US averages are down fractionally, but off the session morning lows. Early afternoon trading remains negative after shockingly weak nonfarm payrolls data raised doubts if the economy could withstand an interest rate hike in the near term. Oil prices also slipped today on concerns about the U.S. economy, a weaker dollar, Baker Hughes oil rig count increasing and relief that most OPEC members do not plan to flood the market with excess crude.
Here is the current market situation from CNN Money
North and South American markets are mixed today. The Bovespa is up 0.73% while the IPC gains 0.55%. The S&P 500 is off 0.44%.
Oil futures lost more ground Friday after Baker Hughes showed that the weekly number of active U.S. rigs drilling for crude rose by 9 to 325 as of Friday. The total U.S. rig count climbed by 4 to 408. July crude was at $48.35 a barrel on the New York Mercantile Exchange... Full Story
WASHINGTON (Reuters) - The U.S. economy created the fewest number of jobs in more than 5-1/2-years in May as manufacturing and construction employment fell sharply, suggesting slippage in the labor market that could make it harder for the Federal Reserve to raise interest rates.
(Reuters) - Financial stocks led Wall Street lower in early afternoon trading on Friday after shockingly weak nonfarm payrolls data for May raised doubts if the economy could withstand an interest rate hike in the near term.
MUNICH (Reuters) - BMW is overhauling its research and development activities to focus on self-driving cars, board member Klaus Froehlich told Reuters, a move which includes a revamp of its "i" sub-brand of carbon-fibre based electric vehicles.
NEW YORK (Reuters) - A former Oppenheimer & Co Inc investment adviser was arrested Friday on charges he traded on inside information supplied by a Pfizer Inc employee about potential deals it was considering.
MOSCOW (Reuters) - Russia, the world's top oil producer, plans to continue its consultations with OPEC and may hold a meeting with the group this autumn, Energy Minister Alexander Novak told reporters.
ZURICH/FRANKFURT (Reuters) - An unusual number of suicides by top executives in Switzerland has prompted introspection in its business community over how senior managers are dealing with stress as its companies struggle to retain their status in the global economy.
(Reuters) - A psychiatrist who examined Sumner Redstone twice last month found the 93-year-old retained the mental capacity needed to remove Viacom Inc Chief Executive Philippe Dauman from the trust that will eventually control the company, according to a spokesman for the media mogul.
NEW YORK (Reuters) - Oil prices dipped on Friday on concerns about the U.S. economy, but Brent crude held close to $50 a barrel in choppy trading with support from a weaker dollar and relief that most OPEC members do not plan to flood the market with excess crude.
As the economy stalls out with dismal GDP and employment data, it is no surprise that JPMorgan is now seeing its recession indicators hitting new highs.
JPM says that the probability of a recession beginning within 12 months has moved from 30% on May 5th, to 36% today...
Our preferred macroeconomic indicator of the probability that a recession begins within 12 months has moved up from 30% on May 5 to 34% last week to 36% today (Table 1, bottom row and Figure 1, blue line). This marks the second consecutive week that the tracker has reached a new high for the expansion.
Also, JPM's models based on financial market pricing is now indicating a risk of recession
With the rally in risk markets over the last month, our models based on financial market pricing now see a recession risk moderately below our model based on macroeconomic data (Table 2).
In fact, the bank whose FX recommendations have become so notoriously terrible they are on par with those of Dennis Gartman, has absolutely outdone itself this time because less than 24 hours after Goldman said to sell the Yuan, the Chinese currency just had its biggest one day move in over 5 years!
Recall that it was just last night when we presented not only Goldman's (largely accurate) RMB-FOMC Monetary Policy Loop, which merely showed the reflexive relationship between the Fed, the dollar, the PBOC and the Yuan (and everything else inbetween)...
... but also Goldman's latest FX forecast. To wit: "we shift to an outright negative view on the RMB, in line with this week's Asia Views and our bearish RMB forecast."
Said otherwise, as of last night, Goldman was telling its clients to go short the Yuan.
We concluded that this "begs the question: is Goldman then quietly selling the USD and buying the Yuan, as it is has an alleged tendency of doing by frontrunning its clients... or is its reco genuine this time."
What happened next?
Well, today's payrolls happened, and the result was an absolute slaughter for Goldman's favorite US Dollar, as suddenly rate hike this summer is off the table, but a rate hike any time may be a pipe dream. And since a collapse in the USD means a surge in all other currencies, most notably the Yuan, here is what happened to the Chinese currency after today's payrolls report.
The fast-food chain is reportedly nearing a deal to relocate its headquarters from suburban Chicago to downtown as rethinking its facilities and boosting efforts to draw fresh talent are also on its revitalization menu.
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