China withdrew from core commitments it made during trade talks with the US, inducing President Trump to impose additional tariffs on Chinese goods on Friday.
Liu still DC traveler
US Trade officials said retreating from previous commitments would have changed the agreement substantially and adding the US is hoping to conclude a deal one way or the other this week. Chinese Vice Premier Liu He is expected to be in DC on Thursday and Friday for further talks.
Eurozone figures
Eurozone IHS Markit’s PMI dipped to 51.5 in April from March’s 51.6, its steepest downturn since 2013 and contracting for a third consecutive month in April. A Service PMI also slipped to 52.8 from 53.3. In the first quarter, the economy grew 0.4 percent, but a Reuters poll suggested growth would slow to 0.3 percent this quarter.
Germany’s service-sector continued to rise in April, creating jobs at the fastest rate in over a decade. The Germany Service PMI index rose to 55.7 from 55.4 in March, its highest reading since September.
May hatching plans with Corbyn
British PM May has carried out “scenario planning” for a second Brexit referendum in case the parliament forces her to hold one, the Daily Telegraph reported on Monday. It would only become relevant if talks with the Opposition Labour fail and a majority in parliament support holding another public vote.
Chinese RRRs
China’s central bank said it would cut in reserve requirement ratios (RRRs) for some small- and medium-sized banks in three phases. The cuts will be gradually implemented on May 15, June 17 and July 15, and would release about 280 billion yuan ($41 billion) for small- and medium-sized banks.
Istanbul elections — again
Turkey’s ruling AK Party (AKP) said the country’s High Election Board (YSK) has set June 23 for a re-run of local elections in Istanbul. Turkish authorities annulled the result of a vote for Istanbul mayor which President Tayyip Erdogan’s candidate lost, inducing CHP-led opposition accusations of “dictatorship.”
Japanese manufacturing survey
Japanese manufacturing activity expanded in April for the first time in three months, a preliminary survey showed on Tuesday. However, new export orders fell at a faster rate than the previous month. The Markit/Nikkei Japan Flash Manufacturing PMI came to a seasonally adjusted 50.2, from a final 49.2 in March.
