HALISTER1: INSIDE ASIA: Yen Retreats; FX Down on USD; China Home Prices Up

INSIDE ASIA: Yen Retreats; FX Down on USD; China Home Prices Up

(Bloomberg) -- Yen gives up gains stemming from improving GDP growth as currencies throughout region decline on dollar strength, with two Fed presidents saying at least two U.S. rate hikes could be warranted this year.
  • Stronger-than-expected U.S. data overnight included April housing starts, m/m CPI and industrial production
  • Japan’s 1Q GDP grew annualized 1.7% vs +0.3% median est. and revised -1.7% previous quarter; PM Abe economic adviser Hamada says economic fundamentals are sound, shouldn’t hike sales tax next year
    • However, Mizuho FX strategist Kenji Yoshii says GDP improvement suggests sales-tax hike may not be delayed
    • Data reduce speculation for further monetary easing: Daiwa Securities chief currency analyst Yuji Kameoka; EM FX under downward pressure as Fed officials’ comments support dollar
    • Yen rose as high as 108.72 per dollar before falling back to 109.37, down 0.2%
  • China new-home prices rose in 65 of 70 cities in April vs 62 in March, despite curbs to slow rapid gains in some cities; April figure is most since December 2013
    • Both onshore and offshore yuan fall
    • China should increase fiscal, monetary policy support for private investment, says front-page commentary in Economic Information Daily
  • RBA Assistant Governor Guy Debelle says yuan’s increased global role is welcome
    • Aussie falls, set to end two-day advance
    • Australia’s April leading index rose 0.24% m/m to 96.84; 1Q wage index +0.4% q/q vs est. +0.5%
  • Ringgit declines; USD/MYR could rally toward 100-DMA resistance medium term as uncertainty over Brexit may spur risk-off sentiment, Bloomberg strategist David Finnerty writes
    • Central bank is likely to keep policy rate unchanged at 3.25% tomorrow, according to 20 of 21 economists in Bloomberg survey; one sees cut to 3%
    • 1MDB’s troubles deter banks from extending loans to co.’s project partners for Tun Razak Exchange and Bandar Malaysia development projects, Edge reports
  • Rupiah set to snap two-day rally
    • USD/IDR looks to extend 13,000-13,500 rangebound trade short-term as Bank Indonesia seen leaving rate unchanged tomorrow, Bloomberg strategist David Finnerty writes
    • BI to keep policy rate at 6.75%, according to all 19 economists in Bloomberg survey
  • Won weakens; South Korea to extend stock trading hours by 30 mins in 2H, start date not decided, Financial Services Commission Chairman Yim says
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Guy Debelle (Reserve Bank of Australia)
Yim Jong (Republic of Korea)
Yuji Kameoka (Daiwa Securities Capital Markets Co Ltd)

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UUID: 7947283

HALISTER: Goldman Asset Said to Consider Aussie Equities Unit Sale (2)

Goldman Asset Said to Consider Aussie Equities Unit Sale (2)

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
GS US (Goldman Sachs Group Inc/The)

People
Dion Hershan (Goldman Sachs Group Inc/The)
Hayley Morris (Goldman Sachs Australia Pty Ltd)
Simon Rothery (Goldman Sachs Group Inc/The)

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UUID: 7947283

HALISTER1: USD/IDR May Stay Rangebound as BI Poised to Hold Rates: Analysis

USD/IDR May Stay Rangebound as BI Poised to Hold Rates: Analysis

(Bloomberg) -- USD/IDR looks to extend its rangebound trade between 13,000-13,500 in the short-term as Bank Indonesia looks set to leave its benchmark reference rate unchanged tomorrow, Bloomberg strategist David Finnerty writes.
  • BI is forecast to keep its reference rate steady at 6.75%, according to all 19 economists in Bloomberg survey, as it prepares to adopt the 7-day reverse repo rate as its new benchmark instrument on Aug. 19
  • USD/IDR has been confined to 13,000-13,500 range since mid- Feb.
    • Initial support is seen at 50-DMA, currently 13,196, while resistance is at 100- DMA, currently 13,437
  • BI said in its April statement it will continue to strengthen monetary operations framework through a “consistent implementation of the term structure of monetary operations”, signaling lowering rates is not a priority at the moment
  • April CPI declined to 3.60% but remained within BI’s 2016 target of 3%-5%, further indicating that current policy rate is accommodative at present
  • Other factors that may encourage BI to remain on hold include:
    • Risk that food inflation ticks up as monsoon season approaches
    • U.K. Brexit referendum next month may spur risk-off sentiment; EM mkts may face capital outflows if U.K. does vote to leave the EU
  • Low probability of Fed rate hike in June should keep IDR from being pressured near-term
  • NOTE: David Finnerty is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283

HALISTER: BofA Called ‘Bro’s Club’ in Female Director’s Bias Suit (3)

BofA Called ‘Bro’s Club’ in Female Director’s Bias Suit (3)

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
BAC US (Bank of America Corp)

People
Allison Schieffelin (Morgan Stanley)
David Trepanier (Bank of America Corp)
Frank Kotsen (Merrill Lynch & Co Inc)
Laura Zubulake (UBS Securities LLC)
Megan Messina (Merrill Lynch & Co Inc)

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UUID: 7947283

HALISTER1: USD/MYR May Rise Toward 100-DMA Even If BNM Holds Rate: Analysis

USD/MYR May Rise Toward 100-DMA Even If BNM Holds Rate: Analysis

(Bloomberg) -- USD/MYR could rally toward 100-DMA resistance in medium term, as geopolitical uncertainty over Brexit may spur risk-off sentiment in coming weeks, Bloomberg strategist David Finnerty writes.
  • At its last meeting BNM said the economic outlook is vulnerable to downside risks, including declining commodity prices and rising geopolitical risks
  • In recent comments on Malaysian economy the central bank said 1Q CPI spike was due to reduction in electricity tariff rebates in Jan., and base effect from decline in domestic fuel prices in 1Q 2015; implying that rates don’t need to be adjusted to control inflation for now
    • Brent crude oil has rebounded to nearly $50/bbl since then but geopolitical risks exist with Brexit vote on June 23
  • This week’s meeting will be first with Muhammad Ibrahim as governor;
    • Most economists don’t see any immediate changes; BNM will leave its overnight policy rate unchanged at 3.25%, according to 20 of 21 economists in Bloomberg survey, with one predicting a 25 bps cut; decision due tomorrow at 6:00pm local time
  • USD/MYR up 0.2% to 4.0270; below 100-DMA at 4.1147 since Jan. 26
  • NOTE: David Finnerty is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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HALISTER1: New York Post: As Venezuela burns, socialism’s paying big for its corrupt rulers

New York Post: As Venezuela burns, socialism’s paying big for its corrupt rulers

Alert: HALISTER1
Source: NYP (New York Post)

People
Hugo Chavez Frias (Bolivarian Republic of Venezuela)
Josh Earnest (White House Office)
Nicolas Maduro Moros (Bolivarian Republic of Venezuela)

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UUID: 7947283

HALISTER: Zuckerberg Meeting With Conservatives Strikes Sensitive Balance

Zuckerberg Meeting With Conservatives Strikes Sensitive Balance

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
FB US (Facebook Inc)

People
Mark Zuckerberg (Facebook Inc)
Barack Obama (United States of America)
Barry Bennett (Cathedral Group Holdings Ltd)
Benjamin Carson (Yale Corporation)
Christopher Hughes (New Republic Inc/The)

Topics
Bloomberg Politics
Who's News - People

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UUID: 7947283