Private payrolls in the US rebounded in January, beating expectations by a wide margin and minimizing concern that the economy is stumbling, according to this morning’s release from the Labor Department. Companies added 206,000 workers–a solid improvement over December’s 142,000 gain in the private sector. The 1-year trend edged down last month, near the lowest pace since the recession ended. But for now it appears that the worst you can say about jobs creation is that the annual comparison is easing at a gradual rate that still leaves plenty of room for macro optimism in the near term.
The spread of negative interest rates around the world in recent years is worrisome, in part because it raises the specter of strengthening deflationary headwinds for the global economy. Optimists counter that subzero yields are an anomaly that will soon give way to a normalization of rates, which is to say positive yields. Maybe, but the forces of economic history suggest otherwise, according to new research from the Bank of England.
Buttigieg narrowly wins Iowa caucuses, state party reports: Reuters
Chinese President Xi’s gov’t under pressure after death of hero doctor: BBG
White House announces death of leader of terrorist group in Yemen: CNN
Trump ‘apoplectic’ over UK’s decision on China’s Huawei 5G technology: CNBC
Earnings are beating expectations, but shareholders’ reaction is muted: WSJ
US small-business optimism eased but remained strong in early Jan: Gallup
German industrial output fell sharply in Dec, raising recession worries: Reuters
US job cuts surged in January: CG&C
Jobless claims for US fell, near 50yr low, signaling tight labor mkt: MW