ADP Employment report
The ADP Employment Report for Nov 2011 has continued to trend up.
U.S. Nonfarm Private Employment Highlights – November 2011 Report: Total employment: +206,000
Small businesses:* +110,000
Medium businesses:** + 84,000
Large businesses:*** + 12,000
Goods-producing sector: + 28,000
Service-providing sector: +178,000
Manufacturing industry: + 7,000
As with previous mths, the Service Producing Sector and Small and Medium Bizs continues to be the star performers.
The surprise is that manufaturing carved out a 7K gain; giving the previously moribund Goods-producing sector aboost to 28K jobs added.
This set of data which correlates well with BLS data bodes well for the Friday release.
Central Banks (CBs) take co-ordinated actions by providing liquidity swaps.
Mainly, involves ECB and the FED; to ease the credit crunch in Europe.
There is apparently a credit crunch in the USD wholesale market and the FED is opening swap lines for the ECB to ease that crunch.
The participation of the CBs from Canada, England, Japan and Switzerland helps to boost the Bazooka effect and shows that the CBs are united in helping the ECB , if indeed it needs the help.
It shows that ECB's head Mario Draghi, may be stepping up--- now that it is clear that the politicos (Merkel & Sarkozy) have agreed that the path to fiscal union is the way to go.
US NAR Pending Home Sales
Pending Home Sales Index for Oct 2011; which is a leading indicator of EHS ( Existing Home Sales) jumped 10.4%
China cuts RRR
In my last post on this topic, Reuters suggest that the cuts in RRR will happen, only next year .
As in the past, the PBoC wrong footed them again.
The RRR will be cut by 50 basis pts from Dec 5.
This suggests that the policymakers are ready to ease the tightening measures that have made credit difficult to get for many SMEs .