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WSJ What’s News

Why Asia’s Sinking Consumer Confidence is the World’s Problem

24 Apr 2026

Transcription

Chapter 1: What are the implications of Asia's consumer confidence crisis?

0.031 - 25.054 Unknown

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33.832 - 46.363 Luke Vargas

Talk of a Washington takeover of Spirit Airlines hits Republican opposition. Plus, authorities charge a member of U.S. Special Forces with using classified intel to bet on Nicolas Maduro's ouster.

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46.723 - 55.111 Unknown

Because they kept him out of the Hall of Fame because he bet on his own team. Now, if he bet against his team, that would be no good. But he bet on his own team. I'll look into it.

55.471 - 77.56 Luke Vargas

And global consumers beware. We'll look at why the effects of Asia's diesel and fertilizer shortages won't stay there. It's Friday, April 24th. I'm Luke Vargas for The Wall Street Journal, and here is the AM edition of What's News, the top headlines and business stories moving your world today. U.S.

77.601 - 88.195 Luke Vargas

authorities have charged an American soldier who took part in the operation to capture Nicolas Maduro with using classified information to earn more than $400,000 on PolyMarket.

88.856 - 106.92 Luke Vargas

The Justice Department says the master sergeant, who'd signed an NDA, took part in the execution and planning of Operation Absolute Resolve, and after making several well-timed bets, then tried to cover his tracks by sending most of his gains to a foreign cryptocurrency account and asking PolyMarket to delete his account.

106.9 - 114.728 Luke Vargas

Journal of Finance editor Alex Frankos says the charges mark a shift in how the government views insider information being used on prediction markets.

Chapter 2: How is the U.S. soldier's insider trading case impacting public trust?

146.209 - 156.318 Alex Frankos

Are these even regulated instruments that fall under existing laws or are they something new and new? novel that needs new laws written about them or not.

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156.579 - 175.028 Luke Vargas

The case comes a day after polymarket competitor Kalshi announced that it had fined and suspended three congressional candidates for betting on their own races. Polymarket said that it has policies designed to combat insider trading, but Alex says that both incidents come at a vital moment for the increasingly popular prediction markets.

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175.109 - 196.453 Alex Frankos

They want informed information to feed through into the market to tell the market, hey, this thing is likely to happen or not happen. But one of the real tensions among users is there appear to be this pattern of these cases where someone makes a really well-timed bet, makes a lot of money, And for the people who don't have inside information, they feel like they're at a disadvantage.

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196.934 - 205.149 Alex Frankos

But some people say that's the point of these markets, is you want insiders to come in and move the price because that tells you the likelihood of something happening.

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205.509 - 225.484 Luke Vargas

And we should note that PolyMarket has a data partnership with Dow Jones, the publisher of The Wall Street Journal. President Trump has said that a ceasefire between Israel and Lebanon will be extended by three weeks. In a post on social media, Trump said the U.S. will work with Lebanon to help it protect itself from Iran-backed militant group Hezbollah.

225.504 - 241.802 Luke Vargas

Israel and Hezbollah continued to exchange fire in southern Lebanon and northern Israel in the hours before the announcement of the ceasefire extension. Iran has pushed for an agreement to force Israel to end strikes in Lebanon as a precondition of its own ceasefire deal with the U.S.

242.39 - 255.664 Luke Vargas

A potential federal bailout of Spirit Airlines is hitting turbulence in Washington, even as President Trump talks up the prospect of buying the carrier to try and turn a profit on a future sale.

256.305 - 270.861 Luke Vargas

Republican Senators Ted Cruz and Tom Cotton are speaking out against the government taking a stake in the airline, and Transportation Secretary Sean Duffy has noted that past federal bailouts, including of banks in 2008, were politically unpopular.

270.841 - 285.286 Luke Vargas

A key group of Spirit bondholders yesterday also came out against the bailout plan, concerned that it could leave them with a small minority stake in the airline. An analyst at J.P. Morgan warned that a government rescue could spur other carriers to seek government help.

Chapter 3: What factors are contributing to rising food prices globally?

382.233 - 393.289 Luke Vargas

Coming up, we'll look at why the energy price squeeze currently hurting consumers across Asia will be felt around the world for months to come. That story and more after the break.

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429.162 - 448.305 Luke Vargas

It's starting to feel like a lifetime ago, but 2026 was supposed to be a good year for consumers, relatively speaking. Affordability and housing concerns were definitely still on people's minds, though the mood was looking up among consumers and inflation was south of 3%. Well, that's not how things have turned out.

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448.666 - 472.546 Luke Vargas

The University of Michigan's consumer sentiment reading is due out later this morning and could confirm earlier signals that April witnessed the index's lowest month on record. A preliminary EU consumer confidence reading this week flashed its lowest level since 2022. And the situation is even worse in Asia, where HSBC's Fred Newman has been tracking a rapid deterioration in sentiment.

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473.248 - 477.917 Luke Vargas

Fred, just starting globally, have I adequately summed up the moment? Set the stage for us.

Chapter 4: How are energy shortages affecting consumer behavior in Asia?

477.897 - 499.281 Frederic Neumann

That's right. We started off the year with really optimism. Financial markets were up. Inflation was easing. Consumers were looking a little bit more confident. But with the energy shock that developed since late February, early March, you've seen this turn in confidence. And that's very evident in some of the measures you also mentioned across the U.S., Europe.

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499.261 - 517.689 Frederic Neumann

Yeah, take us into some of the examples you're seeing of this across Asia.

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517.709 - 526.062 Luke Vargas

I mean, pretty much every conversation we've been having about the Iran war lately ends with a phrase like, and this trend is worse than Asia. And it sounds like that that is the case.

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526.042 - 549.282 Frederic Neumann

Well, Asia is particularly exposed to this energy shock. It's the region that gets most of its energy from the Gulf through the Strait of Hormuz. About 60% on average of Asian oil imports come through the Strait of Hormuz. And so there is obviously great concern among consumers that gas prices will go up. It's not just gas and petrol, it's also fertilizer prices, for example.

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549.402 - 572.974 Frederic Neumann

And so you're seeing now the consumer confidence readings starting to plummet. In Japan, for example, We've seen a big, big decline, the biggest drop since really the start of COVID. So that's how worried consumers have become. Even if prices have not yet risen at the pump because of subsidies, they're already fretting essentially what's going to happen to prices down the road.

572.954 - 582.575 Luke Vargas

And that's the thing, right, Fred? Consumer inflation expectations are kind of almost as damaging to spending as actual inflation readings, which, of course, come out on a bit of a lag.

582.716 - 591.435 Frederic Neumann

That's right, because it's all about confidence, right? So if you expect prices to go up down the road and your paycheck is not going to increase, you're going to become more cautious in terms of your spending decisions.

591.415 - 605.212 Frederic Neumann

The most impacted economies like Bangladesh, Sri Lanka, Thailand, Vietnam, Philippines, those are economies where obviously people have lower incomes and immediately the rise in gasoline, for example, diesel impacts your spending decisions.

605.372 - 625.065 Frederic Neumann

Now, why this also matters for the broader region is that many economies like Thailand, for example, are major exporters of agricultural goods, of rice, for example. And as they have lack of diesel, lack of fertilizer, not only prices going up in Thailand, but also food prices across the region are likely to go up.

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