Morning Brief: PacWest Bancorp Under Pressure; China’s Holiday Tourism Rebound; Focus On ECB
Americas
Markets
*Focus on banks
🇺🇸 Regional #Banks Sink as #PacWest Weighs Strategic Options – Bloomberghttps://t.co/BGc00XwKod pic.twitter.com/umYqJtvr4a
— Christophe Barraud🛢🐳 (@C_Barraud) May 4, 2023
Economic Indicators and Prospects
About four in ten US small businesses say they were very or moderately concerned about the health of their bank last month, though very few actually changed banks https://t.co/ugWXXDL6eE
— Bloomberg (@business) May 3, 2023
ISM® Services Index Increases to 51.9% in Aprilhttps://t.co/moqSKx5vD8
— Bill McBride (@calculatedrisk) May 3, 2023
The ISM® Services index was at 51.9%, up from 51.2% last month. The employment index decreased to 50.8%, from 51.3%.
ADP Data Surprise With Biggest Private Payrolls Gain Since July pic.twitter.com/GoPbBP8nOM
— Menthor Q (@MenthorQpro) May 3, 2023
Housing
MBA: Mortgage Applications Decreased in Weekly Surveyhttps://t.co/zzqwS86y0f pic.twitter.com/wGKZ0TnaC7
— Bill McBride (@calculatedrisk) May 3, 2023
Black Knight Mortgage Monitor: Home Prices Increased in March; Prices Up 1.0% YoY
— Bill McBride (@calculatedrisk) May 3, 2023
Record Low National Delinquency Rate https://t.co/YiflVoqdeY pic.twitter.com/clLTtAcy1K
Monetary Policy
FOMC DECISION:
— Nick Timiraos (@NickTimiraos) May 3, 2023
• Fed raises rates by 25 bps as expected
• Policy statement softens the rate guidance in a way consistent with past pauses
• Deletes reference to “some additional policy firming may be appropriate”
• Unanimous decision pic.twitter.com/WJP5tcwAyC
🇺🇸 One key assumption of the Fed recently is that rent inflation as measured in the CPI is about to peak and cool down. I have agreed to that conclusion, but I just noted that the data for Median Asking Rent jumped massively in Q1 2023. Could the Fed be wrong… again… pic.twitter.com/tlcOt4HNjX
— Mikael Sarwe (@MikaelSarwe) May 4, 2023
Biden Picks Fed’s Jefferson For Vice Chair, Kugler For Governor – BBG https://t.co/kNjQ4GD40W
— LiveSquawk (@LiveSquawk) May 3, 2023
BREAKING: The Federal Reserve raises interest rates by quarter of a percentage point and opens the door to a rate-hike pause https://t.co/tgXNkXxmPh https://t.co/tgXNkXxmPh
— Reuters (@Reuters) May 3, 2023
Fiscal Policy
White House Details ‘Severe Damage’ To The Economy If Debt Ceiling Default Occurs – NBC https://t.co/MU2EbbTkJP
— LiveSquawk (@LiveSquawk) May 3, 2023
Trade, Politics and Geopolitics
Senate Democrats will announce they’ll begin drafting a new comprehensive bill to enhance US economic competition with China and prepare a response in case of aggression against Taiwan https://t.co/FWJKML45VP
— Bloomberg (@business) May 3, 2023
Biden's administration would support speeding up disbursements from Argentina’s $44 billion program with the IMF if the nation’s authorities can successfully negotiate a new schedule https://t.co/1KPvKokUUv
— Bloomberg (@business) May 3, 2023
The US and the Philippines promised to deepen their defense alliance during President Ferdinand Marcos’s visit at the Pentagon where he was given rare honors https://t.co/DgQStkYu8P
— Bloomberg (@business) May 4, 2023
Asia
Economic Indicators and Prospects
⚡JUST IN
— CN Wire (@Sino_Market) May 4, 2023
China April Caixin Manufacturing PMI 49.5 [Est.50.3 Prev.50.0]#China #PMI #manufacturing 🇨🇳 https://t.co/w6br2L55ko pic.twitter.com/BlGo2YAjCb
🔵 AUSTRALIA'S EXPORTS TO CHINA HIT RECORD HIGHS AS BARRIERS EASE
— PiQ (@PiQSuite) May 4, 2023
Read More: https://t.co/kXPFT8Hhh6 pic.twitter.com/caVlfQ6oFj
Monetary Policy
IMF sees uncertainty over Japan's monetary policy, spillover globally https://t.co/LSvV4Re1bU pic.twitter.com/SKRMbj22A3
— Reuters (@Reuters) May 4, 2023
Trade, Supply Chain and Geopolitics
China's AI industry barely slowed by US chip export rules https://t.co/AWPDSuzuiL pic.twitter.com/8iJMdpvC9s
— Reuters (@Reuters) May 3, 2023
Washington signals support for South Korean chipmakers in US battle with China https://t.co/UlEtJzRJMM
— Paul Triolo (@pstAsiatech) May 3, 2023
Europe
Economic Indicators and Prospects
UK Auto Industry Body Says April New Car Sales Rise 10%, Raises 2023 Forecast – RTRS https://t.co/oqQ5bkjQGi
— LiveSquawk (@LiveSquawk) May 4, 2023
Eurozone April final services PMI 56.2 vs 56.6 prelimhttps://t.co/ueXHIE0195
— ForexLive (@ForexLive) May 4, 2023
Monetary Policy
#ECB preview: banking on policy transmission “a forward-looking ECB should move more cautiously from here stepping down to 25bp rate hikes in full data-dependent mode”, @fwred, Head of Macroeconomic Research, and @nghrbi, Senior Economist, at Pictet Wealth Management pic.twitter.com/pclSSu8FrC
— Pictet Group (@PictetGroup) May 2, 2023
🇪🇺 It's happening: the ECB has reduced its APP bond holdings by €30bn over the past two months… pic.twitter.com/TbP6jnKWmX
— Frederik Ducrozet (@fwred) May 3, 2023
Fiscal Policy
EU pledges €500 million to boost ammunition output in Europe https://t.co/n6BLecqpHQ via @nat_droz pic.twitter.com/8M1dA6AaUN
— Zoe Schneeweiss (@ZSchneeweiss) May 3, 2023
EU to speed up lifting of immunity in crackdown on corruption https://t.co/xQvKoQA3yZ via @LyubovEUWorld @StephanieBodoni pic.twitter.com/n4PMyTb8tV
— Zoe Schneeweiss (@ZSchneeweiss) May 3, 2023
Politics
French ruling shoots down pension referendum in blow for unions https://t.co/cGkki481JR via @Newsbaum_ pic.twitter.com/xuM1OmARsB
— Zoe Schneeweiss (@ZSchneeweiss) May 4, 2023
Trade, Supply Chain and Geopolitics
G7, EU are developing new sanction packages to intensify pressure on the Russian economy
— Euromaidan Press (@EuromaidanPress) May 3, 2023
As per Bloomberg, the restrictions, which include measures on closing loopholes in existing penalties, will be announced at the G7 leaders meeting in Japan in Mayhttps://t.co/FIbtlL1aBC