Here's what you need to know before the
1. Mohamed El-Erian warns the Fed supporting junk bonds could eat away at 'what makes America special,' and create a new generation of 'zombie companies'. El-Erian said three things will determine how quickly economies recover after coronavirus lockdowns are lifted.
2. 'It makes zero sense': Mark Cuban calls for US to scrap tariffs on Chinese goods as coronavirus hits household budgets. The tech billionaire's comments came after a survey found that 71% of Americans are worried about tariffs spiking prices.
3. Oil prices are up sharply. West Texas Intermediate crude, the US benchmark is up almost 10% to $22.38 per barrel as investors bet on the easing of global coronavirus lockdowns will boost demand.
4. Microsoft to invest $1 billion in Poland. The tech-titan signed an agreement with domestic cloud provider Chmura Krajowa to provide cloud services in Poland.
5. Thai Airways rescue plan is its last chance, says PM. The government is ready to back a rescue package for Thai Airways but that will entail a full restructuring and there will be no second chances, the prime minister said.
6. Airline SAS agrees credit facility backed by Sweden, Denmark. The Scandic airline said it signed a $336 million three-year revolving credit facility agreement, 90% guaranteed by Sweden and Denmark's governments.
7. France hopes to deploy its StopCovid app by June 2. The state-supported "StopCOVID" contact-tracing app should enter its testing phase in the week of May 11 when the country starts to unwind its lockdown.
8. Global stocks are mostly up. In Europe, Germany's DAX rose 1.2%, Britain's FTSE 100 rose 0.9%, and the Euro Stoxx 50 rose 0.9%. In Asia, China's Shanghai Composite rose 1.3%, Hong Kong's Hang Seng rose 1.1%, and Japan's Nikkei fell 2.8%. In the US, futures underlying the Dow Jones Industrial Average, the S&P 500, and the Nasdaq rose 1%.
9. Earnings keep coming. Total, Dominion Energy and Electronic Arts are highlights.
10. On the data docket today. IHS Markit PMI Composite and Services Index and API Weekly Crude Oil Stock are due.
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