Bloomberg Commodity Index a break of 77.83 would signal acceleration to test record low ~72.50
Archives of “May 31, 2019” day
rssChina Manufacturing PMI for May came in under April and missed estimates
Here is the full suite:
Manufacturing Purchasing Managers Index (PMI), 49.4
- expected 49.9, prior was 50.1
Non -manufacturing (services) Purchasing Managers Index (PMI), 54.3
- expected 54.3, prior was 54.3
Composite Purchasing Managers Index (PMI), 53.3
- prior was 53.4
On the manufacturing PMI, not only did it come in a sharp drop on the month and below the central estimate, it also came in below all estimates (from the Bloomberg survey). Its a terrible result.
Some of the detail from the manufacturing PMI :
- Output 51.7 (vs. 52.1 in April)
- New Orders 49.8 (51.4)
- New Export Orders 46.5 (49.2)
- Order Backlog 44.3 (44.0)
- Finished Goods Inventories 48.1 (46.5)
- Input Prices 51.8 (53.1)
- Output Prices 49.0 (52.0)
- Employment 47.0 (Apr 47.2)
Kim Jong Un executed North Korea special envoy to US Kim Hyok Chol after the failed summit
South Korean media ( Chosun Ilbo) report on the executions of the special envoy and foreign ministry officials
via Reuters:
- executed Kim Hyok Chol
- executed foreign ministry officials who carried out working-level negotiations
After the failure of the summit with US President Trump in February
More:
- Kim Yong Chol had been U.S. Secretary of State Mike Pompeo’s counterpart in the run-up to the summit
- executed at Mirim Airport with four foreign ministry officials in March
- they were charged with spying for the United States
The 5 % tariff US President Trump just slapped on Mexico – here’s how it will rise to 25% by October
Trump has linked the tariff hike to immigration
If Mexico does not do more to halt illegal immigration into the US the 5% tariff will jump to 25% (in steps) by October 2019
Trump says the US to impose 5% tariff on all goods from Mexico
US President Trump making good on the rumoured threats against the southern neighbour of the US:
Adds in the next tweet:- ….at which time the Tariffs will be removed. Details from the White House to follow.
Merkel speech – slams Trump. Attacks protectionism, trade war, walls of ignorance, lies.
No more Ms Nice Guy from German Chancellor Angela Merkel.
Giving a Harvard University commencement address
- “Protectionism and trade conflicts jeopardize free international trade and thus the very foundations of our prosperity,
- “Our way of thinking and our actions have to be multilateral rather than unilateral, global rather than national, outward looking rather than isolationist.”
- “Walls of narrow-mindedness and ignorance, they exist …”
- answers even to difficult questions, … requires us not to describe lies as truth and truth as lies.”
Yowza.
Wait until the tweeter-in-chief reads these reports – hiked EU auto tariffs on the way?
Bitcoin falls out of bed, down to $8000.
BTC has dropped from above 8600 USD to 8000 (and getting a bit of a bounce as I update)
Not seeing any catalyst – it often behaves this way when news crosses on some embezzlement or such.
AEP: German bond yields plumb 700-year lows
Ambrose Evans-Pritchard writing in the UK Telegraph
- German bond yields have plunged to historic lows
- inflation expectations are collapsing across the eurozone
- prompting fears of a gathering recessionary storm
- The benchmark 10-year bund yield dropped to minus 0.18pc on Thursday and is testing the all-time lows seen during the brief rush to safety after the Brexit referendum.
- Spanish and Portuguese yields have dropped to record lows.
- A closely watched gauge of inflation expectations – five-year/five-year swap contracts – have collapsed this year and raise concerns that the European Central Bank is losing control.
- It is signalling a slide into a deflationary quagmire.
And that’s just the into!
Link here, is gated. I imagine the piece will pop up ungated somewhere soon.
US stocks finish higher after shaky day of trading
US and European equities rebounded on Thursday but were still heading for their biggest monthly decline of the year as concerns have mounted over a global slowdown in the face of an intensifying US-China dispute over trade.
The S&P 500 finished 0.2 per cent higher, bouncing from its lowest close since early March, but having swung from gains of as much as 0.6 per cent to a decline of as much as 0.2 per cent.
The yield on the US 10-year Treasury note was down 1.9 basis points at 2.2168 per cent, having dropped sharply on Wednesday to their lowest level since September 2017. Bond yields fall as their prices rise.
Europe’s benchmark Stoxx 600 climbed 0.4 per cent on the penultimate day of the month from its lowest close since March 25. The index has fallen nearly 5 per cent in May, heading for its worst month this year. London’s FTSE 100 was down 0.5 per cent, easing off its lowest level since May 13.
Conflicts over trade and technology between the US and China have shown no signs of abating while expectations of slowing growth in the world’s biggest economies have mounted. Brazil’s economy meanwhile contracted for the first time in more than two years.
Latin America’s largest economy shrank in the three months to March for the first time since 2016. Gross domestic product fell 0.2 per cent in the first quarter, the first quarterly contraction since the final three months of 2016. The Brazilian real was 0.1 per cent weaker, with $1 buying BRL3.9786. (more…)
Pence: US can ‘more than double’ tariffs against China if needed
Comments from Pence
- He is hopeful that Trump and Xi can make process at G20 but China must agree to make reforms