Overseas Headlines – August 7, 2020

United States:

Job Growth Tops Estimates, Signaling U.S. Rebound Is Grinding On

“The U.S. labor market continued to regain ground in July, though at a slower pace, indicating the economic rebound is still making headway despite a surge in coronavirus infections. Payrolls increased by 1.76 million in July, beating estimates for a 1.48 million gain and after a 4.79 million advance in June, according to data Friday from the Labor Department. The unemployment rate fell by more than expected, to 10.2%, while a broader gauge of joblessness also declined to 16.5%.”



BOE Seen Adding Stimulus as Investors Doubt Upbeat Officials

“The Bank of England’s surprisingly upbeat assessment for Britain’s economy in coming months is lost on analysts and investors, who see mounting risks that will trigger another round of monetary stimulus. While policy makers said on Thursday that the hit from the coronavirus was shallower than initially thought, and the consumer-driven rebound faster, the calls in markets were for extra bond purchases after the summer.”



Japan Push to Cut China Reliance May Be Boost for Southeast Asia

“Japan’s quiet push to protect its supply chains in the era of Covid-19 may prove a boon for Southeast Asian nations looking to gain from the growing backlash against China. The Japanese government is paying about 12 billion yen ($114 million) to 30 companies to increase production in Southeast Asia, in the first round of a multi-billion dollar program to diversify supply chains after Covid-19 and worsening relations between the U.S. and China.”



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