- China To Impose Sweeping Nat’l Security Law In HK, Bypassing City’s Legislature
- China: US To Face Countermeasures If It Imposes Sanctions
- US Senators To Propose Bill Sanctioning Chinese Officials Over HK Security Law
- Trump To Withdraw From ‘Open Skies’ Arms Control Treaty
- Mnuchin Sees US Economic Bottom In Q2, 'Gigantic Increase' In Q4
- US House Will Review Bill To Delist Chinese Companies
- UK Buys 10 Mln Antibody Tests From Roche And Abbott
- British Banks Warn BoE Against Negative Rates
- Yield On UK 5-Year Government Bonds Falls To New Record Low
- Tesla Gigafactory Shanghai Expansion Is Back In Full Swing
- GrubHub And Uber 'Very Close', Still Talking About A Deal
With the world’s two largest commercial powers at loggerheads in the throes of the worst economic downturn since World War Two, this year’s Chinese National People’s Congress could boost hopes about global growth after lockdown or dash them.
In what is seen by many as political theatre, the meeting, which begins Friday and generally extends for 10 days, allows the Chinese leadership and officials from around the country to gather in Beijing. The congress is considered a formality for enacting Communist Party policy growth targets, economic plans, and a range of other policy measures formulated well before the 3,000 delegates even sign-in.
But this year, the foreign-policy hurricane swirling around the meeting during the last few sessions has grown: There is little doubt that China’s Wuhan Province served as the germination point for the Covid-19 outbreak, which resulted in a 6.8pct contraction in Chinese GDP in the first quarter versus the year-earlier period, the worst decline on record.
The lockdown to stem the spread of the virus also forced the first postponement of the March congress since 1995, and questions remain about Beijing’s handling of the outbreak. (LiveSquawk – Continue Reading)
Claims came in above the consensus estimate of 2.4mln but fell in the week to May 16 from the prior 2.687mln. This was revised lower by 294k from the previous 2.981mln after a clerical error in Connecticut. The four-week moving average fell to 3.042mln, a drop of 501k from the previous week. The number of claims over the past eight weeks totals around 38.6mln, which is equivalent to all the claims filed during the Great Recession. That said, this is now the seventh consecutive week of declines, tying the all-time record.
The record continuing claims figures, that is those Americans receiving unemployment benefits, has sent the insured unemployment rate to 17.2pct. This series is reported with a one-week lag. (LiveSquawk – Continue Reading)
Bond investors are skeptical that inflation will rebound as the U.S. economy eventually starts to recover.
While some lawmakers fretted this week that a combination of central bank and government rescue packages could inflame long-dormant price pressures, the market’s outlook for inflation has languished. Investors aren’t betting on outright deflation over the longer term, but the 10-year breakeven rate -- a gauge of traders’ expectations for the consumer price index over the next decade based on Treasury prices -- is hovering around 1.15%. The 30-year is less than half a percentage point higher.
That means investors don’t see the Federal Reserve getting close to its 2% inflation target before 2050. That outlook isn’t a great set up for the Treasury’s $12 billion sale of 10-year inflation-linked bonds Thursday. The historic slump in West Texas crude oil prices, which have clawed back from below zero to trade above $34 a barrel, and last month’s record decline in an index of core consumer prices, contribute to the case against inflation protection.
“We have to get through the deflation before we worry about the inflation,” Kathy Jones, a fixed income strategist at Charles Schwab, said at a virtual roundtable Wednesday. “We’re not in the high inflation camp.” (Bloomberg – Continue Reading)
- LS Focus On The Week Ahead
- German Investor Outlook Surges, Current Mood Worsens
- UK Labour Report: This Is Where The Good News Ends
- UK Inflation Plunges In April As COVID-19 Lockdown Hits Oil Prices
- US Markit Manufacturing PMI May P: 39.8 (est 40.0; prev 36.1)
- US Leading Index (M/M) Apr: -4.4% (est -5.4%; prev -6.7%)
- US Existing Home Sales (M/M) Apr: -17.8% (est -19.9%; prev -8.5%)
- US Philadelphia Fed Business Outlook May: -43.1 (est -40.0; prev -56.6)
- US Initial Jobless Claims May-16: 2438K (est 2400K; prev 2981K)
- Fed’s Williams: Negative Rates Are Not A Tool Needed Now – RTRS
- Fed's Clarida: Actions So Far Have Bought Time For Economy – RTRS
- Fed's Clarida: Yield Curve Control A 'Natural Complement' To Some Possible Fed Tools – RTRS
- US Tsy Sec. Mnuchin Sees US Economic Bottom In Q2, 'Gigantic Increase' In Q4 – RTRS
- US Pres. Trump To Withdraw From ‘Open Skies’ Arms Control Treaty – NYT
- US’ McConnell: Next Coronavirus Bill Will Not Extend Enhanced Unemployment Benefits – CNBC
- US Senators To Propose Bill Sanctioning Chinese Officials Over HK Security Law – WSJ
- US Speaker Pelosi: House Will Review Bill To Delist Chinese Companies – BBG
- WH Kudlow: No Need For More Unemployment Even As Election Looms – RTRS
- USDA, USTR Announce Continued Progress On Implementation Of Phase One Deal
- ECB’s Panetta: EU Recovery Fund Proposal Is Considerable Step Forward – FXStreet
- UK Buys 10 Mln Antibody Tests From Roche And Abbott – BBG
- UK Begins Trial To See If Hydroxychloroquine Prevents COVID-19 – BBG
- British Banks Warn BoE Against Negative Rates – FT
- Irish FinMin Donohoe: Irish Budget Deficit Could Top 10% Of GDP – RTRS
- US Sold 10-Year TIPS At High Yield Rate Of -0.47% Vs 0.68%
- Yield On UK 5-Year Government Bonds Falls To New Record Low – RTRS
- UK To Sell GBP2.75 Bln Of 1.25% 2027 Gilt Via Auction On May 28 - DMO
- UK To Sell GBP2 Bln Of 1.75% 2049 Gilt Via Auction On May 28 - DMO
- Italian Bond Yields Hold Steady, Focus On Recovery Fund – RTRS
- Italy Raises EUR22.3 Bln From New BTP Italia Bond – RTRS
- USD/JPY: Dollar Recovers As Sentiment Takes A Turn To The Worse – FXStreet
- EUR/USD Retreats As China Threatens To Retaliate Against The US – FXStreet
- GBP/USD Trades Around 1.2250 Amid A Mix Of Concerns – FXStreet
- USD/CAD Testing Critical Support Line, Bulls Gearing Up For An Onslaught – FXStreet
- USD/MXN Rebounds Toward 23.00 After Hitting Two-Month Lows Near 22.70 – FXStreet
- NZD/USD Reversal From 0.6150 Finds Support At 0.6100 – FXStreet
- Oil Jumps To Highest Level Since March On Lower US Inventories, Recovering Demand - CNBC
- Gold Futures Settle At Lowest In More Than A Week – MarketWatch
- US NatGas Futures Slip On Weaker Demand And Export Forecasts – RTRS
- Dow Falls Nearly 100 Points, Amazon Slides After Hitting Record – CNBC
- Europe Closes Lower As Investors React To Eurozone Data; Lufthansa Up 3% - CNBC
- TJX Results Swing To A Loss, Revenue Halved – MarketWatch
- Best Buy's Rises After Profit, Revenue And Same-Store Sales Fall Less Than Expected – MarketWatch
- Medtronic Warns Of Sales Hit As People Delay Non-Emergency Surgeries – RTRS
- Macy's To Be 'Smaller Company' As Loss To Hit $1 Bln In Quarter Amid Lockdowns – RTRS
- Tesla Gigafactory Shanghai Expansion Is Back In Full Swing – electrek
- Grubhub And Uber 'Very Close', Still Talking About A Deal – CNBC
- Carmaker McLaren Clashes With Bondholders Over Emergency Financing – FT
- Starbucks Same-Store Sales In US And China Improve As Company Reopens Cafes – CNBC
- BlackRock Declares Quarterly Dividend Of $3.63 On Common Stock – Biz Wire
- US House Republicans Press TikTok On Use Of Kids' Data, Ties To Beijing - RTRS
- Fitch: Coronavirus Relief Will Mask US Bank Asset Quality
- China: US To Face Countermeasures If It Imposes Sanctions – TeleTrader
- China To Impose Sweeping National Security Law In Hong Kong, Bypassing City’s Legislature – WP
- Turkey Cuts Rates Again As Stronger Lira Emboldens Central Bank – BBG
- South Africa’s MPC Curbs Easing Expectations After Cutting Again – BBG
- IMF: Over 20 Poor Countries Seek Debt Relief, Extension Possible - RTRS