The US August jobs report came in at 173K, which is 50K light of expectations. The last piece of the puzzle to say no rate hike later this month from the Fed.
The jobless rate fell to 5.1% as more people left the workforce. It’s mourning in America. (not a typo, snark.)
The equity and bond markets enjoyed a respite as Chinese markets closed for two-day holiday, so no Asian contagion to give pre-open jitters to US markets.
Besides being at the beach this long weekend, I will be on the look out for a purchase of at least some bank properties by another institution possibly as early as Sunday.
As I’ve written this week, there is a troubled bank out in the wild in desperate need of liquidity. I believe we will see it sell off some assets in order to bring in desperately needed liquidity at the very least or perhaps an outright sale (although the size of the institution tells me that may be difficult.)
I cannot confirm that this global bank went to the Fed window in a desperate attempt to keep the doors open, this sale would confirm the rumors.
Another sign of global recession, British retail sales fell 4.3 percent in Aug., the 4th consecutive month of declines. The decline was led by a 5.5 percent slump in sales at clothiers.
Commentators and economists had the audacity to blame the shortfall on rainy weather. In Britain rain kept them out of the stores, how rich.
Now you know why the Chinese are in a bind. No one in Europe or US or South America for that matter are boosting sales in the rag trade.
So enjoy the unofficial end of summer this weekend and I’ll be back Tuesday, unless some banking news happens over the weekend.