October 7, 2022
United States:
US Jobs Rise While Unemployment Drops, Keeping Pressure on Fed
US employers continued to hire at a solid pace last month and the jobless rate unexpectedly returned to a historic low, indicating a sturdy labor market that puts the inflation-focused Federal Reserve on course for another outsize interest-rate hike.
Nonfarm payrolls increased 263,000 in September after a 315,000 gain in August, a Labor Department report showed Friday. The unemployment rate unexpectedly dropped to 3.5%, matching a five-decade low. Average hourly earnings rose firmly.
Europe:
BOE’s Nightmare Scenario Came to Life as UK Markets Crashed
Last week, the Bank of England was confronted with a nightmare scenario it had long feared. A corner of UK financial markets faced a liquidity crunch at a time of soaring inflation and all the BOE could do in response was buy government debt.
The £65 billion ($72 billion) pledge staunched the crisis but it threw the central bank into a contradictory policy position, one it may be confronted with again over time.
Asia:
China’s Holiday Spending Slumps as Consumer Demand in Asia Slows
Chinese holidaymakers cut back sharply on travel and spending during the National Day break this week as strict Covid rules discouraged movement, while signs of a consumer slowdown across Asia mount.
Tourism revenue declined 26% to 287 billion yuan ($40.3 billion) over the week-long holiday from a year ago. Compared with pre-pandemic levels in 2019, revenue was down nearly 56%, and even worse than last year’s 40% decrease from 2019 levels, according to figures from the official social media account of the Ministry of Culture and Tourism. Roughly 422 million trips were taken, down 18% from last year and 39% from 2019 levels.
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