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Biden said he would speak to top congressional Republican Kevin McCarthy on his flight home and hoped the speaker of the House of Representatives had been waiting to negotiate with Biden directly. "Much of what they've already proposed is simply, quite frankly, unacceptable," Biden said. The source also said House Republicans wanted to extend tax cuts passed under then-President Donald Trump, which would add $3.5 trillion to the federal debt. SPENDING CUTSBiden heads back to Washington on Sunday after truncating his Asia trip to focus on the debt ceiling talks. Biden stressed that he was open to making spending cuts and said he was not concerned they would lead to a recession, but he could not agree to Republican demands.

When asked what message he would share with McCarthy, he declined to comment before talking with McCarthy first. The source also said House Republicans wanted to extend tax cuts passed under then-President Donald Trump, which would add $3.5 trillion to the federal debt. White House officials said they were expecting the call between Biden and McCarthy to take place as Biden flew home on Air Force One from the summit in Hiroshima. Biden heads back to Washington on Sunday after truncating his Asia trip to focus on the debt limit talks. Congressional Republicans voted to raise the debt ceiling three times, with no budget cut pre-conditions, when Republican Trump was in the White House.

☆ Biden, House Speaker McCarthy could speak Sunday on debt limit
▼ + stars: | 2023-05-21 | by ( Trevor Hunnicutt | ) www.reuters.com time to read: +3 min

HIROSHIMA, Japan, May 21 (Reuters) - U.S. President Joe Biden and top congressional Republican Kevin McCarthy could speak as soon as Sunday in talks over raising the federal $31.4 trillion debt ceiling. Biden will be headed back to Washington on Sunday after cutting his trip to Asia short to focus on the debt limit talks. The Republican-led House last month passed legislation would cut a wide swath of government spending by 8% next year. The source also said House Republicans want to extend tax cuts passed under former President Donald Trump, which would add $3.5 trillion to the federal debt. Congressional Republicans voted to raise the debt ceiling three times, with no budget cut pre-conditions, when Republican President Donald Trump was in the White House.

A White House official confirmed the talks were resuming. "We've got to get movement from the White House and we don't have any movement yet," McCarthy told reporters during the pause in talks. A White House official said: "There are real differences between the parties on budget issues and talks will be difficult. Biden and McCarthy spent most of the year in an impasse with the White House insisting on a "clean" increase in the debt ceiling without conditions. A White House official said a deal remained possible.

☆ Dollar gains as debt deal optimism fires up investors
▼ + stars: | 2023-05-19 | by ( Amanda Cooper | ) www.reuters.com time to read: +3 min

That eased fears of an unprecedented and economically catastrophic default, leading markets to revise their expectations of where U.S. interest rates could go. "As far as expectations for a June rate hike are concerned, those have risen significantly in the last week. Against the yen , the dollar was down 0.4% at 138.19 yen, having risen to a six-month peak of 138.745 earlier on. Among other major currencies, the Australian dollar took some heart from a pickup in commodity prices like copper and iron ore. In China, the yuan slid to its lowest since December, at 7.0365 per dollar, as data offered evidence of a sputtering recovery in the world's second-largest economy.

☆ Dollar gains as debt deal hopes rekindle hawkish Fed bets
▼ + stars: | 2023-05-19 | by ( Rae Wee | ) www.reuters.com time to read: +4 min

That eased fears of an unprecedented and economically catastrophic default, leading markets to revise their expectations of where U.S. interest rates could go. The euro fell to a more than seven-week low of $1.0760, while the U.S. dollar index rose 0.07% to 103.57, flirting with Thursday's two-month high of 103.63. "It does remove one obstacle to the Fed continuing to raise rates." U.S. Treasury yields have climbed on the back of the hawkish Fed repricing and amid a pick up in risk sentiment. The two-year Treasury yield , which typically moves in step with interest rate expectations, last stood at 4.2510%, while the benchmark 10-year yield was last at 3.6402%.

☆ Analysis: US debt ceiling deal could stall safety flight fueling megacap rally
▼ + stars: | 2023-05-19 | by ( David Randall | ) www.reuters.com time to read: +5 min

Their rally has been responsible for all of the 8.3% year-to-date gain in the S&P 500 (.SPX) through Wednesday's close, a Deutsche Bank report showed. A recent survey of global fund managers from BofA Global Research showed that 71% believe a deal to raise the debt ceiling will be reached before the X-date. Excitement over artificial intelligence, which has boosted some megacap names this year, is another factor that could support the category. At the same time, the debt ceiling has been only one of of several worries weighing on the market. Paul Christopher, head of global market strategy at Wells Fargo Investment Institute, expects lawmakers will reach an agreement to extend the debt ceiling through September.

☆ Dollar buoyed by hawkish Fed expectations as debt deal eyed
▼ + stars: | 2023-05-19 | by ( Rae Wee | ) www.reuters.com time to read: +4 min

SINGAPORE, May 19 (Reuters) - The dollar firmed near a six-month peak against the yen on Friday on the back of rising U.S. Treasury yields, as optimism over debt ceiling talks in Washington raised expectations of higher-for-longer interest rates. The news helped calm fears of an unprecedented and economically catastrophic American debt default, leading markets to revise their expectations of where U.S. interest rates could go. The dollar stayed elevated in early Asia trade on Friday and last bought 138.40 yen , having risen to a near six-month high of 138.75 yen in the previous session. U.S. Treasury yields have climbed on the back of the hawkish Fed repricing and amid a pick up in risk sentiment. The two-year Treasury yield , which typically moves in step with interest rate expectations, last stood at 4.2581%, edging away from a low of 3.964% at the start of the week.

☆ Growing debt ceiling deal hopes send stocks higher
▼ + stars: | 2023-05-18 | by ( Chuck Mikolajczak | ) www.reuters.com time to read: +4 min

The benchmark S&P 500 index (.SPX) rebounded from early declines on news that top U.S. congressional Republican Kevin McCarthy said a deal to raise or suspend the debt ceiling could potentially be reached in time to hold a House vote next week. On Wednesday, President Joe Biden and McCarthy reiterated their aim to strike a deal soon to raise the $31.4 trillion federal debt ceiling and agreed to talk as soon as Sunday. The debt ceiling has drawn attention away from uncertainty about the Federal Reserve's stance on interest rates. Advancing issues outnumbered decliners on the NYSE by a 1.31-to-1 ratio; on Nasdaq, a 1.14-to-1 ratio favored advancers. The S&P 500 posted 27 new 52-week highs and seven new lows; the Nasdaq Composite recorded 88 new highs and 83 new lows.

U.S. West Texas Intermediate (WTI) crude fell 97 cents, or 1.3%, to settle at $71.86. A stronger dollar can weigh on oil demand by making the fuel more expensive for holders of other currencies. High interest rates boost borrowing costs, which can slow the economy and reduce oil demand. The strength of April U.S. economic data in addition to optimism about the debt ceiling negotiations have strengthened market expectations of a further hike, ANZ Research said in a note on Thursday. Another factor that could reduce oil demand was a fire in Mexico at the Salina Cruz refinery owned by Mexican state oil company Pemex.

☆ Debt ceiling optimism helps lift S&P 500, Nasdaq
▼ + stars: | 2023-05-18 | by ( Chuck Mikolajczak | ) www.reuters.com time to read: +4 min

The benchmark S&P 500 index (.SPX) rebounded from early declines on news that top U.S. congressional Republican Kevin McCarthy said a deal to raise or suspend the debt ceiling could potentially be reached in time to hold a House vote next week. On Wednesday, President Joe Biden and McCarthy reiterated their aim to strike a deal soon to raise the $31.4 trillion federal debt ceiling and agreed to talk as soon as Sunday. The debt ceiling has drawn attention away from uncertainty about the Federal Reserve's stance on interest rates. Declining issues outnumbered advancers on the NYSE by a 1.12-to-1 ratio; on Nasdaq, a 1.17-to-1 ratio favored decliners. The S&P 500 posted 23 new 52-week highs and seven new lows; the Nasdaq Composite recorded 77 new highs and 74 new lows.

President Joe Biden and McCarthy reiterated their aim to strike a deal soon on Wednesday to raise the $31.4 trillion federal debt ceiling and agreed to talk as soon as Sunday. Growth stocks led gains, with Nvidia Corp (NVDA.O), Apple Inc (AAPL.O) and Microsoft Corp (MSFT.O) rising between 1% and 4.4%. Bath & Body Works Inc (BBWI.N) gained 9.6% after the beauty and skincare firm raised its annual profit forecast. Declining issues outnumbered advancers for a 1.07-to-1 ratio on the NYSE and for a 1.04-to-1 ratio on the Nasdaq. The S&P index recorded 22 new 52-week highs and four new lows, while the Nasdaq recorded 68 new highs and 50 new lows.

Dow Jones Industrial Average (.DJI) constituent Cisco Systems Inc's (CSCO.O) shares fell 4.3% in premarket trading after it said a large backlog of products weighed on demand for new orders from customers. Shares of Walmart Inc (WMT.N) rose 1.7% after the retailer raised its annual sales and profit targets, befitting from inflation-wary consumers trading down to cheaper groceries. ET, Dow e-minis were down 31 points, or 0.09%, S&P 500 e-minis were up 1.75 points, or 0.04%, and Nasdaq 100 e-minis were up 15 points, or 0.11%. Bath & Body Works Inc (BBWI.N) gained 13% after the beauty and skincare firm raised its annual profit forecast. Japan's Prime Minister Fumio Kishida said he welcomed and expected more investment from global chipmakers in the country.

☆ US dollar advances to seven-week peak after data, debt ceiling hopes
▼ + stars: | 2023-05-18 | by ( Gertrude Chavez-Dreyfuss | ) www.reuters.com time to read: +1 min

Another piece of data indicated a milder-than-expected fall in a business index to -10.4 from the Philadelphia Federal Reserve. The dollar index touched a new seven-week high of 103.38, and was last up 0.5% at 103.34 after the economic numbers. Against the yen, the dollar rose to a fresh five-month peak of 138.39 after the data and was last up 0.5% at 138.35 . Traders are pricing in around a 20% chance that the Federal Reserve raises its interest rate at its June meeting. The focus was also on debt ceiling talks.

☆ Debt ceiling hopes lift dollar to seven-week peak
▼ + stars: | 2023-05-18 | by ( Samuel Indyk | ) www.reuters.com time to read: +3 min

SINGAPORE, May 18 (Reuters) - The U.S. dollar hit a seven-week peak on Thursday after President Joe Biden and top U.S. congressional Republican Kevin McCarthy worked towards avoiding a damaging debt default, while investors scaled back Federal Reserve easing expectations. Biden and McCarthy on Wednesday underscored their determination to strike a deal soon to raise the government's $31.4 trillion debt ceiling, having agreed a day earlier to negotiate directly after a months-long standoff. "In the short-term, the debt ceiling is win-win for the dollar," said Viraj Patel, global macro strategist at Vanda Research. "If it gets worse, you're going to see a global hard landing and you will want to be owning dollars. Traders are pricing in around a 20% chance that the Federal Reserve raises its interest rate at its June meeting.

Companies Us Fuel International Inc FollowMay 18 (Reuters) - Oil prices eased on Thursday as traders warily watched for signs of progress on talks to raise the U.S. debt ceiling, after surging in the previous session on optimism over U.S. fuel demand. The U.S. dollar held near a seven-week peak on Thursday, making oil more expensive for holders of other currencies. President Joe Biden and top U.S. congressional Republican Kevin McCarthy on Wednesday underscored their determination to reach a deal soon to raise the federal government's $31.4 trillion debt ceiling and avoid an economically catastrophic default. Also weighing on prices was the increased possibility of another interest rate hike by the U.S. Federal Reserve. The strength of April U.S. economic data, in addition to optimism about the debt ceiling negotiations and the health of regional banking stocks overnight have strengthened market expectations of a further hike, ANZ Research said in a note on Thursday.

Biden and McCarthy on Wednesday underscored their determination to strike a deal soon to raise the government's $31.4 trillion debt ceiling, having agreed a day earlier to negotiate directly after a months-long standoff. "In the short-term, the debt ceiling is win-win for the dollar," said Viraj Patel, global macro strategist at Vanda Research. Traders are pricing in around a 20% chance that the Federal Reserve raises its interest rate at its June meeting. The dollar index firmed 0.2% to 103.08, near Wednesday's seven-week peak of 103.12. Elsewhere, the dollar rose to a ten-week high of 137.89 yen , extending Wednesday's nearly 1% gain against the Japanese currency.

☆ Morning Bid: Get ready for the debt ceiling rally
▼ + stars: | 2023-05-18 | by ( ) www.reuters.com time to read: +3 min

A look at the day ahead in European and global markets from Kevin BucklandEuropean shares look poised to rally after a wave of optimism that a U.S. debt ceiling deal could be reached as soon as the weekend, which lifted stocks on Wall Street and in Asia. Analysts highlighted how both parties agreed to new, smaller teams to continue negotiations, which they took as a sign that discussions have moved to a more advanced stage. Cash available at the U.S. Treasury general account, used to pay for all official U.S. obligations, is draining fast as extraordinary measures are exhausted, pending a debt ceiling deal to raise the limit. The Nasdaq is on the cusp of a 13-month peak, and the Dax is hovering near its highest since January of last year. Reporting by Kevin Buckland; Editing by Edmund KlamannOur Standards: The Thomson Reuters Trust Principles.

SummarySummary Companies Biden, McCarthy push forward towards deal on US debt ceilingU.S. rate hike prospect weighs on oil pricesMay 18 (Reuters) - Oil prices fell in early Asian trade on Thursday as traders warily watched for signs of progress on talks to raise the U.S. debt ceiling, after surging nearly 3% in the previous session on optimism over U.S. fuel demand. President Joe Biden and top U.S. congressional Republican Kevin McCarthy on Wednesday underscored their determination to reach a deal soon to raise the federal government's $31.4 trillion debt ceiling and avoid an economically catastrophic default. On Thursday, investors were "awaiting further evidence that a deal will happen soon," said Edward Moya, an analyst at OANDA. Also weighing on prices was the increased probability of an interest rate hike by the U.S. Federal Reserve. After a months-long standoff, Biden and McCarthy on Tuesday agreed to negotiate directly.

☆ Asian stocks follow Wall Street higher amid debt ceiling optimism
▼ + stars: | 2023-05-18 | by ( Kevin Buckland | ) www.reuters.com time to read: +3 min

As investors drew comfort from that reassurance, MSCI's broadest index of Asia-Pacific shares (.MIAP00000PUS) pushed 0.78% higher. "Markets have chosen to be optimistic," Rodrigo Catril, senior FX strategist at National Australia Bank, wrote in a client note. Any advance above 30,795.78 would take it to the highest since 1990, when Japan's bubble economy had still to burst. Long-term U.S. Treasury yields eased back in Tokyo after rising to the highest since March 1 at 3.589% in New York. Against the Japanese currency, the dollar surged the most in three weeks to 137.72 yen , just 0.06 yen below its highest since March 8.

Summary Oil prices lower after climbing nearly 3% in previous sessionUS crude stockpiles soar on SPR release - EIABiden, McCarthy push forward towards deal on US debt ceilingMay 18 (Reuters) - Oil prices edged lower on Thursday, easing on concerns over plentiful supply after surging nearly 3% during the previous session. Both benchmarks rose nearly 3% on Wednesday on optimism over oil demand and U.S. debt ceiling negotiations. Weighing on prices, U.S. oil inventories jumped unexpectedly last week due to another release from the Strategic Petroleum Reserve. Crude inventories (USOILC=ECI) rose by 5 million barrels in the week to May 12 to 467.6 million barrels, compared with analysts' expectations in a Reuters poll for a 900,000-barrel drop. Investors are watching developments around U.S. debt ceiling negotiations.

☆ Dollar firms on optimism over U.S. debt ceiling talks, Aussie down after jobs data
▼ + stars: | 2023-05-18 | by ( ) www.cnbc.com time to read: +3 min

The U.S. dollar held near a seven-week peak on Thursday, after President Joe Biden and top U.S. congressional Republican Kevin McCarthy worked towards avoiding a damaging debt default, while the Aussie dollar slipped after disappointing jobs data. Biden and McCarthy on Wednesday underscored their determination to strike a deal soon to raise the government's $31.4 trillion debt ceiling, having agreed a day earlier to negotiate directly after a months-long standoff. "We got some positive headlines over the debt ceiling negotiations ... so that obviously supported market sentiment," said Carol Kong, a currency strategist at Commonwealth Bank of Australia. The Japanese yen last bought 137.50 per dollar, having fallen nearly 1% on Wednesday. The kiwi fell 0.05% to $0.6245, while the Chinese offshore yuan slipped nearly 0.1% to 7.0147 per dollar.

☆ Dollar firms on optimism over US debt ceiling talks, Aussie down after jobs data
▼ + stars: | 2023-05-18 | by ( Rae Wee | ) www.reuters.com time to read: +3 min

SINGAPORE, May 18 (Reuters) - The U.S. dollar held near a seven-week peak on Thursday, after President Joe Biden and top U.S. congressional Republican Kevin McCarthy worked towards avoiding a damaging debt default, while the Aussie dollar slipped after disappointing jobs data. Biden and McCarthy on Wednesday underscored their determination to strike a deal soon to raise the government's $31.4 trillion debt ceiling, having agreed a day earlier to negotiate directly after a months-long standoff. Against a basket of currencies, the dollar index firmed near its seven-week peak hit in the previous session, and last stood at 102.86. "We got some positive headlines over the debt ceiling negotiations ... so that obviously supported market sentiment," said Carol Kong, a currency strategist at Commonwealth Bank of Australia. The Japanese yen last bought 137.50 per dollar, having fallen nearly 1% on Wednesday.

Dow Jones Industrial Average (.DJI) constituent Cisco Systems Inc (CSCO.O) slipped 1.7% after it said a large backlog of products weighed on demand for new orders from customers. Shares of Walmart Inc (WMT.N) rose 2.8% after the retailer raised its annual sales and profit targets, benefiting from inflation-wary consumers trading down to cheaper groceries. And you got a little follow through from the optimism around getting a (debt ceiling) deal done," said Thomas Hayes, chairman at Great Hill Capital LLC. Bath & Body Works Inc (BBWI.N) gained 8.7% after the beauty and skincare firm raised its annual profit forecast. Declining issues outnumbered advancers for a 2.30-to-1 ratio on the NYSE and for a 1.47-to-1 ratio on the Nasdaq.

☆ Brokerage Charles Schwab joins corporate debt rush with $2.5 billion offering
▼ + stars: | 2023-05-18 | by ( ) www.reuters.com time to read: +1 min

May 18 (Reuters) - Charles Schwab Corp (SCHW.N) is looking to raise up to $2.5 billion through a debt offering, the brokerage said on Thursday as more companies aim to benefit from investors trying to capitalize on a spike in yields. The Texas-based company will raise the debt in two parts, via notes due in 2029 and 2034 and will use it for its corporate needs. If held to maturity, the 2029 notes would yield 205 basis points more than the benchmark, risk-free U.S. 5-year Treasury , while the yield on 2034 notes would be 227 bps above the U.S. 10-year Treasury yield. On Wednesday, Pfizer Inc (PFE.N) announced its largest debt offering of $31 billion to fund its proposed acquisition of Seagen Inc (SGEN.O). BofA Securities, Citigroup, Credit Suisse Securities, Goldman Sachs, J.P. Morgan Securities and Wells Fargo Securities are the joint book-running managers for the offering.

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