Daily Briefing – Monday, April 3, 2017
UK Conservative party head Michael Howard told Sky News on Sunday that he believes Theresa May would be prepared to go to war over the future of the Gibraltar Straits if the EU attempts a land grab as part of the Brexit agreement. Meanwhile, 2016’s Q4 GDP has been finalized at 0.7% and the UK government has decreased its share of Lloyd’s Banking to less than 2%. Elsewhere in Asia, inflation disappointed in Germany Spain and throughout the zone, coming in at well below the 2% target point after the previous reading topping that. S&P expects to upgrade Spain’s outlook thanks to strong performance in recent months. In Germany, both retail sales and employment improved in February.
President Donald Trump signed executive orders to curb unfair trade practices, ahead of a meeting with Chinese President Xi JingPing later in the week. Ahead of NFP Friday’s labor data, analysts are expecting today’s PMIs to be stable to down, this after the Michigan consumer sentiment reading on Friday dropped to 96.9 and in spite of the Chicago PMI surprisingly rising by 3 tenths to 57.7. Spending was pleasantly up 0.1% in February but less than the 0.2% expected. And personal income rose by 0.4%
Japan on Saturday announced that it was recognizing Bitcoin as a legal payment method, pushing the crypto currency back above $1100. Japanese manufacturing indexes were down overnight and corporate sentiment was down Friday, with businessmen fearing that Trump’s anti-dumping measures could be aimed at Japanese exports. In China, Russia’s central bank opened its first overseas office, indicating assent between the 2 world powers on bypassing the US dollar as a standard of trade. Chinese PM Li Kequiang and Russian central bank official, Vladimir Shapovalov released a statement at the opening affair stating that the countries were close to reaching an agreement of gold imports from Russia to China. Non-manufacturing PMIs on Friday showed a marked improvement to 55.1, with manufacturing up to 51.8. and the nation’s central bank on Saturday raised interest rates on standing facility loans. Housing prices in Australia grew by 1.4% in March – a 7-year record rate. The country’s reserve bank has instructed banks to limit interest-only loans to 30% of mortgage loans. Retail sales, on the other hand, fell for the 2nd month in a row, surprising expectations of a 0.3% increase.
Oil futures this morning remain steady just above the $50 mark (53.52 for Brent) after 10 more oil rigs were added Friday to the Baker Hughes count.
Tesla announced Sunday that it had exceeded Q1 sales expectations – 69% above the same period last year – especially on optimism that production-freeze signatories will extend their deadline, which for now seems to be effectively countering US shale increases.
|8 AM GMT||EU: Markit Manufacturing PMI, followed at 10 by Unemployment & PPIs|
|2 PM GMT||US: ISM Manufacturing PMIs and Prices Paid – 15 minutes after Markit’s Manufacturing PMI|
|1:30 AM GMT (+1)||Australia: Trade Balance|