- US President Trump: The New Democratic Stimulus Proposal Is Dead On Arrival
- Treasury Sec Mnuchin Seeks to Assuage Investors After Powell’s Gloomy Outlook
- Fed's Daly, Echoing Powell, Sees Slow Recovery And Need For More Support
- EU Von De Leyen Working On Ambitious Blueprint To Forge Economic Recovery
- BoE Governor Bailey Hints At More Easing To Help Shoulder The Virus Costs
- Italy Approves Long-Delayed Economic Stimulus Package In Coronavirus Fight
- Chinese Central Bank Seen Draining Funds From Bank System In Surprise Move
- China Could Set GDP Growth Target At 3Pct During Two Sessions: Global Times
- Japanese Government To Inject Capital Into Virus Hit Companies: Nikkei
- BOJ Governor Kuroda: Will Stick To Price Target Despite Pandemic Headwinds
- Australia Post Record Job Losses In April; Unemployment Hits 5-Year High
- New Zealand Government Unveils $50 Bln Budget To Support The Economy
- Dollar Holds Gains As Powell Shuns Negative Rates, Aussie Slips After Jobs Fall
- Oil Prices Edge Higher On US Stock Drawdown, But Demand Concerns Linger
- Asian Equity Markets Drop As Virus Recovery Begins To Look Distant
Goldman Sachs Group Inc. economists revised their forecasts to reflect a gloomier outlook for the U.S. labor market, though also the potential for a faster recovery from the coronavirus pandemic.
Analysts David Mericle and Ronnie Walker estimate that the unemployment rate will peak at 25%, up from a previous forecast of 15%, as “more workers will lose their jobs and a larger share of them will be classified as unemployed,” according to a research note late Tuesday. The rate would then remain near 10% at year-end, near the highs of the last recession, they wrote.
Goldman Sachs revised the figures following last week’s monthly jobs report showing a record contraction in payrolls in April and a 14.7% unemployment rate, the highest since the Great Depression era. A jobless rate of 25% would be in line with estimates of the peak during the Depression. (Bloomberg - Continue Reading)
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. (LiveSquawk - Continue Reading)
Italy is trying to prop up its battered economy with a second stimulus package worth 55 billion euros ($60 billion). It may not be enough.
Prime Minister Giuseppe Conte’s government approved the much-delayed measures on Wednesday night in a bid to reduce the economic impact of the coronavirus pandemic. The plan focuses on liquidity for businesses and aid to families hurt by over two months of a nationwide lockdown. A 25 billion-euro package was passed in March.
The European Commission forecasts that Italy’s economy will shrink 9.5% this year while Bloomberg Economics sees a 13% contraction. With tax revenue collapsing and a desperate need for stimulus, the country’s mammoth debt will rise to well over 150% of gross domestic product, the Commission said. (Bloomberg - Continue Reading)

Australia saw record job losses last month as the government’s Covid-19 restriction measures shut down large parts of the economy.
Data from the Australian Statistic Bureau (ABS) released on Thursday showed employment falling by 594.3k in April. This was a slightly larger drop that the 575.0k economists had predicted.
The unemployment rate rose a full percentage point to 6.2pct from 5.2pct in March but would have been even higher were it not for a large number of people leaving the labour force.
“The large drop in employment did not translate into a similar sized rise in the number of unemployed people because around 489,800 people left the labour force”, said Bjorn Jarvis, head of labour statistics at the ABS. (LiveSquawk - Continue Reading)
- Live Squawk Focus On The Week Ahead
- US Core CPI Saw Largest Ever Decline In April
- UK GDP Decline Worst In 12 Years, More Pain To Come
- German Q1 Growth Set To Shrink, Euro Zone Could Worsen
- RBNZ Boosts QE, Opens Door To Negative Rates
- Australia Posts Record Job Losses In April
- UK RICS House Price Balance Apr -21% (est -25%; prevR 9%: prev 11%)
- Australia Employment Change Apr -594.3K (est -575.0K; prevR 0.7K; prev 5.9K)
- Australia Unemployment Rate Apr 6.2% (est 8.2%; prev 5.2%)
- Australia Participation Rate Apr 63.5% (est 65.3%; prev 66.0%)
- Japan Money Stock - M2 (Y/Y) Apr 3.7% (est 3.4%; prev 3.3%)
- Japan Money Stock - M3 (Y/Y) Apr 3.0% (est 2.8%; prev 2.7%)
- China Seen Draining Funds From Bank System In Surprise Move - BBG
- China Could Set GDP Growth Target At 3% During Two Sessions - Global Times
- Chinese State Planner: Will Step Up Policy Support To Offset Pandemic Impact - RTRS
- China Needs More Active Fiscal Policy As Pressure On Economy Increasing - RTRS
- China Reports Three New COVID-19 Cases, Down From Seven A Day Earlier - RTRS
- Four GOP Lawmakers, Two US Entities To Be Put On China’s Sanctions List - Global Times
- Japan To Inject Capital Into Virus-Hit Companies - Nikkei
- BOJ’S Kuroda: Will Stick To 2% Price Target Despite Pandemic Headwinds - RTRS
- Most Of Japan To Reopen Thursday, But Not Big Cities - Nikkei
- Japan PM To Hold News Conference On Coronavirus On Thursday - RTRS
- Australian Trade Minister: Steel Duties No Excuse For China's Barley Tariffs - AFR
- Australia’s China Addiction Leaves It Vulnerable to Trade Spat - BBG
- Australia-UK Trade Talks To Start In June, But MPs Fret Over Farming - AFR
- Australia Employment Slumps By Record 594,300 - BBG
- Australian PM: We Must Brace For More Hard News - RTRS
- New Zealand Government Unveils $50 Bln Covid-19 Response - Herald
- WHO’s Chief Scientist Offers Bleak Assessment Of Challenges Ahead - FT
- Powell: Washington Will Need To Spend More To Battle Downturn - WSJ
- Powell Rejects Using Negative Rates As A Policy Tool - MW
- Fed's Daly, Echoing Powell, Sees Slow Recovery, Need For More Support - RTRS
- Trump: New Democratic Stimulus Proposal Is Dead On Arrival - RTRS
- Trump: Disagrees With Powell On Negative Interest Rates - MW
- Trump Taps Ex-Glaxo Official And General To Lead Vaccine Race - BBG
- Trump: Fauci’s Warnings About Reopening Are Not ‘Acceptable’ - CNBC
- Democrats’ $3 Trillion Aid Bill Has Seeds for Eventual GOP Deal - BBG
- Mnuchin Seeks to Assuage Investors After Powell’s Gloomy Outlook - BBG
- Mnuchin Denounces Dem Coronavirus Stimulus Plan - Fox News
- CNN Poll: Biden Tops Trump Nationwide, But Battlegrounds Tilt Trump - CNN
- EU Working On ‘Ambitious’ Blueprint To Forge Economic Recovery - BBG
- Europe Nears Crisis Plan For Public Stakes In Key Companies - RTRS
- ECB Signals Euro-Area Slump Has Hit Bottom, Recovery Uncertain - BBG
- ECB's De Guindos: Euro Zone Economy Has Already Bottomed Out - RTRS
- Italy Approves Long-Delayed Economic Stimulus Package In Coronavirus Fight - RTRS
- Boris Johnson Comes Under Pressure As Virus Roils UK Economy - BBG
- Bailey Hints At More BOE Easing To Help Shoulder Virus Costs - BBG
- UK Plan To Cut US Farming Tariffs Sparks Ministerial Spat - FT
- Dollar Holds Gains As Powell Shuns Negative Rates, Aussie Slips After Jobs Plunge - RTRS
- EUR/USD: Dollar Remains Bid On Fed's Grim Warning - FXStreet
- GBP/USD: Bears Refresh Five-Week Low To Attack 1.2200 - FXStreet
- NZD/USD: Pressured Near Three-Week Low Under 0.6000 After NZ Budget - FXStreet
- JPMorgan Reverses Long-Term Yen View As Crisis Upends Markets - BBG
- Treasury Yields Fall As Powell’s Bleak Outlook For Economy Spurs Haven Demand - MW
- Bank Of Japan Sells JPY 565.5 Bln Of 30-Year Bonds: B/C 3.69x; Avg Yield 0.453%
- Oil Prices Edge Higher On Surprise US Stock Drawdown; Demand Concerns Linger - RTRS
- Saudis Keep Promise To Cut Production, Sending Less Oil To Asia - BBG
- Oil Prices Could Go Negative Again, So Be Prepared, CFTC Warns Futures Industry - MW
- The World’s Most Controversial Gas Pipeline Is Nearing Its Endgame - BBG
- Gold Inches Higher On US Stimulus Talks; Jobs Data Awaited - CNBC
- Asian Stocks Drop As Virus Recovery Begins To Look Distant - RTRS
- Trump Extends US Telecom Supply Chain Order Aimed At Huawei, ZTE - Nikkei
- Tencent Posts Better-Than-Expected Earnings On Strong Gaming Growth - SCMP
- SMIC First Quarter Revenue Up 35.3Pct - RTT
- Sony Reports Annual Profit Drop After Coronavirus Disruptions - Nikkei
- Mitsubishi Motors Looks To Cut Jobs In Thailand - Nikkei
- Mitsui E&S Unloads $900 Mln In Assets After Indonesia Losses - Nikkei
- Honda Plans Restart Of Auto Production In UK Early Next Month - BBG
- Rakuten Posts JPY 35.0 Bln Net Loss In Jan-March - Nippon
- Takeda Pharma Logs Surprise Profit, Updates On COVID-19 Therapy - RTRS
- US Stock Futures Little Changed As Wall Street Tries To Curb The Latest Selling - CNBC
- Wall Street Heavyweights Are Sounding Alarm About Stock Prices - BBG
- Ford Gearing Up For Phased Restart To North America Operations Next Week - RTRS
- Goldman Sachs CFO Calls Exposure To Energy, Hotel, Airline Firms Manageable - RTRS
- Boeing Awarded $3.1 Bln In US Navy Contracts For Cruise Missile Systems - Mirage
- JPMorgan, Citi Left Out as Fed Began Historic Debt ETF Rescue - BBG
- Exxon, Chevron Chairman-CEO Split Proposed By Proxy Advisers - BBG
- Amazon Warehouse Worker Pay Raises To End After May 30 - BBG
- Disney Suspends New Cruises Through July 27 During Coronavirus Outbreak - RTRS
- Mastercard Sees Progress On Spending As US Eases Crisis Rules - BBG
- Tyson Reduces Some Beef Prices As Coronavirus Pushes Grocery-Store Costs Higher - WSJ
- Uber Discusses Paying 1.9 Of Its Shares, Or Just Over $60 A Share, For Grubhub – WSJ
- Abbott Virus Test Used At White House Faces Accuracy Concern - BBG
- Fiat Chrysler, PSA Scrap Dividends Tied To Merger - AutoNews
- Deutsche Bank Criticised In Internal New York Fed Audit - RTRS
- Thyssenkrupp, Fincantieri In Talks To Form Warship Champion - RTRS
- Airbus To Start Talks With Unions On Permanent Job Cuts - BBG
- London Stock Exchange Seeks EU Approval For $27 Bln Refinitiv Bid - RTRS
- Euronext Sees No Pause In Hunt For Takeover Targets During Pandemic - RTRS
- Roche Antibody Test Given Approval By Public Health England - Telegraph