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Continuing Claims: 1st pandemic drop (largest decline in history) - BMO
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BMO capital Markets - Ian Lyngen

* Initial Jobless Claims At 2,123,000 Last Week

* Continuing Claims Fell To 21,052k Last Week; Est. 25,680k

* Continuing Jobless Claims Post First Drop Of Pandemic

* Federal Pandemic Jobless Claims At 1.19mln After 1.25mln


Initial Jobless Claims decelerated to 2.123 million versus the 2.1 million consensus during the week of May 23. In a positive development for the labour market, the continuing claims figures unexpectedly dropped to 21.052 million from 24.912 million prior and compared to the 25.68 million forecast -- this is the first decline since the pandemic stared and by far the largest decline in history. The insured unemployment rate fell to 14.5%, a sharp drop of 2.6% from the prior week as some employees returned to work. 

3 minutes ago
Durable goods tumble as the Global Coronavirus Recession takes hold - OxEco
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Oxford Economics

Further evidence of the ravaging damage from the Global Coronavirus Recession was visible in durable goods orders and shipments data in April. Orders shrank 17.2% while shipments contracted by a record 17.7%.

Excluding some of the more volatile components, core capital goods orders fell 5.8% in April while core shipments – our preferred business equipment investment gauge – fell 5.4%.

With the revised GDP figures showing business investment contracting 7.9% (annualised) in Q1, this latest durable goods report points to a plunge in business investment around 45-50% (annualised) in Q2. This would represent a peak to trough decline of more than 15% since the end of last year.

Overall, depressed global and domestic demand, broken supply chains, low oil prices, tighter financial conditions, elevated uncertainty and lingering virus fear will prevent a V-shaped recovery in H2. Still, we anticipate a partial resumption of activity going into Q3 as factories slowly resume operations.


Oxford Economics  -- Gregory Daco, Chief US Economist 


16 minutes ago
US Equity Preview: 28-05-20:
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US futures trade pretty flat into the open amid US-China tensions over Hong Kong. Today’s docket features the 1500BST April pending home sales followed by the DoE Crude numbers at 1600BST. Supply is in the form of the $38Bln 7 year auction at 1800BST. Costco and Dell will release earnings reports after the closing bell.


Boeing (BA) – Boeing has restarted production of its grounded 737 Max jet. The news came shortly after Boeing announced it was cutting more than 12,300 U.S. jobs. (AMZN) – Amazon said it would offer permanent jobs to about 70% of the U.S. workers hired to cope with the increased demand generated by the Covid-19 pandemic.


HP Inc. (HPQ) – HP Inc. beat estimates by 7 cents a share, with quarterly profit of 51 cents per share. The computer and printer maker’s revenue fell short of Wall Street projections. Laptop computer sales grew, but printing and desktop sales plunged.


Apple (AAPL) – Apple has landed director Martin Scorsese’s next film, “Killers of the Flower Moon” for its Apple TV service, according to The Wall Street Journal. It beat out competitors such as Netflix (NFLX), which had produced Scorsese’s last film, “The Irishman.”


Twitter (TWTR), Facebook (FB) – Twitter and Facebook are in the crosshairs of the Trump administration, with President Donald Trump set to issue an executive order targeting social media companies after Twitter began to fact-check tweet’s include those from Trump.


Workday (WDAY) – Workday fell 4 cents a share short of estimates, with quarterly earnings of 44 cents per share. The maker of financial management and human resources software’s revenue came in slightly above forecasts. The bottom line was impacted by product development expenses and sales and marketing costs, among other factors.


American Airlines (AAL) – The airline is planning to cut management and support staff by about 30%, according to a letter to employees. The airline will first offer voluntary options, then move on to involuntary reductions.


Delta Air Lines (DAL) – The airline will announce details of two voluntary job reduction programs today, according to a letter sent to employees by the airline’s CEO, Ed Bastian.


Dollar General (DG) – The discount retailer reported quarterly profit of $2.56 per share, compared to a consensus estimate of $1.74 a share. Revenue exceeded forecasts as well, and a same-store sales jump of 21.7% was well above the 8.7% FactSet estimate. Dollar General said the pandemic had a significant positive impact on sales, and that it expects to exceed prior forecasts.


Dollar Tree (DLTR) – Dollar Tree earned $1.04 per share for its latest quarter, beating the 85 cents a share consensus estimate. Revenue also beat forecasts, with the discount retailer’s overall same-store sales rising 7% compared to a 4.4% consensus estimate. Dollar Tree-branded stores did see a 0.9% drop in comparable sales, compared to estimates of a 1.2% increase, but Family Dollar saw a 15.5% rise compared to the consensus estimate of 8.1%. Like rival Dollar General, Dollar Tree benefited from the change in consumer behavior spurred by the pandemic.


Abercrombie & Fitch (ANF) – The apparel retailer lost $3.29 per share for its latest quarter, wider than the loss of $1.39 per share anticipated by analysts. Revenue was also below forecasts, with sales impacted by pandemic-related closures.


Burlington Stores (BURL) – The apparel retailer lost $4.76 per share for its latest quarter, wider than the loss of $1.55 a share anticipated by analysts. Revenue was well below estimates, and Burlington said it was not prepared to give 2020 guidance. Stores were closed on March 22 due to the pandemic and remained closed through the end of the quarter. Some 332 stores have reopened since then, and the remainder are expected to open by the middle of June.


Hertz (HTZ) – Investor Carl Icahn exited his entire position in Hertz, according to an SEC filing. That comes a few days after the car rental company filed for Chapter 11 bankruptcy, a decision Icahn said he supports despite taking a “significant loss” on his position. Icahn had been Hertz’s largest shareholder.


Box (BOX) – Box reported quarterly earnings of 10 cents per share, doubling forecasts, while the cloud computing company’s revenue also beat estimates. Box also gave an upbeat revenue forecast as it benefits from an increasing number of employees working from home.


Toll Brothers (TOL) – Toll Brothers earned 59 cents per share for its latest quarter, 14 cents a share above estimates. The luxury home builder’s revenue also above forecasts. The company scrapped its 2020 forecast due to uncertainty related to the coronavirus outbreak.


e.l.f. Beauty (ELF) – e.l.f. is the target of a proxy fight by private-equity firm Marathon Partners, which plans to nominate three directors to the discount cosmetics company’s board. Marathon is dissatisfied with the company’s cost structure and stock price, among other things.



32 minutes ago
US GDP Annualised (Q/Q) Q1 S: -5.0% (exp -4.8%; prev -4.8%)
40 minutes ago
US Briefing 28/05/20: US Futures Signal Pause Over Fears Of New Wave Of US Layoffs; China Approves Hong Kong Security Legislation, Defying President Trump
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-          US Weighs Options Across Spectrum To Punish China Over HK

-          White House To Forgo Formal Summer Economic Projections

-          US House Passes Uighur Bill Rebuking China, Sent To Trump

-          US To Expel Graduates With Ties To China’s Military Schools

-          New Wave Of US Layoffs Feared As Coronavirus Pain Deepens

-          Furious At Twitter, Trump Preps Tech Giants Executive Order

-          Chinese Premier Li Sees Economic Growth If Key Tasks Done

-          Hong Kong National Security Law Step Closer As NPC Endorses

-          BoE’s Saunders: Safer To Ease Too Much Rather Than Too Little

-          German Economy Likely To Shrink 6.6% Y/Y Due To Pandemic

-          Japanese Government Gives Bleaker Exports, Employment View

-          Roche Partners With Gilead In Covid Trial Of Drug Combination


1 hour ago
British pound's Brexit orbit and do negative rates strengthen currencies? - CME
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CME Group

Blu Putnam, Chief Economist & Erik Norland, Senior Economist, CME Group


- Long-term trend shows British pound is swayed by UK-EU Brexit talks.
- Pound falls against euro when UK and EU move toward a ‘no-deal’ Brexit.
- In turn, pound rallies on chances for greater UK integration with the EU.
- Pound likely to remain within euro’s orbit even after UK leaves EU.


In the five years since the British parliament passed a law calling for a referendum on whether the UK should remain in the European Union or leave, there have been many intervening moments affecting the global economy, including the Brexit vote itself in 2016 and now the coronavirus pandemic.


During this time, one element has remained constant: the British pound (GBP) rallies when the UK moves toward deeper integration with Europe, and falls when the UK moves towards a no-deal Brexit decision. Investors were reminded of this once again in early May as the UK and EU negotiations hit an impasse, with both sides citing a lack of progress on issues ranging from fishing rights to business-competition regulations. Since the negotiations stalled, the pound has slid 3% versus the euro (EUR) and 4.5% versus the US dollar (USD). Continue Reading

/ Impact of Negative Rates on Currencies and Credit Flow - Watch Video

2 hours ago
Saudi Arabia And Some Other OPEC Producers Want To Extend Current Oil Output Cuts Of 9.7Mln BPD Until December - RTRS Citing OPEC+ Sources
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-          Russia Has Yet To Agree To The Move, Some Sector Players Believe Demand Recovery May Justify Gradual Easing Of Curbs

2 hours ago
BoE’s Saunders: Risk Management Considerations Played Considerable Role In My May Vote To Raise Target Stock For Asset Purchases
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-          Unlikely Data Available At June Meeting Would Negate Case For Further Stimulus

-          Preferable To Remove Uncertainty About MPC’s Willingness To Expand Asset Purchases Further

-          Risks To Economy Are To Downside

-          With Limited Monetary Policy Space, Less Scope To Get Economy Back On Track

-          Safer To Err On Side Of Easing Too Much, Then Tighten If Needed

3 hours ago

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