In Rare Makeover, European Central Bank Moves to Reduce Its Financial Footprint; We Still Don't Believe How Much Things Cost By Hardika Singh

Good morning. The European Central Bank plans to reduce the size of its footprint in the region's financial system. Meanwhile, people no longer feel they're getting the value they once did, and President Biden's 15% corporate alternative minimum tax has started hitting big corporations. Read on for this news and more.

Top News In Rare Makeover, European Central Bank Moves to Reduce Its Financial Footprint

The European Central Bank unveiled a rare makeover to the inner workings of monetary policy, in a change that is technical but consequential for the economy and investors. The keenly awaited plan, over a year in the making, aims to gradually reduce the size of the ECB's footprint in the region's financial system, in part by transforming how banks interact with the central bank-and with each other.

U.S. Economy We Still Don't Believe How Much Things Cost

Deodorant was what changed Rob Cooper's mind about the economy. After paying under $4 for his signature Old Spice Stronger Swagger for a decade, the 39-year-old was shocked last year to see it priced at $7.99. A yearslong run of higher prices has unmoored many Americans' expectations of what daily purchases should cost, from a cup of coffee to a package of paper towels. Shoppers are also put off by paying the same or higher prices for smaller amounts of stuff, what's known as shrinkflation.

Financial Regulation Roundup Biden's 15% Corporate Minimum Tax Hits KKR, Blackstone, Whirlpool in First Year

President Biden's 15% corporate alternative minimum tax hit the electric utility Duke Energy, the appliance maker Whirlpool and the investment firms KKR and Blackstone in its first year, and the president now wants to expand the levy.

Forward Guidance Thursday (all times ET)

8:30 a.m.: U.S. retail sales

8:30 a.m.: Producer price index

10 a.m.: Business inventories

Friday

5:30 a.m.: Bank of England/Ipsos inflation attitudes survey

8:30 a.m.: New York Fed's Empire State Manufacturing Survey

10 a.m.: University of Michigan consumer survey

Research McDonald's Eying Bigger Burgers, Not More Premium Ones

McDonald's is seeing a big opportunity around offering large burger formats and moving away from its pursuit of the premium burger market, which it went after for years but didn't manage to capture, CFO Ian Borden says at the annual UBS Global Consumer and Retail Conference. "We thought the opportunity was about premium burger, which was wrong, and we weren't successful," he says. Now, the fast-food chain understands the better opportunity is for "a large, more satiating type burger," the CFO says. McDonald's plans to pilot some of its large-burger products in two or three markets, he says. - Dean Seal

Basis Points America's penny-pinching is starting to hit dollar stores. Dollar Tree, which operates roughly 16,700 locations including the Family Dollar chain, said it would close nearly 1,000 Family Dollar stores over the next few years as it battles merger indigestion, inflation and store theft. - Will Feur The cost of insuring European credit against default moves lower as investor appetite for risk increases, with European equities continuing to rise to new record highs as investors shrug off Tuesday's stronger-than-expected U.S. inflation data. - Miriam Mukuru Feedback Loop

This newsletter is compiled by Hardika Singh in New York.

Send us your tips, suggestions and feedback. Write to:

[hardika.singh@wsj.com]

This article is a text version of a Wall Street Journal newsletter published earlier today.


(END) Dow Jones Newswires

03-14-24 0715ET