25.05.04 WSJ

1) Macroeconomics

Title: Steady Hiring in April Will Reinforce Fed’s ‘Patient’ Stance
Source: The Wall Street Journal
Date: May 2 2025
Key takeaways:

• April’s non‑farm payrolls rose by ≈177 k, keeping unemployment anchored at 4.2%, signalling a still‑resilient labour market.
• With no clear uptick in joblessness, Fed officials see little urgency to cut rates at next week’s FOMC meeting and are expected to stick to a “wait‑and‑see” message.
• Markets pared bets on near‑term easing; Treasury yields ticked higher as traders pushed the first potential rate‑cut further into 2H‑2025.
• Economists caution that the full growth impact of Trump‑era tariffs may emerge only in coming months, leaving downside risk to the outlook.
  Link: https://www.wsj.com/livecoverage/april-jobs-report-stock-market-trump-tariffs-05-02-2025/card/steady-hiring-in-april-will-reinforce-fed-s-patient-stance-TLjHEiHmgycOLJS1uHs2 WSJ

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2) M&A / Private Equity
Title: Chef Boyardee, Iconic Pasta Brand, Sold to Private Equity for $600 Million
Source: The Wall Street Journal
Date: May 2 2025
Key takeaways:

• Conagra Brands agreed to divest Chef Boyardee to Brynwood Partners for roughly $600 mn as it reshapes its portfolio toward higher‑growth frozen meals and snacks.
• The deal includes the Milton, PA manufacturing plant and a brand that generated about $450 mn of FY‑2024 revenue.
• Brynwood—owner of Hungry Jack and Arrowhead Mills—plans to relaunch and extend the legacy label across new supermarket categories.
• Large CPG players continue to unload mature, shelf‑stable assets to private equity amid shifting consumer demand for fresher, less‑processed foods.
  Link: https://www.wsj.com/business/deals/chef-boyardee-sold-brynwood-private-equity-67bbbb1e WSJ

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3) Opinion (Columnist)
Title: Why China Could Win Trump’s Trade War – Column by Joseph Sternberg
Source: The Wall Street Journal – Opinion (Print edition)
Date: May 2 2025
Key takeaways:

• Sternberg argues Beijing’s vast home market and state‑directed industrial policy allow it to cushion tariff damage more effectively than the U.S. can.
• By nudging exporters toward alternative markets and enabling a controlled yuan depreciation, China can offset lost U.S. sales.
• U.S. consumers ultimately shoulder tariff costs through higher import prices, eroding political support for a prolonged confrontation.
• The column warns Wall Street that an extended trade fight could dampen cross‑border deal‑flow and capital‑markets activity—risks investment banks must price in.
  Link: https://www.wsj.com/opinion/how-china-can-win-trumps-trade-war-tariffs-economy-time-midterms-f6028b7f WSJ