Anticipated US jobs data boosts Asia and Europe markets
Stock markets in Asia and Europe have been generally higher Friday on anticipation of good news on the US labor market together with regional sentiment. Expectation of an additional 230,000 jobs added to the labor force in November and unemployment holding steady have boosted the already-high optimism in the US economy while Asia was also lifted by news that Saudi Arabia will be discounting its oil for the region from January. In Europe the US feel-good factor was coupled with better results for the German economy which saw factory rise far more than expected. Although the ECB did not move any further with stimulus measures yesterday the major European markers are positive this morning. US stock futures are edging higher while gold and oil are both trending lower.
Employment Situation at 8.30am ET
International Trade at 8.30am ET
Factory Orders at 10am ET
Consumer Credit at 3pm ET
Argan, Global Medical and Sears Hometown are among those reporting today.
Job growth is one thing, but where’s the growth in wages?
With today’s news on the labor market expected to show another gain and unemployment numbers steady the question is why wages are stagnating. Figures show that there has been a very slight increase in wages in the last month but while individuals are keen to see their paycheck rise the markets are even keener. The Fed has made it clear that wage rises are a key indicator that they are looking for before deciding on interest rate increases. With inflation at 1.7 per cent the modest gains we are seeing (2.0-2.1 per cent) in wages are not making a huge difference to most people and if interest rates were to rise the cost of home loans and other borrowing could cancel out any gains. Read the full story.
Uber picks up some wealthy passengers as investors put in $1.2 bn
The ride share company may be divisive with many fans and at least as many enemies but investors have decided that it’s a pretty good bet. The firm wants to dominate in the ‘taxi’ market and its global push towards that aim means it is now valued at a staggering $40 billion after securing its latest round of investment. The $1.2 billion of new cash announced yesterday adds to the $1.5 billion that it had already raised; it is also looking to shift $1 billion of debt onto some of Goldman Sach’s clients. Read the full story.
Wake up and smell the (new home of) coffee
Starbucks steps up a level this morning as its new venture in Seattle opens for the first time. Starbucks Reserve Roastery and Tasting Room is a store, a theater, a tourist attraction, a coffee-lovers’ temple perhaps. The 15,000 square feet emporium is designed to create new excitement about something that has been around for a long time and emulated repeatedly. The company has more to give with plans to expand growth of food in its US outlets and yesterday it unveiled its new Mobile Order & Pay platform in Oregon. Read the full story.