Brazil Central Bank Continues to Raise Rates Aggressively, Another 150bp to 9.25% in December

Banco Central do Brasil​ again aggressively hiked its benchmark interest rate by 1.5% to 9.25%. It was the seventh consecutive interest rate hike in 2021 and policymakers see another interest rate increase by the same margin at the next meeting.  Last meeting the Brazilian Central Bank raised 50bp to 7.75% saying the underlying inflation is above the range compatible with meeting the inflation target. Highlights Copom increases the Selic rate to 9.25% p.a. The committee said that accordingly to the … Continue reading “Brazil Central Bank Continues to Raise Rates Aggressively, Another 150bp to 9.25% in December”

Bank of Canada Leaves Rates Unchanged At 0.25% As Unexpected

Bank of Canada left rates unchanged at 0.25% in line with forecasts and maintained its forward guidance, which sees a rise in the overnight rate sometime in the middle quarters of 2022. Last meeting the BoC surprised by ending the QE bond buying program from $2 billion per week to nil, it was expected to cut to $1billion a week. The Bank of Canada held the overnight rate at 1/4 per cent. The Bank Rate is correspondingly 1/2 per cent … Continue reading “Bank of Canada Leaves Rates Unchanged At 0.25% As Unexpected”

Soft Consumer Spending Sees Japan’s Q3 GDP Downgraded Further

Japan’s economy shrank 0.9% in the third quarter from the previous quarter, at an annualized pace of 3.0%, the Cabinet Office announced on Monday. This was worse than the previous estimate as the Coronavirus and supply shortage had more of a dampening affect than first thought. Japan Q3 GDP (2nd reading) GDP -0.9% q/q vs -0.8% expected GDP y/y -3.6% vs -3.1% expected (first estimate -3.0%) Private consumption -1.3% vs -1.1% prelim External demand 0.0% vs +0.1% prelim Inflation deflator … Continue reading “Soft Consumer Spending Sees Japan’s Q3 GDP Downgraded Further”

US Added Lowest New Jobs In 11 Months in November With Just 235,000

US in November added 235k non-farm payrolls jobs, less than forecasted 536k. October previous 531K revised to +604K. Unemployment rate fell to 4.2%. US Average Hourly Earnings (M/M) rose 0.3% Change in private payrolls +235K Change in manufacturing payrolls +31K November 2021 U.S. Employment Report The Covid-19 virus again threatens the global economy again.  Is this Deja vu? As the world’s economy was shut down and much of America had stay at home orders the threat of Oricon is causing … Continue reading “US Added Lowest New Jobs In 11 Months in November With Just 235,000”

US Job Cuts Fall To Lowest Since May 1993

US companies Job cuts fell 34.8 percent from a month earlier in November 2021 and 77 percent from a year earlier to 14,875. This was the lowest since May 1993. Companies are battling to keep workers amid a tight labor market.  The technology sector had the most job cuts with 1980. While not a surprise, the severity underscores the impact that has caught Fed officials off guard Job Cuts Highlights Companies in the technology sector announced the most job cuts … Continue reading “US Job Cuts Fall To Lowest Since May 1993”

ADP Reports US Added 534K Jobs In November With Service Sector Adding 424K

Private payroll company ADP reported that US jobs grew 534,000 in November. The US Labor Department will report It’s jobs report on Friday. October added downwardly revised 570K increase with market expectations Adding 525K. ADP US November 2021 Employment Report ADP report private businesses in the United States hired 534 thousand workers in November 2021, compared with a downwardly revised 570 thousand increase in October and beating market expectations of a 525 thousand rise, as the labor market continued to … Continue reading “ADP Reports US Added 534K Jobs In November With Service Sector Adding 424K”

Iranian Nuclear Deal Revival Talks Seem Futile With Scaled Up Iran Uranium Efforts

Negotiations for the seemingly endless talks aimed at reviving the international nuclear agreement with Iran is set to start Monday involving the U.S., Britain, Germany, France, Russia, China and Iran. The elephant in the room is has Tehran advanced its nuclear work so much in the past two years that the 2015 deal can no longer be rescued? Iran’s new president has delayed restarting talks while pressing ahead with nuclear work. Iran is in no hurry after President Donald Trump … Continue reading “Iranian Nuclear Deal Revival Talks Seem Futile With Scaled Up Iran Uranium Efforts”

Omicron’s Unusual Genetic Profile and Speed of Spread Concern Scientists

The new B.1.1.529 variant now known as Omicron has scientists concerned for two primary reasons. The first is epidemiological and rand the speed it is spreading. The second is its highly unusual genetic profile with ‘an unprecedented sampling’ of mutations. There are other genetic changes that have not been seen before, whose significance is as yet unknown. WHO recognized the new Covid strain as a variant of concern Friday. omicron Omicron is the 15th letter of the Greek alphabet Omicron … Continue reading “Omicron’s Unusual Genetic Profile and Speed of Spread Concern Scientists”

WHO Names New COVID Variant of Concern ‘Omicron’

The World Health Organization (WHO) recognized the new Covid strain, first referred to as lineage B.1.1.529 and now named omicron, as a variant of concern. WHO said it will take weeks to understand how the variant may affect diagnostics, therapeutics and vaccines. News of the South African variant sent shockwaves throughout financial markets in thin post Thanksgiving Day trade. Oil fell over 10% on the news with fear of economy’s shutting down again. omicron Omicron is the 15th letter of … Continue reading “WHO Names New COVID Variant of Concern ‘Omicron’”

ECB Stresses Current Inflation Hump Shaped Not Stagflation

ECB accounts of its October monetary policy meeting addressed a lot of key questions. The big one, is inflation transitory and are we headed for stagflation? The Bank recalled that stagflation experiences in the 1970s occurred in a different environment, in which indexation allowed wages to react to energy prices. The shortage of critical supplies including energy and other commodities has “seen market-based measures of inflation compensation in the euro area had surged to their highest levels in over seven years, … Continue reading “ECB Stresses Current Inflation Hump Shaped Not Stagflation”