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U.S. corporate finance chiefs reported a solid and improving economic outlook heading into 2026, with expectations of steady growth in demand, hiring, and revenues, according to a Federal Reserve survey conducted between mid-February and early March, largely before the escalation of the Iran conflict. Respondents forecast median revenue growth of 5% over the next 12 months, alongside a 1.6% increase in employment, indicating continued expansion plans across businesses. At the same time, firms anticipated ongoing inflationary pressures, with both prices and unit costs expected to rise by 3%, suggesting that companies still expect to pass higher costs on to customers despite easing macroeconomic concerns. Sentiment had improved notably compared to 2025, particularly as concerns around tariffs and trade policy declined, with just over 20% of CFOs citing them as their primary concern versus nearly 40% previously. However, trade policy remained the top issue overall, followed by labor quality and availability (17%) and sales outlook (15%), highlighting persistent structural challenges in the labor market and demand visibility.

 

Reuters

Baltimore is the first major U.S. city to file a complaint against Elon Musk's xAI concerning issues with its Grok image generator. Baltimore Mayor Brandon Scott said in an emailed statement to CNBC that sexual deepfakes on Grok “have traumatic, lifelong consequences for victims . . . We’re talking about tech companies enabling the sexual exploitation of children.” Scott wrote: “Our city will not stand by and allow this to continue; it’s a threat to privacy, dignity, and public safety, and those responsible must be held accountable.” A complaint filed in Baltimore Circuit ⁠Court said xAI is violating the city's consumer protection statute by promoting Grok as a safe, general-purpose ​artificial intelligence assistant for everyday people.

 

CNBC	The Guardian

Meta on Wednesday laid off around 700 employees in the Reality Labs unit, as well as some in recruiting, sales and Facebook, according to a person with knowledge of the company. “Teams across Meta regularly restructure or implement changes to ensure they’re in the best position to achieve their goals,” a Meta spokesman said. “Where possible, we are finding other opportunities for employees whose positions may be impacted.” The New York Times notes that less than 24 hours earlier, Meta has introduced a new stock option incentive program for senior executives that could deliver payouts worth hundreds of millions of dollars if the company reaches a $9tn market capitalization by 2031.

 

New York Times

The Information

The U.S. current account deficit narrowed sharply by $48.4bn, or 20.2%, to $190.7bn in the fourth quarter according to the Commerce Department, marking its lowest level since early 2021 and exceeding economists’ expectations. The improvement was driven by a swing to a $23.9bn primary income surplus and a reduced goods trade deficit, with exports rising to a record $563.6bn while imports declined, partly reflecting the impact of tariffs. For full-year 2025, the deficit fell to $1.12tn, 3.6% of GDP, down from 4% in 2024, highlighting a broader easing in external imbalances despite ongoing trade policy volatility.

 

Reuters

U.S. import prices increased by 1.3% in February, exceeding expectations and accelerating from a revised 0.6% rise in January, driven by higher costs for both fuel and nonfuel imports. Petroleum prices rose 2.5% during the month, while nonfuel imports increased 1.2%, contributing to a year-on-year rise of 1.3%, according to Bureau of Labor Statistics data. The stronger-than-expected increase highlights ongoing inflationary pressures in imported goods, excluding tariffs and transportation costs. "It wasn't just an increase in fuel import prices but also non-fuel import prices," said Eugenio Aleman, chief economist at Raymond James. "The fact that non-fuel import prices increased so much is a wake-up call for policymakers and will keep the Fed on ​pause for longer than expected."

 

Reuters

Wall Street Journal

The U.S. corporate credit market showed signs of increased dysfunction in March, with the New York Fed reporting a rise in its Corporate Bond Market Distress Index to 0.16 from 0.09, driven by weakness in the investment-grade segment. The high-grade sub-index climbed sharply to 0.28, indicating above-average stress levels and marking the highest readings since late 2023, while overall market functioning deteriorated despite continued strong bond issuance of around $230bn. Rising geopolitical uncertainty, including the Iran conflict, contributed to wider credit spreads and intermittent pauses in issuance, highlighting growing pressure in typically more stable, high-quality credit markets.

 

Bloomberg

Internal audit teams saw a marked deterioration in resourcing in 2025, with both staffing and budget reductions rising to levels close to those experienced during the global financial crisis, according to the 2026 North American Pulse of Internal Audit survey. The survey of 373 audit leaders found that 18% reported a decline in staff numbers and 19% reported budget cuts, both significantly higher than the 11% recorded in 2024. While still below the peak levels seen during the pandemic (36% reporting budget cuts in 2020), the figures signal a renewed tightening of resources despite the increasing importance of risk management and the growing adoption of AI in audit functions. The impact varied significantly by sector. Financial services organizations proved more resilient, with only 9% reporting budget reductions and 10% reporting staff cuts, while private companies outside financial services were hit hardest, with 28% reporting both budget and staffing declines. Manufacturing lagged in strategic alignment, with less than half of audit teams reporting strong alignment with organizational priorities. The data suggests that while cost pressures are driving cuts, internal audit teams that are better integrated into business strategy are more likely to secure support and resources.

 

Journal of Accountancy

JPMorgan views aging grid infrastructure as a "national security risk" amid threats including extreme weather and cyberattacks. The bank says investments in grid infrastructure are "increasingly attractive" and a "massive investment opportunity" due to growing energy demand and volatility. “Energy volatility from geopolitics . . . means you may no longer want to rely on oil and gas deliveries from partners in the Middle East and North America and instead want to shift towards building out new renewable technologies that allow for energy self-sufficiency,” explained Sarah Kapnick, JPMorgan’s global head of climate advisory.

 

Bloomberg

The U.S. Postal Service plans to introduce a temporary 8% surcharge on package deliveries from April 26th to January 17th 2027 to offset rising transportation and fuel costs linked to the Iran war. The move comes as the agency faces ongoing financial strain, having reported net losses of $9.5bn in 2024, $9bn in 2025 and nearly $1.3bn in the first quarter of 2026. The surcharge is intended as a short-term measure to support operations while longer-term pricing and funding solutions are considered.

 

Bloomberg

New York Times

Banca Monte dei Paschi di Siena’s board of directors has revoked the powers of Luigi Lovaglio, its chief executive, after he sought a new term at ‌the helm of the lender, challenging a decision by the board to rule him out. Lovaglio and the bank's board are in dispute over the CEO's strategy for recently acquired peer ​Mediobanca. A major MPS shareholder is also opposed to Lovaglio's ​push to fully merge the two banks. Lovaglio had been pressured by the board to resign, but he ​will remain as a director until the general meeting on April 15, three people with knowledge of the matter said.

 

Financial Times

Reuters

London-headquartered fintech firm Revolut has said it plans to have around 40% of its global workforce based in India by the end of 2026 as ​it expands its India global capability center. The company will fill 1,600 roles in its India center through ​2026, taking its headcount in the country to 5,500 by the end of the year. Jonathan Beaney, Revolut's head of talent acquisition, described India as one of the "deepest and most dynamic ​talent pools in the world." He said: "Our India tech hub is central ​to our global scale . . . the technical caliber, ambition and excellence we see here ‌make ⁠India a natural long-term home for Revolut."

 

Reuters

Tech in Asia

BlackRock CEO Larry Fink has said people's perception of skilled trades must change. The boss of the world's largest asset manager observed that the average plumber had been portrayed on television as being overweight and having their pants hanging below their waistline, while investment bankers are idolised in drama series like Industry. "I think what we did [was] wrong," he said. "We really put judgment on so many jobs and so many people who probably should not have gone into banking or media or law, probably should have been a great worker with their hands, and we need to now rebalance that approach." He told the BBC that, in the US after World War Two, "we built the foundation of education, and we said to all the young people, go to college, go to college, go to college. And we probably overdid it." He added: "We need to balance that out, and we need to be proud that . . . a career can be just as strong in these fields of plumbing and electricians."

 

BBC News