Good morning! Here’s what you need to know in markets on Friday.
China’s GDP was in line with forecasts. China’s economy grew by 6.7% year-on-year in the first quarter of 2016, a figure that was bang in line with market expectations. The reading, down slightly on the 6.8% pace of Q4 2015, was the slowest year-on-year growth recorded since the March quarter of 2009.
Plans for quantitative easing in South Korea are dead in the water. After losing its majority in parliament, the ruling Saenuri party’s controversial proposal of the so-called ‘Korean QE’ program is now almost certainly off the table,” wrote Bank of America Merrill Lynch’s Korea economist Jaejoon Woo in a note to clients.
Markets are preparing themselves for a huge meeting between the world’s oil producers. Major oil players will gather to discuss a potential production freeze on Sunday, April 17, in Doha, Qatar, in what some analysts have called “the most important meeting of the last three decades.” Oil is broadly flat on Friday morning, and as of 6:50 a.m. BST (1:50 a.m. ET) both benchmarks have moved less than 0.15% higher.
Brazilian president Dilma Rousseff failed to block an impeachment vote against her. Brazil’s Supreme Court voted early Friday to reject a motion seeking to block an impeachment vote in the lower house of Congress against President Dilma Rousseff, sharply limiting the embattled leader’s options to avoid a showdown with legislators who want to oust her.
Saudi Arabia has defended a donation given to Malaysia’s embattled prime minister Najib Razak. Saudi Foreign Minister Adel Al-Jubeir said that a $681 million deposit in prime minister Najib Razak’s bank account was a donation originating from Saudi Arabia, Malaysian state media reported on Friday, according to Reuters.
There’s a $1 trillion bubble ready to burst in the bond market. In a note to clients, UBS’ Matthew Mish wrote: “In short, we believe there is a corporate credit bubble in speculative grade credit. And the structural downside risks for high yield bonds and loans are material, with non-negligible downside risks to growth.”
IMF chief Christine Lagarde has called tax avoidance a global risk. Lagarde said on Thursday that “more needs to be done” internationally to stop aggressive tax avoidance by closing loopholes in international tax law exploited by rich people and companies, the Financial Times reports.
JP Morgan is recruiting millennials using Snapchat. JPMorgan is trying to get one step ahead of its competitors by using geofilters and targeted ad to try and recruit millennials workers to the bank.
Greece’s former finance minister has a warning for Europe. George Papaconstantinou, the country’s finance minister between 2009 and 2011, warned European politicians that they face a “perfect storm” this summer with the refugee and sovereign debt crises still unresolved, at a conference in London.
Lloyds Banking Group has warned about the dangers of Brexit. Britain’s biggest mortgage lender says that a so-called Brexit — Britain voting to leave the European Union — will cause “economic uncertainty” in the short term, and an “unclear” long-term future.
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