U.S. Jobless Rate Falls to 6.7%

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Jan. 10 (Bloomberg) –- Affinity Advisors Jeremy Hill and Bloomberg’s Olivia Sterns focus on the U.S. economic outlook in “On The Markets” on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

We had mohamed el-erian on.

He called it puzzling and worrisome.

What is your take?

It is puzzling and worrisome but we have to take a more holistic viewpoint of what has happened in u.s. economic data.

Just this week we had a ton of data and i suggested to everybody that it was not such a terrible week.

Even though the fed is assigning a higher value to the jobs report.

Look at the trade deficit.

It was the best we have had in four years.

Overall not a great u.s. economic data week.

Not so terrible either.

I had -- we had a strong adp report on hiring which had economists upgrading their outlook on the back of that.

Do you think it is going to change the fed's thinking around tapering?

I do not.

This is a singular data point.

We had some weather issues.

I know that sounds are general and even a little bit crazy.

One can imagine that next report we get a bit of an uptick in this month's numbers.

I think that is a very plausible -- that is very plausible.

We had an increase from november.

If the trend -- the trend continues to be up in jobs.

This is quite a doozy for her to walk in and she walks into 74,000. how much worse do the numbers get before the fed decides we should not taper?

It is kind of a confusing concept but this is the first jobs report in a long time that is not pregnant with the question of should we or should we not taper?

What this jobs report is going to point to is is there a trend that will change the velocity of the taper and right now, i do not think it will.

You manage a lot of money.

What are the trades you're looking at?

I do not think anyone should trade off the back of a singular -- ellen we had a big move in the two-year treasury report.

For those who are in credit markets they are very -- they have to be cognizant of the fact that inflation is a general matter and looking at the two- year could have been mispriced.

The two-year gain something like on a five percent in yield terms.

-- 25% in yield terms.

It dialed back on that.

I think you do want to look at the vix.

If you compare a five-year chart of the vix and a one-year chart, it is different and the difference is quantitative easing.

That would suggest there might be an opportunity in volatility.

We will have to leave it

This text has been automatically generated. It may not be 100% accurate.

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