Ericsson expects to take a second-quarter writedown of about 1 billion crowns ($109 million) on product inventory in China, the Swedish telecoms gear maker said on Monday. The company, which has won 5G contracts from three major operators in China, said it expected negative gross margins in China in the quarter reflecting the high initial costs for new products. Ericsson had warned in its first-quarter report that an increasing share of strategic contracts would hurt profitability in the second quarter, primarily due to negative gross margins in China.

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“Gold is going to struggle to clear the $1,700 level again.” Market participants are now waiting for the U.S. Federal Reserve’s two-day policy meeting ending on Wednesday, though they have stopped pricing in the possibility of negative rates after the surprise recovery in employment. “Gold and silver continued to recover this morning as some physical/retail bargain hunters had some pent up demand at the lower levels,” MKS PAMP said in a note.

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Jun.08 — Vanda Insights Founder & CEO Vandana Hari believes crude had already priced in the outcome by OPEC+ and its allies to extend production cuts. She was speaking with Haslinda Amin and Rishaad Salamat on “Bloomberg Markets: Asia.”

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