??????Breakfast News 02nd July ??????

Good morning,

European stock futures edged lower as traders positioned ahead of the?data?on Eurozone CPI and US job?openings?to gauge the central banks’ upcoming rate decisions.

The 10-year?Treasury yields?pared some of the seven basis points gain on Monday, when the benchmark had approached 4.5% on speculation that a Trump presidency would lead to greater US fiscal deficits and higher inflation. That further drove the dollar’s gains, as the greenback strengthened against all of its Group-of-10 peers.

EXECUTIVE SUMMARY

WILLIAMS IS CONFIDENT FED GETTING INFLATION BACK TO 2% - MNI BRIEF

BIDEN WARNS SUPREME COURT PRESIDENTIAL IMMUNITY RULING IS ‘DANGEROUS PRECEDENT’ - RTRS

WORK FIGHTING INFLATION ‘NOT YET DONE’ - LAGARDE - MNI BRIEF

RBA SAYS DATA WASN’T SUFFICIENT FOR CASH RATE HIKE IN JUNE - BBG

UK

INFLATION (BBG): “Inflation in UK stores has fallen close to zero for the first time since October 2021 in a fresh sign that pressure on household budgets is easing.”

EUROPE

ECB (MNI BRIEF): The European Central Bank's work fighting inflation is "not done" and policymakers must remain vigilant, President Christine Lagarde said on Monday.

NETHERLANDS (THE ECONOMIST): “On Tuesday Mark Rutte, the longest-serving Dutch prime minister, will leave office after 14 years. (He will become secretary-general of NATO in October.) The right-wing coalition government that will replace him is complicated even by Dutch standards. … The parties picked a non-partisan civil servant, Dick Schoof, as prime minister.”

US

FED (MNI BRIEF): Federal Reserve Bank of New York President John Williams said he continues to believe prices are moderating and on a path back to the levels targeted by the central bank, according to video remarks released Monday.

MANUFACTURING (MNI INTERVIEW): Rising Risk Of Sharper US Factory Slowdown-ISM

POLITICS (RTRS): “U.S. President Joe Biden on Monday criticized the Supreme Court ruling on presidential immunity that was seen as a win for his election rival, former President Donald Trump, calling it a dangerous precedent that did a disservice to the American people.”

POLITICS (BBG): “The criminal trial over Donald Trump’s attempt to overturn the 2020 election could be delayed for a year or more after the US Supreme Court ruled Monday that presidents have some immunity for their “official” acts.”

OTHER

AUSTRALIA (BBG): “Australia’s central bank saw the case to hold interest rates at a 12-year high in June as the “stronger one” as recent data hadn’t been sufficient to change its long-held assessment that inflation would return to target by 2026.”

NEW ZEALAND (BBG): “New Zealand businesses are more pessimistic on the economy, increasing the risk of another contraction and putting pressure on the central bank to cut interest rates sooner than it’s currently projecting.”

NORTH KOREA (RTRS): “North Korea said it successfully tested a new tactical ballistic missile on Monday capable of carrying a 4.5-ton super-large warhead, state news agency KCNA reported on Tuesday. A day earlier, South Korea reported the launch of two ballistic missiles by North Korea and said the second likely failed soon after launch, blowing up in flight over land.”

CHINA

RRR (SECURITIES DAILY): “China’s central bank may offer liquidity boost to the market through methods including an RRR cut in the near future to offset impact from an increase in government bond sales, Securities Daily reports, citing analysts.”

HOUSING (CSJ): “Sales of used residential properties in Shanghai reached 26,374 units in June, up 41% from the previous month and recording the highest monthly transaction in three years, after the mega city slashed downpayments and allowed cheaper mortgages in late May, China Securities Journal reports, citing official transaction data.”

REGULATIONS (FINANCIAL NEWS): “A number of banks have tightened the sales of mutual fund products to their retail clients recently as they move to strengthen risk control on individuals’ investments, PBOC-backed Financial News reports.”

LAND REVENUE (21ST CENTURY BUSINESS HERALD): “Authorities issuing additional local government special refinancing bonds for resolving hidden debts in H2 cannot be ruled out, given the 14% y/y decline in land revenue from January to May, according to Wang Qing, chief macro analyst at Golden Credit Rating.”

?? MAIN ECONOMIC DATA/CENTRAL BANKS/GOVERNMENT (ALL TIMES CET) ??

9:00 a.m.: Spain June Unemployment Change

9:30 a.m.: ECB’s Guindos speaks

9:40 a.m.: Fed’s Goolsbee on BTV

10:30 a.m.: ECB’s Elderson speaks

11:00 a.m.: Eurozone June CPI Estimates

12:30 p.m.: ECB’s Schnabel speaks

3:30 p.m.: Powell, Lagarde, Campos Neto speak

4:00 p.m.: US May JOLTS Job Openings

???? ECB forum on central banking in Sintra