On Monday the U.S. Energy Department cancelled a $200 million grant for lithium battery company Microvast HoldingsNews report citing an unnamed "source familiar with the matter".Republican lawmakers cited concerns over the firm's alleged links to China's government...
More on central banks, governments rigging Libor, and then jailing scapegoat traders
Earlier post on this is here:In that poist there is a link to an unfortunately gated report from the UK Times. However, the BBC has an ungated report that covers much ground here:evidence indicates that in October 2008, central banks including the Bank of England, the...
Chinese tabloid says there is no basis for long-term yuan depreciation
An early Friday funny from the Chinese Communist Party's tabloid Global Times, blaming the weak yuan on anything and everything except faltering performance in the Chinese economy. Its hard to know where to start with this laughable piece. If you want a chuckle, here...
UBS warns that credit & growth negatives not being adequately reflected in rising equities
A snippet from UBS on their concerns over US equity pricing. Analysts at the bank say they don't think the likelihood of tighter credit conditions and lower growth is adequately reflected in US equity market pricing todayUBS instead advise investors to get into high...
PBOC sets USD/ CNY central rate at 7.0326 (vs. estimate at 7.0327)
People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.CNH is the offshore yuan. USD /CNH has no restrictions on its trading...
White House debt limit negotiators returning to Capitol Hill to resume (staff level) talks
High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives,...
Japan preliminary PMI for May: Manufacturing 50.8 (prior 49.5), Services 56.3 (prior 55.4)
Jibun / S&P Global flash PMIs from Japan for May 2023Manufacturing 50.8 prior 49.5Services 56.3 prior 55.4Composite 54.9prior 52.9Encouraging results from Japan. USD/JPY popped a little higher earlier to around 138.80 and is now back to circa 138.50. Yield...
PBOC is expected to set the USD/CNY reference rate at 7.0327 – Reuters estimate
People's Bank of China USD/CNY reference rate is due around 0115 GMT.The People's Bank of China (PBOC), China's central bank, is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate...
US President Biden on talks with McCarthy – we reiterated that default is off the table
High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives,...
Republican negotiator McHenry says he sees a “lack of urgency” from the White House.
High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives,...
Australian weekly Consumer Confidence survey 77.9 (prior 75.9)
ANZ-Roy Morgan Australian Consumer Confidence survey still languishes at deeply pessimistic levels. ANZ commentary on the result is dour, as usual:among the worst ten results since January 2020 But, its not as bad as it sounds. Its worse:seven of which have occurred...
Chinese financial media says LPRs (PBOC loan rates) likely to stay unchanged for some time
The info comes via two media sources in China, China Securities Journal and Shanghai Securities News.In summary:There is a high probability that the follow-up LPR will remain stable, and the overall loan interest rate may be mainly stable. The necessity of further...
US McCarthy after meeting with Biden – say no debt limit agreement yet
more to comeUS President Biden and US House Speaker McCarthy met on debt ceiling negotiations. McCarthy holding a news conferencesays no agreement reachedhe feels discussions were productivetone of discussion was improved from previous timeswas productive in areas...
Australian preliminary PMIs: Manufacturing 48.0 (prior 48.0) Services 51.8 (prior 53.7)
Judo Bank / S&P Global Australia flash PMI data for May 2023Manufacturing unchanged at 48.0prior 48.0Services down to 51.8prior 53.7Composite lower to 51.2Commentary from the report, in brief:Both the output and new orders results are in expansionary territory....
Japanese Yen Weakens as Treasury Yields Rise, USD/JPY Triangle Breakout in Focus
Japanese Yen, USD/JPY, Treasury Yields, Ascending Triangle – Briefing:Japanese Yen weakens to wrap up the first trading day of the weekRising Treasury rates keep pressuring the yield-sensitive currencyUSD/JPY Ascending Triangle chart pattern breakout is in focus...
Morgan Stanley on the US equity rally – says it’s a “head fake”
Morgan Stanley remain unconvinced on US equity market strength. These from a Monday (US time) note to clients:“Bottom line, from a technical standpoint, last week’s price action showed signs of panic buying, in our view.” “Rather than a short squeeze, the market was...
US President Biden says he is optimisitc we will make some progress on debt ceiling
US President Biden speaking ahead of the meeting he is now having with US House Speaker McCarthy on debt limit negotiations. Optimistic we will make some progress on debt ceilingWe need a bipartisan agreement, need to sell it to our constituenciesWe should be looking...
JPMorgan CEO Jamie Dimon urges markets to brace for potentially higher interest rates
Dimon spoke at the bank's 'investor day', with much interest on his (non) retirement plans. Dimon also remarked on his interest rate outlook, saying everyone should be prepared for rates to go even higher from here.Also speaking was JP Morgan President and Chief...
Fed’s Kashkari says it way too early to declare the ‘all clear’ on banking problems
> Central Banks > Fed's Kashkari says it way too early to declare the 'all clear' on banking problems Central Banks <!--> --> <!--> --> <!--> Federal Reserve Bank of Minneapolis President Neel Kashkari was in the news earlier...
BlackRock has downgraded its view on credit, from overweight to neutral
An update from the BlackRock Investment Institute, saying that its moved from "overweight" to "neutral" on credit. Blackrock say that yields are not enough to compensate investors for tightening credit conditions.Strategically, we are neutral global investment grade....