Greetings,
United States: Let’s begin with the May employment report, which was far stronger than the consensus estimate.
While there are numerous theories as to why economists were so far off, one explanation was widely discussed on Friday. The jobless claims data and the ADP private payrolls report did not pick up what analysts call “hidden hiring.” Firms put their employees on “government payroll” for a couple of months with full intentions of bringing them back. Here is a summary from Ian Shepherdson, Pantheon Macroeconomics.
Eurozone: Germany’s factory orders, industrial production crashed in April.
Energy: The US rig count is approaching 200 for the first time since 2009.
Equities: The US recent outperformance vs. other developed markets has been remarkable.
Rates: Gross residential MBS issuance spiked amid a wave of refinancing and robust home-purchase applications.
Food For Thought: Is the US economy in recession?
Edited by Devon Lall
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