Possible Trump Picks for Chief of Staff, USDA Secretary and USTR

Note: Modified report today as I am in Arizona for a speech for the USMEF.

— Equities today: Asian and European stock indexes were mixed overnight. U.S. Dow opened slightly higher but is now weaker. In Asia, Japan -0.3%. Hong Kong +2%. China +2.6%. India -1%. In Europe, at midday, London flat. Paris +0.6%. Frankfurt +1.3%.

Equities on Wednesday: Big gains were scored in all three major indices in the wake of former President Donald Trump prevailing in the Tuesday elections and all three struck new record finishes with the Blue Chip index registering its biggest post-election gain since 1896. The Dow shot up 1,508.05 points, 3.57%, at 43,729.93. The Nasdaq gained 544.29 points, 2.95%, at 18,983.47. The S&P 500 rose 146.28 points, 2.53%, at 5,929.04.

— FOMC expected to trim rates as mixed economic signals persist amid post-election uncertainty. The Federal Open Market Committee (FOMC) is expected to cut the Fed funds rate by 25 basis points to a range of 4.5% to 4.75% at the conclusion of its two-day meeting. The decision follows mixed economic data, including a weaker-than-expected October employment report influenced by a Boeing strike and hurricanes. Despite signs of cooling inflation, economic concerns remain for consumers grappling with high prices. Fed Chair Jerome Powell is anticipated to avoid discussing the election’s impact on the economy and inflation, maintaining focus on broader policy implications.

— Outside markets: U.S. dollar index was weaker with the euro and British pound firmer against the greenback. The yield on the 10-year U.S. Treasury note eased to around 4.41% with a mixed tone in global government bond yields. Crude oil futures were weaker, with U.S. crude around $71.40 per barrel and Brent around $74.80 per barrel. Gold and silver futures were moving higher ahead of U.S. market action, with gold around $2,685 per troy ounce and silver around $31.52 per troy ounce.

— USDA to release early supply/demand projections ahead of 2034 agricultural report. USDA this afternoon (3 p.m. ET) is releasing early supply and demand tables that will feature in its full Agricultural Projections to 2034 report, slated for completion in February 2025. Using the October 2024 WASDE report as a baseline and August economic forecasts, these projections assume policy continuity and normal weather over the next decade. This early data release, tied to budget processes, will remain unchanged in the final report. Link to access data.

— Ag markets today: Corn, soybeans and SRW wheat built on Wednesday’s late price strength during the overnight session while HRW and HRS wheat rebounded from their losses. As of 7:30 a.m. ET, corn futures were trading around a penny higher, soybeans were mostly 9 to 10 cents higher and wheat futures were 1 to 3 cents higher. The U.S. dollar index was around 325 points lower, and front-month crude oil futures were 75 cents lower.

Wholesale beef prices weaken. Wholesale beef prices fell $1.62 for Choice to $315.59 and $2.04 for Select to $283.20 on Wednesday. That’s the lowest Choice price since Oct. 14. While movement stayed strong at 131 loads, packer margins are being squeezed, likely limiting their willingness to pay higher prices for cash cattle this week.

December hogs rebound. December lean hog futures filled the Oct. 29 gap on the daily chart and then moderately rebounded to finish near session highs on Wednesday amid support from the contra-seasonally firming cash index. The CME lean hog index is up another 45 cents to $90.24 as of Nov. 5, the 14th straight daily gain and $8.115 above yesterday’s closing price in December hogs.

Ag trade: South Korea purchased 65,000 MT of corn from the U.S., South America or South Africa and 128,000 MT of optional origin feed wheat. Japan purchased 121,790 MT of milling wheat via its weekly tender, including 71,712 MT U.S., 28,978 MT Canadian and 21,100 MT Australian. Algeria tendered to buy up to 240,000 MT of corn to be sourced from Brazil or Argentina.

— USDA daily export sale:
• 120,000 MT corn to unknown destinations, 2024-2025 marketing year.

— Beyond Meat cuts revenue outlook amid reduced demand for costly meat alternatives. Beyond Meat lowered its annual revenue forecast to a range of $320 million to $330 million, down from a previous upper range of $340 million. The company attributed the cut to reduced consumer spending on more expensive plant-based products as shoppers opt for cheaper alternatives. Quarterly sales volumes dropped by 7.1% compared to a 3.5% increase in the same period last year. Beyond Meat plans to restructure its balance sheet in 2025 and boost cash reserves, reflecting challenges in the alternative protein market amid changing consumer spending habits.

—More big sales of U.S. soybeans to China. USDA’s weekly Export Sales activity for 2024-25 the week ended Oct. 31 included net sales of 9,000 metric tons of corn, net sales of 67,033 metric tons of sorghum, 1,222,742 metric tons of soybeans, and 37,530 running bales of upland cotton. Activity for 2024 included net sales of 223 metric tons of beef and net reductions of 4,978 metric tons of pork.

— Ag markets yesterday:
• Corn: December corn rallied 7 3/4 cents to $4.26 1/4, the highest close since Oct. 3.
• Soy complex: January soybeans rose 2 cents to $10.03 3/4, near the session high. December soybean meal fell $1.10 to $298.40, nearer the daily high and hit a contract low early on. December soybean oil rose 135 points to 46.34 cents, nearer the session high and hit a four-month high.
• Wheat: December SRW wheat rose 3/4 cent to $5.73 1/4, while December HRW fell 2 3/4 cents to $5.74. Both marked high-range closes. December HRS futures fell a nickel to $6.05 1/2.
• Cotton: December cotton fell 26 points to 69.69 cents, nearer the daily high and hit a seven-week low early on.
• Cattle: Cattle and feeder futures rebounded from recent losses Wednesday, with nearby December live cattle rising 62.5 cents to $185.40 at the close. Expiring November feeder futures jumped $1.55 to $247.70, while most-active January feeders ran up $1.675 to $244.025.
• Hogs: December lean hog futures surged $1.00 higher to $82.125 and settled near session highs.

— Who will be the new USDA Secretary? That parlor game has returned with a host of possibilities which include:
• Abel Maldonado, said to be at or near the top of possibilities, was former California Lt. Gov. from April 27, 2010, to Jan. 10, 2011. He is the oldest son of immigrant field workers and grew up working alongside his father picking strawberries to help support the family. He ran unsuccessfully for California’s 24th congressional district in 2012 and briefly ran for governor in the 2014 election. He was considered for USDA Secretary by Donald Trump in 2017, but was not ultimately nominated. He is currently owner of Runway Vineyards in Santa Maria, California.
• Zippy Duval, American Farm Bureau President, serving in that role since January 2016. He is a third-generation farmer from Georgia with deep roots in agriculture. He operates a dairy farm on land in Georgia, currently raising beef cattle and broiler chickens. He producers over 750,000 broilers per year. Prior to his role as AFBF President, Duvall served as the President of the Georgia Farm Bureau for nine years.
• Kip Tom, Indiana farmer who transformed his family’s farm, Tom Farms, into one of the largest farming operations in Indiana. From April 2019 to January 2021, he served as the U.S. Ambassador to the United Nations Agencies for Food and Agriculture, based in Rome, Italy.
• Former House Ag Chairman Mike Conaway, now a private consultant. He is the only person out there, not in office, who’s negotiated a farm bill; led investigation resulting in debunking Russia hoax; auditor who would turn USDA upside down investigating where all the debt relief and climate money has gone; knows rural America; aligned with Trump on needed SNAP reforms.
• Texas Ag Commissioner Sid Miller, serving in this role since January 2015. Miller was born in 1955 in De Leon, Texas and has deep roots in the state’s agriculture industry. He is a cattle rancher, farmer, and owner of a commercial nursery business. He served six terms as a member of the Texas House of Representatives from 2001 to 2013. He was first elected as Texas Agriculture Commissioner in 2014 and re-elected in 2018 and 2022. He granted “amnesty to cupcakes” as his first official action, drawing attention to the repeal of a ban on junk food in schools. Recently issued an executive order allowing Texas farmers to use water from the Rio Grande for irrigation, addressing water shortage concerns. Miller has faced criticism. He awarded significant bonuses to staffers and created high-paying positions for political allies early in his tenure. Miller has recently been sounding the alarm about water shortages in Texas, particularly in the Rio Grande Valley.
• Rep Thomas Massie (R-Ky.). He is a rebel House conservative that most consider a long shot choice.
• Ray Starling: A prominent figure in American agriculture policy and law with extensive experience in both the public and private sectors. Currently serves as the general counsel of the N.C. Chamber and president of the N.C. Chamber Legal Institute. In these roles, he sets litigation strategy and leads public policy development, focusing on issues affecting businesses in North Carolina. Previously, Starling held several high-profile positions in the federal government: Chief of Staff to U.S. Secretary of Agriculture Sonny Perdue; Principal agriculture advisor to the President of the United States at the White House; Special Assistant to the President for Agriculture, Trade and Food Assistance on the White House National Economic Council. He also worked as: Chief of Staff and Chief Counsel for U.S. Sen. Thom Tillis. He grew up on a Century Family Farm in southeastern North Carolina.
• Ted McKinney, CEO of the National Association of State Departments of Agriculture. Before that he was Undersecretary of Agriculture for Trade and Foreign Agricultural Affairs (2017-2021); Director of the Indiana State Department of Agriculture (2014-2017): He served in this capacity before his appointment to the federal government. McKinney worked for 19 years with Dow AgroSciences and 14 years with Elanco, a subsidiary of Eli Lilly and Company, where he was Director of Global Corporate Affairs.
• North Dakota Gov. Doug Burgum, who ran briefly for the Republican presidential nomination against Trump before campaigning for him. His term expires in December. Burgum is also being considered for other Cabinet positions. Of note: Every agriculture secretary since Mike Johanns in 2005 was a former governor.

— Potential candidates for U.S. Trade Representative in a second Trump administration:
• Robert Lighthizer is seen as a top contender to reprise his role as U.S. Trade Representative. However, reports signal Lighthizer wants to be either Commerce Secretary or Treasury Secretary. As Trump’s USTR during his first term, Lighthizer was a key figure in implementing Trump’s trade policies, including: Leading negotiations for the U.S.-Mexico-Canada Agreement (USMCA) to replace NAFTA; Overseeing trade negotiations and disputes with China; Advocating for and implementing tariffs on various imports. Lighthizer remains close with Trump and is widely viewed as a leading candidate for USTR or another top economic post, especially given Trump’s promises to pursue even more aggressive trade policies in a second term.
• Bill Hagerty. The Tennessee senator and former ambassador to Japan under Trump is considered a contender for multiple Cabinet posts, including USTR.
• Jamieson Greer. Served as chief of staff to Lighthizer at USTR during Trump’s first term and is reportedly a top choice to lead the office.
• Robert O’Brien. Trump’s former national security advisor is seen as a candidate for Secretary of State or other foreign policy roles, which could potentially include USTR.

Of note: Trump has expressed a desire to pursue even more aggressive trade policies, including broader tariffs, in a potential second term. This suggests he may favor someone like Lighthizer who has a track record of implementing such policies. However, the final selection will likely depend on various factors as Trump assembles his full economic and foreign policy teams.

— Who will be Donald Trump’s chief of staff? This is one of the most important personnel decisions Trump faces. There are several prominent contenders being considered for the position:
• Brooke Rollins: A trusted Trump associate and CEO of the America First Policy Institute, Rollins is seen as a top contender for the Chief of Staff role. She previously served as an advisor on domestic policy during Trump’s first term and is perceived as a more moderate Trump ally.
• Susie Wiles: Having led Trump’s successful 2024 campaign, Wiles is also being considered for the Chief of Staff position. Her pivotal role in Trump’s electoral success, particularly after joining his campaign following her work on Ron DeSantis’ campaign in Florida, has put her in a strong position for this role.
• Kevin McCarthy: The former House Speaker, who had an unceremonious exit from Washington in October 2023, is widely seen as a top contender for the Chief of Staff position. McCarthy’s intimate knowledge of how Washington works is considered a significant asset for this role. Some people, however, say he likes the money he is making currently.
• Robert Lighthizer: While primarily known for his role as a trade representative, Lighthizer is also mentioned as a potential candidate for Chief of Staff. However, he is also being considered for other positions such as Treasury Secretary or Commerce Secretary.

Bottom line: The final selection will likely depend on various factors, including their relationship with Trump, their ability to navigate Washington politics, and their alignment with Trump’s vision for his second term.

— David Wasserman, an election analyst for The Cook Political Report with Amy Walter, shared his insights on the surprising aspects of the 2024 election with Tyne Morgan. While Trump’s victory wasn’t unexpected, Wasserman was particularly struck by Trump’s performance in suburban areas. Trump’s success in white-collar suburbs marked a significant departure from previous electoral trends. Wasserman noted that Trump performed better in many white-collar suburbs compared to 2020. The traditional growing gap between suburban and rural America didn’t materialize as expected.

Trump made significant inroads in unexpected places, including:
• Fairfax County in Virginia, near Washington D.C.
• New Jersey, where Harris was held to a single-digit victory
• Illinois and New York, where Biden’s 2020 margins were substantially reduced
• Suburban Philadelphia, including Bucks County, Pennsylvania, which Republicans hadn’t won in a long time.

Wasserman highlighted the importance of rural areas in Trump’s victory: • Baldwin County, Georgia, a bellwether with a diverse population, flipped to Trump. This flip contributed significantly to Trump’s ability to overcome Democratic margins in Atlanta suburbs.

Wasserman identified several crucial factors in the election outcome:
• Cost of living: The election was largely driven by economic concerns, with voters feeling the impact of inflation on groceries and other essentials.
• Incumbent party challenges: It proved difficult for the incumbent party to secure another term in the face of economic pressures.
• Harris’s campaign: Despite a successful launch, Harris struggled to differentiate her governing approach from Biden’s.

Senate and House results. The Republican Party made significant gains in the Senate. Republicans won at least 53 states, exceeding expectations. Surprising victories included Dave McCormick’s narrow lead over Senator Bob Casey in Pennsylvania. Trump’s strength among Hispanic voters played a crucial role in some Senate races, Wasserman said.
In the House, Republicans maintained narrow control, with about 15 races still uncertain, particularly in California and Arizona.

Wasserman believes the 2024 election will be remembered for:
• Trump’s third consecutive defiance of polls.
• A sense of normalcy following the election, unlike the shock of 2016.
• Trump’s normalization as a political figure, despite potential concerns about his future cabinet choices.

— Trump’s rural landslide prompts focus on farm bill, rising costs, and tariffs. President-elect Donald Trump secured 63% of the rural vote, surpassing his 2016 performance, and is set to work with farm groups and Congress on overdue agricultural policies. Key issues include passing a new farm bill, mitigating high costs, averting tax hikes, and addressing labor shortages. Senate Republicans aim to increase crop subsidy triggers and reallocate climate funds for non-carbon-focused practices, a move opposed by outgoing Senate Agriculture Chair Debbie Stabenow (D-Mich.). Trump emphasized unity and a focus on “common sense” policies. He also proposed tariffs on imports, with potential repercussions for agricultural exports, while Robert Kennedy Jr. hinted at shifts in food and health policy toward less processed and more natural foods.

— Trump, GOP poised to extend expiring tax cuts with new congressional majority. President-elect Donald Trump and Republicans, who secured control of the Senate and are positioned to retain the House, are gearing up to extend expiring tax cuts from 2017 worth trillions. With full congressional control, they could bypass Democratic votes to pass new tax legislation. Key provisions at stake include a higher standard deduction, enhanced child tax credit, and a 20% deduction for some businesses. A GOP-led Congress could also block tax increases, providing leverage against a narrowly controlled Democratic House. House leaders plan to introduce a tax bill within the first 100 days of the new Congress. Markets have responded positively to the prospect of deregulation and stalled tax hikes.

— Trade industry braces for new Trump tariffs, supply chain shifts expected. The trade sector anticipates a wave of new tariffs under President-elect Donald Trump, potentially reshaping global supply chains and accelerating moves away from China. Industry experts foresee a rush by U.S. importers to stockpile goods ahead of expected levies, which could drive up freight rates and disrupt shipping markets. Trump has signaled potential tariffs of 10-20% on imports, with even higher rates on goods from China and Mexico. The proposed changes are expected to impact shipping lines, manufacturers, and retailers, potentially leading to higher consumer costs. Companies are preparing strategies to mitigate tariff impacts, including shifting production and diversifying suppliers.

— Donald Trump’s relationship with Elon Musk appears to have influenced his stance on electric vehicles (EVs) to some degree, though there are still notable differences in their views. But despite his close ties to Musk, Trump has maintained a largely skeptical position on EVs:
• He has pledged to immediately abandon the Biden administration’s support for the EV industry if elected.
• Trump has promised to halt any EV mandates on “Day 1" of his administration.
• He has stated he would consider ending the $7,500 tax credit for EV purchases.

However, Trump has also tried to clarify that he is not entirely anti-EV:
• In a July 2024 interview, Trump stated he believes in consumer choice, including the option for electric vehicles.
• He emphasized wanting consumers to have options between gasoline, hybrid, and electric vehicles.
• Trump wants to keep Chinese EVs out of the U.S. market, including coming in from Mexico. That likely pleases Musk.

Despite their differing views on EVs, Musk has become a significant ally for Trump:
• Musk has contributed substantially to Trump’s campaign, donating approximately $132 million to Trump and other Republican candidates.
• Trump has praised Musk extensively, calling him a “star” in his recent victory speech.
• There are indications that Musk could play a role in a Trump administration, potentially leading a government efficiency commission.

— Why were there more voters in the 2020 presidential contest versus 2024? Election analysts say there were several factors that contributed to the higher voter turnout in 2020 compared to 2024.
• Record-breaking turnout in 2020: The 2020 presidential election saw the highest voter turnout of the 21st century, with 66.8% of citizens 18 years and older voting. This set a very high bar for 2024 to match or exceed.
• Expanded voting options in 2020: Due to the Covid-19 pandemic, many states expanded options for voting by mail or drop-off in 2020. This likely made it easier for more people to vote that year.
• Heightened political engagement in 2020: The 2020 election was seen as particularly high stakes by many voters, which may have driven higher turnout.

Slight decrease in 2024 turnout: While exact numbers are still being finalized, preliminary data shows 2024 turnout was around 64.54% of eligible voters, compared to 66.38% in 2020. This represents a decrease of nearly 6 percentage points.

Demographic shifts: There were some changes in voting patterns among certain demographic groups between 2020 and 2024. For example, Trump gained support among Hispanic/Latino voters and first-time voters in 2024 compared to 2020.

Voter enthusiasm: There may have been differences in voter enthusiasm and motivation between the two elections, though this is difficult to quantify precisely.

Differences in candidates: The 2024 race featured different candidates (Trump vs. Harris) compared to 2020 (Trump vs. Biden), which could have impacted turnout patterns.

Of note: While 2024 turnout was lower than the record-setting 2020 election, it was still relatively high by historical standards. The decrease in turnout from 2020 to 2024 does not necessarily indicate a problem with the electoral process, analysts conclude.

— The referendum on slaughterhouses in Colorado, specifically in Denver, did not pass. Voters rejected Ballot Measure 309, which aimed to ban slaughterhouses in the city and county of Denver. Key points about the outcome:
• As of the latest count, approximately 64-65% of voters opposed the measure, while only about 35-36% supported it.
• The measure would have closed Superior Farms, Denver’s only slaughterhouse, located in the Goreville neighborhood. Superior Farms processes about 1,500 sheep daily and represents 15-20% of the total lamb slaughter capacity in the U.S. The facility employs around 160 people, many of whom are Spanish-speaking immigrants.

Opponents of the ban, including the meat industry and workers at the plant, spent over $3.8 million campaigning against the initiative.

Supporters of the ban, including animal rights organizations, spent over $600,000 on their campaign.

Bottom line: The failure of this measure means that Superior Farms can continue its operations in Denver. The CEO of Superior Farms, Rick Stott, declared victory, stating that the campaign was about “real people” and the value of their work. The outcome preserves jobs at the facility and maintains an important link in the lamb supply chain for Colorado and the Mountain West region. Analysts say had the measure been approved it would have served as a precedent for similar action elsewhere.

— CAFO ban defeated in California. By a nearly 6-to-1 margin, voters in California’s Sonoma County defeated an effort to limit the size of livestock farms and phase out operations that exceeded the limits.

— Trump’s 2024 win signals tougher immigration policies, mass deportation plans. Donald Trump’s victory in the 2024 presidential election positions him to enact stringent immigration policies, including potential mass deportations and heightened border control measures. In his victory speech at Mar-a-Lago, Trump reaffirmed plans to secure the U.S./Mexico border. His proposed actions may involve using the National Guard and military for removals, challenging existing Biden-era policies like Temporary Protected Status and protections for Dreamers. Immigration advocates and legal experts warn of significant socio-economic impacts and have pledged continued legal challenges to counteract the administration’s plans. Potential changes to lawful immigration, such as H-1B visas, could also be on the horizon.

— Indonesia aims to boost palm oil production for rising biofuel demand. Indonesian officials are optimistic about increasing palm oil production to meet rising biofuel demand. Chief Economic Minister Airlangga Hartarto emphasized Indonesia’s biodiesel expansion, including raising the blend from 35% (B35) to 40% (B40) palm oil by 2025, potentially increasing palm oil use for energy to 13.9 million metric tons (MMT). Plans also include a 1% jet fuel blending mandate by 2027. While replanting efforts to enhance palm oil output are underway, they have faced delays. The initiative aims to reduce reliance on fossil fuels and support the palm oil sector.

— China’s gov’t officials have been actively encouraging large hog producers to reduce their reliance on soybean imports, particularly soybean meal used in animal feed. This initiative is part of a broader strategy to decrease China’s dependence on imported soybeans and improve food security.

In 2023, China’s Ministry of Agriculture and Rural Affairs (MARA) introduced the “Three-Year Action Plan for Reducing Soybean Meal in Fee.” This plan aims to:
• Cut down soybean meal usage in livestock feed
• Promote alternative protein sources
• Boost overall efficiency in the agricultural and livestock sector

MARA has provided specific recommendations for feed formulation:
• Suggesting alternatives to corn such as rice, cassava, rice bran, barley, and sorghum
• Recommending substitutes for soybean meal, including rapeseed meal, cottonseed meal, peanut meal, and various other plant-based protein sources

Over 88% of soybeans consumed in China are imported, posing risks to national food security. Reducing soybean meal use has led to significant cost savings in feed production, estimated at more than US $17 per ton.

Despite government advice, some hog producers have been reluctant to reduce their herds. Some enterprises are unwilling to heed the ministry’s advice due to sustained losses. Crush Capacity: Despite having the world’s largest annual crush capacity at nearly 160 million mt, weekly operational rates in China have been low, ranging from 50% to 60%.

— China’s soybean imports slowed in October but on record pace. China imported 8.09 MMT of soybeans in October, down 3.28 MMT (28.8%) from September but up 2.93 MMT (56.8%) from last year. Through the first 10 months of this year, China imported 89.94 MMT of soybeans, up 11.2% from the same period last year and just 10.37 MMT shy of the record in 2020. Chinese buyers are expected to rush to import soybeans before Donald Trump takes office in January.

— China’s meat imports continue to slow. China imported 535,000 MT of meat during October, down 1.1% from September and 3.1% less than year-ago. Through the first 10 months of this year, China imported 5.475 MMT of meat, down 12.5% from the same period last year.

— China’s exports surge as factories front-run tariff threats. China’s exports surged 12.7% from year-ago in October to a 27-month high of $309.06 billion, up sharply from 2.4% growth in September. This marked the seventh consecutive month of export growth and the fastest pace since July 2022, as manufacturers front-loaded orders in anticipation of further tariffs from the U.S. and EU. China’s imports fell 2.3% from last year to $213.3 billion in October, the first decline since June amid weak domestic demand. That pushed China’s trade surplus to $95.27 billion from $81.71 billion in September. The trade surplus with the U.S. increased slightly to $33.50 billion in October from $33.33 billion in September. For the first 10 months of 2024, China’s trade surplus stood at $785.3 billion, with exports rising 5.1% to $2.93 trillion while imports grew 1.7% to $2.14 trillion. During the period, the trade surplus with the U.S. stood at $291.38 billion.

— China’s Xi urges U.S. to ‘get along’ as he congratulates Trump. Chinese President Xi Jinping congratulated Donald Trump on his U.S. presidential win and urged both nations to find the “right way to get along,” amid the threat of sharply increased tariffs and another trade war. Stable, sound and sustainable U.S./China relations serve the interests of both, Xi said, adding that other countries would expect the two powers to “respect each other (and) co-exist peacefully.” Xi also called for strengthened dialogue to properly manage differences. Echoing Xi’s call for stability, the commerce ministry said China was willing to jointly develop healthy economic and trade ties the United States.

— China’s central bank head pledges to support economic recovery. People’s Bank of China (PBOC) Governor Pan Gongsheng said China will continue to implement a supportive monetary policy to help promote sustained economic recovery. China will promote the opening of its financial services sector and strengthen communication with markets, Pan said, and “maintain a dynamic balance between economic growth and quality, internal and external factors, as well as investment and consumption, and will continue to implement a supportive monetary policy.” Investors are closely watching a meeting of China’s top legislative body this week for clues on the scale and timing of expected fiscal measures.

— China asks banks to lower interbank deposit rates to boost growth. Chinese regulators have asked the country’s banks to lower the rates they pay to deposits from other financial institutions to free up funds to boost the economy, Bloomberg reported, citing people familiar with the matter. China’s interest rate self-disciplinary mechanism, a supervisory body overseen by the central bank, said banks should benchmark the interbank deposit rate against the 7-day reverse repo rate, currently set at 1.5% annually. Some banks paid an annual rate of 1.8% or above to attract savings from financial counterparties.

— NWS outlook: Heavy snow expected to impact portions of Colorado and New Mexico while heavy rain, severe weather, as well as increasingly windy conditions sweep across the Southern Plains through the next couple of days... ...Heavy rain threat over the Southeast is expected to gradually diminish by this evening... ...Hurricane Rafael is forecast to track more westward away from the Florida Keys and into the Gulf Mexico through the next couple of days... ...Record warmth continues from the Mid-Atlantic down into the Southeast and along the Gulf Coast.

(NWS)