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China PPI ⏬ steepest drop in 7y / UK-US / Trump / BoJ to still YCC in June / U.S claims 2y highs.!




  • U.S claims : The number of people who applied for U.S. unemployment benefits in early June jumped to a nearly two-year high of 261,000, but most of the increase took place in just two states: Ohio and California >>> and July back to 75% chance of no hike / skipping, USDolllar duly followed lower, risk mixed to slightly higher, rotating etc etc

  • China : Producer price index in May fell 4.6%, marking the steepest year-on-year drop in seven years, when producer prices saw a year-on-year drop of 7.2% in May 2016

  • ChatGPT got its first libel lawsuit. Legal experts say it won't be the last lawsuit prompted by AI hallucinations!.. and it will all hinge on whether AI companies are protected by Section230

  • Google has officially changed its mind about remote work

  • UK PM Rishi Sunak and US president Joe Biden made some transatlantic promises, though details are scanty, not a trade deal..

  • Donald Trump has been indicted over his handling of classified documents after he left the White House

  • Learning to live with Russia. Western support remains key in securing Ukraine’s future. But in a non-polar world, Europe must accept that Russia’s fate is beyond its control

  • BoJ is said to still see the need to continue monetary stimulus -Yen dips further after BoJ is said to likely stick with yield curve control in June

  • President Tayyip Erdogan named Hafize Gaye Erkan as new governor of the central bank. Announcement completes a makeover of Erdogan’s econ team following Mehmet Simsek’s appointment as FinMin — appointments that may signal a return to more conventional policies

  • Cuba to Host Secret Chinese Spy Base Focusing on U.S. Beijing agrees to pay Havana several billion dollars for eavesdropping facility....wait what ?? China, Cuba,, headline reminiscent of the early 1960's..!!

  • US data giant Palantir has said Britain is a better place to develop artificial intelligence (AI) than the EU thanks to more “pragmatic” privacy laws

  • Ray Dalio, founder of the worlds biggest hedge fund, says the U.S is going to issue a large amount of government debt and there is a shortage of buyers. He calls this the beginning of “big cycle debt crisis”

  • -Apple cuts Vision Pro sales target to 150K units vs previously discussed 1M units

 
Markets:
  • U.S claims higher, 2sUST 10bps lower, USDollar weakens, and NQ takes over again, rotation of the previous rotation, with markets pulling each other up !

  • USDollar fails at 0.9100CHF, 140JPY and below 1.2400GBP, EURO 1.0650 area solid support now, AUDUSD also shouldn0't go below .6600 area with RBA back hiking, ,similarly CAD, JPY weakens again this morning as BoJ said to 'likely stick with YCC in June'

  • SPX500 grinding higher, huge roation around July Fed and short-term rates perception, markets rotating from one sector to the next, taking things up overall, all in a very low vol environment (AND a lower FED balance-sheet too, now down to 8.4TRN)

  • '''The fear index Vix has dropped to 3y low as S&P 500 has entered bull market. Up >20% since an October low''' not exactly time to go all in now though

 





Claims are slowly bur surely on the UP


"Producer price falls are steepening, as a result of excess capacity"






been denied by China... but still..



Good in-depth write up





"If you intentionally move classified information or obstruct justice in an investigation, you will go to jail, but we will see what happens." Former Chief White House ethics lawyer, Richard Painter responds to Trump's indictment





Such a classic - rubbish policy, as they simply look back and change their mind, look at retrospective data etc etc, thus means their policy was wrong , end



have a super Friday and weekend

team PVM

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