Written by Mike Dolan
LONDON (Reuters) – What matters in the United States and global markets today
Donald Trump’s expected meetings with the world’s largest economists in the world ended up being side offers compared to its collapse on the Internet with billionaire supporter Elon Musk.
It is Friday, so I will present today a quick overview of what is happening in the global markets and then we offer you some suggestions to read the weekend away from the main headlines.
Market accurate today
* The White House aides touched on a call between Donald Trump and Elon Musk on Friday, according to Politico, after a huge public spit was removed that witnessed threats on government contracts and ended with the richest man indicating that the American president should be isolated.
* US President Donald Trump and Chinese leader Xi Jinping faced weeks of trade tensions in fermenting the battle on critical minerals in calling leaders for a rare leader on Thursday, which left the main issues of more talks.
* China has referred to more than 15 years that it was looking for a weapon of regions in the global supply chain, a strategy similar to the long American export control tools aimed at stopping its rise. The stampede appears in recent weeks to secure export licenses for rare land that China has invented a better and more accurate weapon in the trade war.
* On any scale, the recent flexibility in American stocks is great, as Wall Street has been operated through many winds opposite to eradicate all its losses fed by the customs tariff and the transition to a positive area for this year. Jimmy McGiv, the Reuters column writer, explains the reason for leaving the gathering some juice.
* There are some initial early signs that weak thermal coal prices have begun to enhance the demand for the import of buyers in Asia China and India in Asia. Read Reuters column clerk Claide Russell to learn more.
Trump Musk Smolders
For markets trying to move in everything, from signs of weak labor market to another eliminating the European Central Bank, the dispute between the American president and the richest man in the world has proven more than distraction. It remains to see whether it overwhelms the May salary report later on Friday.
The extraordinary debate match in other major political and commercial personalities attracted and included possible seismic threats. On the other hand, the price of Tesla Musk Musk has decreased by almost 20 % at one point, which led to the withdrawal of Wall Street stock indicators and coding symbols deep in the red color.
The general dispute seemed to cool down to some extent and allowed the futures contracts to restore some of the lost land. But the fact that the version was overwhelmed by other major events a day was another sign of the inability to predict this administration.
The essence of the row on the Trump bill was “The Beautiful Financial” law that Musk believes is “disgusting abomination” because of the amount of spending. The draft law, which the Senate has not yet passed, will add 2.4 trillion dollars to US debt during the next decade, based on the estimates of the Central Bank of Oman. The largest part of this is likely to incur over the next four years.
In the background, the invitation between Trump and Chinese President Xi Jinping did not submit any commercial breakfast penetrations regardless of the warmer words and agreement to resume talks. The meeting of the Oval Office with Germany’s advisor, Freders Mirz, was relatively positive on commercial and diplomatic issues.
Earlier in the day, the European Central Bank rates were reduced again as expected and suggested that there may be a temporary stop at its next meeting and that it may be near the end of the mitigation course now after the modified “real” modified rates have returned to scratch. The euro reached the highest level of six weeks on Thursday regardless, although it restored these daily gains today.
RISing Weekly Us Loubless claims, Meanwhile, I have given a shadow on today’s version of the May recruitment report. Consensus expectations are a slowdown in the growth of salary statements to 130,000.
Treasury returns, which save and flow throughout the day, are on conflicting signals from trade meetings and shares, in creating their lowest levels of the week before the job report.
Although federal reserve officials continue to be cautious about the upcoming indispensable expectations, the markets are now priced to resume cuts in the Federal Reserve by September.
In the already confusing mix, the Treasury issued its annual report on the manipulation of potential currency abroad, adding Switzerland and Ireland to the monitoring list, which already includes China, Japan, Germany, South Korea, Taiwan, Singapore and Vietnam.
The list is likely to bear more than usual amid tense multiple trade negotiations. The markets assume that the United States may pressure other countries to allow their currencies to be appreciated against the dollar as part of the deals to avoid the severe definitions imposed next month.
The Swiss National Bank responded on Friday by saying that it would interfere in the currency markets when necessary to maintain inflation on the right track. The intervention to the maximum has a high -power franc of a decisive cash tool used over the past decade and you may need to use it again now after the Swiss inflation has returned just as the main interest rate of SNB was set to zero in June.
Elsewhere, the Chinese Yuan fell against the dollar while it decreased to the lowest level in the world for two years against its main commercial partners on Friday, as Trump’s eleventh call of expectations fell.
Securities markets were mixed abroad on Friday, where Wall Street remained on the edge of the abyss, and the American job report was waving on the horizon.
In the euro area, the gross domestic product was revised in the first quarter to show poor growth in the original: 0.6 % quarter of a quarter, which led to an annual rate of 1.5 %.
The Central Bank in India has reduced main rates through 50 basis points greater than expected to 5.5 %, and the most severe in five years. The cash reserve rate – the money that banks must keep – has reduced 100 basis points to 3 % in a sudden step aimed at enhancing lending and speeding up policy transmission.
In individual stocks, Tesla shares regained about 5 % in Frankfurt on Friday, after closing 14 % in New York yesterday amid the dispute of Trump-MUSK. It lost about $ 150 billion in the market value yesterday, which caused the decrease in the former member of the “wonderful” dignity “in the list of the most valuable companies behind Broadcom and Berkshire Hathaway.
However, Broadcom’s shares decreased by 4 % in the running trading overnight, as its expected profits appeared in the street.
In the flow of the bank of the Bank of America, American stocks witnessed an external flow of $ 7.5 billion, which is the third week of exits, while European stocks witnessed flows of $ 2.6 billion, the eighth week of flows.
Weekend reading suggestions
* “Blue Bonds”: European countries must seize the moment of strengthening the size and liquidity of the sovereign debt made from the euro issued jointly, and the solution can be to replace a percentage of the shares of national bonds with the euros of euros, or “blue bonds”. This is how a “work document” from the fellow of the Peterson Institute and the former Economists of the International Monetary Fund Olivier Blancard says in a written paper jointly with the castle owners.
* Nuclear blind spots: It seems that the United Nations nuclear control tools have lost some important elements of Iranian nuclear activities since US President Donald Trump abandoned the 2015 deal, which has imposed strict restrictions and close supervision by the International Atomic Energy Agency. Reuters report Francois Murphy and John Erlish on the main blind points that include not knowing the number of central expulsions that Iran or the place of production of machines and their parts.
* Ocean economy: Trade in the global “Ocean Economy” reached up to $ 2.2 trillion in 2023, about 7 % of the total global trade, but this trade is increasingly threatened by climate change and environmental problems, which showed the trade and development arm in this week’s report. The ocean economy grew faster than the global economy in general in the five years until 2020 and adopts an estimated 100 million jobs.
* Trump’s doctrine: Emerging foreign policy during President Donald Trump is similar to the doctrine of “another view” or “none of our actions,” says former George W. Bush State official Richard Haas in the project union. “The United States has sought to change the world, disturb some and inspire others. Those days have come in some respects for the better, but often worse. The United States has changed. It is similar to many countries and governments that have once criticized.”
* A small number of magnetism: A small team in the Ministry of Commerce in China decides the fate of the global auto industry, which is the permit to export the rare land magnets at the same time. It holds a near -border to the border on the rare land magnet, which is a major component of electric car engines, and added it to the export monitoring list in April as part of its trade war with the United States. Lori Chen and Louis Jackson Reuters shows how to fall to the Industrial Security Office and Import and Export Control, part of the China Ministry of Commerce, to review export permits for rare land magnets, vibrant cars, wind turbines, and even US-F-35 combat aircraft.
* Funding and AI: Artificial intelligence in the financial sector provides enhanced data analysis, risk management and capital customization, but there are also problems, according to CEPR’s Voxeu. When artificial intelligence systems become more prevalent, they provide challenges for organizers assigned to balance the benefits of innovation with the need for financial stability, market safety, consumer protection and fair competition.
* Driver attack: Use the “Spider’s Web” in Ukraine at the end of last week to attack attacking aircraft deep in Russia, and the “wonderful event” may affect the future of the conflict, and the Council of Foreign Relations Michael Horwitz argues. The attack “clearly shows that even the targets in the depth of the country’s lands may now be in danger.”
IMF EUROPE: The issue of European economic integration has become more convincing as external challenges multiply, according to Alfred Kamer, director of the European Administration at the International Monetary Fund. While emphasizing the need to finish the unified market, Camper said that the integration of capital markets was very slow and that the cross -border flows were frustrated by the constant fragmentation. “If history is evidence, Europe can turn into adversity to benefit.”
* Alpine Boxes: Liechtenstein is taught to tighten control of dozens of confidence in the Russian associated, whose managers abandoned them under pressure from Washington. John Odonelle and Oliver Hert from Reuters are citing sources in reporting that the country, one of the smallest and richest world, is home to thousands of low -tax boxes, and hundreds with links to the Russians.
Today’s scheme
Data from the Federal Reserve in New York on Thursday said that the supply chain pressed in May. The bank indicated that the global supply chain pressure index for the month of May rose to 0.19 from -0.28 in April, which is the only time that it has been in a positive area this year and the highest reading since 0.20 was seen in August last year. Although the indicator remains defeated compared to the increase after birth, the increasing concerns about the impact of the tariff war – especially the impact of Chinese restrictions on rare land exports and minerals on the global auto industry – will ensure that policy makers closely monitor these pressures on any signs of not emphasizing confirmation.
Today’s events to watch
* United States Employment Report (8:30 AM EST), consumer credit in April (3:00 pm EST); Canada Employment Report (8:30 am EST)
The views expressed are the views of the author. It does not reflect the opinions of Reuters news, which, according to the principles of confidence, is committed to integrity, independence and liberation from bias.
(Written by Mike Dolan; Editing by Anna Sizymanski)
