EU HEALTHCARE: Tariff Talks: Swiss Pharma
Jul-04 13:51
Relief trade.
• Roche and Novartis are up 1+% on news that the Switzerland may avoid a Section 232 probe on pharmaceutical exports.
• Section 232 allows the President to impose tariffs on trade which is a threat to national security.
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CAD: USDCAD finds some offers post BoC's Unchanged Rate
Jun-04 13:49
- A very limited move in the USDCAD following the unchanged BoC rate, although offered, the cross is short of the Monday's low of 1.3675, which was also the lowest print since October.
- For now 1.3694 is today's low.
MNI: US MAY SERVICES PMI 53.7 (52.3 FLASH, 50.8 APRIL)
Jun-04 13:46
- US MAY SERVICES PMI 53.7 (52.3 FLASH, 50.8 APRIL)
BOC: Holds Key Rate at 2.75%, Signals Potential Cut Amid Tariff Threat
Jun-04 13:45
- Bank of Canada kept benchmark interest rate 2.75% Wednesday, in line with majority of economist expectations.
- Second consecutive decision to hold signaled potential cut if economy weakens and inflation contained.
- "On balance, members thought there could be a need for a reduction in the policy rate if the economy weakens in the face of continued US tariffs and uncertainty, and cost pressures on inflation are contained," Governor Macklem said.
- "At this decision there was a clear consensus to hold policy unchanged as we gain more information."
- Similar to previous statement BOC will continue monitoring timing and strength of downward pressure on inflation from a weaker economy and upward pressure from higher costs. BOC removed reference from prior statement that it could "act decisively" if the economy clearly moved in one direction.
- BOC says core inflation higher than it had expected, possibly because of tariffs.
- "The economy is expected to be considerably weaker in the second quarter, with the strength in exports and inventories reversing and final domestic demand remaining subdued," BOC said.
- Recent surveys show consumers expecting higher prices and businesses intend to pass tariff costs to their customers, BOC also said.
- "Governing Council is proceeding carefully, with particular attention to the risks. This means we are being less forward-looking than usual."
- The central bank will pay close attention to risks and uncertainties: "extent to which higher US tariffs reduce demand for Canadian exports; how much this spills over into business investment, employment and household spending; how much and how quickly cost increases are passed on to consumer prices; and how inflation expectations evolve."
