President Trump has dropped Stephen Moore’s nomination for a seat on the Federal Reserve’s board of governors but went on to announce that he will work in another capacity with him on future economic growth in the US. Mr. Moore had been plagued with controversial statements from the past which in recent weeks had been rearing its head to mar his campaign.
Richard Trunka gave his two cents on the on-going China-US trade negotiations, sounding warning of an inferior agreement, if President Trump fails to reign in China’s use of industrial subsidies and stem currency manipulation.
The equity space did not have a great showing as at Friday morning, with the DJIA, S&P500 and NASDAQ Composite dipping by 0.46%, 0.21% and 0.16% respectively while the yield on US 10-YR reached 2.545%.
On the back of the progressing trade talks with the US, China has taken further steps to open up their US$44tn financial industry to the world. The China Banking and Insurance regulator announced plans to remove limits on ownership in local banks and scrap size requirements for foreign firms with operations in China the economy will also open up to allow overseas insurance groups open shop.
Shinzo Abe, Japanese Prime Minister, has stated his willingness to meet with Kim Jong Un for unconditional talks which could also link t support for North Korea in their impasse with the United States. Abe is keen to guarantee the safety of Japan in light of North Korea’s weapons program.
In the financial marketplace, on Friday morning the NIKKEI and the KOSPI shed 0.22% and 0.74% while the Hang Seng Index added 0.27%. On Asia-Pacific currencies, the SGD, HKD and JPY all gained 0.04%, 0.03% and 0.01% on Friday morning to exchange at 1.3633, 7.8446 and 0.00896 against the US Dollar.
The Bank of England delivered upbeat set of forecasts, upgrading their expectations for growth, and predicting a fall in unemployment followed by a surge in excess demand. The policy makers however, voted unanimously to hold rates for the time being.
Construction space in the UK showed positive signs in April, returning to a growth trajectory supported by more house buildings coming up. The HIS Markit PMI for the construction industry as a result inched up from 49.7 to 50.5 representing expansion.
The FTSE shed 0.46% by Friday morning to reach 7,351.31 while the yield on UK 10-YR was unchanged at 1.186%. In the currency market, the GBP exchanged for 1.3022 shedding 0.09% against the greenback.
The ECB officials expressed great confidence in the EU’s improving economic outlook, re-assuring analysts that the economy is only experiencing a weak patch and would pick up speed in the months ahead.
Some of the fiscally hawkish members of the EU are mounting pressure on the ECB to further reduce the planned size and scope of the Eurozone budget. The Netherlands, Latvia, Finland, Ireland and Lithuania in a joint diplomatic note have urged the ECB to lower the budget and implement stricter conditions for accessing the money. Sweden and Denmark also acceded to the diplomatic note heaping more pressure on the ECB, giving a snippet to the size of the task ahead of the regulator.
The European bourse eased; DAX inched up marginally, while the STOXX600 fell by 0.6%. The yield on Bund 10-YR reached 0.035 while ITA 10-YR and FRA 10-YR held at 2.558% and 0.38% by Friday morning. The EUR was trading at an exchange rate of 1.1197 moving up ever so slightly against the US Dollar.
Some of the major news from the region informs that the US is threatening to place a full and complete embargo on Cuba according to a tweet from President Trump; if her troops and militia do not cease military operations causing chaos in the shape of death and destruction to Venezuela.
A court in Venezuela has ordered the arrest of Leopoldo Lopez in a continued crack down on the organizers of the unsuccessful uprising against President Maduro. The order suggests that Mr Lopez would serve 8 years in the Ramo Verde military prison to complete his initial 13 year sentence.
In the region’s bourse, the CARACAS and TSX Composite shed 4.69% and 0.56% respectively while the MERVAL added 4.21%. The MXN and BRL both gained against the US Dollar, adding 0.07% and 0.06% to exchange for 19.1279 and 3.9676 respectively.