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US nonfarm payroll for May rose +2509K vs -7500K estimate

Highlights of the US May employment report

Nonfarm payroll nonfra
  • Change in Nonfarm payroll 2509K vs -7500K estimate. Prior month revised to -20687K vs -20537K estimate
  • two month Prior month revised -642K
  • Unemployment rate 13.3% vs. 19% estimate. Prior month 14.7%
  • Change in private payroll 3094K vs -6750K estimate. Prior month -19724K vs. -19557K
  • Change in Manufacturing jobs plus 225K vs. -400K estimate
  • Average weekly hours 34.7 vs. 34.3 estimate
  • Average hourly earnings MOM -1.0% vs. +1.0 estimate
  • Average hourly earnings YoY 6.7% vs. 8.5% estimate
  • Participation rate 60.8% vs. 60.1% estimate. Last month 60.2%
  • Service sector rose by 2.4 million
  • goods producing jobs increase 669K vs -2373K last month
A breakdown of the sectors shows:
  • leisure and hospitality showed a gain of 1.239 million vs. -7.539 last month
  • retail trade increased by 368K vs -2286K last month
  • education, health increase by 424K vs -2590K last month
  • business services rose by 127K vs.-2189K last month
  • construction jobs rose 464K vs -995K last month
  • government jobs fell -585K vs -963K last month
  • financial rose 33K va -264K last month
  • information-38K vs -272K last month
  • Trade, transport +368K vs -3225Klast month
Surprise. Surprise.

Japan’s Suga says that relations with South Korea remain in a severe state

Japan and South Korea are continuing to fight on trade now that the coronavirus crisis is settling down

Old habits die hard and as the coronavirus crisis settles down, trade wars are coming back into focus and the one between Japan and South Korea remains a focal point in the region.

South Korea had earlier in the week sought to reopen a WTO complaint – which they halted back in November – against Japan on trade curbs over technology exports and that is renewing the rift between the two countries over the past few days.
Both sides tried to seek bilateral talks in the meantime but so far there doesn’t appear to be much progress in addressing the matter.
If anything, just take note of this as it will weigh on both countries’ economies.

Bundesbank sees the German economy shrinking by 7.1% this year

Bundesbank releases their latest forecasts on the German economy

  • German GDP to grow by 3.2% in 2021, 3.8% in 2020
  • Says that projections don’t include the recent fiscal package by the government
Meanwhile, Bundesbank chief Weidmann also gives the thumbs up to the recent government action by saying that the fiscal support has been appropriate and the central bank takes a more positive view on the recent measures.

Switzerland May foreign currency reserves CHF 816.3 billion vs CHF 799.9 billion prior

Latest data released by the SNB – 5 June 2020

  • Prior CHF 799.9 billion
Slight delay in the release by the source. Another jump in Swiss foreign reserves and alongside sight deposits data, it reaffirms that the SNB is continuing to intervene to limit the appreciation in the franc and they will be happy with the EUR/CHF trajectory over the past week or so – currently seen trading at 1.0858.

ETFs amassed more gold in 5 months than in any previous full year: WGC

Gold-backed exchange traded funds (ETFs) added 623 tonnes of the metal worth $34 billion to their stockpile from January to May, exceeding in five months every full-year increase on record, the World Gold Council said on Thursday.

In May alone, the increase was 154 tonnes, it said.

 

Many investors think gold is likely to hold or increase its value as the fallout from the coronavirus outbreak devalues other assets.

Gold prices are up 13% this year at around $1,700 an ounce. Though demand from investors has been strong, sales of jewellery and gold bars and coins in Asia have plunged, preventing prices from rising further.

 

ETFs store gold on investors’ behalf.

The biggest annual increase in ETF holdings is during 2009, during the financial crisis, when they added 591 tonnes, the World Gold Council said.

Its numbers show that by the end of May this year, gold-backed ETFs held 3,510 tonnes of gold worth $195 billion.

Iranian parliamentarian reveals “Rouhani” scheme to smuggle gold and dollars

Parliamentarian Karim Qaddousi accused the Iranian President, Hassan Rouhani, of overseeing the transfer of billions of dollars and several tons of gold to Iraqi Kurdistan in recent years.

And the Iranian (semi-official) Iranian news agency, on Wednesday, reported quoting Qaddousi, who is affiliated with the fundamentalist wing loyal to the guide Ali Khamenei, who made two days ago in an open parliamentary session, in which he said that 3 smuggling gangs transferred over the past three years 36.1 billion dollars and 80 tons. From gold to the city of Sulaymaniyah in Iraqi Kurdistan.

Qadousi, the deputy of Mashhad, indicated that Hassan Rouhani gave orders to pump that money from the country’s treasury into the foreign exchange market and then it was smuggled by gangs to smuggle goods and drugs to Sulaimaniyah between 2017 and 2019, he said.

The Iranian MP did not clarify any further details about the scenes of the accusations that he made against his country, pointing out that the issue was discussed by the National Security Committee inside Parliament 3 years ago in the presence of the President of the Iranian Central Bank, the Minister of Intelligence, the head of the Revolutionary Guards Intelligence Service and the Minister of Finance, according to Mehr.

Karim Qadousi considered that the Hassan Rouhani government was the main reason behind what she called “the discord of petrol”, which resulted in the outbreak of massive popular protests, in mid-November, in protest against raising fuel prices to about 300%.

The deputy attacked Mashhad, the economic policies implemented by the Rouhani government during his second presidential term, which led to the devaluation of the local currency, in conjunction with the sanctions that Washington re-imposed on Tehran after withdrawing from the nuclear deal in 2018.

It is noteworthy that the Iranian opposition accused in its reports the Revolutionary Guard militia of involvement in smuggling huge funds and tons of gold out of the country with the aim of financing pro-regime militias in countries such as Syria, Iraq and Lebanon.

It is noteworthy that the Iranian political scene usually witnesses debates between the affiliates of the reformists and the fundamentalists in the context of competition for positions of power, which lies on the top of the guide Ali Khamenei.

An Iranian parliamentarian 8 months ago revealed the details of an intense rhetoric that occurred between Hassan Rouhani and a member of the Supreme Council for the Cultural Revolution in Iran, whose members Khamenei appoints.

The whole novel, reported by the Fars News Agency, which is close to the Iranian Revolutionary Guard militia, by Ali Reza Salimi, who indicated that Rouhani exchanged insults with Hassan Rahim Portazdi, a member of the Council, during an official meeting to discuss the decision to increase the price of gasoline by about 300%, November / November 2019.

According to the details, the Iranian president left the council meeting in anger, after Azhdadi called him a “dwarf” before the controversy between them intensified. While the protests later resulted in the killing of about 1500 protesters and the arrest of several thousand.

Iran has released a hostage, Trump response: “Thank you to Iran, it shows a deal is possible!”

A little bit of encouraging news to post, Iran released a US Navy veteran hostage, Michael White

Meanwhile the US has released two Iranians.
US Secretary of State Pompeo said Iranian authorities had been constructive on freeing White but urged the release of three other US citizens, all who remain detained.
Trump tweeted constructively:
Iran released a US Navy veteran hostage, Michael White
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