• Tuesday, May 3, 2016 - 19:01 UK Shop Price Deflation Persists But Decelerates 0


    -UK Apr BRC Shop Price Index -0.3% m/m; -1.7% y/y; -1.7 y/y Jan

    LONDON (MNI) - UK shop prices continued to fall in April, with the pace of deflation unchanged from the previous month, a survey released Wednesday showed.

    The BRC-Nielson Shop Price Index (SPI) reported April's contraction in prices at 1.7% for the second consecutive month. Compared to the previous month the SPI fell by 0.3% compared to a rate of 0% recorded in March.

    April's outturn marked a three year anniversary of falling prices, driven in large part by falling non-food prices. The pace of deflation has been in excess of 1% for 28 of the last 36 months.

  • Tuesday, May 3, 2016 - 18:10 US Tsy's Lew: Congress Must Act Soon on Puerto Rico Package 0


    --Restructuring Debt Is Crucial for Puerto Rico
    --Bipartisan Deal Possible On Business Tax Reform
    --Tys's Policies Have 'Slowed Down' Inversions

    LOS ANGELES (MNI) - U.S. Treasury Secretary Jack Lew said Tuesday Congress must act soon to assist financially troubled Puerto Rico, arguing that legislation is needed to prevent the "complete unwinding of normal life" on the island.

    In a question and answer session at the Milken Global Conference, Lew said he has tried to impress upon lawmakers that debt restructuring for Puerto Rico and a taxpayer-financed bailout are the "polar opposites."

    ...
  • Tuesday, May 3, 2016 - 16:56 Tuesday's Top Stories in the United States 0


    * Atlanta Federal Reserve Bank President Dennis Lockhart said Tuesday he considers the mid-June meeting of the Fed's policymaking Federal Open Market Committee a "live" and "real" option for raising the federal funds rate again. Lockhart said the FOMC positioned itself well for a possible rate hike with its April policy statement and said that, as far as he's concerned, a new case for raising rates does not need to be made "from square one." Rather, he would only want to see evidence "invalidating" his assumption that the economy will rebound from a weak first quarter to oppose raising rates on June 15, he told reporters on the sidelines of the Atlanta Fed's annual Financial Markets Conference.

  • Tuesday, May 3, 2016 - 16:26 IMF Official: Nations Need Fiscal/Monetary Policy Balance 0


    --Failure to Reform Could Cost Global Economy Yr's Worth of GDP

    WASHINGTON (MNI) - In the next five years, the global economy will lose an estimated 3.9% of global output should countries not return to a more balanced mix of monetary and fiscal policy implementation in favor of continued reliance on central bank action, International Monetary Fund Capital Markets Director Jose Vinals said on Tuesday.

    "Monetary policy still has power, but with decreasing returns," he said. "The benefits of unconventional monetary policies are getting lower.

    "I still think (the benefits) are higher than the costs, so monetary policy should remain...

  • Tuesday, May 3, 2016 - 15:25 PIMCO Likes Cdn Real Return Bonds W/Breakeven Inflatn Of 1.6% 0


    --Also Favors Corporates, Provincial Bonds
    --BOC Wants to Avoid Non-Conventional Monetary Policy

    OTTAWA (MNI) - Expecting Canadian core inflation to hover around 1.75% to 2.25% this year, PIMCO Head of Canadian Portfolio Management Ed Devlin favors real return bonds with breakeven inflation at 1.6%.

    In a Global Central Bank Focus Tuesday, Devlin also saw opportunities in provincial bonds and high quality corporates, such as bank deposit notes, while federal government bond yields remain unattractively low.

    "With federal government 10-year bonds offering paltry yields of around 1.5%, we suggest investors consider...

  • Tuesday, May 3, 2016 - 14:55 SF Fed's Williams/BBG:Would Support June Hike W/Con't Progress 0


    WASHINGTON (MNI) - San Francisco Federal Reserve Bank President John Williams said Tuesday he wants to see a continuation of progress made of over the past couple years in order to support an increase in the fed funds rate at the next Federal Open Market Committee meeting.

    Asked if it was likely he would support a rate hike at the June 14-15 meeting, Williams said in an interview with Bloomberg Radio he didn't want to say it was a "likelihood," but he did say, "Yes, it would be appropriate given everything we talked about to go on that next step," adding "a lot can happen between now in the middle of June.

    Williams, who is not a voter this year on the policymaking FOMC this year, said he wants to see "a continuation of the...