Rise and shine everyone and Happy Monday!
The Senior Loan Officer Survey is set to be released today and it’s a report everyone’s been waiting for to see how tight lending conditions have become with the banks.
While we’re done with the biggest market cap companies reporting earnings, we still have a busy week of earnings ahead of us.
We also have CPI on Tuesday, PPI on Thursday and UK GDP numbers on Friday.
US Markets are flat to slightly higher this morning. The dollar and bonds are seeing some pressure. Copper, Gold and Oil are all trading higher. Bitcoin has taken a hit falling below $28000 on news that Binance (the biggest Bitcoin exchange) had stopped withdrawals. Withdrawals have now been resumed but there is still speculation of trouble with the company.
Asia and Australia
Asian markets trading mostly higher Monday. Japan shares set to close lower as it marks to market post last week's holiday. Elsewhere higher, led by mainland China and Hong Kong. Strong day in Australia, South Korea and Taiwan.
No major surprises from the Bank of Japan meeting minutes. March BOJ minutes indicated thoughts that market distortions remained though did not worsen
Toyota, Nintendo and Daikin lead expected Japan earnings beaters
62.1% of companies in Japan have raised or plan to raise base pay in FY23, up sharply from 38.7% the previous year as they seek to secure talent and match rising prices. - This is an important piece of data for Japan as the new BoJ Governor Ueda is focused on wanting wages to increase.
EU has proposed sanctions on seven Chinese companies for supporting Russia's war in Ukraine, first time sanctions imposed directly on Chinese firms since start of war.
Europe, Middle East, Africa
European equities higher after finishing last week with mild losses. UK closed for Coronation of King Charles III. Energy, Healthcare and Banks lead; Real Estate, Telecom and Utilities lag.
No market moving news over the weekend. ECB's Knot said on Sunday not certain how high EZ rates will have to go.
Credit Suisse demise isn't deterring hedge funds from EU bank bonds
Swedish housing prices rose 1% in April, contrary to more dire Riksbank expectations
President Biden is set to meet Speaker McCarthy on Tuesday to discuss raising the debt ceiling. The GOP wants promises of cut backs of Government spending but, the Biden administration wants a clean raise without conditions. 43 Senate Republicans say they will oppose any bill that only raises the debt ceiling
FDIC considering whether to offer loss-sharing agreements to private equity firms and other nonbanks that acquire parts of failed lenders
Activist Investor, Nelson Peltz exploring possible shakeup of Estee Lauder. Estee Lauder reported last week and they discussed revenues declining by 10-12% during FY 2023 and guided to EPS almost 32% below the Street’s estimates. Nelson Peltz is possibly looking at ousting the CEO and exploring a possible sale of the company.
Tyson food reported yet another miss this quarter and discussed the protein market becoming challenging. As expected, volumes have declined particularly in Processed Food and Beef (-2.9%). Chicken and pork are still up. They posted a quarterly loss of $97m and updated revenue guidance to below the Street’s estimates. They also see further price declines. This is important to note as it is the start of headwinds coming from the decline in PPI and CPI.
(news taken from Reuters, FT, Bloomberg; Calendar from Trading Economics)