The US will target China with a new "strike force" to combat unfair trade practices, the Biden administration said on Tuesday, as it rolled out findings of a review of access to critical products, from semiconductors to electric-vehicle batteries. The supply chain trade strike force, led by the U.S. trade representative, is looking for specific violations that contributed to a hollowing out of supply chains that could be addressed with tariffs or other remedies, including toward China. Officials also said the Department of Commerce is considering initiating a Section 232 investigation into the national security impact of neodymium magnet imports used in motors and other industrial applications, which the United States largely obtains from China.
UK pushes for City of London to be exempt from G7 global tax plan – FT
British finance minister Rishi Sunak is pushing for London to be exempt from a new global minimum corporation tax system championed by the Group of Seven (G7) economies. An official close to the talks said the UK was among those countries pushing "for an exemption on financial services" over fears that global banks with headquarters in London could be affected. "Our position is we want financial services companies to be exempt and EU countries are in the same position," the report quoted one British official as saying. The United States, Britain and other large, rich nations reached a landmark deal last weekend to squeeze more money out of multinational companies as they backed a minimum global corporate tax rate of at least 15%.
China's May new yuan loans seen falling as central bank scales back stimulus
New bank loans in China likely fell in May, a Reuters poll showed, as the central bank gradually scales back pandemic-driven stimulus to reduce debt and financial risks as the economy shows solid signs of recovery. Chinese banks are estimated to have issued 1.41 trillion yuan ($220.54 billion) in net new yuan loans last month, down from 1.47 trillion yuan in April. That would be lower than 1.48 trillion yuan issued the same month a year earlier. Annual outstanding yuan loans were expected to grow by 12.2% for May, continuing a slow but steady decline since February and easing from 12.3% in April. The central bank is trying to cool credit growth to help contain debt risks, but is treading warily to avoid hurting the economic recovery, which has been uneven.
FX volatility low, dollar up slightly as investors wait on inflation
The 10-year government bond yield (interpolated) on the previous trading day was 1.83, -3.00 bps. The benchmark government bond yield (LB31DA, 10.5 years) was 1.84, -1.00 bps. LB31DA could be between 1.82-1.87. Meantime, the latest closed US 10-year bond yields was 1.53%, -4.00bps. USDTHB on the previous trading day closed around 31.20 Moving in a range from 31.13-31.20 this morning. USDTHB could be closed between 31.12-31.19 today. Meantime, The U.S. dollar edged up slightly and currency market volatility on Tuesday hit the lowest level in more than a year, as investors sat on the sidelines waiting for clearer signals on inflation levels and central bank policies around the world.
Sources : Bloomberg, CNBC, Investing, CEIC
