Glenn Ivey (D-Md.) sought recognition on the floor to pass the resolution from House Foreign Affairs Committee ranking member Gregory Meeks (D-N.Y.), but Rep. Chris Smith (R-N.J.), who presided as speaker pro tempore during the session, gaveled the session out without recognizing him.

Other Democrats in attendance — Reps. Don Beyer (Va.), Sara Jacobs (Calif.), Mary Gay Scanlon (Pa.), Madeleine Dean (Pa.), James Walkinshaw (Va.), and Suhas Subramanyam (Va.) — yelled in objection. (Hill – Continue Reading)