Morning Report

Morning Report – Friday 24th April

Main Headlines

The EU neared a deal on rebuilding, with regional leaders endorsing a short-term 540 billion-euro plan. But they failed to make much progress on a longer-term program as member states were split on how to spread the financial strains.

European stock futures tumbled, while losses for U.S. contracts and Asian markets were more tempered as a U.S. aid bill passed and China further cut rates. Treasuries held gains. Oil continued to claw its way back and was on track to close out the week not far from where it started. The yen was steady. Gold dropped, while base metals were mixed.


Boris Johnson plans to return to Downing Street as early as Monday after recovering from the virus. Sterling rallied against both the euro and dollar yesterday even as a report showed Britain’s economy contracted at the fastest pace in at least two decades. This is not due to these numbers being previously priced in but more that the economic situation is equally as grim across the globe and as such the market is much more fixated on swings in sentiment and risk appetite.


European Central Bank President Christine Lagarde told European Union leaders in a video conference on Thursday that the euro area’s gross domestic product could fall by as much as 15% and that they risk doing too little, too late. The euro continued to trade lower after the European Union summit ended without an accord on a recovery package. The euro rose to session highs prior to the EU meeting as German Chancellor Merkel vowed to back a huge stimulus package for Europe, after Lagarde’s warning.


The U.S. House passed and sent to Donald Trump the $484 billion aid package for small businesses, hospitals and virus testing. Next steps may include a government lending program for oil firms seeking federal aid. The Dollar held onto gains.

Main Economic Data/Central Banks/Government (All Times BST)

  • 8:00 a.m.: Spain March PPI
  • 9:00 a.m.: Germany April Ifo Survey
  • 11:30 p.m.: Russia rate decision
  • Italy, U.K. sovereign debt rated by S&P

Corporate Events

Earnings include Verizon, Sanofi, American Express, Eni

Apple launches new low-cost iPhone SE.

Earnings Highlights

Boeing is poised to cut 787 Dreamliner output by about half and announce workforce reductions when it reports first-quarter earnings next week.

Intel slid in late trading after pulling its full-year sales forecast and predicting second-quarter profit will miss estimates.

Netflix sold $500 million of bonds at a 3.625% yield, among the lowest ever seen in the U.S. high-yield bond market and in line with prices typically offered on investment-grade.

J.C. Penney is in talks with lenders for bankruptcy funding, people familiar said. The WSJ reported it’s for as much as $1 billion.