Closing Wrap - Monday 01.06
  • OPEC, Russia Discuss Extending Oil Cuts For One To Two Months
  • China Halts Some US Farm Imports, Threatening Trade Deal
  • Putin And Trump Discussed G7 Summit, Oil Markets In Call
  • UK PM Johnson Warned That Brexit Haggling Must Not Drag Into Autumn
  • Moody's Downgrades India's Ratings To Baa3, Maintains Negative Outlook
  • Gilead's Stock Falls On Remdesivir Data In Moderately Ill Patients
  • Pfizer Declines After Setback To Breast Cancer Treatment
  • Huawei Turns To Mobile Chip Rivals To Beat US Pressure
  • Fairfax Held Talks To Acquire Remaining Shares Of Blackberry
  • Lufthansa Supervisory Board Rubber Stamps $10 Bln State Bailout
Australia Has Virus Outbreak Under Control But China Still A Cause For Concern

Australia has navigated the Covid-19 pandemic better than most nations, a success reflected in government intentions to unwind some of the lockdown measures, the current state of monetary policy, and recent messaging from the central bank. As such, the Reserve Bank of Australia’s board is unlikely to announce a change to its main rate on Tuesday morning, local time.  


The bank is widely expected to leave its Cash Rate on hold at record-low 0.25pct and reiterate its existing supplementary programmes.  


Investors are seeking signs the bank will consider taking rates negative if necessary although odds on this are said to be slim. The RBA has scaled back the size and frequency of bond purchases, which have totalled around AUD50 billion to date, as the worst of the lockdown appears to be over. 


RBA Governor Philip Lowe reasserted the bank’s mandate and forward guidance at the 5 May meeting. “The cash rate will not be increased until we are making sustainable progress towards our goals for full employment and inflation.” (LiveSquawk – Continue Reading)

German Unemployment Set For Another Surge

An expected rise in German unemployment could push the total number of additional claims for the April-May period to over half a million in a country where more than 10mln people were already eligible for support from the government’s short-time work scheme.


The seasonally adjusted number of unemployed in May is expected to jump by 200,000 after April’s record increase of 373,000, which was nearly five times the market estimate of 76,000 and almost 400 times March’s rise of 1,000.


The seasonally adjusted unemployment rate in May is forecast at 6.2pct versus April’s 5.8pct mark. (LiveSquawk – Continue Reading)

OPEC, Russia Discuss Extending Oil Cuts For One To Two Months

OPEC and Russia are moving closer to a compromise on extending current oil output cuts and are discussing a proposal to roll over supply curbs for one to two months, three OPEC+ sources told Reuters on Monday.


OPEC+ decided in April to cut output by a record 9.7 million barrels per day, or about 10% of global output, to lift prices battered by a demand drop linked to lockdown measures aimed at stopping the spread of the coronavirus.


Rather than easing output cuts in July, sources told Reuters last week that de-facto OPEC leader Saudi Arabia was leading discussions on sustaining them until the end of the year. (Reuters – Continue Reading)

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