5 Things You Need to Know to Start Your Day

The Fed’s debate over rates rages on, Nvidia lures ESG funds amid the artificial intelligence craze and Deutsche Bank delivers a more upbeat [View in browser]( [Bloomberg]( The Fed’s debate over rates rages on, Nvidia lures ESG funds amid the artificial intelligence craze and Deutsche Bank delivers a more upbeat second-half outlook. — [Kristine Aquino]( Fed debate [The Federal Reserve is not done raising rates,]( according to Chair Jerome Powell. Speaking to lawmakers on Wednesday, Powell hammered home the message that the central bank was laser focused on reducing elevated price growth back to target. “The process of getting inflation down to 2% has a long way to go,” he told the House Financial Services Committee during a three-hour hearing. Meanwhile, his colleague — Atlanta Fed President Raphael Bostic — said he supports [holding the central bank’s target-rate level](for the rest of 2023. AI craze [Nvidia has lured at least 100 more ESG money managers in recent weeks]( and there are now over 1,400 such funds directly holding Nvidia, according to data compiled by Bloomberg based on the latest filings. The company is now more popular among ESG investors than traditional green powerhouses such as Vestas Wind Systems and Tesla. Nvidia has become an “ESG darling,” said Felix Boudreault, managing partner at Montreal-based Sustainable Market Strategies. And that’s “not ludicrous,” because the company is “exemplary” when it comes to traditional ESG risk management, he said. Deutsche Bank [Deutsche Bank CEO Christian Sewing said fixed-income trading should improve in the second half.]( After warning last week of a 15%-20% drop in trading revenue for the current quarter, he signaled that results in the business — the biggest driver of its investment bank — are already on the mend. There’s “momentum” in trading already this month, Sewing said in a Bloomberg TV interview, adding that the second half of the year should see a recovery. Sewing has pledged to increase revenue and profitability following a turnaround that included thousands of job cuts and an exit from equities trading. Downbeat markets S&P 500 and Nasdaq 100 futures were down 0.2% as of 5:22 a.m. in New York. A Bloomberg gauge of the dollar was little changed, with the Norwegian krone outperforming among Group-of-10 currencies. Treasury yields edged higher across the curve, mirroring mild increases in the UK and Europe. Brent crude slid nearly 1%, gold fell and Bitcoin topped $30k amid optimism over ETFs related to the token. Coming up… At 8:30 a.m., we’ll get the latest US jobless claims data, along with first-quarter current account figures and readings for the Chicago Fed’s activity gauge for May. At 9:55 a.m., Fed Governor Michelle Bowman will kick off today’s slew of central bank speakers. She will be followed by Chair Powell, who will appear before US lawmakers for a second day, while Cleveland Fed President Loretta Mester and Richmond Fed President Tom Barkin will speak at separate events later. What we’ve been reading Here’s what caught our eye over the past 24 hours: - NYC tenants backed a [3% increase for rent-controlled apartmentsÂ]( - [Founder of missing Titanic vessel loved risk](, called safety a “pure waste” - [What is US-China decoupling](, and why is it getting serious now? - The Bank of England is [stuck between inflation woes and recession fears]( - [Fake meat companies are failing]( as hype and money fade - [The most liveable cities in 2023Â](include Vienna, Copenhagen, Sydney - Yet another [Tiger KingÂ]([star is convicted of wildlife trafficking]( And finally, here’s what Joe’s interested in this morning… The most popular way to measure the "tightness" of an industry is price. If prices are rapidly going up for some good or commodity or service, one might surmise some kind of imbalance. Same in the other direction. But there are other ways to measure tightness as well. So for example, in the labor market we have the Quits Rate, the rate at which workers are quitting their job each month. Back in 2022, quits hit the highest level on record. It has since come down, but remains high by historical trends. Vacancy rates for things like housing rentals are another non-price measure of tightness. Rental vacancy rates fell to their lowest levels in decades during the worst of the pandemic, though they've come up a bit lately. Anyway, individual industries have all different kinds of ways of gauging capacity or capacity utilization. One of my favorite measures that I've learned about from having done some [Odd Lots episodes on trucking]( is the Tender Rejections rate, which measures how often a trucking carrier will simply reject a job for one reason or another. It's akin to an airline bumping a passenger, because they overbooked the flight. This measure has created over the last year or so, as the goods economy slowed down (the other side of the bullwhip) and since so many new drivers entered the business at the peak in 2021. What's interesting is we may be seeing signs of a turnaround here. Yesterday [Tanner DeHart of FreightWaves]( posted that the Outbound Tender Reject Index just hit its highest level in 3 months.  This measure could be a function of both supply or demand factors. Drivers leaving the business would give the remaining ones leverage. A pickup in the goods economy would also help. It's definitely something to watch. Speaking of the goods economy, I was reading through the earnings call from Winnebago yesterday, and the company noted that RV sales showed some surprising strength at the end of May. That's not a huge econ signal necessarily, but if you're on recession watch, it's probably the opposite of what you'd expect. Follow Bloomberg's Joe Weisenthal on Twitter [ @TheStalwart](. 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. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](