Closing Wrap - Wednesday 13.05
Headlines
  • Fed’s Powell Rejects Using Negative Rates As A Policy Tool
  • BoE’s Bailey Signalled BoE Is Likely To Increase Govt Bond Purchases
  • Italy Finally Approves Economic Stimulus Package In Virus Fight
  • China Mulling Punitive Countermeasure On US Over COVID-19 Lawsuits
  • Mexico To Reopen Economy Starting Monday Amid Record Deaths
  • OPEC’s View Of Oil Market Darkens While Gulf States Cut Deeper
  • CFTC To Warn On Return To Negative Oil Prices
  • Trump’s Energy Chief Signals More Help For Oil Companies Unlikely
  • US Govt Pension Fund Halts Plan To Buy Chinese Stocks
  • Trump Extends Order That Curbs Huawei’s Access To US Market
  • Airbus Set To Axe 10,000 Jobs
Commentary
German Q1 Growth Set To Shrink, EZ 2nd Estimate Could Worsen
German officials are scheduled to hold a press conference after releasing growth estimates for the first quarter.

German first-quarter growth is expected to show a sharp decline that will avoid the steeper drops in other Continental economies, but analysts fear any drop beyond current projections could increase the record contraction initially reported for the Eurozone.

 

Economists’ expectations show Germany’s seasonally adjusted first-quarter growth falling at a quarterly rate of 2.2pct following 0.0pct in the final three months of 2019. Non-adjusted annual growth in the first quarter is expected to drop 1.6pct versus an increase of 0.3pct in October-December, according to the survey.

 

An hour after German officials are set to release first-quarter data at a Berlin press conference, the European statistics office Eurostat is scheduled to publish its second euro-area growth estimates for the period. The numbers are expected to match the -3.8pct quarterly rate—the worst since the introduction of the euro in 1999—and the -3.3pct annual rate announced late last month.

 

Quarterly contractions in major Eurozone economies were largely worse than expected, according to data released in April. Growth fell 5.8pct in France and 5.2pct in Spain. However, the 4.8pct decline in Italy beat market forecasts. (LiveSquawk – Continue Reading)

Trump Vs. The Skeptics: Reopening Fight Highlights Polar Opposite Outcomes

President Donald Trump along with his most fervent backers, Wall Street investors and some conservative economists are making a big bet: Swiftly reopening the U.S. economy will go relatively smoothly with little resurgence of the coronavirus, delivering a quick snap back from the current horrifying plunge and rescuing Trump’s reelection prospects along the way.

 

Many health experts and other economists, meanwhile, worry the U.S. is rushing to reopen while Covid-19 case counts climb, testing remains limited and Americans maintain their fear of re-engaging in normal life. To them, a swift reopening risks fresh, widespread outbreaks and even more severe blows to the economy with bankruptcy filings spiking and deeper rounds of layoffs ahead. (POLITICO – Continue Reading)

Abbott Test Still Misses Many Covid Cases, NYU Study Says

The coronavirus test from Abbott Laboratories used at the White House to get rapid answers to whether someone is infected may miss as many as half of positive cases, according to a report from New York University that the company immediately disputed.

 

The analysis, which has yet to be confirmed, found that Abbott’s ID NOW missed at least one-third of positive cases detected with a rival test and as much as 48% when using the currently recommended dry nasal swabs, according to the report on BioRxiv, a server where researchers post early work before it has been reviewed by other scientists.

 

Abbott said the researchers didn’t use the test as intended and that the false-negative rate, as reported to the company, is 0.02%.

 

Shares of the company fell 1.6% to $92.35 at 1:28 p.m. in New York. They are up 6.4% this year. (Bloomberg – Continue Reading)

SURVEY: Coronavirus Is Delivering Severe Blow To US Economy

U.S. unemployment is expected to hit 17% in June as the economy contracts due to efforts to contain the coronavirus pandemic, economists predicted, and the economy is expected to start rebounding in the second half of the year.

 

A monthly Wall Street Journal survey found economists expect gross domestic product to shrink 6.6% this year, measured from the fourth quarter of 2019, a downgrade from the 4.9% contraction economists predicted in last month’s survey. While economists expect a deeper contraction in the second quarter,... (WSJ – Continue Reading)

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