Alphavalue / Divacons | China’s fiscal revenue fell 2.8% in the first five months of 2024 from a year earlier, accelerating from a 2.7% decline in the January-April period, official data showed yesterday, as weak demand weighs on the economic recovery. Fiscal spending rose 3.4% in the first five months, compared with a 3.5% increase in the first four months, according to Finance Ministry data.
Alicia García Herrero (Natixis) | The European Union has a historically strong economic relationship with Africa, but its dominant position has gradually been challenged by the rise of China, especially as a key exporter to Africa. In 1995, China’s exports to Africa were only $1.8 billion, significantly lower than the EU’s exports of $45 billion. However, after nearly thirty years’ of increasing its manufacturing capacity, China’s exports to Africa reached…
François Rimeu (La Française AM) | The OPEC meeting resulted in maintaining the oil production cuts, as expected by the markets. Beyond this decision, investors were reassured by the possibility of these production cuts decreasing in the fall. Coupled with disappointing U.S. growth figures, this meeting had a significant impact on crude oil, which has dropped by 8% since the end of April. Again, this decline seems to be more…
Link Securities | The People’s Bank of China (PBoC) kept its benchmark interest rates unchanged in its June adjustment, in line with market expectations. Thus, its one-year lending rate (LPR), the benchmark for most business and household loans, remained at 3.45%. Meanwhile, the five-year rate, the benchmark for real estate mortgages, remained at 3.95%, following February’s 25 b.p. cut. Both interest rates are at historic lows, in an environment of…
Intermoney | US May industrial production shows muscle as it grew by a strong +0.9%m. We were taken by surprise by the solid data considering that the ISM manufacturing survey for May pointed to only a slight rebound, although other indicators pointed to some recovery. Manufacturing activity, the most relevant item, largely explained the figure, as it also rose by 0.9%, led by consumer goods (1.3%) thanks to the expansion…
Renta 4 | The FDA has approved the marketing of Yimmugo, an intravenous immunoglobulin (Ig) therapy developed by Biotest, a company controlled by Grifols, for the treatment of primary immunodeficiencies. The announcement marks the first approval of a product from Biotest’s portfolio by the US FDA and strengthens Grifols’ intravenous and subcutaneous immunoglobulin franchise in the world’s leading market. The product, which has already been marketed in the EU since…
BancaMarch : G7 members have reached a (tentative) agreement that would allow the use of proceeds from frozen Russian assets to provide a $50 billion loan to Ukraine. Russia’s frozen assets worldwide amount to $300 billion, however, this amount cannot be used, but the interest – some $3 billion – generated annually can be used. Thus, future profits are established as collateral for the $50 billion loan. The deal would…
Bankinter: The Fed meets expectations and keeps interest rates (Fed Funds) at 5.25%/5.50%. With respect to the macro picture, it maintains the GDP forecasts for 2024, 2025 and 2026. However, it revises upwards both Inflation (PCE) and Underlying Inflation in 2025 and 2026 and continues to miss the 2% target until 2026. The Unemployment Rate is also revised slightly upwards in 2025, 2026 and in the longer term. With regard…
BancaMarch: US employment data again surprises on the upside, although other indicators point to a contained moderation. On Friday, the Payroll Survey revealed an unexpected increase in job creation in May, up to 272,000 jobs, well above the 180,000 estimated and the 175,000 previously reported. The same survey also showed an increase in average hourly earnings of 4.1% year-on-year, up from 3.9% expected and 4% previously. Financial markets have interpreted…
Norbolsa | US competition agencies on Thursday opened market power investigations into artificial intelligence market power at Nvidia, Microsoft and OpenAI. The Federal Trade Commission will focus on investigating the market power of Microsoft and OpenAI, while the Department of Justice will focus on Nvidia. For the time being, not much impact is expected from the investigation, which we understand is in its early stages and may take time.