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June 03, 2015 |
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Here is what you need to know. The OECD cut its outlook for global growth. The Organization for Economic Cooperation and Development cut its growth forecasts for 2015 and 2016. The group sees global growth of 1.9% in 2015 and 2.5% in 2016. As for the US, the organization dropped its 2015 forecast to 2.0% from 3.1% and 2016 forecast to 2.8% from 3.0%. The OECD pinpoints weak investment for the slowdown in growth, suggesting: "The main reason for the weakness in investment is the weak recovery itself and doubts over the prospects for stronger growth." Greece and its creditors remain apart in their negotiations. Greece and its creditors continue to exchange proposals over how to deal with the country's massive debt load. Greek Prime Minister Alexis Tsipras said: "We have made concessions because a negotiation demands concessions; we know these concessions will be difficult." But European Commission spokeswoman Annika Breidthardt responded, "We're not there yet." A payment of more than 300 million euros is due Friday, but the International Monetary Fund has said the struggling country can make all four of its payments due in June (about 1.6 billion euros) at the same time, giving Greece some breathing room. Greece's two-year yield is lower by 96 basis points at 22.02%. China's services sector improved. China's HSBC Services PMI climbed to 53.5 in May from 52.9 in April, making for the fastest pace of expansion since September. Markit notes: "Activity growth at Chinese service providers was supported by a further increase in new work in May. Moreover, the latest increase in new business at service-sector companies was the sharpest for three years, with panelists highlighting a general strengthening of client demand and the impact of new projects." China's yuan was little changed at 6.1974. Eurozone data was impressive ahead of the ECB. A boatload of data crossed the wires in Europe, and most of it outpaced estimates. French and German Services PMI numbers beat, as did unemployment readings in Italy and the eurozone. Only Spanish and Italian Services PMI disappointed. The euro is down 0.3% at 1.1121 ahead of the European Central Bank rate decision, which is scheduled for 7:45 a.m. ET. Britain's Services PMI slowed sharply. According to Reuters: "Growth in Britain's service sector suffered its sharpest slowdown in nearly four years in May." Wednesday's reading of 56.5 was the weakest since January and marked a big decline from the April reading of 59.5. Economists believe the number cannot be looked at too closely as there may have been some reservations ahead of the general election. The British pound is off 0.4% at 1.5285. Australia GDP topped estimates. The Australian economy grew 0.9% versus last quarter, outpacing the 0.7% growth that was expected. Business Insider Australia's David Scutt notes: "While the headline figure topped expectations, the internals of the report were less convincing with the quarterly increase driven by a jump in inventories (+0.3ppts) and growth in export volumes (+0.5ppts)." The Australian dollar is down 0.4% at .7769. BP's CEO sees lower oil prices in the 2nd half of 2015. BP CEO Bob Dudley believes global oil supplies will continue to grow, putting downward pressure on prices. "I think we can see some softness in price continuing and as a result as an industry we must readjust cost structures, tax structures around the world," Dudley suggested while attending the Organization of the Petroleum Exporting Countries (OPEC) seminar. Jamie Dimon is a billionaire. JPMorgan Chase CEO Jamie Dimon is worth about $1.1 billion, according to the Bloomberg Billionaires Index. How did Dimon get there? According to Bloomberg: "Dimon's fortune derives from a $485 million stake in New York-based JPMorgan, where he's been chief executive officer since the end of 2005, and an investment portfolio seeded by proceeds from Citigroup stock sales." Stock markets around the world are mixed. India's Sensex (-1.4%) led Asian markets lower, and Germay's DAX (+0.6%) paces the advance in Europe. S&P 500 futures are up 5.75 points at 2112.50. US economic data flows. ADP Employment Change is due out at 8:15 a.m. ET while the trade balance and ISM Services cross the wires at 8:30 a.m. ET and 10 a.m. ET, respectively. Crude-oil inventory data is scheduled for a 10:30 a.m. release. Data concludes for the day with the release of the Fed's Beige Book at 2 p.m. ET. |
