Jan 6, 2017

Big in Business: Jobs Day, energy independence, and the Yuan

1) The U.S. is expected to have added 175,000 new jobs in December

A solid figure, and inline with the 180,000 rate for the first 11 months of 2016. That's more than enough jobs per month to keep the unemployment rate—already at the historically low level of 4.6%—headed lower, according to Jim O'Sullivan, Chief U.S. economist with High Frequency Economics.

2) The U.S. will be energy independent in 10 years,

the Energy Information Administration estimates, thanks to shale gas. This could have huge implications for U.S. foreign policy, taking pressure of the United States to maintain order in the Middle East, where the majority of oil reserves lie.

3) China is trying to boost its currency as its economy slows.

Chinese officials have instructed state-owned banks in Hong Kong—where the currency trades more freely than the mainland—to restrict lending to other banks. This drives up the cost of borrowing yuan, which makes it more expensive to short the currency. This runs counter to Trump's narrative that China keeps the value of its currency low to make their exports cheaper.

What to watch for today:

Average hourly earnings from today's payroll report at 8:30am. Evidence of accelerating wage gains could force the Fed to raise rates again sooner rather than later.

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