What’s moving markets – Fed meeting, M Stanley layoff, Debt limit & Eurozone CPI – May 2nd news

Today’s main global market news –

1. Fed is prepared to go to a 5% policy rate and then take a breath.
2. Explainer: Could Biden use the 14th Amendment to prevent a debt default?
3. Companies cautious as Twitter checkmark policy encourages fake accounts
4. Despite First Republic‘s rescue, the Dow declines; a Fed meeting is held in mind.
5. Google AI pioneer claims he left to talk openly about the “dangers” of technology.
6. Source: Morgan Stanley will eliminate 3,000 workers in the second quarter.
7. Rates are unexpectedly increased by 25 basis points by the RBA, who also complains that inflation is still too high.
8. Without raising the debt ceiling, the US may default on June 1; Biden and McCarthy will meet
9. SolarMax Technology announces a 7.5 million share IPO at $4 per share.
10. The Canadian regulator wants details on RBC’s $13.5 billion acquisition of a portion of HSBC.
11. In its second bond offering, Meta Platforms raises $8.5 billion.
12. Insiders at Coinbase are Defended for Selling Stock and Saving $1 Billion
13. Bondholders of Credit Suisse AT1 who lost $1.7 billion in a UBS transaction have filed lawsuits.
14. Tesla increases costs in the US, China, Japan, and Canada.
15. Asian equities were restrained on economic worries, and a Fed decision was pending.
16. Chinese electric vehicle manufacturers enter international markets
17. CEO’s ChatGPT Threat Warning Causes Edtech Stock to Drop 38%
18. IMF increases its risk-adjusted outlook for Asia’s economy and notes China’s rebound
19. Government officials take First Republic Bank and sell its assets to JPMorgan

WORLD NEWS

 Mixed European stock futures; attention focused on HSBC, Fed, and Eurozone CPI data

1. Inflation in the euro zone inched up to 7.0% in April.
2. Soft lending and inflation data pave way for smaller ECB hike
3. April saw a decline in industry activity in the UK, while cost constraints eased.
4. Although UK retailers report record food inflation, they anticipate falls.
5. The first quarter saw a 2.7% increase in Hong Kong’s GDP as the outlook improves.
6. Markets are surprised by the Australian Central Bank’s rate increase.
7. German manufacturing fell in April, although production increased, according to PMI.
8. Despite falling demand, euro zone banks restrict loans – ECB
9. Italian manufacturing shrank significantly in April, according to PMI
10. After the RBA raises rates and issues an economic warning, Australian stocks decline
11. In April, the manufacturing slump in the euro zone grew worse—PMI
12. Turkish manufacturing activity growth picks up in April, according to the PMI
13. After the RBA hike, the Australian dollar soars while the U.S. dollar declines.
14. As dovish BOJ contrasts with ECB, the yen drops to a 15-year low versus the euro.
15. In April, manufacturing activity in South Korea decreased for the first time in six years, according to the PMI.
16. Italian manufacturing shrank significantly in April, according to PMI
17. The Bank of Korea’s rate freeze is largely the result of U.S. financial problems.
18. Turkish manufacturing activity growth picks up in April, according to the PMI
19. Analysis: The made-in-China sales issue is affecting Japanese automakers.
20. HSBC rewards investors with dividends and share buybacks as earnings triples.
21. First female CEO chosen by Qantas to manage the airline

ECONOMIC CALENDAR

Tuesday, May 2, 2023

Time Event Forecast Prev

08:55 Redbook (YoY) 1.8%

10:00 Durables Excluding Defense

(MoM) (Mar) 3.5%

10:00   Factory Orders (MoM) (Mar)           1.1% -0.7%

10:00 JOLTs Job Openings (Mar)   9.775M 9.931M

16:30 API Weekly Crude Oil Stock       -6.083M

ECONOMIC DATA

The ISM Manufacturing index for April rebounded from 3-year lows at 47.1 following 46.3 in the previous month, still weak/contracting but above expectations of 46.8 (still marking the 6-month below the 50 barrier). The forward-looking new orders sub-index of the ISM survey increased from 44.3 in March to 45.7 last month, while the gauge of manufacturers’ prices paid recovered to 53.2, the highest level since last July.

Construction spending for March increased by 0.3% over estimates to $1.835 trillion, up from 0.3% in February (previously 0.1%). Private construction spending increased by 0.3% while public spending increased by 0.2%.

The S&P Global Manufacturing PMI for April came in at 50.2 (vs. flash 50.4).

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