1. US stocks slid as the 10-year Treasury yield surged to its highest level since 2011. The Dow Jones industrial average closed in the red for the first time in eight sessions on Tuesday, as bond yields spiked to multi-year highs on the back of strong economic data.
2. That saw the AUD fall heavily against the greenback, dropping back below 75 cents. At 7am, the AUD/USD was .7471, more than one cent below the high struck late last week.
The main event today comes from the release of Australia’s March quarter Wage Price Index (WPI) at 11.30am AEST. A quarterly increase of 0.6% is expected, leaving the increase on a year earlier unchanged at 2.1%.
3. North Korea reportedly threatened to cancel high-stakes talks with US President Donald Trump because of joint military drill involving South Korea and the US. Kim’s government warned the US will “have to undertake careful deliberations about the fate of the planned North Korea-US summit in light of this provocative military ruckus”. The summit is set for June 12 in Singapore.
4. The US and China started another round of trade talks. Trump had softened rhetoric on China over the weekend, but US ambassador to China Terry Branstad said the two countries are still “very far apart” in negotiations.
5. An 8-month-old child’s death is one of the most devastating moments of the Gaza protests yet, amid ongoing protests at the new US embassy in Jerusalem. The baby girl, named Laila al-Ghandour, who died after inhaling tear gas, was among the dozens of Palestinians killed in Gaza this week. Despite the violence, the White House has defended Trump’s decision to move the embassy.
6. Facebook has banned 583 million fake accounts in the past 3 months. It’s a major effort towards transparency from Facebook in the wake of the Cambridge Analytica scandal. On Tuesday it announced that it will publish data about the scale and effectiveness of its content moderation efforts – offering outsiders a look at how Facebook plans to keep its platform free from objectionable, rule-breaking, and sometimes illegal content.
7. Elon Musk reportedly told Tesla employees the company will likely make over 500 Model 3s per day this week, according to Electrek, which obtained a copy of the email. Musk also asked employees who are aware of production bottlenecks to contact him. Producing over 500 Model 3s per day could allow the company to approach 3,500 per week, 54% more than the 2,270 Model 3s the company made during the last week of April. More here.
8. Is three a pattern? We hope not after a pilot for Sichuan Airlines was partially sucked out of a plane when the front windshield broke. The plane was travelling from Chongqing, China, to the Tibetan capital Lhasa when it was forced to make an emergency landing after the windshield broke and the plane’s co-pilot was partially sucked out of the window. No passengers were hurt, but the co-pilot had scratches and a wrist sprain. It follows two similar Southwest Airlines incidents, one of which resulted in a fatality.
9. Twenty-five seconds. A Japanese rail company issued an official apology after a train left just 25 seconds early. One of the West Japan Railway Company’s express trains left the platform at Notogawa station in central Japan at 7:11:35am, instead of the scheduled 7:12am, on May 11. While it didn’t affect any other travel schedules, one person missed the train which was enough for the company to feel it was necessary to apologise. If you didn’t already know, Japan is meticulous about punctuality.
10. Roger Federer just became the world’s number one ranked male tennis player for the 5th time in his career — despite not playing for two months. The 20-time Grand Slam champion reclaimed the top spot after Rafa Nadal’s quarterfinal exit at the Madrid Open, last week. Federer has not competed since March 24, but is looking to triumph for a ninth time at Wimbledon next month.
BONUS ITEM: Spotted: Possibly the saddest clip on the internet.
SPOTTED: Possibly the saddest clip on the internet pic.twitter.com/JqtxEZUwz1
— Sven Henrich (@NorthmanTrader) May 15, 2018
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