Economy

US growth
Market pulse: All red in Asia ahead of US jobs data

Stock markets in Asia were red this morning ahead of Friday's US jobs report. Early trading for Wall Street's broad index indicated a decline. Yesterday, US stock markets were closed.

On Thursday, several Fed members reiterated that the current interest rate level should be maintained for a longer period, writes Bloomberg.

- The Fed is worried about the incoming administration, says Skyler Weinand, chief investment officer at Regan Capital.

Asian stock markets fell broadly. In the morning, the Nikkei led the declines, but in the afternoon, stocks in mainland China soured.

In the fixed income and currency markets, the Chinese yuan rose slightly against the dollar after China's central bank announced that it would temporarily stop buying government bonds.

– It should narrow the yield gap between US and Chinese bonds and indirectly support the yuan, Khoon Goh, head of Asia for Australia & New Zealand Banking Group, told Bloomberg.

Commodity prices rose on Friday. Brent oil rose almost 2 percent, while gold was up 0.4 percent at lunchtime. Aluminum, copper and zinc also rose.

Fed: December cut was a “last step”

Fed chief Michelle Bowman hesitated to vote for a rate cut in December, she said in her speech on Friday, Bloomberg reports.

– Given the continued strength of the economy, it seems unlikely that the overall interest rate level provides meaningful restraint.

She also said that she voted for a rate cut because she saw it as a “last step” in the recalibration phase of the rate.

“It doesn’t take much to make the market nervous”

Friday’s US jobs figure for December is expected to be received with a shrug from the Fed. However, the outcome could lead to fluctuations in the bond market, SEB economist Robert Bergqvist tells DI.

The US ten-year is now trading at a one-year high of 4.70 percent and with an unexpectedly strong figure, the market could continue to rise, he believes.

– We are in an upward interest rate trend, so it doesn’t take much to make the market nervous.

A weaker outcome could instead cause interest rates and the stock market to take a leap of joy, he believes

The costs of the fires could be the highest ever

The cost of the damages in California could be the highest ever for a fire in US history, writes the Wall Street Journal.

Insurance costs alone have so far amounted to 20 billion dollars, but the total losses are estimated at 50 billion dollars. That's double the estimates from the day before, so the costs will rise further.

For comparison, the insurance costs for the most expensive fire in 2018 to date amounted to $12.5 billion.

Prada considering buying rival Versace

The Italian fashion house Prada is considering buying rival Versace from luxury conglomerate Capri, writes the Italian financial daily Il Sole 24 ore.

According to information provided to the newspaper, major bank Citi will be Prada's advisor in the deal. Prada has not commented on the information.

A month ago, the trade magazine Women's Wear Daily reported that Capri is looking for new owners for brands such as Versace and Jimmy Choo.