Bloomberg - Evening Briefing - The good slowdown

Bloomberg Evening Briefing

US employers are forecast to have added the fewest jobs in over a year in June, but economists say that slowdown isn’t concerning. The jobs report from the Labor Department on Friday is expected to show the unemployment rate remaining at historically low levels and another month of solid wage growth, suggesting that employers are still eager to find qualified workers and retain the ones they already have. Job openings are hovering near record highs, while layoffs are well below pre-pandemic levels. While the prediction lends a helping hand to the Fed’s maneuvering to cut inflation while avoiding a downturn, Bloomberg Economics says it’s good news for workers regardless: “Even if ‘soft landing’ ultimately proves as taboo a term as ‘transitory inflation,’ there are reasons to think the job market will not fall off a cliff this year.” 

Bloomberg is tracking the coronavirus pandemic and the progress of global vaccination efforts.

Here are today’s top stories

On Thursday, two of the Fed’s most hawkish policymakers backed raising interest rates another 75 basis points this month to curb inflation, while playing down fears the economy was headed for recession. Wall Street this week seemed to agree. Here’s your markets wrap.

Boris Johnson finally got the memo and resigned, but he plans to remain as “caretaker prime minister” for months while his party decides on its next leader. Who will replace him, at least for the time being? Of course UK betting firms have laid odds. And now it seems Johnson’s plan for an extended swan-song may not fly.

Carrie Johnson, wife of Boris Johnson, center, watches as he announces his resignation on July 7. The UK prime minister folded as dozens of ministers, junior aides and cabinet members quit in the wake of a host of scandals that have hobbled the Tory government. Photographer: Chris J. Ratcliffe/Bloomberg

As the world grapples with a growing hunger crisis driven by Russia’s war on Ukraine, Vladimir Putin’s forces again attacked the Odesa region with missiles, destroying two agricultural hangars, according to local authorities. In the east, Russian troops attempted to conduct assaults in Slovyansk in the Donetsk region and to establish full control over Luhansk, Ukraine’s General Staff said. But the Institute for the Study of War said there were no claimed or assessed Russian territorial gains in Ukraine on Wednesday for the first time in 133 days of war.

China’s Ministry of Finance is considering allowing local governments to sell 1.5 trillion yuan ($220 billion) of special bonds in the second half of this year, an unprecedented acceleration of infrastructure funding aimed at shoring up the country’s beleaguered economy.

But Beijing still has big problems. Charlene Chu, famed among China watchers for warning about a debt bubble while at Fitch, warns that the pain is only beginning for credit extended to Chinese property. In the wake of Beijing’s crackdown on leverage built up in real estate, China Evergrande Group and others famously defaulted on a slew of bonds. Chu, now a senior analyst at a division of Sanford C. Bernstein & Co., estimated there are “30 companies who’ve defaulted with total liabilities of around $1 trillion.” While banks have the safeguard of collateral for their loans to developers, Chu recently said that “where things could start to get a lot more ugly” is if lenders start revaluing that collateral lower.

In the space of five years, Saudi Arabia’s sovereign wealth fund has become a major international investor, snapping up US blue chips like Uber and investing in electric cars. It’s also made forays into sports, buying UK soccer team Newcastle United and investing $200 million in an international golf venture. This is the making of Saudi Inc.

Mohammed bin Salman Al Saud Source: Bloomberg

Globally, Covid-19 infections are on the rise again. Nevertheless, Hong Kong’s newly installed leader suspended a system that banned airlines if they carried passengers infected with Covid-19, raising hopes he’ll ease travel curbs. In Europe, a new infection wave is forming up as the ongoing wave in the US remains at more than 106,000 new confirmed cases per day (though the real number is likely much higher) along with still-rising hospitalizations. With infection and reinfection of individuals with even four vaccine shots now common, all eyes are turning to the fall, when a fifth, updated dose addressing omicron variants is to be ready—and whether by then the rapidly evolving virus will have already passed it by.  

What you’ll need to know tomorrow

These are the 10 Companies to Watch

Following our list of 50 Companies to Watch in January and second-quarter update in April, we’re back with 10 specifically for the third quarter based on scenarios from Bloomberg Intelligence analysts. The companies in the spotlight span sectors and regions, and each scenario outlines important catalysts coming in the next few months that support our case.

Older messages

Boris just won’t go

Wednesday, July 6, 2022

Bloomberg Evening Briefing View in browser Bloomberg Federal Reserve officials agreed last month that interest rates may need to keep rising for longer to prevent high inflation from becoming

Oil falls, but gas rises

Tuesday, July 5, 2022

Bloomberg Evening Briefing View in browser Bloomberg As the Bloomberg recession tracker rose to 38%, the price of oil has plummeted below $100 a barrel, the first time since early May. Citigroup is

Mortgage meltdown

Saturday, July 2, 2022

Bloomberg Weekend Reading View in browser Bloomberg Follow Us Get the newsletter After a white-hot streak during the first two years of the pandemic, business has started to evaporate for mortgage

Slowing growth

Friday, July 1, 2022

Bloomberg Evening Briefing View in browser Bloomberg JPMorgan cut its US midyear economic growth forecast after an influx of weaker data this week—most notably a slowdown in consumer spending. The bank

Doomsayers’ delight

Thursday, June 30, 2022

Bloomberg Evening Briefing View in browser Bloomberg With June now over, we can say that the S&P 500 has suffered its toughest first half since Richard Nixon was in the White House. It was a rout

Longreads + Open Thread

Saturday, September 24, 2022

Russia, Japan, Documentaries, Financial Engineering, Pollen, Grocery ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

An appeals court decision against Donald Trump came back to bite MyPillow CEO Mike Lindell in a separate case

Saturday, September 24, 2022

A day-old appeals court decision against Trump boomeranged to work against MyPillow CEO Mike Lindell, a prominent ally of the former president. View in browser Business Insider Business Insider

Inflation’s costly fight

Saturday, September 24, 2022

Bloomberg Weekend Reading View in browser Bloomberg Follow Us Get the newsletter Central banks from Ulaanbaatar to Pretoria and Washington to London have unleashed aggressive tightening to combat some

The ‘sham’ votes begin

Friday, September 23, 2022

Bloomberg Evening Briefing View in browser Bloomberg In what have been labeled by Ukraine, the US, NATO and others as “sham” votes, Kremlin forces and Moscow-aligned rebels in four occupied territories

Harnessing the Power of Insurance

Friday, September 23, 2022

Plus: Inflation, Market Stress, Payment for Order Flow ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Elon Musk says SpaceX avoids using patents to build rockets because they're for the 'weak' and block innovation

Friday, September 23, 2022

Elon Musk told CNBC that patents were normally used as a "blocking technique" and prevented other companies from advancing. View in browser Business Insider Business Insider Business Insider

Wall Street: The party’s over

Friday, September 23, 2022

The latest in finance. View in browser INSIDER INSIDER Subscribe 10 THINGS ON WALL STREET Hi. Aaron Weinman here. Performance reviews are back. Hiring has slowed. And Wall Street's most influential

The Daily StockTips Newsletter 09.23.2022

Friday, September 23, 2022

(Published 7:30 AM ET MON-FRI) ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

[New post] Trapped in a web of debt? Inefficiencies from corporate debt and the potential case for macroprudential intervention

Friday, September 23, 2022

BankUnderground posted: " Emily Clayton and Martina Fazio Debt creates threads between the financial system and the real economy. These threads transmit shocks across a web of connections, meaning

🥶 Brits get a hike and a recession

Thursday, September 22, 2022

Bank of England hikes rates and acknowledges recession | US and allies try to outstrip Chinese tech | TOGETHER WITH Hi Reader, here's what you need to know for September 23rd in 3:07 minutes. 👻