U.S. Hiring Holds Up While Threats Multiply: Jobs Report Preview
“U.S. employment gains probably slowed only modestly in November despite a record surge of coronavirus cases that still threatens to limit or even reverse hiring in coming months. Friday’s jobs report will show nonfarm employers added 475,000 people to payrolls and the unemployment rate fell 0.1 percentage point to 6.8%, according to economists surveyed by Bloomberg. While those would be the smallest improvements since the rebound began in May — and leave the economy 9.6 million jobs short of pre-pandemic levels — the labor market is in better shape than analysts expected it to be a few months ago.”
U.K. Treasury Reaps $13 Billion Bonus From BOE Bond Buying
“The U.K. Treasury is getting almost 10 billion pounds ($13 billion) a year in interest on its own debt under the Bank of England’s bond-buying plan. That’s the curious result of a massive increase in bond issuance to fight the pandemic crisis, combined with the dramatic reduction in BOE interest rates. The government is currently earning about 1.4% annually from more than 700 billion pounds of gilts that are held by the BOE, according to calculations by UBS strategist John Wraith.”
Thai Central Bank Says GDP May Be Worse Than Expected Next Year
“Thailand’s gross domestic product could underperform next year if tourism remains weak, even as this year’s economic performance may beat sharply reduced forecasts, the country’s central bank head said Friday. All reasonable policy options are on the table in such a situation, although there’s currently no need for the central bank to pursue quantitative easing, Bank of Thailand Governor Sethaput Suthiwart-Narueput told reporters at a briefing in Bangkok. Monetary policy will remain accommodative and focused on growth, while fiscal stimulus should remain in place until the middle of next year, Sethaput said.”
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