Daily update
Daily update
- Saudi Arabia pledged to cut oil production by one million barrels per day. Oil prices subsequently soared to levels not seen since last Tuesday. Any price increase transfers money from buyers to sellers, so the global growth impact is more redistributive than negative. The impact on developed economy consumers depends on changes in oil demand, and whether other factors influence prices. UK auto fuel prices fell recently, after the competition authority became interested in retailers’ profits.
- The US employment report showed jobs being created, or jobs being lost (depending on which part you read). Average earnings (not wages) slowed and were revised down, and hours worked were weaker. The report is a reminder of the problems of data—fewer than half the firms asked contribute to non-farm payrolls.
- US April factory orders and final durable goods orders are due. Media reports have suggested that China will account for less than half of US imports of low-cost products from Asia by the end of 2023—some of this is switching to other locations, but some of this is onshoring.
- Assorted business sentiment opinion polls are due, clamoring for attention they do not really deserve. European Central Bank (ECB) President Lagarde is speaking, but the ECB autopilot policy light still seems to be on.
