tyb!
US Futures, Yuan Drop In Early Asian Trading
Following another weekend highlighted by no progress in trade-talks and further recriminations (from China this time, blaming POTUS for the latest collapse in discussions), equity futures and yuan are opening notably lower…
Bloomberg reports that Beijing released a white paper on Sunday saying the escalating trade war between the world’s two largest economies hasn’t “made America great again” – appropriating Trump’s 2016 campaign slogan. The paper instead contends that the trade actions have done serious harm to the U.S. economy by increasing production costs, causing prices hikes, damaging growth and people’s livelihoods and creating barriers to U.S. exports to China. In short, Trump’s tariffs aren’t helping, China concluded.
(aren't helping them that's for sure, they will never be bale to sell the debt they hold-been over this a few times-if he found a buyer, doubtful, it would still devalue what they still hold-FUCKED they are.)
“It is foreseeable that the latest U.S. tariff hikes on China, far from resolving issues, will only make things worse for all sides,” according to the white paper.
Additionally, as Bloomberg notes, President Trump opened another potential front in his trade war on Friday, terminating India’s designation as a developing nation and thereby eliminating an exception that allowed the country to export nearly 2,000 products to the U.S. duty-free.
“I have determined that India has not assured the United States that India will provide equitable and reasonable access to its markets,” Trump said in a proclamation.
“Accordingly, it is appropriate to terminate India’s designation as a beneficiary developing country effective June 5, 2019.”
S&P futures are testing the trade-deal hope lows…Dow futures down around 129 points.
The Yuan is giving back late-Friday's bounce gains.
remember the PBOC said that anyone taking speculative short positions would lose-kiss of death.
PBOC ‘Confident’ Yuan Can Stay Stable, According to Governor’s Remarks
People’s Bank of China’s Governor Yi Gang said he’s “confident” the yuan will stay basically stable at a reasonable and equilibrium level, as many factors favor a stable currency.
The yield spread between U.S. and Chinese 10-year sovereign bonds was “still in a relatively comfortable range” and the case for the Federal Reserve to raise interest rates was smaller, Yi said on May 18, according to an article published Tuesday by China’s Securities Journal. Both of these are favorable to keeping the yuan stable, Yi said at a meeting held that day.
Yi’s comments on the yuan are similar to recent remarks from Guo Shuqing, the country’s top banking regulator and the PBOC’s party secretary.
Over the weekend he warned speculators that shorting the yuan could lead to huge losses and later said that the economy’s fundamentals mean that it won’t depreciate in the long term.
(ya good 'ruck' with that)
https://www.bloomberg.com/news/articles/2019-05-28/pboc-confident-yuan-can-stay-stable-yi-said-earlier-in-may
Japan's corporate investment rises amid global uncertainty
meanwhile this has to make Abe-san VERY habby.
TOKYO (Reuters) - Japanese business investment rose in January-March, continuing the run of growth seen over the past two years although signs of slowing momentum have raised concerns about the strength of business activity amid mounting global economic risks.
Ministry of Finance (MOF) data out on Monday showed capital expenditure grew 6.1% in January-March from the same period last year, led by chemicals, production machinery and leasing of goods. It followed a 5.7% gain in the previous quarter.
Excluding software, capital expenditure rose 1.1% in January-March from the previous quarter on a seasonally-adjusted basis, up for a second straight quarter. But it slowed from the previous quarter’s 3.9% gain.
The data will be used to calculate revised gross domestic product figures due on June 10.
https://www.reuters.com/article/us-japan-economy-capex/japans-corporate-investment-rises-amid-global-uncertainty-idUSKCN1T30XB?il=
https://www.zerohedge.com/news/2019-06-02/futures-yuan-tumble-early-asian-trading
https://www.bloomberg.com/markets/stocks/futures
https://www.cnbc.com/asia-markets/
!!!!!!!
SECOND NOTABLE
o7
It's a joke fren. Humor is key here.
for those who do not know. It is nothing moar than a survey-there is NOTHING empirical about it. If a member wants to say they extended a loan to another bank at a favorable rate they simply respond to the survey with the answer that makes it look much better than the actual reality of the extended loan. This is also part of the repo process that the FRB does in concert with all the other central banks of the world.
It's commonly known as LIEBOR
How is Libor determined?
The London Interbank Offered Rate or LIBOR is actually a set of several benchmarks that reflect the average interest rate at which large global banks can borrow from each other. The leading indicator used to price loans and other debt instruments, it is produced once a day by the Intercontinental Exchange (ICE) and regulated by the Financial Conduct Authority. There are a total of 35 LIBOR rates posted each day; interest rates are compiled for loans with seven different maturities (or due dates) for each of 5 major currencies, including the Swiss franc, the euro, the pound sterling, the Japanese yen, and the U.S. dollar.
Each morning, just before 11 a.m. Greenwich Mean Time, the ICE Benchmark Administration (IBA) asks a panel of contributor banks (usually 11 to 18 large, international banks) to answer the following question: “At what rate could you borrow funds, were you to do so by asking for and then accepting interbank offers in a reasonable market size just prior to 11 a.m. London time
Only banks that have a significant presence in the London market are considered for membership on the ICE LIBOR panel, which is determined annually.
https://www.investopedia.com/ask/answers/12/how-is-libor-determined.asp
GOOD LORD!