Archives of “May 22, 2020” day

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BOJ statement: maintains short-term interest rate target at JGB yield target

  
Analysis, Economy

Bank of Japan monetary policy meeting decision announcement

  • maintains short-term interest rate target at -0.1%
  • maintains 10-year JGB yield target around 0%
  • keeps monetary policy steady
  • decides on details of new loan scheme aimed at boosting lending to small, mid-sized firms hit by coronavirus pandemic
  •  will set aside 75 trln yen for new loan programme to combat coronavirus impact
  • will extend deadline of programme until march 2021
  • won’t hesitate to ease further if needed
  • will conduct loans under new lending program from June

China makes no 2020 GDP target – cites virus impact and global uncertainties

  
  Analysis
#  #  #  #  #  #  #

Bloomberg report that China has dropped its economic growth target completely – there is no target set for the year.

Bloomberg citing a report to the National People’s Congress it has sighted.
In 2019 the target was 6 – 6.5% for GDP, which was hit (coming in at 6.1%)

 

Fitch affirms Australia rating at ‘AAA’, changes outlook to negative

  
  Analysis

Fitch rating agency revises Australia’s outlook to negative (was previoulsy ‘stable’), affirms rating at ‘AAA’

  • says negative outlook reflects significant impact global coronavirus pandemic has on Australia’s economy and public finances
  • Australia’s GDP to contract by 5% in 2020, driven by a plunge in economic activity during Q2 due to virus containment measures
  • says expect gradual economic recovery in Australia to begin in second half of 2020 and forecast GDP to grow by 4.8% in 2021
Fitch rating agency revises Australia's outlook to negative (was previoulsy 'stable'), affirms rating at 'AAA'
Life’s a Fitch then you die?
AUD barely changed.

Trump makes it clear that if there is a second wave of coronavirus in the US he will not shutdown the country

  
  Analysis

US President Trump says he will not close down the US if 2nd wave of COVID-19 hits.

If that is the case it would likely make addressing any health/death issues (of a 2nd wave) more difficult and could pose a risk to risk assets. Something to be aware of.
The US is still in the midst of dealing with the first wave.
US President Trump says he will not close down the US if 2nd wave of COVID-19 hits. 

China’s annual parliament session is underway – economic growth target to be revealed today

  
  Analysis

The opening session of the Chinese People’s Political Consultative Conference (CPPCC) was held yesterday.

The National People’s Congress (NPC) gets underway today. Both had been delayed due to the COVID-19 outbreak.
Premier Li Keqiang will hand the government work report to the NPC today, this usually includes economic targets for the year. The target is a keen focus for markets given the  impact of the virus. China reported the GDP last year was 6.1%, within the 6 to 6.5% target range set. In addition to the target watch for comments on relations with the US from the Premier. ICYMI these have deteriorated lately!
The opening session of the Chinese People's Political Consultative Conference (CPPCC) was held yesterday.
If time permits later I’ll get an online session of ‘Where’s Waldo?’ running.

Ray Dalio recaps the declines of empires

  
  Analysis

The latest from Bridgewater’s Ray Dalio

The latest from Bridgewater's Ray DalioOne of the greatest living macro investors continues on his long, plodding journey to lay out his thesis on the decline of America.
His latest chapter details the rise-and-declines of the British and Dutch empires and how there were repeated phases that are mirrored in China today.
It’s a compelling vision and the timeline stretches towards a perilous decade ahead for the US dollar and Americas position in the world. He will get to that at some future point but first, there’s the histor. Read it here.

US Indices end the day with declines. Fall for the 2nd time in 3 days

  
Analysis, US Market

But yesterday they were up 4 of the last 5

The US stocks are ending the day with that declines across the board. The stock falls are the 2nd time in 3 days (of course yesterday the stocks were up 4 of the 5 days).
The final numbers are showing:
  • S&P index -23.10 points or -0.78% at 2948.51
  • NASDAQ index -90.893 points or -0.97% and 9284.88
  • Dow industrial average -101.78 points or -0.41% at 24474.12
Some of the winners today included
  • Boeing, +4.25%
  • Raytheon technologies, +3.96%
  • Travelers, +3.74%
  • United Airlines, +3.365%
  • Ford Motor’s, +2.74%
  • Northrop Grumman, +2.44%
  • Delta Air Lines, +1.98%
  • Chewy, +1.94%
  • Lockheed Martin, +1.74%
  • Southwest Airlines +1.54%
  • Tesla, +1.49%
Some losers today included:
  • Qualcomm, -3.27%
  • Stryker, -3.15%
  • AMD, -3.09%
  • micron, -3.07%
  • Tencent, -2.65%
  • Netflix, -2.57%
  • Nvidia, -2.17%
  • Deutsche Bank, -2.0%
  • Amazon, -1.98%
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