Federal Reserve officials have begun lowering expectations for May jobs growth in the United States as business hiring plans continue to outrun the supply of people able or willing to work. Dallas Federal Reserve president Robert Kaplan said Friday that hiring difficulties have continued through May, and will likely lead to another weak jobs report following the lower-than-expected 266,000 positions added in April. 8.2 million positions still missing from before the pandemic. St. Louis Fed president James Bullard earlier this week however called that figure "hyped up," and said a "more realistic" expectation was for perhaps half a million jobs a month. The comments highlight a growing dilemma at the Fed as it wrestles over how long to keep emergency levels of economic support in place.
Euro zone upbeat about recovery but wary of lagging behind China, U.S.
Euro zone finance ministers were upbeat on Friday about the prospects of the post-pandemic economic recovery, but said Europe
would have to work hard to avoid long-term economic damage and not to fall behind China and the United States. The long-term
"scarring" effects of the pandemic could manifest themselves via a drop in business investment, as it did in the financial crisis a
decade ago, European Economics Commissioner Paolo Gentiloni said. It could also show in the disruption to young people's
education and training and through cuts in investment in intangible assets and research and development, despite the EU's
enormous investments in digital and green transitions.
Big European states warm to U.S. proposal for minimum corporate tax rate of at least 15%
France, Germany and Italy said on Friday that a new U.S. proposal for global minimum corporate tax rate of at least 15% was a good
basis for sealing an international deal by July. The U.S. Treasury Department offered on Thursday to accept a minimum rate of at
least 15%, significantly below its proposed 21% minimum for U.S. multinational firms. "Treasury proposed to the steering group that
the global minimum tax rate should be at least 15%," the department said in a statement. "Treasury underscored that 15% is a floor
and that discussions should continue to be ambitious and push that rate higher." All hoped that talks would be wrapped up as
planned by a July meeting of G20 finance ministers, amid suggestions from the OECD that it could take until October to finalize a
deal.
Dollar near 3-month low, weighed by prospects of dovish Fed
The 10-year government bond yield (interpolated) on the previous trading day was 1.85, -3.00 bps. The benchmark government
bond yield (LB31DA, 10.5 years) was 1.83, -3.00 bps. LB31DA could be between 1.81-1.85. Meantime, the latest closed US 10-year
bond yields was 1.63%, +0.00bps. USDTHB on the previous trading day closed around 31.38 Moving in a range from 31.35-31.40
this morning. USDTHB could be closed between 31.36-31.44 today. Meantime, The dollar stood near its lowest level in three months
against a resurgent euro, struggling for traction as investors pared earlier bets the U.S. Federal Reserve may soon be ready to taper
its stimulus.
Sources : Bloomberg, CNBC, Investing, CEIC
