ECONOMICS

Ahead of tomorrow's CPI, traders are eyeing this morning's Producer Prices for any hints that the disinflation trend will return…or not.

The answer is "not!"

April Producer Prices rose 0.5% MoM (vs +0.3% exp), with March's +0.2% MoM revised down to -0.1% MoM. The downward revision did not stop the YoY read rising to 2.2% (from +2.1% in March)…

Source: Bloomberg

This is the highest YoY read since April 2023 and is the fourth hotter than (more…)

By Mark Glennon of Wirepoints

Whose side will Chicago Mayor Brandon Johnson be on if protesters become lawbreakers at the August Democratic National Convention in Chicago, and how will he direct police to respond?

Concerns that Johnson will side with lawbreakers already are common, and Johnson’s  interview published Sunday by the Chicago Tribune should increase those concerns.

Mayor Johnson on MSNBC

The interviewers asked Johnson whether he agreed with police who forcibly broke (more…)

By Benjamin Picton, Senior Macro Strategist at Rabobank

Bumps and Potholes

UK Q1 GDP surprised to the upside at the end of last week to print at +0.6%, rather than the more modest 0.4% that market economists had been expecting. That means that Britain is officially out of recession. Perhaps even more importantly for Prime Minister Rishi Sunak, GDP per capita grew for the first time in two years and the Governor of the Bank of England has been talking about rate cuts. The FT reports that (more…)