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Eurozone June flash services PMI 47.3 vs 41.5 expected

  
Analysis, Economy

Latest data released by Markit – 23 June 2020

  • Prior 30.5
  • Manufacturing PMI 46.9 vs 45.0 expected
  • Prior 39.4
  • Composite PMI 47.5 vs 43.0 expected
  • Prior 31.9
The beats have been predicated by the French and German releases earlier – more so the former – as we see the euro area economy continue to display better conditions relative to the previous few months, finding some sense of stabilisation.
Looking at the details, output declined in both services and manufacturing again but the rate of contraction was reported to be markedly reduced for a second month running.

Japan May final machine tool orders -52.8% vs -52.8% y/y prelim

  
Analysis, Economy
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Latest data released by the Japanese Machine Tool Orders Builder’s Association

Slight delay in the release by the source. The preliminary release can be found here. No changes to the initial estimate as the annual decline in new factory orders in Japan during the month of May slips to its weakest level since September 2009.

Moody’s affirms USA credit rating at Aaa, outlook stable

  
Analysis, Economy
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Moody’s not interested in a lawsuit

Print all you like, spend all you like. No one is downgrading the USA after S&P did and the government sued them for $1.5B for mortgages. Even the company knew what it was all about.
At the same time, a country that prints its own money can’t default. But they can devalue.

Japan trade balance for May: Y -833.4bn (expected Y -1030bn)

  
Analysis, Economy

Japan trade balance for May

  • expected Y -1030bn, prior Y -931.9bn

Trade balance adjusted -601bn yen

  • expected Y -657.5bn, prior Y -996.3bn

Exports -28.3% y/y for a miss

  • expected -26.1% y/y, prior -21.9%

Imports -26.2% y/y for a miss

  • expected -20.4% y/y, prior -7.1%
Further exports details are ugly, export to
  • the US are down 50.6% y/y
  • the EU down 33.8%
  • China -1.9%
  • Asia -12.0%

Reuters monthly Japan Tankan shows further souring in manufacturers sentiment

  
Analysis, Economy

The monthly Reuters Tankan is more timely than the quarterly report of the same name from the BOJ

  • Manufacturers Index for June comes in at -46 (down further from -44 in May)
  • Non Manufacturers Index -32 (-36)

Outlook

  • Manufacturers September Index seen at -35
  • Non-manufactures – 29
The sentiment index at manufacturers remains at its lowest since June 2009
Yen is doing pretty much nothing.
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Poll of 499 large- and mid-sized non-financial companies
  • 240 firms responded on condition of anonymity
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