"Hiring in the U.S. slowed more than forecast in December and unemployment jumped to a two-year high, raising the odds the Federal Reserve will need to cut interest rates by half a point this month to ward off a recession."
"The pace of job creation was at its slowest since August 2003 and it was far below economists' forecasts of 70,000, and November's 115,000 figure."
"Payrolls rose by 18,000, the least since August 2003, after a 115,000 gain in November that was larger than initially reported, the Labor Department said today in Washington. The jobless rate rose to 5.0 percent from 4.7 percent in November. "
Doesn't look great for stock markets around the world. This time we will be testing the "Decoupling" theory i.e the Emerging Markets becoming the engine instead of the U.S.
Also to notice Japan Stock market dropped 4% this morning , the biggest drop on record...
Usually recession is not a good thing for the housing market, so its impact will depend on the amplitudes of the recession and its length...
Source : Bloomberg
1 comment:
"Since 1949 the unemployment rate has never risen by this magnitude without the economy being in recession"
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