Japan Capital Spending above expectations (3.8%) in 1Q: Actual (6.4%)
Japan Capital Spending above expectations (3.8%) in 1Q: Actual (6.4%)
US exceptionalism wanes as global investors pivot away – Rabobank
The concept of ‘US exceptionalism’ covers many specific themes. For academics it may have referred to the US’s ability to attract bright minds from around the world and generate cutting edge research.
OPEC+ exports set to rise – TDS
CTAs will continue to sell crude and industrial metals (x-copper) in most scenarios for prices by this time next week. In the imminent term, CTA selling activity will continue to weigh on price action into the OPEC meeting, TDS’ Senior Commodity Strategist Daniel Ghali notes.
Couple bought a homestead for $390,000, spent $13,000 on DIY renovations: Their No. 1 takeaway after a year on the land
Sophie Hilaire Goldie and Rocky Goldie bought a homestead in Kentucky in the spring of 2024.
ICYMI: Bank of Japan has boosted its provisions for JGB losses, braced for higher rates
I posted this from the Nikkei earlier, a reminder as we await the opening of Japanese markets for the week.
Bank of Japan info comes via Japanese media, Nikkei (gated):
- The Bank of Japan has set aside the maximum provisions for losses on bond transactions
- a sign of how the central bank is preparing for rising interest rates
- For fiscal 2024, the BOJ raised the level of provisions to 100% for the first time, Nikkei has learned
- the provisions are funded with income from bond and other transactions
- provisions … target has usually been 50% of income … pre- fiscal 2024, the BOJ had gone as high as 95% in fiscal 2018 … in fiscal 2024, the BOJ increased provisions by 472.7 billion yen ($3.28 billion at current rates), compared with a 922.7 billion yen increase in fiscal 2023
At the margin higher Bank of Japan rates are supportive for yen. The prospect of higher rates in Japan sent the yen higher in July/Aug/Sep 2024 and violently unwound some yen carry trade, impacting global markets.
This article was written by Eamonn Sheridan at www.forexlive.com.
Australian S&P Global Manufacturing PMI (Final, May 2025) 51.0 (Prev. 51.7)
The preliminary for this was better, its here:
Comes in at 51.0
- prelim was 51.7, prior also 51.7
Production shrinks for the first time in three
months
- New orders rise at weaker pace
- Stocks of purchases decline as buying activity falls
Commentary from the report is upbeat regardless
“May’s Australia Manufacturing PMI data revealed
that the goods producing sector continued to expand.
- Despite a moderation in the pace of growth, anecdotal
evidence suggested that the slower rate of expansion,
including a slight reduction in output, was partially driven
by the election and may therefore prove temporary. - Indeed, forward-looking indicators provided signs
that output may increase in the coming months with
renewed export order growth, and the first recorded lift
to business confidence since February. - Employment
gains also continued at a solid pace as firms showed
willingness to backfill previously lost roles to support
operations. - “On the price front, easing inflation in May also
represented a positive development for demand growth
in the coming months, with cost pressures among the
lowest in over a year.”
This article was written by Eamonn Sheridan at www.forexlive.com.
Bessent repeats that he thinks Xi will speak to Trump ‘very soon’
U.S. Treasury Secretary Bessent spoke in an interview with CBC:
- China is holding back products essential to industrial supply chain
- Believes Trump will talk to China’s Xi very soon
–
‘Very soon’. What does that even mean? Just an effort at a pump really.
Every day Bessent’s credibility diminishes just a little more.
This article was written by Eamonn Sheridan at www.forexlive.com.
Bloomberg report: Graham Aims for Tough New Russia Sanctions Ahead of G-7 Summit
Republican Senator Lindsey Graham, backed by Democrat Richard Blumenthal, is pushing for new Russia sanctions ahead of the G7 summit in mid-June.
- The bipartisan effort seeks to pressure China and India to stop buying discounted Russian oil.
- Their bill, now backed by 82 senators, proposes a 500% tariff on imports from countries purchasing Russian oil or uranium—potentially disrupting global oil markets.
- The senators, who visited Kyiv and met French officials, said President Macron supports lowering the G7 price cap on Russian oil.
Bloomberg (gated) carried the report.
Earlier on oil:
Brent update:
The ability of some countries to purchase Russian oil has kept a lid on oil prices. Imposiing 500% sanctions on such countries will have the effect of dissuading their purchase of Russian oil, hence supportive for oil prices.
This article was written by Eamonn Sheridan at www.forexlive.com.
Past-Fed Vice Chair Stanley Fischer has died
The Wall Street Journal with the news that Stanley Fischer has died at 81. His death was confirmed by the Bank of Israel:
- Fisher was governor of the Bank of Israel from 2005 to 2013
- was vice chairman of the Federal Reserve from 2014 to 2017
- was a professor of economics at the Massachusetts Institute of Technology
- served as 2IC at the International Monetary Fund
This article was written by Eamonn Sheridan at www.forexlive.com.
Silver Price Forecast: XAG/USD plummets below $33.00 as Dollar rebounds, weekly losses near 2%
Silver price turned negative on Friday during the North American session, poised to end the week with losses of over 1.80% as the dollar staged a recovery during the day. XAG/USD trades at $32.87, down 1.29%.