Chinese trade negotiators suddenly canceled a visit to meet U.S. farmers after they wrapped up trade talks in Washington this week.Marketsread more
President Trump also said he is "not looking for a partial deal" with Beijing, moving away from his suggestion last week that he would consider an "interim deal."Politicsread more
Progress on trade talks will determine how far market will move above new highs.Trader Talk with Bob Pisaniread more
For investors taking a breather from the chaos in August, buckle up as the market is about go crazy again, Goldman Sachs warned.Marketsread more
Palantir Technologies is targeting a valuation of at least $26 billion in a private fundraising round, the first for the Peter Thiel-backed data analytics startup in four...Wall Streetread more
Michael Pack, a conservative filmmaker linked to Steve Bannon, saw at least $1.6 million in donations from his nonprofit sent into the coffers of his independent production...Politicsread more
The New England Patriots released Antonio Brown just 11 days after signing the wide receiver. The NFL Super Bowl champion team initially had kept him in the face of a rape...Sportsread more
The Wall Street Journal's report came as a top Ukraine official said President Donald Trump "is looking" for Ukraine officials to investigate business dealings of Biden's son...Politicsread more
A tour bus carrying Chinese-speaking tourists crashed near a national park in southern Utah, killing at least four people and critically injuring up to 15 others, authorities...U.S. Newsread more
Gun maker Colt announced Thursday that it will halt its production of AR-15 rifles for civilian sales, but the news might not be as exciting for gun control advocates as it...Guns and Weaponsread more
As thousands of people across the world participate in the Global Climate Strike, several Democratic presidential candidates have shared how they will take aggressive action...Scienceread more
(Adds details, quote, context)
BRASILIA, June 5 (Reuters) - Economic activity in Brazil shrank in May, IHS Markit's monthly purchasing managers index surveys showed on Wednesday, raising the risk that Latin America's largest economy could be back in recession.
The services PMI showed services sector activity fell at an even faster rate than in April, while following Monday's manufacturing data, the composite PMI fell into contractionary territory for the first time since September last year.
The services PMI fell to 47.8 in May from 49.9 in April, the second consecutive month below the 50.0 mark that separates contraction from expansion. The composite PMI index fell to 48.4 in May from 50.6, the first contraction since September last year.
"Aggregate output declined for the first time since last September, while there were back-to-back cuts to employment due to idle capacity and cost-reduction measures," Pollyanna De Lima, Principal Economist at IHS Markit, said.
"The post-election rebound seen in the service sector has faded away, with consumers and businesses increasingly cautious about their spending amid concerns over political impasses and its impact on the wider economy," she said.
The closely watched PMIs are often seen as a leading indicator of wider gross domestic product (GDP) growth. With first-quarter GDP falling 0.2%, the first contraction since 2016, these figures suggest the economy is struggling to grow in the second quarter.
IHS Markit said May was a "challenging" month for Brazilian service providers, who were severely tested by "subdued market confidence, low consumption, political issues and currency weakness."
IHS Markit also noted a "widespread" decline in employment, leading to a fall in private sector jobs for the second straight month. Spare capacity across the economy jumped significantly, as outstanding business fell at the fastest rate in the survey's history going back to 2007.
Services sector companies remained upbeat on the 12-month outlook, with optimism underpinned by hopes of improving economic conditions, fiscal reforms, greater online sales and new partnerships.
But taking into account the more gloomy outlook in manufacturing, the aggregate degree of optimism was among the weakest seen since prior to last October's general election. (Reporting by Jamie McGeever Editing by Bernadette Baum)