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Britain will not accept Brexit deal that puts union at risk: Lewis

FILE PHOTO: Brandon Lewis arrives in Downing Street, London
FILE PHOTO: Brandon Lewis arrives in Downing Street, London, Britain, December 18, 2018. REUTERS/Hannah McKay

March 9, 2019

LONDON (Reuters) – Britain cannot accept Michel Barnier’s proposal to break the deadlock in the Brexit talks because it would risk the unity of the United Kingdom by treating Northern Ireland differently, the chairman of the ruling Conservative Party said.

Less than three weeks before Britain leaves the European Union, the EU’s chief negotiator said on Friday Britain could have the unilateral right to leave their customs union after Brexit. However, Northern Ireland would remain in the EU’s trade orbit to prevent the need for any customs checks on the border with EU-member Ireland.

“We are not going to have an agreement that compromises the unity of the United Kingdom,” Brandon Lewis told BBC radio. “The proposal that Michel Barnier put out yesterday would compromise the strength of the union.

“This government will not tolerate something that puts the United Kingdom’s union at risk.”

(Reporting by Kate Holton; Editing by Janet Lawrence)

Source: OANN

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U.S. to start fabricating parts for ground-launched cruise missile systems

Valiant Shield 2018 - Live Fire
A tomahawk cruise missile launches from the Arleigh Burke-class guided-missile destroyer USS Shoup for a live-fire exercise during Valiant Shield 2018 in the Philippine Sea, September 18, 2018. REUTERS/U.S. Navy/Mass Communication Specialist 2nd Class William Collins III/Handout

March 11, 2019

WASHINGTON (Reuters) – The United States will begin “fabrication activities” on parts for ground-launched cruise missile systems, the Pentagon said on Monday, after Washington announced it plans to withdraw from the Intermediate-Range Nuclear Forces Treaty.

Last month, the United States announced it would withdraw from the INF Treaty in six months unless Moscow ends what it says are violations of the 1987 pact.

Russia announced it was suspending the treaty. Moscow denies flouting the accord and has accused Washington of breaking the accord itself, allegations rejected by the United States.

“We will commence fabrication activities on components to support developmental testing of these systems – activities that until February 2 would have been inconsistent with our obligations under the Treaty,” Army Lieutenant Colonel Michelle Baldanza said.

“This research and development is designed to be reversible, should Russia return to full and verifiable compliance before we withdraw from the Treaty in August 2019,” Baldanza said.

The Pentagon said the efforts would be conventional and not nuclear.

The United Nations has urged the United States and Russia to preserve the INF Treaty, saying that losing it would make the world a more insecure and unstable place.

(Reporting by Idrees Ali; editing by Jonathan Oatis)

Source: OANN

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Japan’s March factory output declines, rise in inventories raises concerns

FILE PHOTO: Employees of Toyota Motor Corp. work on assembly line in Toyota
FILE PHOTO: Employees of Toyota Motor Corp. work on the assembly line of Mirai fuel cell vehicle (FCV) at the company's Motomachi plant in Toyota, Aichi prefecture, Japan May 17, 2018. REUTERS/Issei Kato

April 26, 2019

By Stanley White

TOKYO (Reuters) – Japan’s factory output fell in March for the first time in two months and inventories rose at the fastest pace in a year as the U.S.-Sino trade war dents the country’s manufacturing sector.

Separate data showed retail sales picked up in March and labor demand remains the strongest in decades, but these positive figures are unlikely to ease policymakers’ concerns about a slowdown in global trade flows.

Factory output fell 0.9 percent in March, data by the Ministry of Economy, Trade and Industry (METI) showed, more than a median estimate for a 0.1 percent decline in a Reuters poll of economists. That followed a 0.7 percent increase in February.

The mounting pressure on Japan’s economy from weak external demand has hurt exports and threatens corporate profits, which could weigh on capital expenditure and make it more difficult to keep growth on track, analysts say.

Industrial output fell in March due to a 3.4 percent decline in car output and a 6.7 percent decline in the production of machines used to make semiconductors and flat-panel displays, the data showed.

In another source of concern, inventories rose 1.6 percent in March, the fastest increase in a year, due to higher inventories of metals, plastics, and heavy equipment.

The rise in inventories suggests makers of these goods could curb output in the future.

Manufacturers surveyed by the ministry expect production to rise 2.7 percent in April and 3.6 percent in May, but METI changed its assessment of output to say it is weakening recently.

Retail sales – a key gauge of private consumption that makes up about 60 percent of the economy – rose 1.0 percent in March from a year earlier, more than a 0.8 percent annual gain expected by economists.

Friday’s batch of data comes a day after the Bank of Japan said it would keep interest rates low for at least another year, in a move to dispel uncertainty over its commitment to support the economy and drive inflation.

Japan’s policymakers are nervously monitoring developments overseas but have few policy options if weakness in the global economy continues to damage the country’s outlook, some economists say.

The Sino-U.S. trade war has also had a negative effect on domestic growth, as a slowing Chinese economy curbed demand for mobile phone parts and chip-making equipment from Japan.

Uncertainty over Britain’s exit from the European Union and jittery global financial markets have added to a growing list of worries for policymakers.

Additional data released on Friday showed Japan’s jobless rate edged up to 2.5 percent in March from 2.3 percent previously, and job availability held steady at 1.63 per applicant, hovering at a 44-year high.

Tokyo’s core consumer price index (CPI), which includes oil products but excludes fresh food prices, rose an annual 1.3 percent in April from a year earlier, more than the median estimate for a 1.1 percent annual increase.

(Editing by Jacqueline Wong)

Source: OANN

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Iowa’s longest-serving Republican lawmaker says he’s becoming a Democrat because of Trump

The longest-serving Republican in the Iowa Legislature announced Tuesday that he’s becoming a Democrat, saying he didn’t want to remain in a party led by President Trump.

Rep. Andy Mckean, 69, a retired attorney from eastern Iowa city of Anamosa, said he made his decision after returning to the Legislature after years away from politics and finding the Republican Party had changed. He was a registered Republican for nearly a half-century, The Washington Post reported.

During a news conference at the Iowa Statehouse in Des Moines on Tuesday, McKean said if the president’s behavior and leadership is the new normal, “I want no part of it.”

“Unacceptable behavior should be called out for what it is and Americans of all parties should insist on something far better in the leader of their country and the free world,” McKean said.

RUSH LIMBAUGH TO REPUBLICANS: THIS IS TRUMP'S PARTY, 'GET ON BOARD'

McKean first entered the House in 1979 and served seven terms. He left the legislature but returned to the Senate in 1993 and served three terms. He then won election to the House in 2016 and was re-elected in 2018. He has served nearly 29 years in the Legislature.

When he returned, McKean said he disagreed with Republicans on many high-profile issues but declined to comment further.

McKean, who describes himself as a moderate, pointed to Trump’s spending decision and what he called the president’s “erratic, destabilizing foreign policy,” choices regarding the environment and “disregard for the truth.”

The lawmaker said as the 2020 election approached, he believed the country will pay a “heavy price for Trump’s reckless spending and shortsighted financial policies.”

“He sets, in my opinion, a poor example for the nation and particularly for our children by personally insulting, often in a crude and juvenile fashion, those who disagree with him, being a bully at a time when we’re attempting to discourage bullying,” McKean said of Trump.

McKean said he will register as a Democrat when he returns home later this week and plans to seek re-election as a Democrat in 2020.

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It’s rare for Iowa legislators to change parties. The last time it occurred was in 2007 when Rep. Dawn Pettengill, of Mount Auburn, switched from Democrat to Republican.

McKean is not the first Iowa lawmaker to quit the party citing Trump. Former Sen. David Johnson announced he was quitting the party in 2016 as a demonstration to Trump’s presidency, the Des Moines Register reported.

McKean’s decision prompted an angry response from Jeff Kaufmann, the chairman of the state Republican Party.

"When Rep. McKean ran in 2016, he had no problem riding to victory on President Trump's coattails," Kaufmann said. "He's about to feel the headwind of President Trump's support in District 58."

Troy Price, Iowa’s Democratic Party Chairman, welcomed McKean.

"His decision to put people over politics shows his commitment to our state,” Price said of McKean.

The Associated Press contributed to this report.

Source: Fox News Politics

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The Latest: Judge suspended without pay after indictment

The Latest on charges against a federal judge accused of helping a suspect evade immigration detention (all times local):

2:30 p.m.

A Massachusetts judge charged with helping a man living in the U.S. illegally evade immigration detention has been suspended without pay.

The Supreme Judicial Court announced District Court Judge Shelley M. Joseph's suspension Thursday after she was indicted by a grand jury on obstruction of justice charges.

Authorities say Joseph and a court officer schemed last year to help a defendant escape out of the courthouse and elude an immigration enforcement agent who was waiting for him.

Emails were sent to lawyers for Joseph and former court officer Wesley MacGregor. MacGregor was also charged with perjury.

They are expected to appear in Boston federal court later Thursday.

___

1 p.m.

A Massachusetts judge has been indicted on obstruction of justice charges for allegedly helping a man in the country illegally to evade immigration officials.

Massachusetts U.S. Attorney Andrew Lelling announced the charges against Newton District Court Judge Shelley M. Richmond Joseph on Thursday. Former court Officer Wesley MacGregor was also charged.

Joseph came under federal investigation after authorities said she and her staff helped a defendant leave the courthouse last year after a hearing on charges, including drug possession.

Prosecutors say an immigration agent was in the courthouse to detain the man following the hearing, but Joseph and the court officer schemed to help him leave out a back door.

Joseph and MacGregor were expected to appear in court later Thursday. It was not immediately clear if they have lawyers.

Source: Fox News National

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Publisher: Michelle Obama Memoir May Be History's Most Successful

Michelle Obama's smash book, "Becoming" might be the most successful memoir in history, reports The Wall Street Journal.

The former first lady's book has sold nearly 10 million copies around the world since its November release, publisher Penguin Random House said Tuesday.

"We believe this could be the most successful memoir in history," executive Thomas Rabe said in a statement to The Journal. Penguin's chief executive, Markus Dohle, added, "I'm not aware, in my personal experience with Penguin Random House, that we ever sold 10 million units of a memoir."

The book was an immediate success, climbing to No. 1 in the United States, Germany, Greece and the United Kingdom in its first 15 days. It sold two million copies in that time span to become the bestselling book of 2018.

Penguin paid $60 million in 2017 for the rights to the book as well as one by former President Barack Obama.

Michelle Obama's book explores her childhood, her work, motherhood and her time in the White House. She reveals difficulties in her marriage with Barack Obama and how the couple suffered a miscarriage.

She is in the middle of the second leg of her popular book tour.

Source: NewsMax America

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See New Joe Rogan Podcast With Alex Jones in Austin

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FILE PHOTO: Supporters of the Spain's far-right party VOX wave Spanish flags as they attend an electoral rally ahead of general elections in the Andalusian capital of Seville
FILE PHOTO: Supporters of the Spain’s far-right party VOX wave Spanish flags as they attend an electoral rally ahead of general elections in the Andalusian capital of Seville, Spain April 24, 2019. REUTERS/Marcelo del Pozo/File Photo

April 26, 2019

By John Stonestreet and Belén Carreño

MADRID (Reuters) – Spain’s Vox party, aligned to a broader far-right movement emerging across Europe, has become the focus of speculation about last minute shifts in voting intentions since official polling for Sunday’s national election ended four days ago.

No single party is anywhere near securing a majority, and chances of a deadlocked parliament and a second election are high.

Leaders of the five parties vying for a role in government get final chances to pitch for power at rallies on Friday evening, before a campaign characterized by appeals to voters’ hearts rather than wallets ends at midnight.

By tradition, the final day before a Spanish election is politics-free.

Two main prizes are still up for grabs in the home straight. One concerns which of the two rival left and right multi-party blocs gets more votes.

The other is whether Vox could challenge the mainstream conservative PP for leadership of the latter bloc, which media outlets with access to unofficial soundings taken since Monday suggest could be starting to happen.

The right’s loose three-party alliance is led by the PP, the traditional conservative party that has alternated in office with outgoing Prime Minister Pedro Sanchez’s Socialists since Spain’s return to democracy in the 1970s.

The PP stands at around 20 percent, with center-right Ciudadanos near 14 percent and Vox around 11 percent, according to a final poll of polls in daily El Pais published on Monday.

Since then, however, interest in Vox – which will become the first far-right party to sit in parliament since 1982 – has snowballed.

It was founded in 2013, part of a broader anti-establishment, far-right movement that has also spread across – among others – Italy, France and Germany.

While it is careful to distance itself from the ideology of late dictator Francisco Franco, Vox’s signature policies include repealing laws banning Franco-era symbols and on gender-based violence, and shifting power away from Spain’s regional governments.

TRENDING

According to a Google trends graphic, Vox has generated more than three times more search inquiries than any other Spanish political party in the past week.

Reasons could include a groundswell of vocal activist support at Vox rallies in Madrid and Valencia, and its exclusion from two televised debates between the main party leaders, on the grounds of it having no deputies yet in parliament.

Conservative daily La Vanguardia called its enforced absence from Monday’s and Tuesday’s debates “a gift from heaven”, while left-wing Eldiario.es suggested the PP was haemorrhaging votes to Vox in rural areas.

Ignacio Jurado, politics lecturer at the University of York, agreed the main source of additional Vox votes would be disaffected PP supporters, and called the debate ban – whose impact he said was unclear – wrong.

“This is a party polling over 10 percent and there are people interested in what it says. So we lose more than we win in not having them (in the debates),” he said

For Jose Fernandez-Albertos, political scientist at Spanish National Research Council CSIC, Vox is enjoying the novelty effect that propelled then new, left-wing arrival Podemos to 20 percent of the vote in 2015.

“While it’s unclear how to interpret the (Google) data, what we do know is that it’s better to be popular and to be a newcomer, and that Vox will benefit in some form,” he said.

For now, the chances of Vox taking a major role in government remain slim, however.

The El Pais survey put the Socialists on around 30 percent, making them the frontrunners and likely to form a leftist bloc with Podemos, back down at around 14 percent.

The unofficial soundings suggest little change in the two parties’ combined vote, or the total vote of the rightist bloc.

That makes it unlikely that either bloc will win a majority on Sunday, triggering horse-trading with smaller parties favoring Catalan independence – the single most polarizing issues during campaigning – that could easily collapse into fresh elections.

(Election graphic: https://tmsnrt.rs/2ENugtw)

(Reporting by John Stonestreet and Belen Carreno, Editing by William Maclean)

Source: OANN

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FILE PHOTO: The logo of the OPEC is seen at OPEC's headquarters in Vienna
FILE PHOTO: The logo of the Organisation of the Petroleum Exporting Countries at OPEC’s headquarters in Vienna, Austria December 5, 2018. REUTERS/Leonhard Foeger/File Photo

April 26, 2019

JOINT BASE ANDREWS, Md. (Reuters) – U.S. President Donald Trump said on Friday he called the Organization of the Petroleum Exporting Countries and told the cartel to lower oil prices.

“Gasoline prices are coming down. I called up OPEC, I said you’ve got to bring them down. You’ve got to bring them down,” Trump told reporters.

(Reporting by Roberta Rampton; Writing by Makini Brice; Editing by Chizu Nomiyama)

Source: OANN

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Sonia Bompastor, director of the Olympique Lyonnais womenÕs Youth Academy, leads a training at the OL Academy near Lyon
Sonia Bompastor, director of the Olympique Lyonnais womenÕs Youth Academy, leads a training at the OL Academy in Meyzieu near Lyon, France, April 16, 2019. REUTERS/Emmanuel Foudrot

April 26, 2019

By Julien Pretot

MEYZIEU, France (Reuters) – Olympique Lyonnais president Jean-Michel Aulas was wringing out his women’s team shirts in the locker room on a rainy London day eight years ago when he decided it was time to take gender equality more seriously.

It was halftime in their Champions League semi-final second leg against Arsenal at Meadow Park with 507 fans watching and Aulas realized that his players did not have a another kit for the second half.

“Next time, there will be a second set just like for the men, that’s how it’s going to work from now on,” he said.

Lyon have since won five Champions League titles to become the most successful women’s team in Europe and recently claimed a 13th consecutive domestic crown.

They visit Chelsea on Sunday in the second leg of their Champions League semi-final, with a fourth straight title in their sights.

At the heart of their achievements is a pervasive ethos that promotes gender equality throughout the club, starting in the youth academy.

In 2013, Aulas appointed former Lyon and France player Sonia Bompastor as head of the Women’s Academy — the female equivalent of one of France’s top youth set-ups that has produced players such as Karim Benzema, Alexandre Lacazette and Hatem Ben Arfa.

At the Youth Academy, girls and boys share the same facilities.

“Pitches, physiotherapy rooms are the same for all,” the 38-year-old Bompastor told Reuters.

As the girls train under the watch of former Lyon and France international Camille Abily, the screams of the boys practicing can be heard nearby.

The boys and girls also benefit from the same psychological support that includes hypnosis sessions and yoga.

“We have a ‘mental ability’ cell and the hypnotist acts on the girls’ subconscious, on their deeply held beliefs after observing them on and off the pitch,” Bompastor added.

SAME TREATMENT

One message the Academy staff are trying to convey is that girls are as good as boys.

“Women’s nature is such that we have low self-esteem. So self-esteem is a big topic for our girls,” said Bompastor.

This is not the case with the boys, she added.

“Some 14, 15-year-old boys still think they would beat our professional players, we tell them this would not be happening. We still need to work on those beliefs,” she said.

Female players also have to face questions that their male counterparts do not, Bompastor explained.

“In France there is a problem with the way women are considered, there are high aesthetic expectations. So we get heavy questions on femininity, intimate questions that men don’t get,” she said.

OL’s Academy has been held up as a shining example for others to follow, even in the U.S., where women’s soccer has a wider audience than in Europe.

“About one third of the (senior women’s) squad comes from the Academy, we have a good balance,” said Bompastor.

“I’m getting tons of requests from American universities and foreign clubs, who want to come and visit our facilities.”

‘ONE CLUB’

The salaries of the senior players is one area where there remains a large discrepancy between Lyon’s men’s and women’s teams.

While the three best-paid women players in the world are at Lyon with Ballon d’Or winner Ada Hegerberg earning 400,000 euros ($445,520) a year, this figure is dwarfed by the around 4 million euros earned annually by men’s player Memphis Depay.

There is, however, a level of interaction between the men’s and women’s players that is not present at many other clubs.

“When you talk about OL you talk about women and men, you talk about one club and you feel it when you are here or outside in the city,” Germany defender Carolin Simon told Reuters.

“We see it when we play in the big stadium. It’s not ‘normal’ for women’s football,” the 26-year-old, who joined the club last year, added.

Lyon’s female players also enjoy respect from their male counterparts, Simon said.

“It’s very cool, it’s a big honor to feel that it doesn’t matter if you are a professional man or woman. We talk with the men, there are handshakes, it’s a good atmosphere and it’s also why we are successful,” said Simon.

“The men respect us and it’s not just for the cameras.”

Her team mate, England’s Lucy Bronze, sees the men’s respect as key to improving women’s football.

“We might not be paid the same but they are just normal with us, they see us as footballers the same as they are,” Bronze told Reuters.

“Being at Lyon has really opened my eyes. To improve women’s football, it starts with having the respect of your male counterparts. It’s the biggest thing because they can influence so many people.”

(Reporting by Julien Pretot; Editing by Toby Davis)

Source: OANN

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FILE PHOTO: Ethiopian migrants, stranded in war-torn Yemen, sit on the ground of a detention site pending repatriation to their home country, in Aden, Yemen
FILE PHOTO: Ethiopian migrants, stranded in war-torn Yemen, sit on the ground of a detention site pending repatriation to their home country, in Aden, Yemen April 24, 2019. REUTERS/Fawaz Salman/File Photo

April 26, 2019

GENEVA (Reuters) – Yemeni authorities have rounded up about 3,000 irregular migrants, predominantly Ethiopians, in the south of the country, “creating an acute humanitarian situation,” the U.N. migration agency said on Friday.

“IOM is deeply concerned about the conditions in which the migrants are being held and is engaging with the authorities to ensure access to the detained migrants,” the International Organization for Migration said.

The migrants are held in open-air football stadiums and in a military camp, it said in a statement.

The detentions began on Sunday in the city of Aden and the neighboring province of Lahj, which are under the control of the internationally recognized government backed by Saudi Arabia and the United Arab Emirates. Iran-aligned Houthi rebels control Sanaa, the capital, and other major urban centers.

Both sides are under international diplomatic pressure to implement a United Nations-sponsored ceasefire deal agreed last year in Sweden and to prepare for a wider political dialogue that would end the four-year-old war.

Thousands of migrants arrive in Yemen every year, mostly from the Horn of Africa, driven by drought and unemployment at home and lured by the wages available in the Gulf.

(Writing by Maher Chmaytelli, Editing by William Maclean)

Source: OANN

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U.S. dollar notes are seen in this picture illustration
U.S. dollar notes are seen in this November 7, 2016 picture illustration. Picture taken November 7. REUTERS/Dado Ruvic/Illustration

April 26, 2019

(Reuters) – Following are five big themes likely to dominate thinking of investors and traders in the coming week and the Reuters stories related to them.

1/DOLLAR JUGGERNAUT

The dollar has zipped to near two-year highs, leaving many scratching their heads. To many, it’s down to signs the U.S. economy is chugging ahead while the rest of the world loses steam. After all, Wall Street is busily scaling new peaks day after day.

Never mind the cause, the effect is stark. The euro has tumbled to 22-month lows against the dollar and investors are preparing for more, buying options to shield against further downside. Emerging-market currencies are also in pain, with Turkish lira and Argentine peso both sharply weaker.

Now U.S. data need to keep surprising on the upside or even just meet expectations. The International Monetary Fund sees U.S. growth at 2.3 percent this year. For Germany, the forecast is 0.8 percent. The U.S. economy’s rude health has given rise to speculation the Fed might resume raising interest rates. Unlikely. But as other countries — Canada, Sweden and Australia are the latest — hint at more policy easing, there seems to be one way the dollar can go. Up.

(GRAPHIC: Dollar outperforms G10 FX – https://tmsnrt.rs/2Dz17S5)

2/FED: UP OR DOWN?

Wall Street is near record highs and recession worries are receding, so as we mentioned above, investors might wonder if the Federal Reserve will start raising rates again.

Such a pivot is unlikely after the Fed killed off rate-rise expectations at its March meeting. And the latest Reuters poll all but puts to bed any risk of rates will go up this economic cycle, given inflation remains below the Fed’s alarm threshold and unemployment is the lowest in generations.

Before the March rate-pause announcement, a preponderance of economists penciled in one or more increases this year. But that has flipped. A majority of those surveyed April 22-24 see no further tightening through December and more are leaning toward a cut by the end of next year.

Indeed, interest rate futures imply Fed Funds will be below the current 2.25-2.50 percent target range by this December.

Recent positive consumer spending and exports data have eased market concerns of a sharp economic slowdown. But inflation probably needs to run hot for a long period to panic policymakers off their wait-and-see course.     

(GRAPHIC: Federal funds and the economy – https://tmsnrt.rs/2DzjTZz)

3/HEISEI TO REIWA

Next week ends three decades of Japan’s Heisei era. Heisei, or Achieving Peace, began in 1989 near the peak of a massive stock market bubble and closes with the country trapped in low growth, no inflation, and negative interest rates.

The new era that dawns on May 1 is called Reiwa, meaning Beautiful Harmony. It begins when Crown Prince Naruhito ascends the Chrysanthemum Throne. But do investors really want harmony? What they want to see is a bit of economic growth and inflation to shake up the status quo.

The Bank of Japan’s stimulus toolkit to revive a long-suffering economy is anything but harmonious and yet it’s set to stay. The central bank confirmed recently rates will stay near zero for a long time. But the coming days may not be harmonious or peaceful for currency markets. A 10-day Golden Week holiday kicks off on April 29 and investors are fretting over the risk of a “flash crash” – a violent currency spasm that can occur in times of thin trading turnover.

The year has already seen two yen spikes and many, including Japan’s housewife-trader brigade – so-called Mrs Watanabes – appear to have bought yen as the holiday approaches. Their short dollar/long yen positions recently reached record highs, stock exchange data showed.

(GRAPHIC: Japan stocks: from Hensei to Reiwa – https://tmsnrt.rs/2W6a7Fe)

4/EARNING TURNING

Quarterly earnings were supposed to be the worst in Europe in almost three years, but with a third of results in, things are looking a little rosier.

Two-thirds of companies’ results have beat expectations, and they point to earnings growth of 4.5 percent year-on-year. Financials have delivered the biggest surprises, according to analysis by Barclays.

That might just show how low expectations were. In fact, analysts are still taking a red pen to their estimates.

The latest I/B/E/S data from Refinitiv shows analysts on average expect first-quarter earnings-per-share for STOXX 600-listed companies to fall 4.2 percent. That would be their worst quarter since 2016 and down sharply from an estimated 3.4 percent just a week earlier.

Those estimates may end up being a little too bearish as earnings season goes on, quelling worries that Europe is heading toward a corporate recession.

GSK and Reckitt Benckiser will give the market a glimpse of the health of the consumer products market and spending on everything from toothpaste, washing powder and paracetamol.

(GRAPHIC: Earnings forecasts – https://tmsnrt.rs/2DuO2ZF)

5/WAITING FOR THE OLD LADY

Sterling has gone into the doldrums amid the Brexit delay and unproductive talks between the UK government and the opposition Labour party on a EU withdrawal deal. The resurgent dollar, meanwhile, has taken 2 percent off the pound in April. It is unlikely the Bank of England will be able to rouse it at its May 2 meeting.

Despite robust retail and jobs data of late, the economic picture is gloomy – 2019 growth is likely to be around 1.2 percent, the weakest since 2009, investment is down and Governor Mark Carney says business uncertainty is “through the roof”.

Indeed, expectations for an interest rate increase have been whittled down; Reuters polls forecast rates will not move until early 2020, a calendar quarter later than was forecast a month ago. The hunt for a new governor to replace Carney in October adds more uncertainty to the mix.

The recent run of UK data has fueled hopes of economic rebound. That’s put net hedge fund positions in the pound into positive territory for the first time in nearly a year. The Old Lady of Threadneedle Street might temper some of that optimism.

(GRAPHIC: Sterling positions – https://tmsnrt.rs/2XJwUXX)

(Reporting by Alden Bentley in New York, Vidya Ranganathan in Singapore; Karin Strohecker, Josephine Mason and Saikat Chatterjee in London; compiled by Sujata Rao; edited by Larry King)

Source: OANN

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