- US Moves To Cut Huawei Off From Global Chip Suppliers
- McConnell: Republicans Open To Future Possible Covid-19 Bill
- NY Gov Cuomo: Extends State's Stay-At-Home Order Until June 13
- German Q1 Prelim GDP -2.2% Q/Q In Line, Q2 Outlook Girm
- Eurozone Q1 Prelim GDP -3.8% Q/Q In Line; Employment -0.2%
- German New Virus Cases Decline, Infection Rate Recedes Further
- Italy Set To Allow Free Movement Within The Country From June 3
- PBoC Keeps MLF Rate Steady; China April Industrial Output Expands
- Brexit Talks Head To The Brink With Key Disagreements Unresolved
- Riksbank Hires BlackRock To Pave Way For Corporate Bond QE
- China: Stable Bilateral Relations In Best Interests Of China, US
- China Has 5 Vaccine Candidates In Human Trials, With More Coming
- Oman Mulls Cutting Oil Output In June By Another 10-15K BPD
- Chipmaker Applied Materials Up As CEO Sees Supply Chain Recovery
- Nike Warns Of Fourth-Quarter Impact In N.America Business
- Taiwan Semiconductor Manufacturing To Build $12B US Chip Plant
- BT Openreach Memo To Staff Denies Openreach Stake Sale
- JD.Com Beats Quarterly Revenue Estimates On Lockdown Boost

Frankfurt, 15 May 2020 (LS NEWS) – Germany has fallen into recession in a coronavirus-driven contraction likely to accelerate in the second quarter even as Europe’s largest economy slowly exits lockdown. Seasonally adjusted GDP dropped at a quarterly rate of 2.2pct in the first quarter, a decline in-line with market estimates. But the German statistics office lowered the country’s growth rate for the final quarter of 2019 to 0.1pct from 0.0pct, which put the economy in recession.
The first-quarter contraction was the largest in 11 years and the second worst since German reunification in 1999. Growth fell 4.7pct in the first quarter of 2009. “Two weeks of lockdown as well as supply chain disruptions on the back of lockdown measures elsewhere brought the German economy to its knees,” said ING Chief German Economist Carsten Brzeski.
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The Trump administration on Friday moved to block shipments of semiconductors to Huawei Technologies from global chipmakers, in an action that could ramp up tensions with China. The U.S. Commerce Department said it was amending an export rule to “strategically target Huawei’s acquisition of semiconductors that are the direct product of certain U.S. software and technology.”
The department added the “announcement cuts off Huawei’s efforts to undermine U.S. export controls.” The rule change is a blow to Huawei, the world’s no. 2 smartphone maker, as well as to Taiwan’s TSMC, a major producer of chips for Huawei’s HiSilicon unit as well as mobile phone rivals Apple Inc and Qualcomm Inc.
On Jan. 15, it seemed like the US and China had avoided a quick descent into a new Cold War.
In Washington, U.S. President Donald Trump declared that “our relationship with China is the best it’s ever been” while signing a preliminary trade deal that “unifies the countries.” The pact between Trump and China’s Xi Jinping raised hopes that the world’s predominant superpower could peacefully resolve differences with a rising China. That same day, health officials in the central Chinese city of Wuhan acknowledged that they couldn’t rule out human-to-human transmission of a mysterious new pneumonia that had already sickened 41 people.
The Federal Reserve’s balance sheet grew to a record $6.98 trillion in the week ended May 13, up from $6.72 trillion in the prior week, the central bank said Thursday. Much of the balance sheet’s expansion was due to an increase in its holdings of mortgage-backed bonds by $178 billion.
Analysts noted most of these purchases had, in fact, taken place a few weeks ago and were showing up on the balance sheet in the most recent weekly period because that was when they were finally transferred into the Fed’s hands. Meanwhile, holdings of Treasuries rose by $37 billion.
- LS Focus On The Week Ahead
- US Jobless Claims See 6th Consecutive Week Of Declines From Peak
- UK GDP Decline Worst in 12 Years, More Pain To Come
- US, China Are Likely To Lock Horns Over Next Few Months - RBC
- Australia Posts Record Job Losses In April
- RBNZ Boosts QE, Opens Door To Negative Rates
- Eurozone GDP (Q/Q) Q1 P: -3.8% (est -3.8%; prev -3.8%)
- Eurozone GDP NSA (Y/Y) Q1 P: -3.2% (est -3.3%; prev -3.3%)
- Eurozone Employment (Q/Q) Q1 P: -0.2% (est -0.4%; prev 0.3%)
- Eurozone Trade Balance SA Mar: 23.5B (est 17.0B; prevR 25.6B)
- German GDP SA (Q/Q) Q1 P: -2.2% (est -2.2%; prevR -0.1%)
- German GDP NSA (Y/Y) Q1 P: -1.9% (est -1.6%; prevR 0.2%)
- German PPI (M/M) Apr: -0.7% (est -0.6%; prev -0.8%)
- German PPI (Y/Y) Apr: -1.9% (est -1.8%; prev -0.8%)
- Italian Industrial Sales WDA (Y/Y) Mar: -25.2% (prev 0.9%)
- Italian Industrial Sales (M/M) Mar: -25.8% (prev -2.1%)
- French CPI (M/M) Apr F: 0.0% (est 0.1%; prev 0.1%)
- French CPIH (M/M) Apr F: 0.0% (est 0.1%; prev 0.1%)
- Italian CPI (M/M) Apr F: 0.0% (est 0.1%; prev 0.1%)
- Italian CPIH (M/M) Apr F: 0.5% (est 0.5%; prev 0.5%)
- Portuguese GDP (Q/Q) Q1 P: -3.9% (prev 0.7%)
- Norway Trade Balance (NOK) Apr: 3.2Bln (prev 2.5 Bln)
- Hong Kong GDP (Y/Y) Q1 F: -8.9% (est -8.9%; prev -8.9%)
- US Moves To Cut Huawei Off From Global Chip Suppliers - FP
- Fed Buys $305Mln ETFs At Launch Of Historic Program - BBG
- White House Would Likely Support New Round Of Stimulus Checks - CNBC
- GOP Cites Powell In Defending Their Wait-And-See On New Stimulus - BBG
- McConnell: Republicans Open To Future Possible Covid-19 Bill – RTRS
- US House Aims To Pass $3Tln Democratic Covid-19 Bill - RTRS
- NY Gov Cuomo: Extends State's Stay-At-Home Order Until June 13 – BI
- Senate Passes Uighur Human Rights Bill In Latest Shot At China - BBG
- German New Virus Cases Decline, Infection Rate Recedes Further – BBG
- Italy to Allow Free Movement Between Regions Beginning June 3 - BBG
- Brexit Talks Head To The Brink With Key Disagreements Unresolved – BBG
- Riksbank Hires BlackRock To Pave Way For Corporate Bond QE
- Tokyo: Fewer Than 20 Daily New Cases Vital To Ease Virus Steps - Kyodo
- Tsy Yields Decline As Investors Watch US Unemployment Situation - CNBC
- EZ Bonds Yields Hold Steady As Risk-Off Mood Has Limited Impact - RTRS
- Dollar Set For Weekly Gain As Pandemic Recovery Hopes Waver - RTRS
- GBP/USD: Remains Depressed Near 1.2200 Mark - FXS
- EUR/USD: Clinging To 1.08 As German GDP Shrinks As Expected - FXS
- Pressure Building On The Yuan Ahead Of Key Political Meeting – BBG
- Swiss Franc Could Rise Past Unofficial Line In The Sand - BBG
- Goldman-Backed FX Platform Clinches HSBC, Citigroup Funding - BBG
- Oil Trades At Six-Week High On Supply Cuts, Demand Recovery - BBG
- Russia's Rosneft Incurs $2.1Bln Q1 Loss, Cuts Output - RTRS
- Oman Considers Cutting Oil Output In June By Extra 10-15,000 BPD - FP
- Analysts: Saudi Loss of China Oil Market Share Likely Brief - BBG
- Sugar Giant India Set To Boost Output As Lockdown Solution Found – BBG
- Silent Ring Forces London Metal Traders To Set Prices From Home – BBG
- Gold, Silver Race Higher On Fear Of Second Virus Wave - BBG
- European Stocks Climb On Signs Of China Recovery - MW
- Nike Warns Of Fourth-Quarter Impact In N.America Business - RTRS
- Applied Materials Earnings: AMAT Stock Rises 4% On Q2 Miss – IP
- TSMC Plans $12Bln US Chip Plant In Victory For Trump - BBG
- Disney World, Union Reach Coronavirus Protections Deal - FB
- Boeing Launches ‘Confident Travel Initiative’ To Get People On Planes - FBT
- Apple Helps Suppliers Reconfigure Factories To Limit Covid-19 – BBG
- iPhone Maker Hon Hai’s Profit Dives 89% In Virus-Hit Quarter - RTRS
- Abbott’s Virus Test Has Potential Accuracy Issues, FDA Warns – BBG
- Abbott Joins Roche In Winning UK Approval For Virus Antibody Test - FT
- GM Ready To Launch New Large SUVs As Plants Restart – RTRS
- J.C. Penney Set To File For Bankruptcy In Coming Days – MW
- France To Unveil Aid Packages For Auto, Aeronautics Industries - BBG
- Richemont Virus Warning Gives Reality Check To Luxury Makers - BBG
- Roche: New Diagnostic Solution Could Help Covid-19 Patients – RTRS
- Germany's BaFin Has No Plans To Ban Wirecard Short-Selling - RTRS
- Lufthansa Needs Bailout, Takeover Protection, Minister Tells RP – BBG
- Fincantieri: Thyssenkrupp Cooperation Chance To Talk Consolidation - RTRS
- Hapag-Lloyd Q1 Net Profit -74%, Reiterates 2020 Guidance- RTRS
- Exclusive: BT Openreach Memo To Staff Denies Stake Sale - ES
- William Hill Plots Shop Reopenings As Sales Plunge Due To Covid-19 - ES
- Canary Wharf Prepares For The Return Of Workers – FT
- Royal Mail Replaces CEO Amid Clash With Unions, Virus Hit - BBG
- Australia's Westpac Files Defence In Money-Laundering Case - RTRS
- Mizuho Reports $416Mln Q1 Profit Versus Year-Ago Loss - RTRS
- MUFG Forecasts Weaker Than Expected Annual Profit On Virus Hit - YF
- JD.Com Beats Quarterly Revenue Estimates On Lockdown Boost - RTRS
- PBoC Surprises By Keeping MLF Rate Steady - RTRS
- China’s Industrial Economy Improves While Consumers Remain Wary - BBG
- China Unveils Financial Support To Tie Hong Kong, Macau Closer - BBG
- China Has 5 Vaccine Candidates In Human Trials, With More Coming - BBG
- China’s Island War Games Rattle Taiwan - Times
- Wuhan: Tested Almost 1/3 Of Residents For Covid-19 Since April - RTRS
- China: Stable Bilateral Relations In Best Interests Of China, US - RTRS
- Hong Kong’s Record Worst Quarter Of Growth Confirmed Amid Virus - BBG