September 4, 2023
United States:
Labor Day Progress Report: A Shift Down to Cruising Speed for US Job Market
A pre-Labor Day flurry of data last week indicated the US job market is shifting to a lower gear but still capable of delivering enough fuel to keep the economy from sputtering.
Friday’s jobs report showed a 187,000 increase in August employment after downward revisions in the prior two months. Earnings growth cooled, but workers were also able to put in longer hours. More people entered the labor force too, helping bring supply and demand into better balance.
Europe:
Here’s What to Watch in European High-Yield Bonds This Week
Europe’s high-yield bond market is off to a subdued start in September with the US closed for Labor Day. No new deals have been announced so far, but bankers expect that to change soon, with borrowers still focused on refinancing their existing debt.
The next deal to be announced in the market, when one comes, would be the first for Europe’s junk market in well over a month. Iceland Foods was the last to tap the market, with a £475 million (€513 million) bond which priced on July 26.
Asia:
China’s Mortgage Relaxation Spurs Weekend Sales in Mega Cities
Home sales in two of China’s biggest cities soared in the past two days following mortgage relaxations, an early sign that government efforts to cushion a record housing slowdown are helping.
Existing-home sales for Beijing and Shanghai doubled over the weekend from the previous one, according to CGS-CIMB Securities. “We were surprised by the strong pick up in Beijing and Shanghai, despite the challenging economy,” said Raymond Cheng, head of China property at CIMB.
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