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The Federal Reserve’s credit assessment sparks caution, Elon Musk signals more Tesla price cuts, and Apple’s biggest chipmaker warns on dema [View in browser]( [Bloomberg]( The Federal Reserve’s credit assessment sparks caution, Elon Musk signals more Tesla price cuts, and Apple’s biggest chipmaker warns on demand. — [Liza Tetley]( Credit concerns Global equities headed lower while bonds rose after the Federal Reserve Bank of New York president [John Williams said credit conditions would likely deteriorate]( as a consequence of the banking sector debacle in March. His comments sent US stock futures into the red and added to traders’ pessimism late yesterday, after the [Fed’s Beige Book survey showed the US economy stalled]( in recent weeks and access to credit narrowed. The report showed stagnant economic activity, but a few districts said they noticed banks tightening their lending standards.  Musk machinations Elon Musk indicated [Tesla will continue to cut prices on its electric vehicles]( to push for higher volumes, even after the company took significant hit to profit due to markdowns. The news comes after several rounds of price cuts already this year, prompting speculation over whether the strategy comes from a position of weakness or strength. While Tesla is still the top seller of EVs, high borrowing costs and competition have meant its growth has slowed dramatically. “They’re going to use the room in their margin to create more demand,” Ben Kallo, an analyst at Robert W. Baird, said in a Bloomberg Television interview. Tech slump [Forecasts from Apple’s most important chipmaker](— Taiwan Semiconductor Manufacturing — is likely to spark concerns over a persistent tech slump. The semi-conductor producer warned demand from mobile and PC industries would remain soft for now, but added it’s sticking to previously stated plans to spend $36 billion on improving its capacity this year. The big question the company faces is whether China’s reopening will provide the bounce it’s hoping for. Yet a mixed bag of forecasts from peers underscores the uncertainty that the industry faces, from geopolitical pressures to consumers and businesses tighten their belts. Risk off Contracts on the S&P 500 slid 0.8% as of 6:28 a.m. in New York, while futures on the tech-heavy Nasdaq 100 declined more than 1%. Treasury yields fell across the curve as traders shun riskier assets on worries around tighter liquidity and another potential Fed hike in May. A [measure](bbg://securities/BBDXY%20Index) of dollar strength steadied after some mild volatility earlier. Coming up… At 8:30 a.m. we have US initial jobless claims. Then at 10 a.m., we’ll get the leading index figures for US existing home sales in March. Later on at 11:30am, there’s the sale of $50 billion of four-week bills and $45 billion of eight-week notes, and a slew of Fed speakers including Christopher Waller, Lorie Logan and Raphael Bostic from 12 p.m. onward. What we’ve been reading Here’s what caught our eye over the past 24 hours: - [Credit Suisse bondholders challenge Switzerland]( over wiped-out debt - NATO’s Jens Stoltenberg makes a [surprise visit to Kyiv]( - [Macron’s attempt to enlist China’s help](in Russia-Ukraine talks draws ire - [How Google’s decision to use AI in advertising](could turn dangerous - British households get hit with [soaring costs for an English breakfast]( - [TikTok faces lawsuits over its algorithm]( after multiple teen deaths - [Coach rolls out bags made of waste scrapsÂ](to lure green-conscious Gen Z And finally, here’s what Joe and Tracy are interested in this morning There are very few truly free, laissez-faire markets. Almost everything is governed by at least some rules about what can be sold, who can sell it, how it can be sold, how it can be marketed, and more. People don't always see the rules -- it just becomes how the market works -- but the rules are still there. Right now, several states all around the country are in various stages of creating new, legal, adult-use marijuana markets. And because these endeavors are all still young, they give us a great opportunity to see how the specific rules eventually create the form that the market eventually takes. In addition to being new, marijuana is an inherently interesting market to watch. For one thing, the market has existed for years and years before formal legalization. It's also still illegal at the federal level, meaning that each state has its own distinct structure, letting us compare and contrast different approaches to building this out. Some states require complete vertical integration (from farm to retail outlets), for instance. In some states, that's broken up. Some states have different tax approaches. And they may have different requirements about who can open a dispensary, and how many you can own. Figuring out branding, marketing, payments, taxes, banking services, delivery, farming, and so on -- it's all something of a work in progress. Today on the Odd Lots podcast, we're releasing a three-part mini-series that we're calling Pot Lots that looks directly at the birth of the adult use market in New York. Legalization was passed in the state in early 2021, but over two years later, there's still a pretty limited number of licensed dispensaries operating across the state. Meanwhile numerous unlicensed retail outlets are proliferating after decriminalization. And part of what makes New York such a fascinating market to watch is that its designers have specifically attempted to develop a market in order to redress the harms created by the war on drugs. So we talked to investors, retail operators, regulators, entrepreneurs and other market participants about we've learned so far in these very early days. You can find the whole series on [Apple](, [Spotify](, or anywhere else you find your podcasts. Follow Bloomberg's Joe Weisenthal on Twitter [@TheStalwart]( and Tracy Alloway at [@tracyalloway](. Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Five Things to Start Your Day: Americas Edition newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. 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