TradeTheNews.com Weekly Market Update: Markets attempt to recalibrate balance between growth and inflation expectations
5/27/2022 4:06:09 PM
U.S. stock indexes finally held onto some momentum this week snapping what had been a painful 7-week losing streak. Bond yields retreated, and more importantly stayed lower as investors’ focus seemed to shift away from inflation and the prospects for aggressive Federal Reserve tightening towards worries about the outlook for global economic growth. That narrative was largely rooted in commentary from the Fed’s Bostic who on Monday acknowledged it could make sense to pause rate hikes in September if the data warranted. It was further reinforced by the US economic data. May Richmond Fed Manufacturing data came in dramatically lower, printing its lowest negative reading since May of 2020, while US housing data continued to show real deterioration. Friday’s core PCE data fell back below 5%, as expected, offering hope that one of the Fed’s key inflation gauges may have peaked.
Severely oversold conditions, the month end and a holiday-shortened calendar likely contributed to a setup that afforded a base in equity prices. Stock investors may have also been heartened by a continued decline in the dollar which extended a retreat from the two-decade highs seen earlier this month. WTI crude prices moved out to the highest levels since mid-March heading into next week’s OPEC+ meeting where producers are expected to adhere to the current output path. Bitcoin saw its correlation to higher beta equities falter as it, and crypto assets in general, noticeably lagged the rebound in stock markets. US Treasury yields finished the week at better than 1-month lows after the 2-year broke below 2.5% and the 10-year neared 2.7%. For the week, the S&P was up 6.6%, the DJIA gained 6.2%, and the Nasdaq rose 6.8%.
In corporate news this week, Snap dropped over 20% after warning its Q2 results would come in under the low end of its prior outlook and that the company intended to slow its hiring. Nvidia shares lost ground after reporting muted revenue guidance, anticipating a $500M hit from COVID lockdowns in China and the war in Ukraine. Macy’s bucked the larger retailer trend, along with Nordstrom, by posting a beat on its top and bottom line while raising profit guidance, as it noted consumer shopping behaviors shifted to more occasion-based apparel. Similarly strong earnings from Dollar Tree, Dollar General, and Williams Sonoma helped lift investor sentiment. However, Best Buy joined the list of retailers who cut their outlook for the year, with the electronics giant noting negative trends have continued into Q2.
JetBlue and Southwest raised their guidance, noting higher than expected summer ticket sales for vacations and business travel. Homebuilder Toll Brothers shares jumped after posting big profits and revenue beats, helped by strength in pricing. Volkswagen CEO Herbert Diess said he was seeing ‘clear improvement’ in semiconductor supplies and expects the automaker's global production can recover during the rest of this year.
Broadcom announced plans to acquire cloud computing giant VMware for $61B, as it continues to move into the enterprise software space. Wendy’s shares popped after its largest shareholder Trian said it was exploring a potential transaction to enhance shareholder value. Twitter rebounded after a filing from prospective purchaser Elon Musk in which he committed to provide an additional $6.3B in equity financing for the acquisition, seemingly contradicting his prior tweets that the deal was on hold.
SUN 5/22
(AU) Australia Labour coalition wins 72 seats in Parliament to 52 of the Liberal coalition; Anthony Albanese to become PM on Monday, May 23rd
AMZN Reportedly wants to shed 'at least' 10 million square feet of space in the NY area; Considers options to sublet the space or end warehouse leases amid cooling online sales - press
(EU) European Center for Disease Prevention and Control said to be urging EU member states to plan for monkeypox jabs - FT
(BE) Belgium introduces compulsory 21-day quarantine for monkeypox patients (first country to do so) after fourth case has been confirmed in the country - press
(CN) Shanghai's Jingan district will require all shops to shut, residents to stay at home and mass testing conducted over May 22-24th - press
(IN) India govt reportedly considers to spend additional INR2T (~$26B) to fight inflation - press
VMW Broadcom said to be in talks to acquire the co. in cash and stock deal upwards of $50B; potential terms not disclosed - US financial press
MON 5/23
(US) President Biden: Recession is not inevitable; Confirms US is considering reducing the current tariffs on China; Wants OPEC to raise oil production - comments from Tokyo
(CN) China National Health Commission (NHC) official Zhenglong: COVID situation in steady decline recently
*(DE) GERMANY MAY IFO BUSINESS CLIMATE SURVEY: 93.0 V 91.4E
(EU) EU Commission confirms to extend EU debt-rule suspension into 2023; Proposes to reinstate limits in 2024
*(EU) ECB CHIEF LAGARDE: LIKELY IN A POSITION TO EXIT NEGATIVE INTEREST RATES BY END OF Q3 2022 - Blog post
XPEV Reports Q1 (CNY) -0.90 v -0.44 y/y, Rev 7.45B v 2.95B y/y
JPM Raises FY22 NII $56B+ (prior $53B+) v $44.5B y/y; Affirms FY22 Adj expense $77B (prior $77B) v $71B y/y; Notes credit outlook remains positive - investor day slides
DPW.DE CEO: Volume of air and sea freight out of China in April was reduced but has improved in May
(US) US reportedly mulls emergency diesel reserve release to ease prices - CNN
*(IS) ISRAEL CENTRAL BANK (BOI) RAISES BASE RATE BY 40BPS TO 0.75%; MORE-THAN-EXPECTED
MRNA FDA spokesperson: June 15th will be new meeting date for EUA request for vaccine for children six months to five years old - press
(FR) ECB’s Villeroy (neutral, France): Euro area growth resilient, main problem short term is inflation
(DE) Germany Econ Min Habeck: Hopeful EU will agree Russian oil embargo within days
(US) NY Fed takes $2.05T in RRP program at 0.80%; 94 participating and accepted counterparties (new record high, first time hitting $2T)
(TR) Turkey President Erdogan: To cease talking to Greece PM Mitsotakis
ALB Raises FY22 $12.30-15.00 v $11.11e (prior $9.25-12.25), Rev $5.8-6.2B v $5.52Be (prior $5.2-5.6B), adj EBITDA $2.2-2.5B (prior $1.7-2.0B)
(CN) China Vice Premier Sun Chunlan urged officials in Beijing to take quicker moves to deal with COVID - Xinhua
ABNB Confirms will suspend China ops on July 30th; China customers may still book overseas afterwards
(HK) Hong Kong Chief Exec Lam: Unlikely to lift quarantine in my term
TUES 5/24
(EU) ECB chief Lagarde: It was a good rime to share outlook how to end negative rates; We are clearly now at a turning point - Davos interview
*(FR) FRANCE MAY PRELIMINARY MANUFACTURING PMI: 54.5 V 55.2E (18th month of expansion but lowest reading since Oct 2021)
*(DE) GERMANY MAY PRELIMINARY MANUFACTURING PMI: 54.7 V 54.0E (23rd month of expansion)
*(EU) EURO ZONE MAY PRELIMINARY MANUFACTURING PMI: 54.4 V 54.7E (23rd month of expansion but lowest reading since Nov 2020)
(FR) ECB’s Villeroy (neutral, France): ECB is in process of normalizing and maintaining accommodative stance; Sees ECB at neutral rate between 1% and 2% some time in 2023
*(UK) MAY PRELIMINARY MANUFACTURING PMI: 54.6 V 55.0E (24th month of expansion)
(EU) NATO Sec Gen Stoltenberg: We have to sit down with Turkey and address its concerns regarding Finland and Sweden NATO membership; Confident talks will succeed
BBY Reports Q1 $1.57 v $1.60e, Rev $10.7B v $10.4Be; Cuts outlook, notes negative trends have continued into Q2
ANF Reports Q1 -$0.27 v +$0.08e, Rev $813M v $802Me; Cuts FY22 outlook; Expects higher costs to remain a headwind through 'at least end-2022'
(EU) ECB's Holzmann (Austria, hawk): Ending 2022 year with positive rates is extremely important; 50bps rate hike in July would be appropriate
(HU) Hungary PM Orban refuses to discuss Russia oil embargo at EU summit on May 30-31st - FT
(SA) Saudi Foreign Min Farhan: Our country has done what it can on oil; Can do nothing more to cool elevated Px; Does not see immediate global oil shortage
*(US) MAY PRELIMINARY S&P/MARKIT MANUFACTURING PMI: 57.5 V 57.7E
*(US) MAY RICHMOND FED MANUFACTURING INDEX: -9 V 10E (last negative reading Sep 2021)
*(US) APR NEW HOME SALES: 591K V 750KE (lowest since Apr 2020)
(EU) EU Commission President Von der Leyen: Confirms do not expect to see a Russia oil ban decision reached at the EU summit on May 30-31st
(US) NY Fed takes $1.99T in RRP program at 0.80%; 92 participating and accepted counterparties
(US) SEC Commission official: Significant issues remain in reaching agreement with China regarding audit inspections - press
(RU) US Treasury confirms it will let general license that had allowed Russia to pay US bondholders to expire at 12:00ET on Weds, May 25th
INTU Reports Q3 $7.65 v $7.60e, Rev $5.63B v $5.52Be; Raises FY outlook
JWN Reports Q1 -$0.06 v -$0.08e, Rev $3.57B v $3.33Be; Affirms & authorizes new $500M share repurchase program (15% of market cap)
(US) Fourteen elementary school students and one teacher killed in Uvalde, Texas school shooting - CNN, citing TX Gov Abbott
WEN Trian Fund Management (19.2% holder) spoke with board about potential transaction to enhance shareholder value - 13D/A filing
*(NZ) RESERVE BANK OF NEW ZEALAND (RBNZ) RAISES OFFICIAL CASH RATE (OCR) BY 50BPS TO 2.00%; AS EXPECTED; Raises the rate path outlook
WEDS 5/25
AAPL Reportedly the iPhone development schedule has been impacted due to China lockdowns; Development of at least one of Apple's new iPhones 14 still remains in the engineering verification test stage - Nikkei
OCDO.UK Trading update: Cuts FY22 retail Rev growth to 'low single digit' (prior Rev 10%); Guides EBITDA margin 'low single digit'; Notes trading environment has deteriorated since Mar 2022, as has been widely reported in industry data
(RU) Russia reportedly could allow corridor for Ukraine ships with food; Insists Ukraine must de-mine ports for grain ship corridor - Russian press
MKS.UK CEO: Consumer outlook is worse for autumn and for H2 2022 comparing with H1 - post earnings comments
(EU) ECB Financial Stability Review: Sees risk of sharp corrections in asset markets if the economic outlook deteriorates as a result of Ukraine war or inflation turns out to be much higher than expected
(CN) Reportedly Beijing City health Chief Yu Luming to be removed from position - press
(UK) Sue Gray report on COVID lockdown violations published; Report finds Downing Street meeting was not a business meeting; Multiple examples of lack of respect and poor treatment of security and cleaning staff
(RU) Russia Finance Ministry: Confirms to continue servicing USD debts in Rubles (RUB); To continue servicing its foreign debts
(IN) India said to have no immediate plan to lift wheat export ban - press
Venture Global reportedly to build $13B LNG plant, pipelines on US Louisiana Gulf Coast - press
(US) Atlanta Fed GDPNow: Cuts Q2 GDP forecast to 1.8% from 2.4%
(US) Fed's George (FOMC voter, hawk) to retire in Jan 2023
(US) Fed’s Brainard (vice chair): Fed taking strong actions that will reduce inflation
(RU) Russia approves gas shipments to Gazprom Germany from Yamal LNG line for the next 90 days - Russian press
(US) NY Fed takes $1.996T in RRP program at 0.80%; 94 participating and accepted counterparties
(US) Association of American Railroads weekly rail traffic report for week ending May 21st: 507K total units, -4.1% y/y
*(US) FOMC MAY MEETING MINUTES: MOST FED OFFICIALS BACK 50BPS HIKE AT NEXT COUPLE MEETINGS; ALL OFFICIALS SUPPORT PLAN TO BEGIN SHRINKING BALANCE SHEET
VOW3.DE CEO Herbert Diess: Seeing "clear improvement" in semiconductor supplies and expects the automaker's global production can recover during the rest of this year - press
WSM Reports Q1 $3.50 v $2.99e, Rev $1.89B v $1.83Be
(CN) China Auto Industry Body CPCA: 3-week May Car Retail Sales -16% y/y; Sales from May 16th to Date +47% y/y
THURS 5/26
992.HK Reports Q4 Net $412M v $260M y/y, Rev $16.7B v $15.6B y/y
M Reports Q1 $1.08 v $0.82e, Rev $5.35B v $5.35Be; Raises guidance
VMW Confirms to be acquired by Broadcom for either $142.50/shr in cash or 0.2520 shares of AVGO stock in deal valued at ~$61B; 40-day "go-shop"
JBLU Raises Q2 Revenue at or above high-end of previous guidance (prior 11% – 16%), capacity 2-3% v 0-3%; Seeing June rev up meaningfully 20% compared to May and April - filing
(UK) Chancellor of the Exchequer (Fin Min) Sunak outlines details of support package and windfall tax on energy company profits
DLTR Reports Q1 $2.37 v $1.99e, Rev $6.90B v $6.74Be
*(US) INITIAL JOBLESS CLAIMS: 210K V 215KE; CONTINUING CLAIMS: 1.35M V 1.31ME
*(US) Q1 PRELIMINARY GDP ANNUALIZED Q/Q: -1.5% V -1.3%E; PERSONAL CONSUMPTION: 3.1% V 2.8%E
*(US) Q1 PRELIMINARY GDP PRICE INDEX: 8.1% V 8.0%E; CORE PCE Q/Q: 5.1% V 5.2%E
OPEC+ said to adhere to policy at June 2nd meeting; To raise July output by 432Kbpd - press
(US) Nevada reports Apr casino gaming Rev $1.13B, +8.6% y/y; Las Vegas strip Rev $593M, +22.8% y/y
*(US) APR PENDING HOME SALES M/M: -3.9% V -2.0%E; Y/Y: -11.5% V -8.0%E
(CN) Sec of State Blinken: Under President Xi China has become more repressive at home; US is determined to avoid a new Cold War
COST Reports Q3 $3.04 v $3.00e, Rev $55.6B v $51.8Be
005930.KR To reduce smartphone production due to weak demand; may cut 2022 smartphone output target by 10% - Korea press
(JP) Bank of Japan (BOJ) Gov Kuroda: Unless energy prices drop sharply, core CPI likely to remain ~2.0% for ~1-year
FRI 5/27
3333.HK Plans to finalise offshore debt repayment plan by July and sign agreement with creditors by December - press
TM Cuts global production 6% to ~800K in June from 850K prior, due to Shanghai lockdowns
*(US) APR PRELIMINARY WHOLESALE INVENTORIES M/M: 2.1% V 2.0%E
*(US) APR PERSONAL INCOME: 0.4% V 0.5%E; PERSONAL SPENDING: 0.9% V 0.8%E
*(US) APR PCE DEFLATOR M/M: 0.2% V 0.2%E; Y/Y: 6.3% V 6.2%E
(US) MAY FINAL UNIVERSITY OF MICHIGAN CONFIDENCE: 58.4 V 59.1E
(US) Atlanta Fed GDPNow: Raises Q2 GDP forecast to 1.9% from 1.8%
(US) Apr Dallas Fed Trimmed Mean PCE +3.0% v +3.0% m/m
TradeTheNews.com Weekly Market Update: S&P Officially Falls into Bear Market and Fed Remains Undeterred
5/20/2022 4:09:33 PM
US indices opened for trade this week with a modicum of momentum coming out of last Fridays rally. Hopes for further improvement in the China zero Covid situation and valuation compression finally seemed to have offset some of the relentless selling pressure allowing risk assets to hold onto very modest, marginal gains. The US 10-year yield appeared to find resistance around 3% amid weaker than expected manufacturing data which also may have convinced some to wade back into equity markets. Investors’ moods soured quickly, though, after Walmart and Target reported quarterly results. Both high profile managements were caught off guard by the staggering surge in freight costs and supply chain issues which along with changing consumer behavior resulted in a significant hit to their profitability. Shares of each company tumbled an eye popping 20+% on Tuesday and Wednesday respectively, the biggest one day declines for those shares since 1987’s Black Monday. By Friday the S&P futures traded below the May 12th intraday low and the Dow was staring at its 8th straight weekly decline which was the longest losing streak since 1932. For the week the Dow and S&P lost 3% and the NASDAQ shed nearly 4%.
Federal Reserve officials remained unnerved in their most recent commentary, and even admitted they welcomed the recent repricing seen in markets. A cadre of officials underscored a unified message that the central bank will do what is necessary to get inflation down. 50 basis point rates hikes at the next two meetings appear to be a given, but Fed officials remain realistic that rates will likely have to go significantly higher than that, but just how much higher remains to be seen. Oil prices continued to work against the Fed as well. Despite the clear slowdown in China, increasing global growth concerns crude oil prices moved up 2% this week. The US dollar finally downshifted, helped in part by lower US Treasury yields. The Euro rose to a two week high after ECB members continued to note concerns around the greenbacks recent strength. The ECB’s Knot like many others threw his support behind a 25 basis point hike in July, but also opined that a 50 basis point move could be warranted if inflation data were to worsen. Bitcoin remained heavy dipping back below the 30K mark.
In corporate news this week, major retailer earnings drew most of the market’s attention. While Walmart revenue grew during the quarter, higher supply chain and employee costs ate into profits. Target’s quarter told largely the same story, with management noting fuel and freight costs could be $1B higher in 2022 than it had expected. Home Depot blew away estimates, while BJ’s Wholesale kept margins largely intact as it posted beats on its top and bottom line and saw gains in member traffic. Kohl’s cut its FY forecast, as did Ross Stores, which subsequently saw its shares drop the most since 1986. On the manufacturing side, Deere boosted its FY guidance despite seeing continued rising costs that have pressured margins and affected their consumer base buying power. Colgate told investors they are seeing supply chain pressures abate, though some costs are still rising. Renault confirmed it would divest its Russia unit and controlling interest in AVTOVAZ, becoming the latest automaker to leave the country over its invasion of Ukraine. McDonald’s also agreed to sell its Russian assets to a current Siberian licensee, who will operate the stores under a new brand.
US government officials reportedly have found that the black box from the China Eastern plane crash in March points to an 'intentional nosedive' as the cause and there are no indications of problems with the Boeing aircraft. Harley Davidson disclosed that it would suspend all vehicle assembly and shipments (excluding LiveWire) for a two-week period due to a parts issue from a Tier 1 supplier, though they promise to recoup lost production later in the year.
TradeTheNews.com Weekly Market Update: Markets grope for a bottom on hopes inflation may soon peak
5/13/2022 4:14:37 PM
Investors endured another painful week as what felt like forced selling across an array of assets fueled a further drawdown in stocks. Tech was the primary driver yet again and even the darlings of the US stock market finally came under significant pressure. The S&P 500 dropped below 3900 briefly, flirting with official bear market territory down 20%. The Fed’s precarious predicament regarding inflation, rates, and growth appeared to remain the driving force sending investors for the exits. China’s zero Covid policies and to a lesser extent ongoing inflationary externalities from the Ukraine war fed into the uncertainty which was only supercharged by a hotter than expected print for US April CPI. Chairman Powell’s comments on Thursday may have summed it up best when he acknowledged that the process of getting inflation under control will be painful and ultimately whether or not a soft landing can be achieved is likely out of the Federal Reserve’s control.
The week opened with reports circulating that Shanghai officials have once again tightened Covid restrictions and that they could remain in effect until the end of May. Focus remained on Wednesday’s CPI print in the US which was expected to show declines from the recent cycle highs. Unfortunately the CPI readings were hotter than expected, and the core m/m exceeded all analyst estimates. There were upside disappointments in historically volatile categories like airfares and auto prices, but there was also a bigger-than-expected jump in shelter costs that included primary residences. Treasury yields initially popped towards new cycle highs only to roll over as a global flight from risk resulted in safe haven buying of bonds. The US dollar jumped to fresh multi-year highs. Cryptos plunged, exacerbated by worries that a run on the Luna token and the resulting de-pegging of the underlying Terra stable coin could have broader implications for the space. Risk sentiment appeared to find a nadir in Thursday’s session. Long duration, smaller cap tech started to rally as large cap darlings finally started to see significant indiscriminant selling. Friday’s trade saw the S&P 500 retake 4000 alongside a 4% pop in the NASDAQ. The US dollar reversed course and head lower while Treasury yields moved higher. Bitcoin jump back above $30K after trading below $25K midweek. For the week, the S&P lost 2.4%, the DJIA gained 1.5%, and the Nasdaq fell 2.8%.
In corporate news this week, Disney reported a miss on its top and bottom line for its second quarter, but notched better-than-expected subscription numbers at its Disney+ service and beat analyst expectations for theme park revenue as well. Tyson Foods posted a big jump in revenue and profits after hiking prices over 15% across its segments, and executives noted they still see strong demand for beef and chicken. Toyota said some production lines in Japan would have to pause output for up to six days in May due to COVID lockdowns in Shanghai, cutting its May global production to around 700K units from 800K seen earlier. Tesla halted output at its Shanghai plant, citing parts supply issues, following delays back in April sparked by China’s lockdowns.
Twitter shares tumbled after Elon Musk said his deal to acquire the social media giant was ‘on hold’ until he sees ‘details supporting the calculation that spam/fake accounts do indeed represent less than 5% of users.’ Coinbase shares plummeted after reporting weak earnings and amid the general crypto rout, despite the CEO’s reassurances that the company has ‘no risk of bankruptcy.’ Data center developer Switch confirmed it would be taken private by DigitalBridge in an $11B all-cash deal, as the take-private trend in the public data center REIT space continues.
SUN 5/8
(CN) Shanghai, China again tightens covid restrictions; movement curbs may generally remain until the end of May; cites people familiar with the matter - press
(HK) Hong Kong elects China backed John Lee its new leader (replaces Carrier Lam)
(EU) ECB's Holzmann (Austria, hawk) said it would be appropriate to take at least 2 or even 3 steps on interest rates in 2022 - press
(EU) ECB publishes interview with President Lagarde: Reiterates stagflation is not currently our baseline
(US) Scientists at the Department of Energy’s Pacific Northwest National Laboratory (PNNL) in the lab were able to extract rare earth elements from various water sources - press
MON 5/9
2382.TW 'Chaos' said to have been seen at the co's operations in Shanghai amid COVID lockdown; videos posted online showed workers physically overwhelming security guards - financial pres
(EU) Reportedly EU envoys meeting on May 8th still resulted in no agreement on 6th package of sanctions against Russia; Hungary continues to block proposals, while Greece, Cyprus and Malta have raised concerns - press
(RU) Russia Pres Putin: Russian troops are fighting for security of Russia and Donbas now; West was preparing for invasion of our land - WWII Victory parade speech in Moscow
(IN) India Central Bank (RBI) said to be intervening into FX spot and NDF markets to defend INR currency (rupee) - press
TSN Reports Q2 $2.29 v $1.83e, Rev $13.1B v $12.4Be
(US) Fed's Bostic (non-voter, hawk): Currently does not see the need to hike in more than 50bp steps
(US) NY Fed Apr Consumer Expectation Survey: Inflation expectations fell at the one-year horizon and rose at the three-year horizon
Luna Foundation Guard (LFG) will lend $1.5B in bitcoin (BTC) and terraUSD (UST) to defend the peg of its algorithmic stablecoin to the U.S. dollar - press
(US) Fed’s Brainard (vice chair): Large price spikes and margin calls from Russia's invasion highlight potential for contagion to large financing institutions - Semi-annual financial stability report
BHF Reports Q1 $4.07 v $4.86 y/y, Rev $2.74B v $0.94B y/y; Life sales -43 % sequentially q/q, citing econ headwinds
TSLA Stops output at Shanghai plant citing parts supply issues; Unclear when issues will be resolved and production to continue - financial press
TUES 5/10
TSM Reports Apr (NT$) Rev 172.6B +55% y/y
6758.JP Reports FY21/22 Net ¥882B v ¥1.03T y/y, Op ¥1.20T v ¥955B, Rev ¥9.92T v ¥9.00T y/y; Announces ¥200B share buyback
7974.JP President: Do not yet see end to chip shortage; Russia impact on overall business ops is small - post earnings comments
(US) US average gasoline price rises to $4.374/gallon (record high)
(CN) China Apr Passenger Vehicle sales 1.06M units, -35.7% y/y, -34.0% m/m (biggest drop in 2 years); Tesla exported 0 (zero) China-made car during April - PCA
*(DE) GERMANY MAY ZEW CURRENT SITUATION SURVEY: -36.5 V -35.0E; EXPECTATIONS SURVEY: -354.3 V -43.5E
TSM Said to be planning second 5-8% price increase for its products in less than a year amid inflation concerns and to fund its expansion plans; Planned price hike will take effect by early 2023 - Nikkei
TM Reportedly to suspend some domestic operations citing Shanghai lockdown; Cuts May global production to ~700K units (previous guided May-July 800K v 750K in Apr) - press
AVYA Reports Q2 $0.53 v $0.42 y/y, Rev $716M v $713M y/y
LCII Reports Q1 $7.71 v $4.48e, Rev $1.6B v $1.30Be
MBUU Reports Q3 $2.61 v $1.94e, Rev $344.3M v $302Me
DRE Prologis proposes to acquire Co for $61.68/shr in all stock deal
IAC Q1 shareholder letter: This time there’s no “shot-in-the-arm” (literally or figuratively) on the horizon to snap things back – we expect the stepped-down valuations to last for a while
(UR) Ukraine gas company GTSOU reports the occurrence of force majeure led to the interruption of gas transit through the GMS Sokhranivka in Luhansk region transiting almost a third of gas from Russia to Europe (up to 32.6Mcm/day)
(FR) ECB’s Villeroy (neutral, France): There is no doubt that the ECB will act to ensure price stability
Luna Foundation Guard (LFG) reportedly seeks additional $1B to shore up UST stablecoin
WEDS 5/11
7203.JP Reports FY21/22 Net ¥2.85T v ¥2.25T y/y, Op ¥3.00T v ¥2.20T y/y, Rev ¥31.38T v ¥27.21T y/y; Announces ¥200B share buyback (1.02% of shares); Mats costs to reduce profits by ~20%
TKA.DE Reports Q2 Net €579M v -€175M y/y, adj EBIT €802M v €577Me, Rev €10.6B v €9.44Be; Raises Rev and adj EBIT outlook
ALO.FR Reports FY21/22 adj EBIT €767M v €645M y/y, Rev €15.5B v €8.8B y/y
SWMA.SE Confirms to be acquired by Philip Morris for SEK106/shr in ~SEK161.2B ($16.0B) deal
(UR) US House of Representatives votes 368-57 to pass $40B aid package to Ukraine
(FR) ECB’s Villeroy (neutral, France): Reiterates view that ECB to raise rates gradually from summer 2022; French inflation should begin to ease at the beginning of 2023
(CN) Shanghai port container throughput said to be stable at 100KTEUs/day, over 80% of pre-pandemic levels - press
(EU) EU said to have drafted €195B plan to bolster renewables and energy savings as plan to end its dependency on Russian fossil fuels by 2027; Plan includes infrastructure funds for most dependent nations as part of RePowerEu package - press
(CZ) Czech President Zeman: selects Ales Michl as new Czech Central Bank governor (as expected)
(RU) Pro-Russian authorities of Ukrainian occupied region Kherson plans to ask Pres Putin to admit region to Russia - Russian press
(RU) Russia Foreign Min Lavrov: UN Secretariat missed the opportunity to reach a political settlement in Ukraine
IBM Signs strategic collaboration agreement with Amazon Web Services to deliver IBM Software as-a-Service on AWS
(EU) EU reportedly ready and 'likely to move quickly' to suspend trade deal if UK revokes Northern Ireland protocol and may also halt talks over Gibraltar if UK acts on Brexit deal - press
SWCH Confirms to be taken private by DigitalBridge Investment Management and IFM for $34.25/shr in $11B all-cash deal
*(US) APR CPI M/M: 0.3% V 0.2%E; Y/Y: 8.3% V 8.1%E (annual pace moves off four decade highs)
(US) Association of American Railroads weekly rail traffic report for week ending May 7th: 504.9K total units, -3.5% y/y
(US) Fed's Bostic (non-voter, hawk): Backs 50bps moves until rate raised to neutral level; Sees about $2T in excess liquidity on the Fed balance sheet
(US) Fed’s Bullard (voter, hawkish dissenter): Inflation is broader and more persistent; Raising rates at that pace a good benchmark for now; 75bps hike is not my base case
(HK) Hong Kong Monetary Authority (HKMA) purchases ~HK$1.59B on the market as the HKD reaches the weaker end of the peg against the USD [first purchase of HKD to defend peg since 2019]
DIS Reports Q2 $1.08 v $1.20e, Rev $19.2B v $20.3Be
THURS 5/12
SIE.DE Reports Q2 Net €1.21B v €2.39B y/y, Industrial Business EBITA €1.78B v €2.1B y/y, Rev €17.0B v €14.7B y/y
STM.FR Targets FY25-27 Rev $20B+/yr, gross margin ~50%, EBITDA margin >40% - Capital Markets Day
*(UK) Q1 PRELIMINARY GDP Q/Q: 0.8% V 1.0%E; Y/Y: 8.7% V 8.9%E
2317.TW Reports Q1 (NT$) Net 29.5B v 28.5Be, Op 36.7B v 30.9Be; Rev 1.41T v 1.37Te; Plans to commence EV mass production in Thailand in 2024
7201.JP Reports FY Net +¥215.5B v -¥448.7B y/y, Op +¥247.3B v -¥150.65B y/y, Rev ¥8.42T v ¥7.86T y/y; Resumes dividend payments at ¥5/shr
(FI) Finland President and PM Marin both agree that country should submit application to join NATO, as expected
9984.JP CEO Son: Getting ready for ARM unit IPO as early as possible; Careful with new investments in Chinese companies; The global market is in confusion - post earnings comments
GAZP.RU Exec: Transit request via Sokhranivka declined by Ukraine; Continue shipping gas to Europe at 50.6Mcm v 72Mcm d/d v 96Mcm on May 10th
(UK) Foreign Sec Truss (Brexit negotiator): No choice but to act if EU does not show flexibility; need to fix Northern Ireland Protocol
(RU) Russia govt spokesperson Peskov: Everyone wants to avoud a direct clash between NATO and Russia; Finland joining NATO would definitely be a threat to Russia and a reason on for a symmetrical response
Tether Loses $1 Peg, Bitcoin Drops to 2020 Levels of Near $24K - Coindesk
(CN) Beijing refutes rumor of whole city lockdown; To launch new mass COVID testing in 12 districts starting May 13th (prior 3 districts May 10-12th) - press
(UR) Ukraine gas company GTSOU: Will not reopen suspended Sokhranivka gas route from Russia to Europe until Ukraine obtains full control over its gas transit system
7201.JP COO: Chip shortages are the 'new normal'; Chip shortage may last into 2023 - FT conf comments
*(US) APR PPI FINAL DEMAND M/M: 0.5% V 0.5%E; Y/Y: 11.0% V 10.7%E
*(US) INITIAL JOBLESS CLAIMS: 203K V 192KE; CONTINUING CLAIMS: 1.343M V 1.37ME
*(MX) MEXICO CENTRAL BANK (BANXICO) RAISES OVERNIGHT RATE BY 50BPS TO 7.00%; AS-EXPECTED - Hints Larger moves ahead
(US) Senate confirms Fed Chair Powell for a second term (as expected)
(US) Fed Chair Powell: Soft landing may depend on factors that we do not control; Process of getting inflation down to Fed's 2% goal will include some pain
(CN) Shanghai Vice Mayor: Aiming to have no community spread of coronavirus by mid-May; >70% of companies on white lists have resumed production
FRI 5/13
7267.JP Reports FY21/22 Net ¥707.1B v ¥657.4B y/y, Op ¥871.2B v ¥660.2B y/y, Rev ¥14.6T v ¥13.2T y/y; Raises annual dividend to ¥120/shr from ¥110/shr
005930.KR Reportedly discusses to raise chipmaking prices by up to 20% - press
TWTR Elon Musk tweets: Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users
(US) MAY PRELIMINARY UNIVERSITY OF MICHIGAN CONFIDENCE: 59.1 V 64.0E (lowest since Aug 2011)
R HG Vora Capital Management, LLC discloses 9.9% stake in Ryder; Offers to acquire company at $86.00 a share - 13D filing
PRGO CEO: Expects baby formula shortage to last the rest of 2022; Plants that make store-brand baby formula are running at 115% of full capacity - press
TradeTheNews.com Weekly Market Update: Markets reel as they absorb a fresh round of monetary policy tightening
US stock markets entered the week reeling as investors remained caught between competing hopes: that Federal Reserve rates increases will be significant enough to tame rapidly rising inflation, but not so large that they will derail economic growth. Ahead of Wednesday’s FOMC announcement the US 10-year yield moved above 3% for the first time since late 2018. JOLTS job openings surged to yet another record high fueling expectations Chairman Powell might even try to surpass already exceedingly hawkish market forecasts when he announces an expected 50 basis point hike and formally unveiled the quantitative tightening protocols. Those fears were somewhat allayed when the Chairman in his post rate decision press conference essentially greenlit another 50 basis point hike at each of the next two FOMC meetings, but also took the notion of a 75 basis point hike off the table. The US yield curve steepened as the long end underperformed post Fed while 2-year yields ticked lower. Stock markets and Treasury markets initially responded favorably to the Fed announcements only to reverse course dramatically on Thursday as fresh data contributed to a reassessment.
Preliminary Q1 estimates showed a concerning decline in US productivity and an even more dramatic increase in unit labor costs which quickly sucked all the post FOMC wind out of the equity market sails. US stock markets plunged dramatically on Thursday and the move came alongside significant selling in Treasury bonds and across nearly all asset classes. The velocity and breadth of the move had many characterizing the trading as “liquidation” with perhaps signs of capitulation. Decliners topped advancers by a 10:1 margin and the VIX moved back above 35. Friday morning’s April employment report didn’t offer much in the way of relief. Nonfarm payrolls data topped forecasts once again. Wages came in a smidge below forecasts, but March data was revised higher and the participation rate unexpectedly dropped. In aggregate, the data did little to change the narrative that the Fed remains up against it to get inflation back under control, and had some asking the question why Chairman Powell would take any potential action off the table with the labor market still exceedingly tight. Stocks and bonds continued to move down in tandem and the post-Fed yield curve steepening intensified. Central banks in the UK, Poland, Czech Republic, and even India followed on the heels of the Fed decision with rate hikes of their own in the latter half of the week. The euro firmed up following ECB commentary that suggested a rate hike is most definitely in the offing and officials now want to see the main rate in positive territory by the end of the year. Rising oil price added to the general consternation with WTI finishing the week near $110 after OPEC+ producers stayed the course on their production agreement. For the week, the S&P lost 0.2%, the DJIA shed 0.2%, and the Nasdaq slumped 1.5%.
In corporate news this week, Starbucks missed profit expectations as inflation and spending on its workforce weighed on its cafe margins, and the coffee giant withdrew guidance amid COVID-19 uncertainty in its China markets. Lyft shares dropped almost 30% after its plans to spend more on drivers weighed on its adjusted EBITDA outlook, spooking investors. A day later, Uber announced its revenue more than doubled and that it expects to generate ‘meaningful positive free cash flows’ in FY22.
AMD posted big beats on its top and bottom line and raised its outlook amid better organic growth along with the integration of Xilinx. Shopify shares were hit after it notched a Q1 earnings miss and saw its slowest quarterly revenue and GMV growth on record. Facebook reportedly has put a pause on new hiring through the rest of 2022 and is said to have also cut hiring targets. On the M&A front, Intercontinental Exchange announced it plans to acquire Black Knight in a $13.1B cash-and-stock deal, as it seeks to increase its investment in the US mortgage market.
SUN 5/1
(UR) Ukraine Presidential Advisor Arestovich: During last four days, the movement of Russian troops from the territory of Russia to the territory of Ukraine is not visible, especially in the direction of the main Donbas attack - to Izyum
(RU) Russia said to have clarified the rules on how European countries are required to pay for natural gas supplies in rubles (RUB), easing the terms slightly - press
(CN) China regulators at an emergency meeting with bank representatives on Apr 22nd reportedly discussed ways to protect China's overseas assets from possible US sanctions similar to those imposed on Russia - FT
(US) Reportedly US has held high-level talks with UK for the first time to explore conflict contingency plans over China threat to Taiwan - press
New Omicron sub-variants (BA.4 and BA.5) can escape vaccine, natural immunity; Have potential to trigger new wave - Times Now
(US) Congressman Adam Kinzinger (R-IL) introduces a joint resolution to authorize the use of US Armed Forces to defend the territorial integrity of Ukraine if Russia uses chemical, biological, and/or nuclear weapons
(DE) German Economy Ministry: Germany could end its dependence on Russian oil by the end of summer 2022
(RU) Russia Foreign Min Lavrov: Russia has never interrupted efforts towards an accord that will avoid a nuclear war; Russia is not seeking to end Ukraine war by May 9th - Italian tv interview
(DE) Reportedly Austria, Hungary and Slovakia have withdrawn their objection to EU embargo on Russian oil after lengthy discussions; the open question is the transition period - German press
(HK) Macau Apr Casino Rev (MOP) 2.68B v 3.76B prior; Y/Y -68.1% v -55.8% prior (-66.5%e, 18 month low)
MON 5/2
*(IT) ITALY APR MANUFACTURING PMI: 54.5 V 55.0E (22nd month of expansion but lowest reading since Dec 2020)
(EU) EU reportedly could offer Hungary and Slovakia exemptions from Russian oil embargo which is under preparation; Likely to be phased in anyway and only taking full effect from early 2023 - financial press
VOW3.DE CEO: sees significant easing in supply-chain bottlenecks and situation with semiconductors in H2 2022; Will ramp up production afterwards
GAZP.RU Reportedly does not book gas transit via Yamal-Europe pipeline for Q3 2022 - Russian press
SAVE Board of Directors reiterates support for merger with Frontier Airlines; unanimously determining JetBlue offer does not constitute a superior proposal
ON Reports Q1 $1.22 v $1.05e, Rev $1.95B v $1.91Be; Guides Q2 strong
*(US) APR FINAL MARKIT MANUFACTURING PMI: 59.2 V 59.7E
*(US) APR ISM MANUFACTURING: 55.4 V 57.6E; PRICES PAID: 84.6 V 87.4E
(DE) Germany Chancellor Scholz: Out aim is for Russia to end war and withdraw its troops from Ukrainian territory; Will Never accept annexation of Crimea
(US) 10-year Treasury yield hits 3.0% (highest since Dec 2018)
(US) Treasury quarterly financing estimates: to pay down $26B in Apr-Jun quarter v $50Be (prior estimate to borrow $66B)
(UR) Ukraine Military Intelligence head Budanov: Russia plans to announce mobilization on May 9th
CHGG Reports Q1 $0.32 v $0.25e, Rev $202.2M v $203Me; Cuts FY Rev and adj EBITDA outlook; Students shifting their priorities towards earning over learning
NXPI Reports Q1 $2.48 v $3.19e (unclear if comp), Rev $3.14B v $3.10Be; Guides Q2 strong
EVER Reports Q1 -$0.19 v -$0.26e, Rev $110.7M v $102Me; Consumer have intensified in recent weeks
DVN Reports Q1 $1.88 v $1.74e, Rev $3.81B v $4.02Be; Affirms Capex plan "we are unwavering in our commitment to capital discipline"
NTR.CA Reports Q1 $2.70 v $2.59e, Rev $7.66B v $7.77Be
2282.HK Reports Q1 (HK$) adj EBITDA 45.7M v 84.4M y/y; Rev 2.1B v 2.3B y/y
TUES 5/3
BP.UK Reports Q1 Net -$20.4B v +$4.68B, Rev $51.2B v $53.1Be; $2.5B buyback announced; Confirms $29.3B charges in Q1 including Russia exit
(RU) Traders circulating unverified rumours press chatter that a number of former generals and FSB (former KGB) officials are preparing to oust Russia Pres Putin and end the war in Ukraine
*(DE) GERMANY APR NET UNEMPLOYMENT CHANGE: -13.0K V -15.0KE; UNEMPLOYMENT CLAIMS RATE: 5.0% V 5.0%E
*(EU) EURO ZONE MAR UNEMPLOYMENT RATE: 6.8% V 6.8%E
(RU) Russia Pres Putin signs decree on retaliatory economic measures in response to unfriendly actions of some foreign states which prohibits making transactions and fulfilling obligations to foreign individuals and legal entities that have fallen under Russian retaliatory sanctions - Russian press
HLT Reports Q1 $0.71 v $0.59e, Rev $1.72B v $1.59Be; Reinstates dividend at $0.15/shr
DD Reports Q1 $0.82 v $0.67e, Rev $3.27B v $3.22Be
LDOS Reports Q1 $1.58 v $1.49e, Rev $3.49B v $3.39Be; Book-to-bill 1.6x
J Reports Q2 $1.72 v $1.70e, Rev $3.83B v $3.77Be; Seeing accelerating demand across all end markets
PFE Reports Q1 $1.62 v $1.66e, Rev $25.7B v $26.5Be
BIIB Reports Q1 $3.62* v $4.41e, Rev $2.53B v $2.50Be; announces CEO search
EXPD Reports Q1 $2.05 v $1.67 y/y, Rev $4.66B v $3.2B y/y; Raises Semiannual dividend 15.5% to $0.67 from $0.58 (indicated yield 1.34%)
(US) Mar JOLTS Job Openings: 11.55M v 11.20Me (record high)
(NZ) Fonterra Global Dairy Trade Auction Dairy Trade price index: -8.5% v -3.6% prior
(US) Dept of Interior cuts water delivery to California in order to protect Lake Powell - press
ABNB Reports Q1 -$0.03 v -$0.28e, Rev $1.51B v $1.45Be; We are seeing substantial demand for summer travel months in EMEA and North America
SBUX Reports Q2 $0.59 v $0.60e, Rev $7.64B v $7.61Be
AMD Reports Q1 $1.13 v $0.91e, Rev $5.89B (incl Xilinx) v $5.00Be; Raises FY22 outlook citing higher AMD organic growth and the addition of Xilinx business
WEDS 5/4
(EU) EU Commission President Von der Leyen presents details on 6th sanction package against Russia; Proposes an 'orderly' ban Russian oil
*(IN) INDIA CENTRAL BANK (RBI) RAISES REPURCHASE RATE (INREPO) BY 40BPS TO 4.40%; EFFECTIVE IMMEDIATELY - (intra-policy move, not expected)
(RU) Russia Defense Min Shoigu: Russian forces will continue fulfilling all tasks set by Pres Putin; Will consider NATO transport in Ukraine delivering weapons as a target
(CN) Beijing to extend restrictions for covid beyond May day holiday - China State TV
(RU) Russia govt spokesperson Peskov: Russian oil embargo is double-edged sword for EU; Refutes speculation that Pres Putin will officially declare war to Ukraine or mobilization on Victory day, on May 9th; Zero chance of that
ABC Reports Q2 $3.22 v $2.99e, Rev $57.7B v $57.2Be
REGN Reports Q1 $11.49 v $9.37e, Rev $2.97B v $2.71Be
(EU) EU reportedly seeking ban on Russian oil shipping insurance by early June 2022; Russian oil santions are still being debated - press
EMR Reports Mar underlying orders +13% y/y (trailing 3 months) citing demand continued to be strong across both platforms
MAR Reports Q1 $1.25 v $0.94e, Rev $4.20B v $4.17Be; Resumes cash dividend at $0.30/shr (indicated yield 0.69%) (pre-COVID dividend was $0.48/shr); Expects to resume buybacks in 2022
ATI Reports Q1 $0.40 v $0.22e, Rev $834.1M v $751Me
WING Reports Q1 $0.34 v $0.36e, Rev $76.2M v $85.6Me; Seeing meaningful deflation in bone-in wings
(EU) EU reportedly plans Russian oil ban would be effective in 6 months with no gradual phase-out for both spot market and existing contracts; Oil ban would apply to Russian exports of oil worldwide - financial press
SATL Signs multiple launch agreement with SpaceX for its next 68 Sub-Meter high-resolution Earth Observation satellites; By 2025 will sample any point on earth up to 40x/day at sub-1 meter resolution
(US) Treasury quarterly refunding: To sell $45B 3-year notes, $36B 10-year notes, $22B 30-year bonds; More auction cuts may be needed
MAR Expect further meaningful RevPAR improvement through the remainder of the year which will be roughly flat to 2019 levels in US/Canada - conf call
(CN) Reportedly China Securities Regulator (CSRC) to actively support property companies bond financing; Studying expanding infrastructure REITs trial
*(US) APR ISM SERVICES INDEX: 57.1 V 58.5E
(US) April preliminary Class 8 truck orders -15.4K, -28% m/m, -55% y/y - FTRintel.com
AIR.FR Reports Q1 EPS €1.55 v €0.46 y/y, Adj EBIT €1.26B v €710Me, Rev €12.0B v €12.1Be
(US) Association of American Railroads weekly rail traffic report for week ending Apr 30th: 498K total units, -7.4% y/y
*(US) FOMC RAISES TARGET RANGE BY 50 BPS TO 0.75-1.00% (AS EXPECTED); EXPECTS 'ONGOING' INCREASES IN RATES WILL BE APPROPRIATE; BALANCE SHEET RUNOFF TO BEGIN JUNE 1ST
*(US) FED CHAIR POWELL: BROAD SENSE ON THE COMMITTEE THAT 50BPS HIKES ARE ON THE TABLE FOR THE NEXT COUPLE OF MEETINGS - POST RATE DECISION STATEMENT
(US) Fed Chair Powell: 75bps rate hike is not something we are actively considering; Expectations are that we'll start to see inflation flattening; Some evidence core PCE is peaking - post rate decision Q&A
FB Said to have paused hiring through the remainder of the year - press
BKI Intercontinental Exchange confirms has entered into definitive agreement to acquire Black Knight in $13.1B cash-and-stock deal valued at $85/shr
COST Reports Apr total SSS +8.7% (ex-gas and FX)
*(CN) CHINA APR CAIXIN PMI SERVICES: 36.2 V 40.0E (2ns straight contraction and lowest since Feb 2020)
THURS 5/5
ABI.BE Reports final Q1 adj $0.60 v $0.55 y/y, Rev $13.2B v $12.3B y/y
BMW.DE Reports Q1 Net €10.2B v €2.83B y/y, EBIT €3.39B v €3.03B y/y, Rev €31.1B** v €26.8B y/y; Notes situation in chip industry is not expected to ease until H2 2022 at the earliest
STLA.NL Reports Q1 Rev €41.5B v €37.0B y/y
SHEL.UK Reports Q1 EPS $1.20 v $1.09e, Adj CCS Net $5.03B v $4.35B y/y, Rev $84.2B v $55.7B y/y; Raises quarterly dividend 4% to $0.25/shr from $0.24/shr; Remaining $4.5B of share buybacks to be completed during Q2
*(CH) SWISS APR CPI M/M: 0.4% V 0.3%E; Y/Y: 2.5% V 2.6%E (3rd month above target)
(RU) On May 4th, Russian military rehearsed tactical strikes 'in the conditions of radiation and chemical contamination of the area' in Kaliningrad region near Baltics - press
*(NO) NORWAY CENTRAL BANK (NORGES) LEAVES DEPOSIT RATES UNCHANGED AT 0.75%; AS EXPECTED; Maintains forward guidance
(UR) Ukraine Presidential Advisor Arestovich: Western heavy weapons expected to come to Ukraine in commercial quantities by end-May, sufficient to be concentrated near occupied areas and change the war balance
(RU) Belarus President Lukashenko: Russian special military operation in Ukraine dragged on; Most likely, Putin does not want a global clash with NATO
CAH Reports Q3 $1.45 v $1.54e, Rev $44.8B v $43.0Be
CBRE Reports Q1 $1.39 v $1.10e, Rev $7.33B v $7.72Be
FAST Reports Apr net sales $570.8M +14.8% y/y
CCJ Reports Q1 C$0.04 v -C$0.07 y/y, Rev C$398M v C$290M y/y
*(UK) BANK OF ENGLAND (BOE) RAISES BANK RATE BY 25BPS TO 1.00%; AS EXPECTED
*(UK) BOE MAY MINUTES: VOTED 6-3 TO RAISE BANK RATE BY 25BPS (V 50BPS HIKE); Haskel, Mann and Saunders dissented and voted to hike by 50bps
OPEC+ JMMC recommends to stick to current gradual ~432Kbpd output increases policy for month of June - press (as expected)
(UK) BOE Gov Bailey: Global inflationary pressure intensified sharply since Ukraine war - post rate decision press conference
K Reports Q1 $1.10 v $0.91e, Rev $3.67B v $3.58Be
*(CZ) CZECH CENTRAL BANK (CNB) RAISES 2-WEEK REPURCHASE RATE BY 75BPS TO 5.75%; MORE-THAN-EXPECTED
*(US) INITIAL JOBLESS CLAIMS: 200K V 180KE; CONTINUING CLAIMS: 1.384M V 1.40ME
*(US) Q1 PRELIMINARY NONFARM PRODUCTIVITY: -7.5% V -5.3%E; UNIT LABOR COSTS: 11.6% V 10.0%E
FRI 5/7
(HU) Hungary PM Orban: Hungary would not support EU proposals in their present form as they would undermine the country's energy security; Hungary needs 5 years exemption from EU Russia oil ban - FT
ADS.DE Reports Q1 €1.60 v €2.60 y/y, Op €437M v €396Me, Rev €5.30B v €5.32Be; Expects FY22 profit towards lower end of guidance range
UMC Reports Apr (NT$) Rev 22.8B +39.2% y/y; YTD Rev 86.2B +35.8% y/y
(EU) EU said to have proposed oil ban exemption Hungary and Slovakia through 2024 and Czech Republic until June 2024 - financial press
(CN) China Apr Vehicle Sales -47.6% m/m, -48.1% y/y; YTD Vehicle Sales -12.3% y/y - prelim CAAM
(EU) EU Commission President Von der Leyen: Must reduce our reliance on Russian gas as they are no longer a reliable partner; Confident EU will agree on new 6th round of sanctions
(FR) ECB’s Villeroy (neutral, France): Policy normalization is 'fully warranted'; Reasonable to raise rates into positive territory by end-2022; Weak Euro currency does jeopardizes price stability objective
CI Reports Q1 $6.01 v $5.13e, Rev $44.0B v $43.6Be
*(US) APR CHANGE IN NONFARM PAYROLLS: +428K V +380KE
*(US) APR UNEMPLOYMENT RATE: 3.6% V 3.5%E; Labor Force Participation Rate: 62.2% v 62.5%e
*(US) APR AVERAGE HOURLY EARNINGS M/M: 0.3% V 0.4%E; Y/Y: 5.5% V 5.5%E
(CN) China tech firms reportedly have been pulling back from doing business with Russia under pressure from US sanctions – press
(US) MAR CONSUMER CREDIT: $52.4B V $25.0BE (NEW RECORD)
