Daily Report Template

OVERNIGHT HIGHLIGHTS

US stocks ended Friday’s trade marginally higher all-in-all.
The S&P500 jumped 0.48 per cent;
Our market is set to dip.

U.S. to pull out of WHO; Trump outlined a series of measures against China; U.S. to pull out of WHO;Trump outlined a series of measures against China; Powell promised Friday to use untapped firepower to bolster the U.S. economy;

Top Market News

Trump impeachment hearings focus on Ukraine pressure campaign in first day

The top U.S. diplomat in Ukraine, testifying in the first televised hearing of the impeachment inquiry against President Donald Trump, on Wednesday linked the president more directly to a pressure campaign on Ukraine to conduct investigations that would benefit him politically. While the hearing turned contentious at times – including sniping between lawmakers – the low-key testimony given by the two witnesses may have fallen short of giving the Democrats the ammunition they need to advance their argument that Trump has committed misdeeds worthy of ousting him from office. An important revelation came from Taylor, acting ambassador to Ukraine, who pointed to the Republican president’s keen interest in getting Ukraine to investigate Biden, a former vice president, and reiterated his understanding that $391 million in U.S. security aid was withheld from Kiev unless it cooperated.

Originating Source

Brazil and China hail strong ties, sources cite port deal

Brazilian President Jair Bolsonaro and Chinese President Xi Jinping praised their countries’ strong bilateral relations at a meeting on Wednesday, as sources said a Chinese state firm was prepared to announce a major Brazil port investment. The leaders’ comments showed how far relations have come since Bolsonaro’s repeated bashing of China on the campaign trail last year, which sparked concerns that he could disrupt one of the world’s biggest trading partnerships. Still, there were few major announcements at the start of Xi’s visit to Brasilia, only a few weeks after Bolsonaro’s official visit to Beijing. Later during the visit, China Communications Construction Company (CCCC) (601800.SS) (1800.HK) is expected to announce an investment in the northern Brazilian port of Sao Luis, according to two people with knowledge of the matter.

Originating Source

Fed chief Powell pushes back on negative interest rates

U.S. Federal Reserve Chair Jerome Powell on Wednesday pushed back against a favorite talking point of President Donald Trump’s, telling Congress that the negative interest rates sought by Trump aren’t appropriate for a U.S. economy with ongoing growth, a strong labor market and steady inflation. “It has been a long slow recovery but it has come a long way,” Powell said when asked by Texas Republican Senator Ted Cruz what policies he credited most for a solid decade of continued growth. “I want everybody to get credit for that.” But the Fed chief did wade into the economics of the negative rates of interest that countries including Switzerland and Germany currently pay on their government bonds. Trump has repeatedly called for Powell’s Fed to cut rates and deliver the same for his government, on Tuesday in New York telling the Fed to “give me some of that money.”

Originating Source

North Korea warns of retaliation against U.S-South Korea military drills

North Korea threatened on Wednesday to retaliate if the United States goes ahead with scheduled military drills with South Korea, ramping up pressure on Washington to change course as a year-end North Korean deadline for U.S. flexibility approaches. The statement came even though Washington said last week that the joint aerial exercise planned for next month would be reduced in scope from previous drills. “It is self-defense rights” to retaliate against any move which threatens its sovereignty and security, according to a statement from the State Affairs Commission, without elaborating. It is rare for the commission, the supreme governing body chaired by North Korean leader Kim Jong Un, to release a statement. In its latest statement, Pyongyang said it had taken measures to calm Washington’s concerns but that the United States had failed to reciprocate, leaving it with a “feeling of betrayal.”

Originating Source

Protesters blockade universities, stockpile makeshift weapons as chaos grips Hong Kong

Anti-government protesters dug in at several university campuses across Hong Kong on Wednesday, setting the stage for further confrontations as police said violence in the Chinese-ruled city had reach…

Originating Source

Tesla CEO says will build Gigafactory 4 in ‘Berlin area’

Anti-government protesters dug in at several university campuses across Hong Kong on Wednesday, setting the stage for further confrontations as police said violence in the Chinese-ruled city had reached a “very dangerous and even deadly level”. Protesters – many of them young students – spent much of Wednesday fortifying barricades and stockpiling food and makeshift weapons, as other roving bands of masked protesters disrupted transport and businesses in many areas. As night fell without more of the large on-campus clashes seen the previous day, protesters manning the barricades and checkpoints around the universities arranged to sleep in shifts to watch for any approaching police.

Originating Source

U.S. has no intention of ending alliance with Syrian Kurdish fighters: official

Tesla Inc’s Chief Executive Officer Elon Musk said on Tuesday the electric car maker is going to build a new vehicle factory, “Gigafactory 4,” in the “Berlin area.” Tesla had earlier said it will soon reveal the location of a European Gigafactory for production in 2021. Musk, in an awards ceremony in Germany, said the factory will be near the new Berlin airport, adding it will also create an engineering and design center in the city. In October, Reuters reported that the automaker is aiming to start production for its gigafactory in China amid uncertainties around orders, labor and suppliers.

Originating Source

UK PM Johnson promises to end ‘unbearable’ uncertainty around Brexit

The United States has no intention to end its alliance with Syrian Kurdish SDF militia, a senior administration official said on Tuesday, effectively pushing back on Ankara’s demand that Washington stop supporting the fighters it sees as hostile. “There is no intention for that cooperation to end,” A senior administration official told a conference call ahead of a meeting between U.S. President Donald Trump and his Turkish counterpart Tayyip Erdogan on Wednesday.

Originating Source

Top Trump News

George Conway says he is ‘horrified’ over GOP’s impeachment defense of Trump

Conservative lawyer George Conway, the husband of White House counselor Kellyanne Conway, said Wednesday he’s “horrified” and “appalled” with the Republican Party’s defense of President Donald Trump in the impeachment inquiry. “He was using the power of the presidency — in its most unchecked area, foreign affairs — to advance his own personal interests as opposed to the country’s,” Conway said of Trump on MSNBC. Asked if he’s disappointed with Republicans not agreeing with him, Conway said, “I’m horrified. I’m appalled.”

Originating Source

Trump meets with Turkey’s Erdoğan on first day of public impeachment hearings

Turkish President Recep Tayyip Erdoğan’s visit to the White House on Wednesday — a month after President Donald Trump’s withdrawal of US troops from Syria triggered a Turkish onslaught — was already set to make waves. Trump, during the Oval meeting, repeatedly told Erdoğan that it was “an honor” to host him and touted their friendship, despite broad bipartisan opposition to the visit in Congress and concerns about Turkey’s incursion into Syria. Trump also said that the US and Turkey would be entering a trade deal. Speaking at a news conference with Erdogan, Trump said he hoped the two countries would be able to resolve their differences over Ankara’s purchase of the Russian S-400 missile systems.

Originating Source

Trump says Europe should be paying more to cover costs of Syrian refugees

Turkish President Recep Tayyip Erdoğan’s visit to the White House on Wednesday — a month after President Donald Trump’s withdrawal of US troops from Syria triggered a Turkish onslaught — was already set to make waves. Trump, during the Oval meeting, repeatedly told Erdoğan that it was “an honor” to host him and touted their friendship, despite broad bipartisan opposition to the visit in Congress and concerns about Turkey’s incursion into Syria. Trump also said that the US and Turkey would be entering a trade deal. Speaking at a news conference with Erdogan, Trump said he hoped the two countries would be able to resolve their differences over Ankara’s purchase of the Russian S-400 missile systems.

Originating Source

Economic Indicators

    New Zealand RBNZ Interest Rate Decision

    The Reserve Bank of New Zealand unexpectedly kept its official cash rate/OCR unchanged at a record low of 1 percent on November 13th 2019, surprising markets that expected a 25 bps rate cut. 

    U.K. CPI (YoY) (Oct)

    The consumer price inflation in the United Kingdom fell to 1.5 percent year-on-year in October 2019 from 1.7 percent in the previous month and below market expectations of 1.6 percent. 

    Australia Westpac Consumer Sentiment (Nov)

    The Melbourne Institute and Westpac Bank Consumer Sentiment Index for Australia rebounded 4.5 percent month-over-month from its lowest level since July 2015 to 97.0 in November 2019, as interest rates kept steady in the last RBA meeting

    Euro Zone Industrial Production (MoM) (Sep)

    Industrial production in the Euro Area increased 0.1 percent from a month earlier in September 2019, following a 0.4 percent growth in August and defying market expectations of a 0.3 percent drop.

    U.S. Core CPI (MoM) (Oct)

    US core consumer prices, excluding volatile items such as food and energy, increased 0.2 percent month-over-month in October 2019, following a 0.1 percent gain in September and matching market expectations.

Economic Calendar

Friday 12/06/2020

U.S. Federal Budget Balance (Oct)

Friday 12/06/2020

Japan GDP (QoQ) (Q3)

Friday 12/06/2020

Australia Employment Change (Oct)

Friday 12/06/2020

China Industrial Production (YoY) (Oct)

Friday 12/06/2020

Germany German GDP (QoQ) (Q3)

Friday 12/06/2020

U.K. Retail Sales (MoM) (Oct)

Friday 12/06/2020

Euro Zone GDP (YoY) (Q3)

Saturday 13/06/2020

U.S. PPI (MoM) (Oct)

Saturday 13/06/2020

Euro Zone CPI (YoY) (Oct)

Sunday 14/06/2020

U.S. Core Retail Sales (MoM) (Oct)

Sunday 14/06/2020

U.S. Retail Sales (MoM) (Oct)