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Summary – May 10

LATAM
  • Brazil IPCA inflation data for April will be published on Friday, alongside Mexico March industrial production figures. These will be followed by the latest central bank of Chile economist survey. Later in the day, Argentina wages data for March will also cross. In the US, focus turns to University of Michigan consumer sentiment for May, followed by the April budget statement. Central bank speak due today includes the Fed's Bowman, Logan, Kashkari, Goolsbee and Barr.
  • Global News:
    • US / CHINA - President Biden’s administration is poised to unveil a sweeping decision on China tariffs as soon as next week, one that’s expected to target key strategic sectors while rejecting the across-the-board hikes sought by Donald Trump, people familiar with the matter said. The new tariffs will focus on industries including electric vehicles, batteries and solar cells, with existing levies largely being maintained. An announcement is scheduled for Tuesday, two of the people said.
    • ISRAEL - Israeli Prime Minister Benjamin Netanyahu struck a defiant tone against President Biden after the US withheld a shipment of bombs as a warning to its top Middle East ally not to invade the southern Gaza city of Rafah. In a first, punchy clip on the social media site X, Netanyahu said: “If we have to stand alone, we will stand alone” and “fight tooth and nail.”
    • JAPAN - Japan’s government and central bank should start targeting an exchange rate of 120-130 per dollar as the yen is currently far too weak for struggling small businesses, according to a national business group leader. “Small and medium-sized companies are already in a very tough spot with the yen sticking around 150 to the dollar,” Ken Kobayashi, chairman of the Japan Chamber of Commerce and Industry, said in an interview Thursday.

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