Republic Alert
Zero Hedge

Weekend News Round Up – Newsquawk Asia-Pac Market Open


  • US stocks finished lower on Friday due to inflation and consumer concerns post-Michigan survey which disappointed and showed a rise in longer-term inflation expectations to fresh cycle peaks, while sentiment was dampened by debt limit agitation after the meeting between President Biden and congressional leaders was delayed to the upcoming week.
  • US President Biden said on Saturday that debt ceiling talks are moving along and they will know more in the next couple of days about progress in debt ceiling talks, according to Reuters. It was also reported that Deputy Treasury Secretary Adeyemo said the ongoing debt-ceiling negotiations are constructive between all parties, according to CNN.
  • Turkish President Erdogan’s share of votes is below the 50% threshold needed to win in the first round of the Presidential Election with 49.86% but he is still ahead of main opposition candidate Kilicdaroglu who has 44.38% after 90% of votes were counted, while Ankara’s opposition mayor commented that it is highly likely that the Presidential Election will go to a runoff, according to CNN and Reuters.
  • Looking ahead, highlights include New Zealand Performance of Services Index, Australian Building Approvals, Japanese PPI, Thailand GDP, Supply from Japan.

View the full premarket movers and news report.

Or why not try Newsquawk’s squawk box free for 7 days?

LOOKING AHEAD

  • Highlights include New Zealand Performance of Services Index, Australian Building Approvals, Japanese PPI, Thailand GDP, Supply from Japan.

US TRADE

EQUITIES

  • US stocks finished lower on Friday due to inflation and consumer concerns post-Michigan survey which disappointed and showed a rise in longer-term inflation expectations to fresh cycle peaks, while sentiment was dampened by debt limit agitation after the meeting between President Biden and congressional leaders was delayed to the upcoming week.
  • SPX -0.16% at 4,124, NDX -0.37% at 13,340, DJIA -0.03% at 33,300, RUT -0.22% at 1,740.
  • Click here for a detailed summary.

NOTABLE HEADLINES

  • Fed’s Jefferson (voter) said current inflation is still high and little progress on core inflation is bad news, as well as noted that the full impact of the Fed’s rapid rate hikes is likely still ahead and that Fed policy is on track for what is needed to lower inflation and achieve full employment. Furthermore, Jefferson said disinflation has been slower and more uneven than they would like, while he added that uncertainty around the effect of bank stress and credit shock could be larger than he expects, according to Reuters.
  • Fed’s Bullard (non-voter) said market-based inflation expectations are back down to levels consistent with the Fed’s 2% inflation target and policy is now at the low end of sufficiently restrictive, while he also stated that sufficiently restrictive rates can move in response to incoming economic data, according to Reuters.
  • US President Biden said on Saturday that debt ceiling talks are moving along and they will know more in the next couple of days about progress in debt ceiling talks, according to Reuters. It was also reported that Deputy Treasury Secretary Adeyemo said the ongoing debt-ceiling negotiations are constructive between all parties, according to CNN.
  • White House and Republicans are starting to shape a possible debt ceiling deal with people familiar with the matter noting that the issues on the table had narrowed, although sources said any debt limit agreement is unlikely to be concluded before President Biden’s attendance at the G7 summit on May 19th-21st but could take place after that, according to FT.
  • US Treasury Secretary Yellen said the current banking environment and pressures on earnings of some US regional banks may lead to some concentration in the sector and regulators will likely be open to mergers among midsize banks.
  • US regulators approved the sale of a majority stake in TIAA’s banking arm to a consortium of private equity firms on Friday, according to Reuters.

GLOBAL NEWS

  • Turkish President Erdogan’s share of votes is below the 50% threshold needed to win in the first round of the Presidential Election with 49.86% but he is still ahead of main opposition candidate Kilicdaroglu who has 44.38% after 90% of votes were counted, while Ankara’s opposition mayor commented that it is highly likely that the Presidential Election will go to a runoff, according to CNN and Reuters.

COMMODITIES

  • G7 and the EU will reportedly agree to ban the restart of Russian gas pipelines, according to FT.
  • Gazprom continued shipping gas to Europe via Ukraine with the volume on Saturday seen at 40.4mln cubic metres and the volume on Sunday seen at 40.3mln cubic metres, according to Reuters.

GEOPOLITICAL

  • Ukrainian President Zelensky visited Rome on Saturday to meet with Italian President Mattarella, Italian PM Meloni and the Pope where Matterella told Zelensky that Italy is by his side and Meloni said that they will support Ukraine for all the time that it is necessary. Zelensky also visited Germany and met with Chancellor Scholz who said that Germany will support Ukraine for as long as it takes and ensured that aid to Ukraine will continue in the coming years, while Scholz gave Germany’s full support to Ukraine’s journey towards membership in the European Union. Furthermore, Germany announced to provide a new EUR 2.7bln military aid package to Ukraine and President Zelensky then travelled to France for talks with French President Macron.
  • Ukrainian President Zelensky said that they are ready to discuss proposals for peace but must be based on Ukraine’s peace plan and noted that Ukrainians believe in the success of the coming counteroffensive, while he also stated that they can make the defeat of Russia inevitable this year, according to Reuters.
  • Ukraine said its troops are gradually advancing in two directions in the suburbs of Bakhmut and that the situation in the city centre is more complicated, while Russia said Ukraine made mass attempts to break through its defences in north and south Bakhmut which were repelled and that Russian forces conducted long-range strikes on the city Ternopil which targeted Ukrainian deployment site and depots, according to Reuters, RIA and Interfax.
  • UK Chancellor Hunt said the impact of sanctions on the Russian economy has not been as effective as military support for Ukraine and that economic pressure on Russia is more of a ‘slow burn’ with the pressure to eventually bite, while he noted that G7 members talked about the need to stop the sanctions leakage, according to Reuters.
  • Egypt brokered a ceasefire agreement between Israel and Palestinians on Saturday. However, it was reported the following day that Israel conducted an air strike on a militant post in Gaza after a rocket was fired at Israel due to a “technical error”, according to Hamas Aqsa Radio.

ASIA-PAC

  • US official said the G7 Leaders’ statement is to discuss shared principles on China’s economic coercion and the US will look at how outbound investment assessment can complement export controls to prevent the transfer of sensitive technologies to China, while the statement will also discuss tools used to counter economic security threats including those posed by China, according to Reuters.
  • BoJ Governor Ueda said he told G7 counterparts that Japan’s economy is picking up and its core CPI is likely to slow the pace of increase towards the middle of the current fiscal year, while he said the BoJ is continuing with easy monetary policy to sustainably and stably achieve the price target, according to Reuters.
  • Japanese PM Kishida is to order the government and BoJ to assess the wage outlook to determine if recent wage hikes would be sustainable, according to Nikkei.
  • Thailand’s pro-democracy opposition took an early lead in early polling results in which the Pheu Thai party has about 23% of votes and is closely followed by the Move Forward party with about 22.5% of votes in what is seen as a rebuke against the military-aligned government with the United Thai Nation party and ruling Palang Pracharath party trailing at 8% and 10% of votes, respectively, according to FT.
  • Indian PM Modi’s BJP lost control of the state assembly in the crucial election in the southern state of Karnataka which was closely watched ahead of the national poll that takes place in under a year, according to FT.

UK/EU

  • Bank of England is to water down rules for lenders to boost competitiveness, according to The Telegraph.
  • ECB’s de Guindos said rate hikes are in their final stretch and warned that higher borrowing costs could put stress on banks’ asset quality and push up bad debt levels, according to Il Sole 24 Ore.
  • ECB’s Kazimir said they may need to keep raising rates longer than previously thought to help tame inflationary pressures and he thinks there are more meetings ahead where they will decide on hiking rates.
  • Fitch affirmed Italy at BBB; Outlook Stable, affirmed Sweden at AAA; Outlook Stable and affirmed Denmark at AAA; Outlook Stable.

Loading…



Source link

Related posts

Western Countries Have Sent Broken Weapons To Ukraine: NYT

Daily Reporter

WSJ Blames Abysmal Recruitment Numbers On Military Veterans

Daily Reporter

Don’t Let Month-To-Month Data Distract From Recession Signal

Daily Reporter

Leave a Comment