Highlights
The Pro Farmer Crop Tour begins today and the war continues to escalate.
China was expected to cut interest rates 10 and 15 basis points on the one year and five year Loan Prime Rate (LPR) this morning. Many analysts predicted a big reduction to the mortgage reference rate to revive credit demand and shore up the ailing property sector. China only cut the one-year loan prime rate (LPR) by 10 basis points to 3.45% from 3.55% previously, while the five-year LPR was left unchanged at 4.20%.
Investors have been hoping for a repeat of the massive fiscal spending that has juiced the economy in the past, but the Bank of China is reluctant to add to its borrowing tasks. Asian stocks were down 0.3% and working lower after the announcement.
At least 41 countries, with Russia leading the way, want to strike back at the USA for weaponizing the dollar. Specifically, Putin, China’s President Xi, and Saudi Arabia’s Prime Minister Salman recruited US “victim” countries to take revenge for the tariffs, sanctions, and dollar-denominated debt.