DAILY ASIA PAC OPENING NEWS - 12th May 20

5/12/2020 04:26:00 AM
  • US Treasury Secretary Mnuchin said virus numbers should go down into the summer as economies re-open and that it does not appear there will be bipartisan support for next COVID support bills. (Newswires)
  • Turkey President Erdogan announced a four-day lockdown from May 16th until after the May 19th national holiday. (Newswires)
  • Following the hype of US President Trump's anti-China conspiracy, Chinese officials may think the Phase One trade deal could be invalidated or a new deal could be negotiated "to put the Chinese at greater risk," a Global Times source was quoted as saying.
  • It also follows reports that some Chinese officials have called for new talks on the US Phase One agreement. (Global Times)
  • EU Trade Commissioner Hogan spoke with Chinese Commerce Minister and noted that the EU is ready to make joint efforts with China to negotiate a China-EU bilateral investment agreement within a year. (Global Times)
  • UK Brexit negotiators have told the European Union that a new fisheries deal cannot be part of a free trade agreement. (Telegraph)
  • Saudi Aramco has been directed to cut its crude oil production in excess of the OPEC+ cuts by an additional 1mln BPD for June, which would bring the total cut to 4.8mln BPD from April production level to 7.49mln BPD.
  • Fed's Bostic (non-voter) said he is not a "big fan" of negative rates and considers it among the weaker tools in the tool kit, while he does not believe the Fed would be inclined to buy equities.
  • Fed's Evans (non-voter) said he does not anticipate negative rates would be used as a tool in the US but sees rates near zero for quite some time.
  • U.S. stock futures were on the front foot overnight, backing the headlines to suggest that the PBOC would provide more support.
  • However, the decline in European trade has been blamed on top headlines from the US President / US China, as well as some concerns about Covid's figures rising as the European economy reopens.
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