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Breakfast Bites - Wed May 31, 2023

Rise and shine everyone.

The Debt Ceiling deal was cleared by the House Rules Committee and head to the a vote by the full House today.

We have a few important tech earnings after the close today and JOLTs data coming out in the US.

Markets are trading lower this morning with the US Dollar, Gold and Bonds trading higher. WTI Oil took quite a beating yesterday down over 4% and trading at $67.54 this morning. Bitcoin still remains weak at $27,132.

Asia and Australia

  • Asian equities ended lower across the region Wednesday. Declines led by Hang Seng, down another 1.9% to make a 8.3% loss for the month

  • China’s Official manufacturing PMI was 48.8 in May, below consensus 49.5. - still in contractionary territory. The Caixin PMI data is to be released later today.

  • Bank of Thailand raises base rate 25 bps to eight-year high at 2%.

  • Japan’s Industrial production fell 0.4% m/m in April against expectations of a 1.4% gain.

  • Japan’s Retail sales fell 1.2% m/m vs consensus forecast of a 0.5% rise.

  • Australian monthly CPI inflation rose to 6.8% y/y in April from 6.3% in March, higher than consensus 6.4%.

  • China launched a team of three, including the nation’s first civilian astronaut, into orbit on Tuesday in the first crewed mission since the completion of its space station late last year

Europe, Middle East, Africa

  • European equity markets lower, yet off the worst levels. Follows second consecutive negative close on Tuesday.

  • France inflationary pressures declining visibly. May CPI was 5.1% vs 5.5% expected and 5.9% prior - weakest data in over a year.

  • German April import prices declined 7% y/y vs (5.8%) expected and (3.8%) prior, the most since the Covid crisis in 2020.

  • UK business confidence registers first drop in three months - The Lloyds Bank Business Barometer fell 5 points in May to 28%

  • EU banks provided more detail on CRE exposure with Q1 results. Average CRE prices declined ~20% from 2022 peak.

The Americas

  • Cleveland Fed President Mester sees no compelling case to wait before next rate hike

  • Economists see GOP big spending cuts measure of the debt-ceiling pact as "modest" with little impact likely on the economy

  • Foxconn forecasts its AI server business will at least double in 2H23

  • Goldman Sachs pursuing fresh round of job cuts amid prolonged decrease in dealmaking

  • Twilio has been meeting with activist investor Legion Partners


(news taken from Reuters, FT, Bloomberg; Calendar from Trading Economics)


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