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US non-farm payroll jobs report released – business live US economy created 227,000 new jobs in January, as jobless rate rises to 4.8% - live updates
(35 minutes later)
1.48pm GMT
13:48
Another reason to be worried about US earnings:
"Over the year, average hourly earnings rose by 2.5% in January, compared with 2.9% year over year last month." - @WSJecon
1.48pm GMT
13:48
Here’s some instant reaction, first from bond trading magnate Bill Gross:
"I suppose it's good for corp, profits", says Gross @BloombergRadio. But ultimately it's the consumer drives the economy. YoY wage revision
This is from James Pethokoukis of the American Enterprise Institute:
So strongish January jobs report, 227,000 jobs. Labor participation, emp-pop both up 0.2 - though an * b/c of population adjustment
Bloomberg’s Joe Weisenthal suggests there’s little pressure on the US central bank to hike rates fast.
Key thing about this report is modest wage growth and jump in LFPR suggest no reason for the Fed to accelerate its hike schedule.
Economist Shaun Richards points out that wage growth is still modest, even though the US economy is creating more jobs.
The theme of employment growth with wage growth underperforming just repeats and repeats in the credit crunch era doesn't it? #NFP
1.43pm GMT
13:43
America’s labour force participation rate, which measures everyone working or available for work, has risen to 62.9% from 62.7%.
That implies that some economically inactive people started looking for work again last month (and is one reason the jobless rate rose to 4.8%).
Labor Force Participation Rate rises from 62.7% to 62.9% pic.twitter.com/yae7COyB1q
1.41pm GMT
13:41
The number of Americans who would like to work more hours went up last month.
The U6 rate, which measure unemployment and underemployment, has risen to 9.4% from 9.2%.
U3 Unemployment Rate 4.8% vs 4.7% exp/prev.U6 UER 9.4% vs 9.2% prev.Avg Hourly Earnings +2.5% YoY vs 2.7% exp/2.9% prev.
1.35pm GMT
13:35
November’s jobs report has been revised, to show that only 164,000 new jobs were created, not 204,000 as first thought.
December’s data has been revised up by 1,000, to 157,000.
1.34pm GMT
13:34
The wages figure is a disappointment!
Average earnings only rose by 0.1% month-on-month in January, dashing hopes of a 0.3% gain.
Average hour earnings up 0.1% in January vs. 0.3% expectations. YOY wages up 2.5% #JobsReport https://t.co/DClcu4FCnl
1.33pm GMT
13:33
America’s jobless rate has risen to 4.8%, from 4.7% in December.
1.30pm GMT
13:30
US JOBS REPORT RELEASED
BREAKING: America’s economy created 227,000 new jobs in January, as the Obama administration ended and the Trump administration began.
That’s more than economists had expected, and suggests that the US economy began 2017 in good health.
More to follow!
1.25pm GMT
13:25
Tension is building, with just five minutes to go....
Today begins Trump's long road to fulfilling his promise of 25 million (!) new jobs. Need 208.3 thousand every month
This jobs report predates Trump. Reference week for the numbers is January 12th. https://t.co/4sF3ickjTM
The first jobs report of the Trump presidency comes out in less than 10 minutes. Reminder that he thinks the unemployment rate is “phony.”
1.12pm GMT1.12pm GMT
13:1213:12
US jobs report: a preambleUS jobs report: a preamble
It’s nearly time for the US jobs report.... the first Non-Farm Payroll on Donald Trump’s watch.It’s nearly time for the US jobs report.... the first Non-Farm Payroll on Donald Trump’s watch.
Of course, Trump only took office on January 20th, so he can’t be credited or blamed for the state of America’s labo(u)r market. Of course, some firms will have made hiring decisions since the election on 9th November, but the impact of Trump’s policies will only be seen in NFP reports later this year and beyond.Of course, Trump only took office on January 20th, so he can’t be credited or blamed for the state of America’s labo(u)r market. Of course, some firms will have made hiring decisions since the election on 9th November, but the impact of Trump’s policies will only be seen in NFP reports later this year and beyond.
Today’s report is effectively the starting point against which Trump will be judged.Today’s report is effectively the starting point against which Trump will be judged.
Obama gets 2/3 of today's jobs report right? https://t.co/WHeYk8DWvgObama gets 2/3 of today's jobs report right? https://t.co/WHeYk8DWvg
A reminder: economists are expecting today’s report to be pretty decent, with around 180,000 new jobs created last month. The unemployment rate may also remain low, at 4.7%....A reminder: economists are expecting today’s report to be pretty decent, with around 180,000 new jobs created last month. The unemployment rate may also remain low, at 4.7%....
...however, Trump has criticised these figures for not showing the true picture in the jobs market. His team favour another measure, called U5, which includes people who have given up looking for work. That rate is currently running at 5.7%....however, Trump has criticised these figures for not showing the true picture in the jobs market. His team favour another measure, called U5, which includes people who have given up looking for work. That rate is currently running at 5.7%.
Economists will also be looking at the wage growth figures. Average earnings are expected to have risen by 0.3% during January, with the annual increase dipping to 2.8% from 2.9% in December.Economists will also be looking at the wage growth figures. Average earnings are expected to have risen by 0.3% during January, with the annual increase dipping to 2.8% from 2.9% in December.
12.47pm GMT12.47pm GMT
12:4712:47
The Daily Telegraph have just published a handy explanation to the Dodd-Frank legislation.The Daily Telegraph have just published a handy explanation to the Dodd-Frank legislation.
Here’s a snippet:Here’s a snippet:
If Dodd-Frank made banks safer, why is it being reviewed?If Dodd-Frank made banks safer, why is it being reviewed?
Scrapping legislation that stifles businesses was a central plank of Mr Trump’s election campaign, playing to his image as a successful tycoon who made billions in the private sector. Last November, he described Dodd-Frank as “a sprawling and complex piece of legislation that has unleashed hundreds of new rules and several new bureaucratic agencies”.Scrapping legislation that stifles businesses was a central plank of Mr Trump’s election campaign, playing to his image as a successful tycoon who made billions in the private sector. Last November, he described Dodd-Frank as “a sprawling and complex piece of legislation that has unleashed hundreds of new rules and several new bureaucratic agencies”.
Mr Trump, who has also previously argued that Dodd-Frank “made it impossible for bankers to function”, pledged to “dismantle” the law and replace it with “new policies to encourage economic growth and job creation”. Last week, while signing an executive order aimed at reducing regulations, he described Dodd-Frank as a “disaster”. Republicans have long been opposed to the law.Mr Trump, who has also previously argued that Dodd-Frank “made it impossible for bankers to function”, pledged to “dismantle” the law and replace it with “new policies to encourage economic growth and job creation”. Last week, while signing an executive order aimed at reducing regulations, he described Dodd-Frank as a “disaster”. Republicans have long been opposed to the law.
More here:More here:
Why does Donald Trump want to repeal the Dodd-Frank rules on banks and finance? https://t.co/RGhWxZjEm0 pic.twitter.com/MQpxx2DccwWhy does Donald Trump want to repeal the Dodd-Frank rules on banks and finance? https://t.co/RGhWxZjEm0 pic.twitter.com/MQpxx2Dccw
12.17pm GMT12.17pm GMT
12:1712:17
It’s that time of the day when the US president wakes up, opens Twitter, and addresses the world....It’s that time of the day when the US president wakes up, opens Twitter, and addresses the world....
Meeting with biggest business leaders this morning. Good jobs are coming back to U.S., health care and tax bills are being crafted NOW!Meeting with biggest business leaders this morning. Good jobs are coming back to U.S., health care and tax bills are being crafted NOW!
However, that meeting won’t include Travis Kalanick, the boss of Uber, who resigned from Trump’s economic advisory council following heavy criticism -- and a campaign to delete Uber.However, that meeting won’t include Travis Kalanick, the boss of Uber, who resigned from Trump’s economic advisory council following heavy criticism -- and a campaign to delete Uber.
11.51am GMT11.51am GMT
11:5111:51
In other banking news, Deutsche Bank is planning to cut 17% of its equities staff and 6% of its fixed-income staff globally, according to the Wall Street Journal.In other banking news, Deutsche Bank is planning to cut 17% of its equities staff and 6% of its fixed-income staff globally, according to the Wall Street Journal.
It would be the latest stage in CEO John Cryan’s push to cut costs and return the company to profit (it reported a $2bn loss yesterday).It would be the latest stage in CEO John Cryan’s push to cut costs and return the company to profit (it reported a $2bn loss yesterday).
Deutsche Bank set to slash equities, fixed-income jobs https://t.co/z3y6xT6pMWDeutsche Bank set to slash equities, fixed-income jobs https://t.co/z3y6xT6pMW
11.40am GMT11.40am GMT
11:4011:40
China and Germany reject Trump criticism over currenciesChina and Germany reject Trump criticism over currencies
Earlier today, China’s government rejected claims from the Trump administration that it unfairly manipulates its currency.Earlier today, China’s government rejected claims from the Trump administration that it unfairly manipulates its currency.
Government spokesman Lu Kang told reporters in Beijing that China hopes to resolve concerns over global trade through talks, not through tit-for-tat devaluations.Government spokesman Lu Kang told reporters in Beijing that China hopes to resolve concerns over global trade through talks, not through tit-for-tat devaluations.
Lu said:Lu said:
China has never and won’t use a currency war to seek advantage in trade or to raise competitiveness in trade.China has never and won’t use a currency war to seek advantage in trade or to raise competitiveness in trade.
We have no intention of fighting a currency war. From a long-term perspective this is not beneficial to China.We have no intention of fighting a currency war. From a long-term perspective this is not beneficial to China.
(thanks to Reuters for the quotes).(thanks to Reuters for the quotes).
Earlier this week, the president’s trade adviser caused a stir by claiming that Germany was getting an unfair advantage through the “grossly undervalued” euro.Earlier this week, the president’s trade adviser caused a stir by claiming that Germany was getting an unfair advantage through the “grossly undervalued” euro.
German finance minister Wolfgang Schäuble has now hit back, pointing out that Berlin doesn’t actually control the euro....German finance minister Wolfgang Schäuble has now hit back, pointing out that Berlin doesn’t actually control the euro....
*SCHAEUBLE: SOME IN U.S. NOT AWARE GERMAN GOVT NOT SETTING RATES*SCHAEUBLE: SOME IN U.S. NOT AWARE GERMAN GOVT NOT SETTING RATES
10.56am GMT10.56am GMT
10:5610:56
Mining shares are falling after China’s central bank raised short term interest rates overnight.Mining shares are falling after China’s central bank raised short term interest rates overnight.
That is holding back the FTSE 100, which is up 30 points thanks to the Trump-induced rally in bank shares.That is holding back the FTSE 100, which is up 30 points thanks to the Trump-induced rally in bank shares.
Michael Hewson of CMC Markets says:Michael Hewson of CMC Markets says:
The mining sector has slipped back this morning after a disappointing Chinese manufacturing survey as well as slight tightening of money market rates by Chinese authorities. It’s not immediately clear what prompted this action, though there is speculation about rising concerns about a property bubble, and this slight rise could well be an attempt to warn that tighter policy is on the way. Glencore, Antofagasta, BHP Billiton, Anglo-American PLC and Rio Tinto have all slipped lower at the open.The mining sector has slipped back this morning after a disappointing Chinese manufacturing survey as well as slight tightening of money market rates by Chinese authorities. It’s not immediately clear what prompted this action, though there is speculation about rising concerns about a property bubble, and this slight rise could well be an attempt to warn that tighter policy is on the way. Glencore, Antofagasta, BHP Billiton, Anglo-American PLC and Rio Tinto have all slipped lower at the open.
On the upside banking shares have gained a lift on speculation that US President Trump may well sign a new executive order to roll back some of the Dodd Frank regulatory bill, helping push Barclays and RBS higher.On the upside banking shares have gained a lift on speculation that US President Trump may well sign a new executive order to roll back some of the Dodd Frank regulatory bill, helping push Barclays and RBS higher.
10.37am GMT10.37am GMT
10:3710:37
Bank shares boosted by TrumpBank shares boosted by Trump
Shares in banks and insurance groups are rallying in London, following the reports that president Trump will take steps to dismantle regulations brought in to prevent another financial crisis.Shares in banks and insurance groups are rallying in London, following the reports that president Trump will take steps to dismantle regulations brought in to prevent another financial crisis.
The prospect of Trump blocking president Obama’s fiduciary rules also seem to be boosting demand for financial stocks. They were due to come into force in April, compelling financial advisors to recommend the best product to clients, not simply a suitable one.The prospect of Trump blocking president Obama’s fiduciary rules also seem to be boosting demand for financial stocks. They were due to come into force in April, compelling financial advisors to recommend the best product to clients, not simply a suitable one.
Barclays are leading the FTSE risers, up 2.5%, followed by Prudential, and Royal Bank of Scotland.Barclays are leading the FTSE risers, up 2.5%, followed by Prudential, and Royal Bank of Scotland.
Chris Beauchamp of City trading firm IG says:Chris Beauchamp of City trading firm IG says:
UK bank stocks are higher across the board this morning, after the magic words ‘Dodd-Frank’ and ‘repeal’ flashed across screens last night; leaving aside the political implications, the news could provide a tonic for the sector.UK bank stocks are higher across the board this morning, after the magic words ‘Dodd-Frank’ and ‘repeal’ flashed across screens last night; leaving aside the political implications, the news could provide a tonic for the sector.
Trump cannot simply demolish the Dodd-Frank rules on his own, but his executive orders still carry weight.Trump cannot simply demolish the Dodd-Frank rules on his own, but his executive orders still carry weight.
The FT has a good explanation:The FT has a good explanation:
Gary Cohn, the former Goldman Sachs executive who is now director of the White House’s National Economic Council, said Mr Trump would sign executive orders preparing the way to fulfil a campaign pledge to dismantle parts of Dodd-Frank.Gary Cohn, the former Goldman Sachs executive who is now director of the White House’s National Economic Council, said Mr Trump would sign executive orders preparing the way to fulfil a campaign pledge to dismantle parts of Dodd-Frank.
However, the president’s ability to pull apart the sweeping reforms on his own is limited. Only Congress can make major revisions to the act it passed in 2010, but Mr Trump can use the orders to signal his priorities and instruct regulators enforcing the law.However, the president’s ability to pull apart the sweeping reforms on his own is limited. Only Congress can make major revisions to the act it passed in 2010, but Mr Trump can use the orders to signal his priorities and instruct regulators enforcing the law.
“This is a table setter for a bunch of stuff that is coming,” said Mr Cohn, who stepped down as a top executive at Goldman Sachs to take the White House job.“This is a table setter for a bunch of stuff that is coming,” said Mr Cohn, who stepped down as a top executive at Goldman Sachs to take the White House job.
UpdatedUpdated
at 10.41am GMTat 10.41am GMT
9.57am GMT9.57am GMT
09:5709:57
Economists are concerned that Britain’s service sector slowed last month. Here’s some early reaction:Economists are concerned that Britain’s service sector slowed last month. Here’s some early reaction:
Dean Turner, UK Economist, UBS Wealth Management:Dean Turner, UK Economist, UBS Wealth Management:
“The most notable aspect of the Services PMI was the ongoing strength of the input prices index, which rose again and is now above 60 level for the fourth consecutive month. Higher input prices will, in time, shift into selling prices otherwise firms will see their profits shrink. In line with the Manufacturing and Construction PMI, this points to inflation continuing its recent surge in the months ahead.“The most notable aspect of the Services PMI was the ongoing strength of the input prices index, which rose again and is now above 60 level for the fourth consecutive month. Higher input prices will, in time, shift into selling prices otherwise firms will see their profits shrink. In line with the Manufacturing and Construction PMI, this points to inflation continuing its recent surge in the months ahead.
“Headline activity, although falling back slightly, suggests the economy is continuing to expand at a healthy pace, but one has to question its sustainability. Can the UK economy keep pace as inflation erodes the spending power of the consumer? We don’t share the Bank of England’s optimism that households will continue to whittle away their savings to support spending. Our conviction strengthened today with the softer outlook for employment highlighted in this survey.”“Headline activity, although falling back slightly, suggests the economy is continuing to expand at a healthy pace, but one has to question its sustainability. Can the UK economy keep pace as inflation erodes the spending power of the consumer? We don’t share the Bank of England’s optimism that households will continue to whittle away their savings to support spending. Our conviction strengthened today with the softer outlook for employment highlighted in this survey.”
Howard Archer of IHS Global Insight:Howard Archer of IHS Global Insight:
Services have been the key UK growth driver along with consumer spending and January survey evidence for both has been softer. While these are surveys rather than hard data and not too much should be read into one month’s figures, it nevertheless fuels our suspicion that the UK economy will find life increasing difficult during 2017 and that growth will gradually lose buoyancy like a slow puncture.Services have been the key UK growth driver along with consumer spending and January survey evidence for both has been softer. While these are surveys rather than hard data and not too much should be read into one month’s figures, it nevertheless fuels our suspicion that the UK economy will find life increasing difficult during 2017 and that growth will gradually lose buoyancy like a slow puncture.
Chris Sood-Nicholls, managing director and head of global services at Lloyds Bank Commercial Banking.Chris Sood-Nicholls, managing director and head of global services at Lloyds Bank Commercial Banking.
“There are some helpful economic ingredients that are keeping the PMI in positive territory. Healthy levels of employment and low interest rates mean consumers continue to spend. Business confidence has also been buoyed by a stronger than expected economic performance in 2016, and is likely to be further boosted by yesterday’s improved growth forecast from the Bank of England.“There are some helpful economic ingredients that are keeping the PMI in positive territory. Healthy levels of employment and low interest rates mean consumers continue to spend. Business confidence has also been buoyed by a stronger than expected economic performance in 2016, and is likely to be further boosted by yesterday’s improved growth forecast from the Bank of England.
“However, some uncertainty remains and we’re seeing a cautious approach towards making major investment decisions across the services sector.”“However, some uncertainty remains and we’re seeing a cautious approach towards making major investment decisions across the services sector.”
9.40am GMT
09:40
UK service sector growth slows
Newsflash: Britain’s service sector grew slower than expected last month, as firms were hit by rising prices.
The Services PMI, which tracks activity in the dominant part of the UK economy, dropped to 54.5 for January from 56.2 in December, a bigger slowdown than expected.
UK service sector growth slows more than expected in January. PMI posts biggest fall since July, second biggest in a year.
Firms said that new business and employment also increased at slower rates, and their backlog of outstanding work fell a little.
And there are also signs that raw material prices are ballooning ahead, due to the weaker pound.
The 3 UK #PMI surveys show companies' costs are rising at the joint-fastest rate since the global financial crisis pic.twitter.com/wOVzjoqiIv
Updated
at 9.43am GMT
9.29am GMT
09:29
Bad news for UK energy customers... Npower has just announced it will raise the cost of its dual fuel package by almost 10%.
The move will hurt around half of its customers, putting £100 on the average annual bill. And where one energy firm leads, the others tend to follow...
The first of the Big 6? NPower is raising a typical dual fuel annual energy bill by 9.8% or £109.
#Npower blames rising wholesale prices & cost of delivering g'ment policies incl smart meters, renewables, cap market.@beisgovuk @ofgem
Ouch! Npower hiking dual fuel bills by 9.8% or £109 a year on ave. And where one Big Six provider goes, they all follow. 🐏🐏 #brrr
9.26am GMT
09:26
Investors often flock to gold in time of nervousness. And Donald Trump’s election win has helped to push demand for bullion up to its highest level since the eurozone debt crisis was raging.
9.12am GMT
09:12
Good news! The Eurozone’s service sector has kept growing at the fastest pace in five and a half years.
Markit’s service sector PMI, which tracks activity across the sector, has just come in at 54.4 for January, matching December’s reading - the highest since mid-2012. That shows robust growth, with job creation hitting its fastest rate since 2008.
Markit #Eurozone #PMI Composite Output Index unchanged at 54.4 in Jan'17. Job creation fastest since Feb'08. https://t.co/8l5aV5qnPW pic.twitter.com/fRPujteWVD
But...firms also warned that input costs are rising at the fastest rate in over five- and-a-half years That’s due to higher global commodity prices, increased import costs due to the weak euro and supplier price hikes.
Overall, the report suggests eurozone growth is gathering pace, according to Julien Lafargue, European Equities Strategist at JP Morgan. He says:
Although Germany has decelerated somewhat in the recent months, today’s PMIs are clearly pointing to accelerating GDP growth in the Eurozone in 2017. In addition, the rate of job creation - the fastest since February 2008 – indicates that this momentum could be sustained in the coming months. Going forward, it will be important to keep an eye on cost pressures which continue to intensify. The companies’ ability to pass these higher costs onto consumers will be critical to support margins and the earnings recovery we anticipate.
8.59am GMT
08:59
President Trump makes the front page of this week’s Economist:
The Economist front page pic.twitter.com/YBhQhMMBYM
And their leader column says that America’s allies are right to be worried by the president’s early moves:
Here’s a flavour:
WASHINGTON is in the grip of a revolution. The bleak cadence of last month’s inauguration was still in the air when Donald Trump lobbed the first Molotov cocktail of policies and executive orders against the capital’s brilliant-white porticos. He has not stopped. Quitting the Trans-Pacific Partnership, demanding a renegotiation of NAFTA and a wall with Mexico, overhauling immigration, warming to Brexit-bound Britain and Russia, cooling to the European Union, defending torture, attacking the press: onward he and his people charged, leaving the wreckage of received opinion smouldering in their wake....
More here: An insurgent in the White House
8.54am GMT
08:54
BoE deputy governor: Trump has been good for Britain
Donald Trump’s shock election victory has been “marginally” good for the UK economy, according to one of the Bank of England’s top officials.
Deputy governor Ben Broadbent argued that Britain has benefitted from the jump in financial confidence following Trump’s win last November.
Speaking to BBC Breakfast TV, Broadbent said:
“You’ve seen business confidence rise particularly in the United States. You’ve seen financial markets get more optimistic and I think that has had some impact on us.
“So far, at the margin, yes, it’s been positive for global sentiment, and for that reason, and to that extent, for us as well.”
Broadbent also cautioned, though, that we don’t know exactly what Trump will do:
“And I should say overall that... there’s a lot we have yet to see about the detailed plans, including those for fiscal policy, for government spending and taxes and so forth, so we’ll have to wait and see.”
Yesterday the Bank of England hiked its growth forecasts for the UK economy this year, prompting criticism that it was too gloomy after the EU referendum result.
8.43am GMT
08:43
Trump to roll back Dodd-Frank: What the experts say
Laurie Macfarlane of the New Economics Foundation is concerned that removing financial regulations could lead to trouble:
This all sounds familiar 🤔https://t.co/xWp4GMl7bx pic.twitter.com/RPEsf4DzjE
The FT’s Jeremy Grant also has concerns:
There are many who wld welcome roll back of #doddfrank but will pendulum swing too far the opposite way?
Lawyers likely loving Trump admin review/rollback of #doddfrank - yet further years of work guaranteed #suegrabittrunne
But the move could drive stock markets higher, argues Neil Wilson of ETX Capital, especially if today’s US jobs report is a zinger.
Big day for US markets with #NFP numbers and @realDonaldTrump to roll back Dodd-Frank - US financials could jump.
8.21am GMT
08:21
President Trump will meet with the bosses of some of America’s largest financial firms today, before signing executive orders to review Dodd-Frank and stall the Obama fiduciary rule.
He’s expected to see Blackstone CEO Steve Schwarzman, Blackrock boss Laurence Fink and JP Morgan’s Jamie Dimon, among others
That may not dispel concerns that the new administration is batting for the banking sector, rather than the public.
For example, Obama’s fiduciary rules are means to protect millions of retired Americans from being missold investments by brokers, to get bumper profits.
However, the White House line is that removing regulations is good for investors, which is why they want the rule rescinded.
As Bloomberg puts it:
The two executive actions are designed to lay out the Trump administration’s approach to financial markets, with an emphasis on removing regulatory burdens and opening up investor options, said the White House official, who briefed reporters on condition of anonymity.
8.03am GMT
08:03
Trump to 'Undo Dodd-Frank Law and Obama's Fiduciary Rule'
Some breaking news from America.... US president Donald Trump is expected to start unpicking some of the rules created after the 2008 crisis to to rein in the financial sector.
US media are reporting that Trump will order a review of the Dodd-Frank rules, which are designed to stop banks being too reckless.
He’s also apparently planning to sign another executive action that could halt President Obama’s Fiduciary Rules. This regulation forces retirement advisers to work in the best interests of their clients; Trump will ask the US labor secretary to consider rescinding it, reports say.
The Dodd-Frank rules were a major attempt to avoid a repeat of the crisis that brought down Lehman Brothers. They force banks to be more transparent, provide extra consumer protection, and are meant to prevent the kind of risks that led to the meltdown of the sector nine years ago.
But they’re also unpopular with banks, who argue that they restrict business.
Gary Cohn, the director of the White House National Economic Council, has told the Wall Street Journal that unravelling these safeguards will be good for consumers (as well as the banks, of course!).
Cohn (a former president of Goldman Sachs) argued:
“Americans are going to have better choices and Americans are going to have better products because we’re not going to burden the banks with literally hundreds of billions of dollars of regulatory costs every year.
“The banks are going to be able to price product more efficiently and more effectively to consumers.”
More here: Donald Trump Plans to Undo Dodd-Frank Law, Fiduciary Rule
Trump plans to dismantle much of the regulatory system put in place after the financial crisis https://t.co/UcQYkyBv7W
Busy day ahead with exec orders said to be coming to roll back Dodd-Frank, cancel fiduciary rule, water down gun owner background checks...
7.35am GMT
07:35
The agenda: US jobs report and service sector data
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Donald Trump once promised to be “the greatest jobs president God ever created”. And today we’ll find out whether his rise to the White House has had any impact on the US labour market yet.
The latest US Non-Farm Payroll (NFP), due at 1.30pm GMT (8.30am East Coast), will show how many new jobs were created across America last month, whether wages rose, and whether more people were lured back to the jobs market.
Economists expect a fairly solid report. The payroll is expected to rise by around 180,000 jobs leaving the unemployment rate at a healthy-looking 4.7%.
Michael Hewson of CMC Markets suggests we could get an even stronger report:
This would suggest that the 180k estimate being predicted is probably too low, with a figure in excess of 200k not being beyond the realms of possibility. Such a high number given an unemployment rate of 4.7%, would suggest that there is probably still a fair degree of slack in the jobs market.
Wages are also likely to be closely watched with a rise of 0.3% expected, with an annualised rise of 2.8%, down slightly from December’s 2.9%.
The report could easily move the markets, as the strength of the US jobs market will determine how quickly the Federal Reserve can raise interest rates this year.
#US non-farm payroll out tonight. #Jobs expected up by 175k for Dec. A large miss could lead to weakness in #USD, #stocks. #MAGA #Trump
Also coming up today
Data firm Markit is publishing its latest healthcheck on the world’s service sector companies today.
These Purchasing Managers Index (PMIs) reports are expected to show decent growth last month, suggesting the world economy began 2017 in good spirits despite the political uncertainty.
Here’s the timings:
9am GMT: Eurozone (with a breakdown for each country)
9.30am GMT: UK
2.45pm GMT: US
The financial markets are expected to be calm, as traders wait for the NFP numbers:
Our European opening calls:$FTSE 7143 up 3$DAX 11638 up 10$CAC 4797 up 3$IBEX 9412 up 6$MIB 18925 up 36
We’ll be tracking all the main events through the day....
Updated
at 7.38am GMT