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MNI: China Yuan Seen Breaching 7.3, Strengthening Against Basket

MNI (Singapore)
(MNI)Beijing

The PBOC will continue to set a strong daily fix and drain offshore yuan liquidity to curb any sharp fall of the currency.

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MNI Fed Preview-Apr 2024: Disinflation Delayed, Not Yet Denied

Persistently high inflation has shaken the FOMC’s confidence, but May is too soon for them to reconsider their easing bias.

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The Outlook For CNY

MNI discusses the outlook for CNY --On MNI Policy MainWire now, for more details please contact sales@marketnews.com.

Biden Has Razor Thin Electoral Edge Over Trump, According To New Analysis

A new multilevel regression and poststratification analysis by Stack Data Strategy has forecast that President Biden would narrowly win the presidency if the elections were held today.

  • Stack Data Strategy notes: “Joe Biden would beat Donald Trump by 287 electoral college votes to 251 if the presidential election were held today… Biden would also win the popular vote by 49.6% to 46.9%.”
  • Stack adds: “However, Biden’s projected win is based on the narrowest of leads in key battleground states: in Arizona, Pennsylvania and Wisconsin he is winning by less than half of one percentage point. If Trump were to overtake Biden in Pennsylvania alone, he would win the election.”
  • Stack’s analysis also supports a recent polling trend suggesting that third-party candidates are more likely to harm Trump than Biden: “RFK Jr. increases Biden’s lead in key battleground states when included.”
  • Joe Bedell, Head of Stack Data Strategy in North America, said: “The 2024 election cycle is truly on a knife edge. According to our in-depth research, President Biden is currently on course to cling on in the White House. But this is only by the narrowest of margins: only a percentage point in some states. The Midwest states that took Donald Trump to victory in 2016 are sticking with Biden for now, but it is effectively a toss-up in many of these key battlegrounds… This is going to be a truly nail-biting contest.”

Figure 1: Multilevel Regression and Poststratification Analysis, 2024 Presidential Election

Source: Stack Data Strategy

President Biden Remarks On CHIPS And Science Investment Underway Shortly

US President Joe Biden is shortly due to deliver remarks from Syracuse, New York on a majorfunding allocation to Micron to develop semiconductor manufacturing plants in New York and Idaho. LIVESTREAM

  • Under the terms preliminary agreement, Micron would be eligible for USD$6.14 billion in direct grants and USD$7.5 billion in loans - the second-largest package awarded so-far from the 2022 CHIPS and Science Act.
  • Mark Weiner reports: "Micron President and CEO Sanjay Mehrotra, U.S. Senate Majority Leader Charles Schumer, Gov. Kathy Hochul and Onondaga County Executive Ryan McMahon are among hundreds of guests invited by the White House who will be on hand to meet with Biden."
  • Bloomberg reports: "Officials have allocated nearly 85% of the Chips Act manufacturing incentives, including [today's Micron allocation]. But they’re just beginning to open applications for R&D funding that some experts say could prove more critical in the long term."
  • Additional background to the remarks in earlier bullet.

Yellen: Sanctioning Chinese Banks Is A "Tool That Is Available"

US Treasury Secretary Janet Yellen spoke to Reuters on a range of issues related to the US-China relationship. Select highlights below.

  • Asked about potential sanctions on Chinese banks if they facilitate transactions on ‘dual use’ goods to Russia’s military. Yellen says: “There’s an executive order that the President has signed which gives Treasury the power to sanction foreign banks, in China or other places, that are facilitating the flow of military goods to Russia. That’s an important power and one we would be prepared to use if necessary."
  • Yellen adds: "We’ve has intensive discussions with the Chinese about this I think they understand our position and it is a tool that's available."
  • When pressed if sanctions could be imminent, Yellen says she has “nothing to announce.”
  • Yellen says she has generally, “been in favor of free trade, but it has to be something that broadly benefits people throughout the country," noting that much of the US industrial workforce hasn’t recovered from “China shock” after the China was accepted into the WTO.
  • Asked if she thinks US policies could be a harbinger of further protectionism, Yellen says: “I don’t think it should be.”
  • On Chinese green overcapacity, Yellen says: "We're concerned about over dependence on one single country for total global supply of this full range of products. That's not a healthy situation." Says she “wouldn’t take anything off the table” to prevent the collapse of US industries while the US and China reach an agreement.
  • On Russia, Yellen says that, "outright seizure of [Russian sovereign] assets" is justifiable under international law.
  • Yellen notes that the US could get, "several hundred billion dollars in tax revenue," if Congress would get into compliance with the global tax deal next year.

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