Morning Brief: U.S. Banks Cut Lending Sharply; BoJ Scraps Forward Guidance On Interest Rates; Eurozone GDP Grew Less Than Expected
Americas
Markets
BofA says the US stock rally could come to a halt as earnings drop sharply and the labor market weakens https://t.co/mjCiHZzwhY
— Bloomberg Asia (@BloombergAsia) April 28, 2023
Bond investors see US inflation accelerating further https://t.co/tuflY33CDF
— Bloomberg Markets (@markets) April 28, 2023
US 7-Year Note Sale:
— LiveSquawk (@LiveSquawk) April 27, 2023
– High Yield Rate: 3.563% (prev 3.626%)
– Bid-Cover Ratio: 2.41 (prev 2.39)
– Direct Accepted: 21.1% (prev 21.4%)
– Indirect Accepted: 64.1% (prev 63.2%)
– WI: 3.550%
*Focus on banks
Fed Emergency Lending To Banks Ticks Up Modestly In Latest Week – RTRShttps://t.co/PitDuYM8zT
— LiveSquawk (@LiveSquawk) April 27, 2023
First Republic’s advisers are working on a private-sector solution they hope can overcome scepticism in Washington and keep the bank from being shut down by the government https://t.co/c6f38shMNv
— Financial Times (@FinancialTimes) April 28, 2023
US Officials Lead Urgent Rescue Talks For First Republic – RTRShttps://t.co/2e238Vruob
— LiveSquawk (@LiveSquawk) April 28, 2023
Economic Indicators and Prospects
Weekly Initial Unemployment Claims decrease to 230,000https://t.co/9yLptnchwV pic.twitter.com/SmGvMrlC3Q
— Bill McBride (@calculatedrisk) April 27, 2023
US GDP Annualised (Q/Q) Q1 A: 1.1% (est 1.9%; prev 2.6%)
— LiveSquawk (@LiveSquawk) April 27, 2023
– US Core PCE (Q/Q) Q1 A: 4.9% (est 4.7%; prev 4.4%)
– US Personal Consumption Q1 A: 3.7% (est 4.0%; prev 1.0%)
– US GDP Price Index Q1 A: 4.0% (est 3.7%; prev 3.9%)
US Economy Expected to Contract for 2 Quarters pic.twitter.com/YNCUp8o7t2
— *Walter Bloomberg (@DeItaone) April 27, 2023
Housing
US Pending Home Sales (M/M) Mar-5.2% (est 0.8%; prev 0.8%)
— LiveSquawk (@LiveSquawk) April 27, 2023
– Pending Home Sales NSA (Y/Y): -23.3% (est -20.7%; prev -21.1%)https://t.co/sAvphHEQCP pic.twitter.com/nAZk2KoRGi
Realtor. com Reports Weekly Active Inventory Up 39% YoY; New Listings Down 21% YoYhttps://t.co/26SPZoVCoM
— Bill McBride (@calculatedrisk) April 27, 2023
The recent trend suggests active inventory could be down YoY in Q3! pic.twitter.com/upTFhYscwO
Monetary Policy
Now, Fed officials are closely watching wages. Some (@Austan_Goolsbee) aren't sure about wages-> inflation. See @RichMiller28 @catarinasaraiva's nice story today.
— Jeanna Smialek (@jeannasmialek) April 27, 2023
But many worry it'll be hard to get back to normal with pay this strong.https://t.co/BTNCov0BPc pic.twitter.com/Oy2NY2EA6g
Fiscal Policy
The debt ceiling standoff is intensifying partisan fights as Democrats claim that the Republican bid to scuttle many climate law subsidies for low-carbon energy would aid China.https://t.co/O1Nq0cNiGu
— Axios (@axios) April 27, 2023
New Manchin statement calling on Biden to negotiate with McCarthy on the debt limit:
— Andrew Desiderio (@AndrewDesiderio) April 27, 2023
“Speaker McCarthy did his job and he passed a bill that would prevent default and finally begin to rein in federal spending.” pic.twitter.com/sFy3tyECbw
Trade, Politics and Geopolitics
The Biden administration is targeting overseas intelligence services to deter the wrongful imprisonment of American citizens https://t.co/OVg4pKhhIo
— Bloomberg Middle East (@middleeast) April 27, 2023
Asia
Economic Indicators and Prospects
Japan Retail Sales (Y/Y) Mar: 7.2% (est 6.5%; prevR 7.3%)
— LiveSquawk (@LiveSquawk) April 27, 2023
– Retail Sales (M/M) Mar: 0.6% (est 0.3%; prevR 2.1%)
– Dept Store, Supermarket Sales (Y/Y) Mar: 3.2% (prev 4.7%)
Taiwan slips into recession as Q1 GDP hits 14-year low https://t.co/IhnjNnRwNn pic.twitter.com/Ql24mE08ZM
— CNA (@ChannelNewsAsia) April 28, 2023
Malaysia's tourism industry struggling to recover as Chinese visitors trickle in https://t.co/eXPB7vg4JG pic.twitter.com/xWFz4NEu6C
— CNA (@ChannelNewsAsia) April 28, 2023
Fully booked! China braces for record May Day holiday rush https://t.co/Vu095Te6Kj pic.twitter.com/UVdqExPZ4W
— CNA (@ChannelNewsAsia) April 28, 2023
China's top leaders say the economy doesn't have enough 'internal' drive https://t.co/dVfFFzvrzm
— CNBC (@CNBC) April 28, 2023
Monetary Policy
BoJ Scraps Forward Guidance On Interest Rates
— LiveSquawk (@LiveSquawk) April 28, 2023
– Will Add To Easing Without Hesitation If Needed
– Price Risks Are Skewed To Upside For Fiscal 2023, Downside For Fiscal 2025
– To Do Broad-Perspective Review Of Policy For 1 To 1.5 Years
BoJ To Review Long-Term Easing Measures, Consider Reviewing Future Guidelines – Nikkei
— LiveSquawk (@LiveSquawk) April 28, 2023
– Will Forego Revising Yield Curve Controlhttps://t.co/DD74VjsFUM
Under Pressure Yuan Faces Into A Period Of Seasonal Weakness – BBGhttps://t.co/stQp7tBMEm
— LiveSquawk (@LiveSquawk) April 27, 2023
Trade, Supply Chain and Geopolitics
China raises concerns about German export curbs amid chips move https://t.co/2xuWOEIyvi via @JDMayger pic.twitter.com/7TaWWsePgr
— Zoe Schneeweiss (@ZSchneeweiss) April 28, 2023
Europe
Economic Indicators and Prospects
The #Eurozone reported minimal growth in Q1 , which adds a new factor for consideration at the self-proclaimed data-dependent #ECB ahead of next week's rate decision. $EUR@ericculpls reviews Friday's euro area #GDP report here: https://t.co/zS60XceUE3 pic.twitter.com/JOr0rYZGHl
— LiveSquawk (@LiveSquawk) April 28, 2023
Eurozone GDP SA (Q/Q) Q1 A: 0.1% (est 0.2%; prevR -0.1%)
— LiveSquawk (@LiveSquawk) April 28, 2023
– Eurozone GDP SA (Y/Y) Q1 A: 1.3% (est 1.4%; prev 1.8%)
Housing
Cash’s allure proves enduring as consumers navigate rising costs https://t.co/vKt66Ja4BP via @annairrera @aishagani @tomelleryrees pic.twitter.com/tKoyUB7RvM
— Zoe Schneeweiss (@ZSchneeweiss) April 28, 2023
Monetary Policy
ECB to slow rate-hike pace next week before hitting its peak in July https://t.co/tdk79pMjMS via @jrandow pic.twitter.com/oJeKr6Ve0l
— Zoe Schneeweiss (@ZSchneeweiss) April 28, 2023
ECB's Villeroy And Knot Put Bank Rule Changes On The Table – RTRS https://t.co/o1KNwnP1M9
— LiveSquawk (@LiveSquawk) April 28, 2023
Politics
A majority of French voters back labor unions’ call to protest against President Emmanuel Macron’s pension reform next week, according to a poll https://t.co/0RU2qZWMx8
— Bloomberg (@business) April 28, 2023
Trade, Supply Chain and Geopolitics
UK Government U-Turns On Plan To Scrap Or Revise All EU Law – @FThttps://t.co/l70GhuDZO7
— LiveSquawk (@LiveSquawk) April 27, 2023