Halister News

(Bloomberg) -- ISM Manufacturing PMI seen at 50.3 in May vs 50.8 in April (forecast range 49 to 52); index barely above the 50 level that indicates stagnation.

• PMI based on business responses to queries on production, orders, inventories, employment and prices
• Construction spending seen rising 0.6% in April after increasing 0.3% in March (forecast range +0.1% to +1.2%); based on value of residential and non-residential projects

(Bloomberg) -- U.S. Treasury announces finding under Section 311 of USA Patriot Act, after Feb. law requires dept. to determine within 180 days “whether reasonable grounds exist for concluding that North Korea is a jurisdiction of primary money laundering concern, and if so, to propose one or more special measures.”

• Treasury issues statement on N. Korea action
• Treasury proposes rule recommending step to further isolate North Korea from intl financial system by “prohibiting covered U.S. financial institutions from opening or maintaining correspondent accounts with North Korean financial institutions, and prohibiting the use of U.S. correspondent accounts to process transactions for North Korean financial institutions”
• UN resolution from March 2 in part requires UN member states to sever correspondent banking relationships with N. Korean financial institutions
• “The regime is notoriously deceitful in its financial transactions in order to continue its illicit weapons programs and other destabilizing activities,” Treasury undersecretary Adam Szubin says in statement
• “Today’s action is a further step toward severing banking relationships with North Korea and we expect all governments and financial authorities to do likewise pursuant to the new UN Security Council Resolution’’: Szubin

--SCOTT LANMAN

--JOSHUA FINEMAN