⚡️☢️-🇨🇳The Chinese economy is facing with gloomy prospects amid a downturn in the manufacturing industry. Bloomberg

▪️ The PMI survey indicates a deeper contraction in the manufacturing industry.

▪️There are calls to increase the Central Bank's incentives to stimulate growth.

⚡️🇺🇸☢️-👆 It seems the party begins...

⚡️🇺🇸☢️🗣🏦🇺🇸 The bill to raise the US national debt ceiling was passed by a large part of the congressmen of the House of Representatives .

Now the bill will be sent to the US Senate, which must pass it and submit the document for signature to US President Joe Biden no later than June 5, when the authorities are expected to run out of funds to service the public debt

🏦🇺🇸 US economic activity appears to have slowed down in recent weeks, a Fed report released on Wednesday showed that job growth and inflation have slowed and the immediate business outlook looks slightly worse than before.

"Expectations about future growth have slightly worsened, although the interlocutors still generally expected further expansion of activity," says the latest collection of surveys and interviews "Beige Book" conducted in 12 districts of the US Central Bank until May 22.

⚡️☢️-🇺🇸 SENATE REPUBLICAN LEADER MCCONNELL: I EXPECT THE DEBT CEILING BILL TO PASS THE HOUSE OF REPRESENTATIVES AND GO TO THE SENATE THURSDAY.

✔️Biden is also sure that everything will go well and he will sign by the 5th.

✔️By the way, the CDS on the US government debt collapsed, so the market no longer believes in default. Investors switch attention to coming Fed meeting.🔥

👑🗓📈 Pimco: gold is now overpriced

👌 But in the long term (25 years), the precious metal is more than okay. This is due to the notorious de-dollarization, but, of course, this taboo word is not pronounced at Pimco. They say "diversifying the assets of the world's largest central banks."

📝Right now, Pimco advises to shift from gold to inflation-linked government bonds , that is, to the so-called TIPs. The company's experts believe that due to "sticky" inflation, the Fed will not be able to move to a cycle of stable monetary policy easing for a long time.

♻️Also, Pimco introduced the concept of “greenflation”, that is, “green” inflation . The entire Western world is now trying to switch (or at least pretends to be) to renewable energy sources, regardless of the costs. This becomes an additional significant factor in price growth.

🏦🇪🇺ECB's Lagarde sees no clear signs that core inflation has peaked, promising further increases in borrowing costs.

▪️According to her, there is still work to be done on the issue of interest rates.
▪️The remarks followed data indicating that inflation in the eurozone fell in May

⚡️🇺🇸☢️🗣Change in US nonfarm payrolls

🧮Factual 339,000 (expectations 190,000, previous figure 294,000)

✍️ The US economy unexpectedly added 339K jobs in May 2023 , well above market forecasts of 190K, and after an upward revision of 294K in April.

👥 Job gains occurred in professional and business services, government, healthcare, construction, transportation and warehousing , and social assistance.

🇺🇸-🗣👆The interesting thing is that QT has finally started to work against inflation. There has been a more active reduction in deposits, as you can see, for the first time in the last 1.5 years.

The most liquid bank accounts are decreasing, which means (if we believe that the Fisher formula works), either prices should creep down, or output volume, that is, if the price grows slower than demand falls, then GDP falls. As you can see, prices are not in a hurry to decline.

Apparently, we are really moving towards a recession.

⚡️🇺🇸☢️🗣Fed's Patrick Harker :

I'm the type who thinks we can skip the June rate hike. This will not be a pause - we are not ready for it yet.
(31.05.2023) source: forexlive.com

Fed's Philip Jefferson :

Monetary policy works with a time lag, so skipping the rate hike in June will allow us to see more data.
(31.05.2023) source: forexlive.com

⚡️🇺🇸☢️🗣Inflation has turned out to be more resilient than the FOMC expected when they released their latest forecast in March.

The rate should be high for longer than expected, which increases the likelihood of a hard landing and recession.

In other words, "sticky" inflation requires more destruction of demand, which increases the risk of lower corporate earnings.

⚡️❗️🇺🇸 According to the statement, the SEC has filed a lawsuit against Binance and CEO Zhao for violating US securities regulations.

🏦🇪🇺 ECB President Christine Lagarde said inflationary pressures remain strong and borrowing costs will continue to rise to combat them, bolstering forecasts for another rate hike at next week's meeting.