Archives of “May 2019” month
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Revenue Exposure to China
Trump set to unveil $16bn aid package for US farmers
Donald Trump is poised to announce a $16bn aid package for farmers to compensate them for losses due to the escalating US trade war with China, senior US agriculture department officials said on Thursday.
The bailout marks the second multibillion-dollar move by the US president to help farmers in as many years, as he tries to contain the damage from retaliatory tariffs imposed by China during the commercial conflict, which have sharply reduced US exports to the Chinese market.
“While the farmers would rather have trade than aid, if they don’t have trade they need aid, and that’s what it is,” Sonny Perdue, the US agriculture secretary, said.
US officials said the package was composed of direct payments to farmers worth $14.5bn, as well as $1.4bn in government purchases of agricultural goods to be distributed to food banks and impoverished Americans. Mr Trump said earlier this month that he wanted to direct farm purchases to poor countries as food aid in the package, but that option was discarded.
US officials said the payments would be made in three tranches — with the first coming in July and August. Mr Perdue said it was unlikely that a deal to end the trade war would happen before then, even with a meeting expected between Mr Trump and Xi Jinping, the Chinese president, at the G20 leaders’ summit next month in Japan.
“While we would love a trade deal in that period of time . . . it’ll be very difficult to understand how a trade deal could be consummated prior to that first payment, or first tranche there,” Mr Perdue said, adding that the second disbursement, expected in November or December, and the third payment, would be dependent on the trade talks.
European shares end with sharp losses on global growth concerns
PMI data in Japan, Europe and US not that great
- German DAX, -1.77%
- Francis, -1.81%
- UK’s FTSE, -1.42%
- Spain’s Ibex, -1.26%
- Italy’s FTSE MIB, -2.0%
FTs Payne: Speculation chatter on PM May’s announced resignation schedule
The latest from the tweeters

US initial jobless claims 211K vs 215K estimate
Weekly US initial jobless claims

- initial jobless claims common little stronger than expectations of 211K versus 215K
- The prior week remains unchanged at 212K
- continuing claims 1676K versus 166K estimate
- prior week revised to 1664K versus 1660K
- The four-week average for claims false to 220.25K versus 225.0K
- The largest increases in initial claims for the week ending May 4 were in New York (+9,365), Illinois (+2,010), Missouri (+791), Kansas (+754), and Iowa (+676),
- The largest decreases were in New Jersey (-6,239), Connecticut (-3,208), California (-1,920), Arizona (-668), and Wisconsin (-661).
US’ Pompeo: There is a real risk from China towards US national security
US secretary of state, Mike Pompeo, speaks to CNBC

- Says that he believes US companies will cut ties with Huawei
- Says Huawei is deeply tied to China and its Communist Party
- Says that Huawei is making false statements
- Believes that China is using high-tech surveillance to subdue minorities
Germany May Ifo business climate index 97.9 vs 99.1 expected
Latest data released by Ifo – 23 May 2019

- Prior 99.2
- Expectations 95.3 vs 95.0 expected
- Prior 95.2
- Current assessment 100.6 vs 103.5 expected
- Prior 103.3
Eurozone May flash manufacturing PMI 47.7 vs 48.1 expected
Latest data released by Markit – 23 May 2019

- Prior 47.9
- Services PMI 52.5 vs 53.0 expected
- Prior 52.8
- Composite PMI 51.6 vs 51.7 expected
- Prior 51.5