Wait, Are Rate Cuts In Late-Summer Back On The Table?

Wait, Are Rate Cuts In Late-Summer Back On The Table? By Hardika Singh

The economy added fewer jobs in April than in March, while the unemployment rate ticked higher, Friday's jobs report showed. Meanwhile, Ukraine is facing pressure from bondholders to resume debt payments. And the Federal Trade Commission is scrutinizing a $16.5 billion deal aimed at boosting Novo Nordisk's production of a weight loss drug.

Top News Slower Hiring Boosts Hopes of a Late-Summer Rate Cut

Job growth slowed and unemployment ticked higher last month, marking a break from a string of data showing surprising strength in the labor market. U.S. employers added a seasonally adjusted 175,000 jobs in April, the Labor Department reported on Friday. That was far less than in March, when gains exceeded 300,000. It was also below the 240,000 economists had expected.

U.S. Economy Bondholders to Push Ukraine to Resume Debt Payments After Hiatus

Ukraine's lenders said Kyiv could wait to pay them back after Russian troops stormed into the country two years ago. Now, their patience is starting to run out. A group of foreign bondholders including BlackRock and Pimco plans to press Ukraine to start paying interest on its debt again as soon as next year, according to people familiar with the matter.

Financial Regulation FTC Seeks More Information on $16.5 Billion Novo-Catalent Deal

A $16.5 billion deal aimed at boosting Novo Nordisk's production of the weight-loss drug Wegovy is drawing extra scrutiny from U.S. antitrust regulators. Novo Holdings, which owns a controlling stake in Novo Nordisk, in February agreed to buy contract drugmaker Catalent with plans to flip three of Catalent's most critical plants to Novo Nordisk for $11 billion to help meet demand for Wegovy and its cousin diabetes drug Ozempic.

Forward Guidance Monday (all times ET)

4 a.m.: Eurozone services PMI for April

5 a.m.: EU producer-price index for March

12:50 p.m.: Richmond Fed's Barkin speaks to the Columbia, S.C., Rotary Club

Tuesday

12:30 p.m.: Reserve Bank of Australia interest rate decision

3 p.m.: U.S. consumer credit

Research U.S. Services Data Points to Easing Inflation

Services spending in the U.S. could slow from the 4% annualized gain in the 1Q, Capital Economics' Olivia Cross said in a note about April's ISM services index. The 49.4 reading, down from March's 51.4, indicates an unexpected contraction in activity last month, ending a period of steady expansion since December 2022. The prices index, however, rose to 59.2 from 53.4. But she added that the "big picture is that it still points to a further easing in core PCE non-housing services inflation." - Paulo Trevisani

Basis Points The Trans Mountain oil pipeline that finally entered commercial service has the potential to significantly boost Canadian energy exports even if the full lift won't be felt for some time, Capital Economics' Stephen Brown said. - Robb Stewart Signs of stress are emerging in private credit markets, Bank of America's Oleg Melentyev said in a report. He points out that credit-rating agencies have recently put business development companies, or BDCs, which finance small and midsize companies, on negative watch. "Direct tracking of private credit defaults remains notoriously challenging, however our dataset of privately-held [high-yield] issuers in the single-B/CCC segment shows defaults exceeding 8%" in the last 12 months, Melentyev added. - Paulo Trevisani Indonesia's economy expanded steadily in the first quarter from a year earlier on resilient domestic consumption, but the impact of tight monetary policy and export weakness casts some doubt about whether that pace of growth can continue. - Ying Xian Wong and Fabiana Negrin Ochoa A private gauge of China's services sector showed activity grew at a slightly slower pace in April , though there are signs of a recovery in consumption given strong spending over recent holidays. About Us

WSJ Pro Central Banking brings you central banking news, analysis and insights from WSJ's global team of reporters and editors. This newsletter was compiled by markets reporter Hardika Singh in New York. Send your tips, suggestions and feedback to [hardika.singh@wsj.com].

This article is a text version of a Wall Street Journal newsletter published earlier today.