Overseas Headlines – March 08, 2021

United States:

Goldman Sachs Economists See U.S. Jobs Boom as Virus Curbs Ease

“The U.S. is on course for an employment boom this year once pandemic restrictions ease and the economy reopens, according to economists at Goldman Sachs Group Inc. “Reopening, fiscal stimulus, and pent-up savings should fuel very strong demand growth,” Chief Economist Jan Hatzius and colleagues wrote in a report highlighting an outlook that’s more optimistic than most other forecasts. They predict the unemployment rate, currently at 6.2%, will fall to 4.1% by the end of the year.”



BOE Governor Bailey Says Risks to U.K. Economy Remain Tilted to the Downside

“Bank of England Governor Andrew Bailey said risks to the U.K. economy remain tilted to the downside, a remark that may rein in expectations that policy makers may soon shift toward containing inflation. Bailey reiterated the bank’s guidance that it doesn’t intend to tighten monetary policy until there’s clear evidence the economy is absorbing excess capacity, and he noted that unemployment is likely to rise and remain higher a year from now. For those reasons, risks are “on balance distributed on the downside, though less so as time goes by.”



China’s Yuan Becomes Latest Victim of Treasury-Led Selloff

“The Chinese yuan erased all its gains against the dollar this year, the latest to fall prey to the Treasury-led global market selloff. The onshore yuan weakened as much as 0.5%, falling past the 6.5283 per dollar level it closed at last year. At its January peak, it was up 1.6% from 2020 as the economy rebounded and investors poured money into the Chinese bond market.”




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