Employment News
The fact that the world’s 11th largest employer, Amazon has announced that it will lay off 18,000 workers was excitably reported, analysed and discussed at length yesterday. Given that Amazon employs 1.5 million, while not a matter of no consequence for the 18,000, the fact remains that it represents 1.2% of the workforce. In case you are wondering the largest employer in the world is the US Dept of Defence which weighs in with 2.9 million.
However the weekly jobless figures in the USA should be examined in much greater detail: while of course one set of figures is not a good indicator, this set confirmed a growing view which is that the Federal Reserve will need to be more aggressive rather than less aggressive when it comes to raising rates. With Thursday’s weekly jobless figures undershooting expectations ie more jobs especially in the private sector being created at +235,000, the US economy is not showing the expected signs of a slow down. The USD roared up on this news to trade EUR/USD 1.0530.
Asia
Further signs of relaxation by China on both Covid related restrictions and also unofficial curbs on international ie intra regional trade were well taken by the market yesterday with Asian equity markets up. The CNY strengthened to trade USD/CNY 6.8750. An example of the relaxation of trade curbs was the indication that the unofficial embargo on imports of Australian coal would be lifted by China; consequently AUD firmer on this news at USD/AUD 1.4612 before falling back after the Jobless Claims figures were released later in the trading day to a low point of USD/AUD 1.4814.
Brazil
President Lula’s first few days in office have not been well received by markets with the equity index BOVESPA falling 5% and the Brazilian Real BRL falling 3.8% to trade USD/BRL 5.4. The economic outlook is regarded poorly by markets with high inflation and interest rates, so unlike Lula’s previous two terms in office, there is no sign of a honeymoon this time round.
Y.M.C.A.
Who can forget the feast that was US disco group Village People performing their song Y.M.C.A on film in 1989? Active since 1977 and famous for their outrageous costumes, suggestive lyrics and authentic Greenwich Village NYC vibe, Village People had it all and…they are still active today.
Young man, there’s no need to feel down
I said, young man, pick yourself off the ground
I said, young man, ’cause you’re in a new town
There’s no need to be unhappy
Young man, there’s a place you can go
I said, young man, when you’re short on your dough
You can stay there, and I’m sure you will find
Many ways to have a good time
It’s fun to stay at the Y.M.C.A.
It’s fun to stay at the Y.M.C.A.
They have everything for you men to enjoy
You can hang out with all the boys
It’s fun to stay at the Y.M.C.A.
It’s fun to stay at the Y.M.C.A.
You can get yourself clean, you can have a good meal
You can do what ever you feel
Young man, are you listening to me?
I said, young man, what do you want to be?
I said, young man, you can make real your dreams
But you got to know this one thing
No man does it all by himself
I said, young man, put your pride on the shelf
And just go there, to the Y.M.C.A.
I’m sure they can help you today
Have a Great Weekend!
Discussion and Analysis by Humphrey Percy, Chairman and Founder
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