TURKEY: Erodgan-Return To F-35 Programme Discussed w/Trump At NATO
Reuters reports comments from President Recep Tayyip Erdogan following the NATO summit in The Hague. Says that Turkey has not given up on acquiring next-generation F-35 fighter jets from the United States, and that his administration has relayed to the US that Ankara is keen to return to the F-35 programme.
- Turkey was ejected from the F-16 programme in 2019 after Ankara's purchase of Russian-made S-400 air defence systems. Erdogan claimed he and Trump did not discuss the S-400s, and that he reiterated Turkey's payment of USD1.3bln towards procuring US jets to date.
- Erdogan met with Trump for the first time since the latter's return to office at the summit. Erodgan said the US president would look to attend potential peace talks between Russia and Ukraine hosted by Turkey if Russian President Vladimir Putin was also in attendance.
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ECB: Holzmann Pushes Back Against June and July Cuts, But Markets Don't Care
ECB hawk Holzmann suggests the bank should hold rates steady in June and July in an interview with the FT. Some highlights from the piece:
- The European Central Bank should pause further interest rate cuts until at least September, one of its most hawkish policymakers has said, warning that “we should keep our powder dry” given the simmering EU-US trade war.
- Austrian central bank governor Robert Holzmann told the Financial Times he saw “no reason” for the ECB to lower rates at its June and July meetings.
- “Moving [interest rates] further south would be more risky than staying where we are and waiting until September,” Holzmann said, arguing that a further rate cut at this stage was likely to have “no effect” on economic activity in the Eurozone.
Hardly a surprising viewpoint from Holzmann, who is considered the most hawkish Governing Council member (nowadays alongside Executive Board member Schnabel). There hasn't been a material reaction in EUR implied rates as a result. Worth noting though that Holzmann's term as Austrian National Bank Governor ends on August 31st, so he won't be present to vote (or share views) at the September decision.
OUTLOOK: Price Signal Summary - EUROSTOXX50 Bull Cycle Remains Intact
- In the equity space, a bullish trend condition in S&P E-Minis remains intact and the latest pullback is considered corrective. A key support lies at 5719.58, the 50-day EMA. A clear break of this average is required to highlight a stronger reversal and signal scope for a deeper retracement. Sights are on the bull trigger at 5993.50, the May 20 high.
- A bullish theme in EUROSTOXX 50 futures remains intact and the recent pullback appears corrective. Moving average studies are in a bull-mode position, highlighting a clear uptrend and recent gains maintain the sequence of higher highs and higher lows. Sights are on 5516.00, the Mar 3 high and the key bull trigger. Key support to watch lies at 5230.62, the 50-day EMA. Clearance of this average would signal a possible reversal.
MNI: UK CBI MAY DIST TRADE REPORTED SALES -27
- MNI: UK CBI MAY DIST TRADE REPORTED SALES -27
- UK CBI MAY DIST TRADE EXPECTED SALES -37
