America

The United States throw accusations at China on the issue of unfair competition and dumping in the steel sector, plagued by excess capacity globally but especially right in the Asian giant. "In line with the reforms of China, the United States supports efforts to reduce excess capacity and leave it to market forces to determine investment", the State Treasury Secretary Jack Lew said, pointing the finger at " the "Chinese excesses" that distort global markets. "

The American Federal authorities guarantee of bank deposits has announced today that it has concluded an agreement with eight financial institutions, including UBS and Credit Suisse, which concerns a total of $ 190 million (188 million francs).

The agreement puts an end to a series of disputes about the sale of securities related to real estate loans of the former Countrywide Financial. In a statement the Federal Deposit Insurance Corp (FDIC) states that the agreement was signed with UBS, Credit Suisse, Barclays, BNP Paribas, Deutsche Bank, Edward D. Jones & Co., Goldman Sachs and Royal Bank of Scotland.

Pair’s Outlook
USD/JPY decided not to pull back after breaking out of the channel and prolonged the decline down to the weekly S2 level. If there is a rally today, as suggested by the daily technical indicators, it is likely to stay limited by the monthly PP and weekly S1 at 109.50/20. The current target is a critical support area between 107 and 106.65 yen, which is formed by the monthly S1, but even more importantly-by the 38.2% retracement of the four-year up-move started back in 2012. Accordingly, the risks are to the upside.

The American trade deficit worsened slightly in April, staring at about 37.4 billion dollars from 35.5 billion reported in March. In fact, the previous figure was revised from a preliminary 40.4 billion, against which there would have been an improvement in the last month.

The figure, announced by the Bureau of Economic Analysis (BEA) of the US Department of Commerce, is below the estimates of analysts who expected a major deficit of 41.3 billion dollars.

The Saudi Arabia sovereign fund invested $ 3.5 billion in Uber, bringing in $ 11 billion for the investment reserves of the American app, now owning 5% of Uber. This is the largest investment ever made in a private company by the fund: its general director Yasir Al Rumayyan will enter the board of directors.

While in the Middle East Uber is spreading more peaceful and comprehensive way, one of the cities where it is growing most is Cairo. As the Financial Times notes, in Saudi Arabia, Uber is popular as a result of the transport needs, due to the fact that women are forbidden to drive.

Requests for loans from American families return to fall, despite the Fed’s decision to freeze rates.

In the week ending May 27, the index that measures the volume of mortgage applications decreased by 4.1%, after + 2.3% recorded in the previous week. About the index relating to refinancing applications it marked a decrease of 4%.

This was announced by the Mortgage Bankers Associations (MBA) stating that the rates on thirty-year mortgages remained stable at 3.85% as in the previous month.

Nestlé today announced an agreement with the Franco-American company DBV Technologies for the development of a test to diagnose children with allergy to cow’s milk proteins.

DBV, with offices in Montrouge and New York, will receive from Nestlé up to 100 million euro on the arc of the different stages of research and new product registration, specifying the two companies said in a statement today. Allergy against the cow’s milk concerns 2-3% of infants and young children. The process of approval of the new test should be started in 2021.

In Brazil, Petrobras scandal strikes again: yesterday evening, the Brazilian Minister of Transparency, Fabiano Silveira, resigned after an interception by leaked his critical investigation on the oil giant.

It is the second part of the interim government to fall for Petrobras scandal. On 23 May, the Minister of Planning, Romero Juca, was dismissed by the government after an interception in which he argued that it would take a "pact" to force President Dilma Rousseff to step down to stop the investigations.