Canada and the European Union launched a new partnership to secure supply chains for critical minerals and reduce dependence on China in a push for jobs and to counter climate change.
Real estate prices around the world are flashing the kind of bubble warnings that haven’t been seen since the run up to the 2008 financial crisis, according to Bloomberg Economics. New Zealand, Canada and Sweden rank as the world’s frothiest housing markets, based on the key indicators used in the Bloomberg Economics dashboard.
U.S. and Canadian officials are set to meet on Tuesday to discuss how to eventually lift border restrictions between the two although no immediate action is expected, Reuters reported, citing sources.
Headline U.S. retail sales are expected to have shrunk 0.7% last month. Core sales, stripping out volatile auto and gasoline numbers, are expected to be unchanged from April. The data comes as the Federal Reserve’s Open Market Committee begin their two-day meeting in Washington. While there is an update to economic projections at tomorrow’s meeting, economists are not expecting any announcement on asset purchase tapering until Jackson Hole in August at the earliest.
The U.S. and the European Union are expected to announce a five-year truce in their 17-year dispute over aircraft subsidies to Airbus SE and Boeing Co. later today. In 2019 the long-running disagreement led the allies to impose tariffs on $11.5 billion of each other’s exports. The deal has also been driven by the emergence of Commercial Aircraft Corp. of China, or Comac, as a competitor to the two planemakers.
Euro Area industrial production surprised to the upside in April. IP surged 39.3% y/y, following an 11.5% y/y increase in March. However, most of this acceleration reflects the impact of last year’s base effect. On a monthly basis, eurozone IP is up 0.8% m/m after last month’s 0.4% m/m increase. The base effect will ease going forward, which will slow down the year-on-year pace. Nevertheless, the monthly trend remains positive. Moreover, the latest production data is below the 2019 average, which suggests that there is still further room for upside this year.