“If it stinks, doesn’t work, is incomprehensible and doesn’t make sense – it’s either economics or philosophy.” — . . . Raymond DeVoe

1. Moody’s Upgrade Greek Debt — Moody’s disclosed a two-notch upgrade (to B1 from B3) on the country’s sovereign debt rating. The nation’s reform program is now “firmly established and is likely to be sustained,” according to the agency, as “most of the fiscal improvement is due to structural measures.” Greek 10-year bond yields fell to their lowest level since early 2006, down 3.3 bps to 3.609%.
2. U.K. Crucial Votes Next Week — crucial votes are scheduled in the U.K. next week that will determine the immediate course of Brexit and the U.K.’s relationship with the EU. If lawmakers vote against Prime Minister Theresa May’s Brexit deal, they will then vote on leaving the 28-member bloc without a deal (hard Brexit). JPMorgan doubts May can achieve victory at this stage, predicting an extension of Article 50 by two or three months with May securing passage of the deal by early April. May and other Brexit officials are in Brussels in a last-ditch effort to score more concessions from European Union leaders before the key votes.
3. Huawei Sues U.S., Calling Equipment Ban Unconstitutional — Huawei has filed suit against the United States, claiming that a ban on government procurement from the world’s largest network equipment maker is unconstitutional. The part of the National Defense Authorization Act with the ban makes it a “bill of attainder,” Huawei says – an unconstitutional singling-out of a group or individual without due process. A court could invalidate just the section involving Huawei, but expect a national security defense to come up.
4. FDA OKs J&J’s Esketamine Nasal Spray for Depression — the FDA has approved the first drug to treat depression in decades, paving the way for Johnson & Johnson (NYSE:JNJ) to sell a nasal spray based on ketamine, which is often used as a party drug with the nickname “Special K”. Esketamine, which will be sold under the brand name Spravato, will be available for adults who have already tried at least two other antidepressant treatments. The fast-acting drug will cost between $590 and $885 (before discounts and rebates) depending on the dosage.
5. German Factory Orders Slump — German factory orders unexpectedly fell in January, adding to the evidence that Europe’s largest economy is continuing to lose momentum. Orders were down 2.6%, the most since June, defying expectations for a 0.5% gain. The Bundesbank’s latest assessment is that Germany is seeing a dent in momentum and that growth this year will be below potential (the economy barely avoided a recession at the end of 2018).
6. Trump Administration Exploring Price Disclosure Requirement for Hospitals and Doctors — the Trump administration is reaching out to the medical industry for feedback on requiring hospitals, doctors and other healthcare providers to publicly disclose the heretofore confidential prices they charge insurers for services. Needless to say, health insurers, hospitals and most doctors will most certainly push back on the proposal. The public comment period will close Friday, May 3.

The week ahead — Economic data from Econoday.com: