Dow dropped 155, decliners over advancers 3-1 & NAZ fell 42 (Apple (AAPL) was no help today). The Financial Index was off 1½ to the 194s. The MLP index slipped 1 to 382 & the REIT index was off a fraction in the 264s. Junk bond funds were mixed & Treasuries rose. Oil fell a 2nd day in after the US added fewer jobs than forecast last month. Gold is back below $1600.
Photo: Bloomberg
Employers hired fewer workers than forecast in Jun as payrolls rose only 80K after a 77K increase in May, according to the Labor Dept. The forecast was for a 100K gain. The unemployment rate held at 8.2%, matching the forecast. Private employment, which excludes gov agencies, increased 84K, the weakest in 10 months. The so-called underemployment rate, which includes part- time workers who’d prefer a full-time position & people who want work but have given up looking, increased to 14.9% from 14.8%. This is grim data.
Payrolls in U.S. Rose 80,000 in June; Jobless Rate 8.2%
Photo: Bloomberg
The IMF will reduce its estimate for global growth this year on weakness in investment, jobs & manufacturing in Europe, the US, Brazil, India & China, Managing Director Christine Lagarde said. "The global growth outlook will be somewhat less than we anticipated just three months ago," Lagarde said. "And even that lower projection will depend on the right policy actions being taken." The new outlook will be announced in 10 days, after an Apr estimate of 3.5%. Interest-rate cuts in China & Europe yesterday & the Bank of England's boost to an asset-purchase program underscored the fragility of the global recovery as austerity measures & debt burdens weigh on advanced nations. Lagarde is pressing for fiscal union in Europe to aid growth & financial stability as nations such as Greece wrestle with balancing their books. The "key emerging markets" of Brazil, China & India are showing signs of slowdown, Lagarde said. Those 3 countries along with Russia will comprise more than 20% of the world economy this year, according to IMF data. "Over the past few months, the outlook has regrettably become more worrisome," Lagarde said. "Many indicators of economic activity -- investment, employment, manufacturing -- have deteriorated. And not just in Europe or the United States." The IMF has already lowered its US growth estimate to 2% from 2.1% in Apr. EU leaders agreed last week to loosen bailout rules, lay the foundations for a banking union & break the link between sovereign & banking debt thru the direct recapitalization of lenders. More uncertainty about where the global economy is headed.
Lagarde Says IMF to Cut Growth Outlook as Global Economy Weakens
The new Greek Prime Minister Samaras will outline shortly how his coalition gov intends to deal with the country's massive financial crisis, as an inspection of Greece's public finances continues. He will address parliament at the start of a 3-day debate that will end in a vote of confidence in his 3-party coalition, that has 179 seats in the 300-member assembly. The gov admitted yesterday that key elements of its painful economic adjustment program are off track, as meetings continue with inspectors from the EU, ECB & IMF. Greece is suffering thru a 5th year of recession, with unemployment topping 22% (roughly double the eurozone average). Senior ECB & IMF officials this week urged the new gov to make up for delays in structural reforms & appeared unwilling to discuss a potential renegotiation of bailout terms, a central pledge of the gov. The left-wing main opposition Syriza party said it would press the gov on whether it had abandoned its election campaign pledge during the confidence debate in parliament. Greece continues to be an unsettled mess.
New Greek PM to Outline Crisis Policy
Hardly anything went right today in the markets. The jobs report was dismal, leaving little hope even for the optimists. The global economy is not sending favorable signals. Greece hasn't gone away, it's just muddling along tryhing to manage an impossible situation. The reduction in growth outlook for the US by the IMF is troubling. There is a growing worry that behind those bank rate cuts (which sound good) are fears that the global economy situation is worse then is commonly assumed. But with all these problems, Dow still has had a nice recovery from its lows a month ago.
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month | 0.071% | |
U.S. 2-year | 0.274% | |
U.S. 10-year | 1.544% |
| CLQ12.NYM | ...Crude Oil Aug 12 | ...84.68 | ..... 2.54 | (2.9%) |
| GCN12.CMX | ...Gold Jul 12 | .......1,593.80 | ... 15.10 | (0.9%) |
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Employers hired fewer workers than forecast in Jun as payrolls rose only 80K after a 77K increase in May, according to the Labor Dept. The forecast was for a 100K gain. The unemployment rate held at 8.2%, matching the forecast. Private employment, which excludes gov agencies, increased 84K, the weakest in 10 months. The so-called underemployment rate, which includes part- time workers who’d prefer a full-time position & people who want work but have given up looking, increased to 14.9% from 14.8%. This is grim data.
Payrolls in U.S. Rose 80,000 in June; Jobless Rate 8.2%
The IMF will reduce its estimate for global growth this year on weakness in investment, jobs & manufacturing in Europe, the US, Brazil, India & China, Managing Director Christine Lagarde said. "The global growth outlook will be somewhat less than we anticipated just three months ago," Lagarde said. "And even that lower projection will depend on the right policy actions being taken." The new outlook will be announced in 10 days, after an Apr estimate of 3.5%. Interest-rate cuts in China & Europe yesterday & the Bank of England's boost to an asset-purchase program underscored the fragility of the global recovery as austerity measures & debt burdens weigh on advanced nations. Lagarde is pressing for fiscal union in Europe to aid growth & financial stability as nations such as Greece wrestle with balancing their books. The "key emerging markets" of Brazil, China & India are showing signs of slowdown, Lagarde said. Those 3 countries along with Russia will comprise more than 20% of the world economy this year, according to IMF data. "Over the past few months, the outlook has regrettably become more worrisome," Lagarde said. "Many indicators of economic activity -- investment, employment, manufacturing -- have deteriorated. And not just in Europe or the United States." The IMF has already lowered its US growth estimate to 2% from 2.1% in Apr. EU leaders agreed last week to loosen bailout rules, lay the foundations for a banking union & break the link between sovereign & banking debt thru the direct recapitalization of lenders. More uncertainty about where the global economy is headed.
Lagarde Says IMF to Cut Growth Outlook as Global Economy Weakens
The new Greek Prime Minister Samaras will outline shortly how his coalition gov intends to deal with the country's massive financial crisis, as an inspection of Greece's public finances continues. He will address parliament at the start of a 3-day debate that will end in a vote of confidence in his 3-party coalition, that has 179 seats in the 300-member assembly. The gov admitted yesterday that key elements of its painful economic adjustment program are off track, as meetings continue with inspectors from the EU, ECB & IMF. Greece is suffering thru a 5th year of recession, with unemployment topping 22% (roughly double the eurozone average). Senior ECB & IMF officials this week urged the new gov to make up for delays in structural reforms & appeared unwilling to discuss a potential renegotiation of bailout terms, a central pledge of the gov. The left-wing main opposition Syriza party said it would press the gov on whether it had abandoned its election campaign pledge during the confidence debate in parliament. Greece continues to be an unsettled mess.
New Greek PM to Outline Crisis Policy
Hardly anything went right today in the markets. The jobs report was dismal, leaving little hope even for the optimists. The global economy is not sending favorable signals. Greece hasn't gone away, it's just muddling along tryhing to manage an impossible situation. The reduction in growth outlook for the US by the IMF is troubling. There is a growing worry that behind those bank rate cuts (which sound good) are fears that the global economy situation is worse then is commonly assumed. But with all these problems, Dow still has had a nice recovery from its lows a month ago.
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