Around 250,000. The u. S. Planes china. Blames china. Warren buffett bails out of u. S. Aviation. He says the coronavirus has changed the Airline Industry forever. Shery breaking news out of south korea, getting Consumer Price inflations. It is an deflation territory. This is now a contraction of 0. 6 . This is a bigger decelerations when itt was expected. Comes to the year on year figure, a little bit better, still accelerating, 0. 1 . Suffice it to say there is a lot of pressure on Consumer Prices and we have had social distancing measures continue to dampen command demand. You strip out a little bit of energyactors including factors, cpi still accelerating 0. 3 but missing expectations. This would lead to more pressure on the bank of korea to do more. Bloomberg economics expecting a 28e cut as soon as the may meeting and further measures to bolster liquidity. Look at how markets are trading, seeing Downside Pressure for kiwi stocks falling more than 1 , the lowest level in more than
Rise as the fallout cripples the global economy. Avoid itsbe forced to growth targets for the year. Shery lets get a quick check of the markets. We are seeing u. S. Futures rising a 10th of 1 . This after u. S. Stocks fell for the first time in three days. We have a mixed corporate bag of earnings. Not to mention worsening economic data. U. S. Companies cutting a record 20. 2 million jobs in april. Tone comingsk off from increased coronavirus cases and deaths in italy and new york. 10 year yield at the highest level in three weeks. The u. S. Has increased the amount of debt plans to issue in quarterly refunding options. We have the s p 500 falling 7 10 of 1 . Utilities and Energy Leading the decline. Lets take a look at what oil is doing. It is rebounding. 2 . Er than higher by this after snapping a five day rally on supply glut. Saw data showing u. S. Gasoline demand is steadily recovery. Lets turn to our top story, the war of words between china and the u. S. Intensify yet again with
Reports out of earnings. Some ceos talking about china being slow to recover, for example. Seeing the pace picked up at a very slow rate. We also have the Economic Data this morning, personal spending down 7. 5 in the united states. Compoundingdp data yesterday. That said, the 10 year yield us to let 60 basis points the fed and the ecb are doing all they could possibly do to keep the Financial Markets working. To point out. Ocks tesla up 4. 3 , just one exhibit 11 Earnings Report investors were cheered by, even though there are plenty of challenges facing tesla ahead. Twitter reported advertising revenue down about 1 4, and even though monthly and daily subscribers are up, the advertising revenue is very concerning to investors. That stock down more than 5 . Lets talk more about the ecb. The central bank is absently front and center. The data out of the euro zone today, 3. 8 in the First Quarter, the fastest contraction we have ever seen. The ecb now seeing a series of longterm loans f
120 reports are in, but next week is the big week for earnings reports. Yearoveryear Earnings Growth is down 17. 6 right now as we stand. The s p before today was down 13. 4 this year. He did make back some of that ground lost, but we will see what comes our way next week. The 10 year yield has been in its range as well. We have crude limits high for the week, but nevertheless, up and helping to send Oil Companies higher. Down 0. 4 , but still around 17. 25 an ounce. Lets get back to what is happening with italian bond yields and european bonds more broadly. Italian bonds catching a bid today. Are tightening up in germany as well, despite the fact that we have an s p rating review this evening and eu leaders essentially failed to reach a significant conclusion regarding funding, how they are going to fund europes economic recovery, and yesterdays video call. Are we overestimating the risk when it comes to italy and btps . Lets get a sense of where we are at the european economy. Peter
Highyield credit another risk asset down for a second week in a row. A cautious tone. We have been in this big rally. Some might be nervous whether or not it lasts. We are coming to the close of a rough week, particularly for oil. What is going on with Energy Stocks . Abigail it is interesting because on the week energy is the only up sector, up 1. 1 , even though oil is down 33 . Connect bit of a dip some of the investors bottom fishing. When you look at the s p 500 on the week, it is a bad week. The worst week in about five weeks, down 2. 7 . Inflection points sometimes happen very slowly, but it will be important to see what next week brings. If we have another down week, that could suggest a whipsaw in emerging range. Next week we will get a look at earnings from Big Companies such as apple, alphabet, amazon, microsoft. It could be an important earnings week along with the macro we have been paying attention to. Investors seem a little bit cautious. David all of the tech guys. Than