Jobs day in the U.S., BOJ does nothing and Allianz is so over Bill Gross. Here are some of the things that people in markets are talking about this morning.
Today's unemployment report will be closely watched as speculation increases that the Federal Reserve will raise rates for the first time since 2006 at its September meeting. Expectations are for an increase of 225,000 new workers added to payrolls in July to be announced at 8:30 a.m. ET. With jobless claims hovering near the lowest levels in four decades, all signs point to continued strength in the U.S. labor market.
The Bank of Japan left monetary policy unchanged at its meeting overnight. The central bank will continue to increase the monetary base by 80 trillion yen ($640 billion) per year, as expected by all 37 economists in a Bloomberg survey. With inflation remaining far below the bank's 2 percent target, 21 of the economists in the survey predict further stimulus will be needed.
Allianz SE, Europe's largest insurer and owner of Pacific Investment Management Co. (Pimco) said second-quarter profit rose 15 percent helped by a decline in natural catastrophes reducing claims at the company's property and casualty division. Allianz also said that Pimco has overcome the departure of bond trader Bill Gross, as outflows from its funds are on the verge of ceasing. Assets in the Pimco Total Return Fund, which Gross managed, have fallen $192 billion to $101 billion from their April 2013 high.
If you haven't been keeping an eye on Brazil, now might be a good time to start. The country's currency has hit a 12-year low and President Dilma Rousseff is coming under severe pressure as her approval ratings have fallen to 8 percent, the worst on record. As pressure to impeach Rousseff mounts, Finance Minister Joaquim Levy insisted in an interview that she would finish her term and protect Brazil's investment-grade rating, which is currently only one notch above junk at Standard and Poor's.
The Shanghai Composite Index closed higher for the first time in three days to close up 2.3 percent at 3,744.21. China Securities Finance Corp., the government agency tasked with buying stocks to shore-up the market is seeking an extra 2 trillion yuan ($322 billion), adding to the 3 trillion yuan that has already been made available for stock purchases, according to people with knowledge of the matter.
What we've been reading
This is what's caught our eye over the last 24 hours.
- What August doldrums? These days the Treasury market can change direction in minutes.
- Big oil's big risk.
- Rio Tinto has nobody to blame but themselves for iron ore profit slump.
- Commodity hedge funds are suffering an investor exodus as losses mount.
- North Korea creates its own time zone.
- Steven Seagal -- action movie star, friend of Putin ... Siberian diamond investor?
- The rise in robots may hold back interest rates.
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