The U.S. Workforce Deconstructed; Bank of Mexico Holds Interest Rate Steady; RBA Keeps Options Open By James Christie
Good day. Every year, the Bureau of Labor Statistics publishes data serving as snapshots of how American workers sort themselves in the workforce. Today, The Wall Street Journal offers highlights from that data, showing, for instance, which jobs have the biggest share of women or men, as well as racial and ethnic representation in various posts. Meanwhile, the Bank of Mexico held the overnight interest-rate target at 11.25%, where it has been since last March. At the same time, the central bank opened the door for possible rate cuts. Inflation in Mexico declined throughout most of last year from more than 20-year highs in the fall of 2022, but it picked up in the past three months to 4.88% in January. And in Australia, RBA Governor Michele Bullock said the central bank board "hasn't ruled out a further increase in interest rates but neither has it ruled it in."
Now on to today's news and analysis.
Top News America's Workforce in Charts
Almost 96% of all dental hygienists are women. Six out of seven lawyers are white. And the racial and ethnic makeup of paralegals, hairdressers and dietitians closely mirrors that of the overall U.S. workforce.
The Bureau of Labor Statistics each year publishes data looking at the gender and racial composition of hundreds of occupations , offering a snapshot of how workers sort themselves into many of the most important jobs in the country.
Bank of Mexico Holds Interest Rate Steady for Seventh Straight Time
In its first monetary policy meeting of the year, the five-member board of governors of the Bank of Mexico voted unanimously to leave the overnight interest-rate target at 11.25%, where it has been since last March.
RBA Keeping Options Open Regarding Further Rate Increases
The governor of the Reserve Bank of Australia, Michele Bullock, said the central bank continues to keep its options open in regard to the need for interest rates to rise further over coming months.
Glynn's Take: RBA More Likely to Keep Rates Higher for Longer By James Glynn
Reserve Bank of Australia Gov. Michele Bullock has learned from the mistakes of her predecessor, Philip Lowe, and made a conscious decision not to give too much away about the long-range outlook for interest rates for fear it could someday return to haunt her.
Since being appointed governor in September, she has been a lot more cautious in how she speaks. Her qualified policy guidance has greatly reduced the risk of the RBA looking foolish again. Read more .
U.S. Economy Logistics Operators See a Shipping-Market Rebound Taking Shape
U.S. freight activity is picking up, signaling the logistics industry may be near the end of a nearly two-year-long slump, as containerized imports recorded the highest month-over-month growth for January in seven years.
How Billionaire Donors Pressured Biden on LNG Exports
Charities controlled by members of the Rockefeller family and billionaire donors were key funders of a successful campaign to pressure President Biden to pause new approvals of liquefied natural gas exports from the U.S.
Key Developments Around the World In China, Deflation Tightens Its Grip
Deflation is becoming more entrenched in China, with consumer prices falling in January at their steepest pace in more than 14 years-a stark symptom of deepening economic malaise that spells trouble for the global economy.
Ukraine Ousts Top General in Reboot of War Effort
Ukrainian President Volodymyr Zelensky removed his top general in the most significant shake-up of the country's leadership since the full-scale Russian invasion began nearly two years ago.
Financial Regulation Roundup UBS Loses to Whistleblower in Wide-Reaching Court Decision
A UBS unit must provide back pay to a former analyst who said he was fired for exposing pressure to change research reports, the U.S. Supreme Court ruled on Thursday, making it easier for whistleblowers to win retaliation lawsuits .
FDIC Human-Resources Operation Faced Misconduct Complaints
The two departments charged with addressing FDIC employees' complaints of harassment and discrimination have long been beset by their own allegations of misconduct , current and former employees say.
Forward Guidance Friday (all times ET)
8:30 a.m.: Canada labor force survey for January
9:15 a.m: ECB's Cipollone speaks at 30th Assiom Forex Annual Congress in Genoa
10:30 a.m.: Bank of Canada Senior Loan Officer Survey
1:30 p.m.: Dallas Fed's Logan speaks at 14th Annual Tarrant County Transportation Summit
Monday
11 a.m.: New York Fed Survey of Consumer Expectations
Research Chinese Disinflation Seen Helping Global Central Banks
Falling prices for goods, services and a "broad array of housing and equity" assets in China could help central banks in the developed world cut interest rates, Deutsche Bank's Alan Ruskin writes in a note. "China is 'exporting' disinflation to a G10 world mostly in need of disinflation, to help Central Banks hit their inflation targets," he writes. Chinese deflation ends up limiting the peak nominal rates in other countries "and thereby is instrumental in supporting bellwether risky assets," like U.S. equities, he writes. China's consumer-price index fell 0.8% in January from a year earlier, accelerating from December's 0.3% drop.
-Paulo Trevisani
ECB Loosening Won't Boost Eurozone Growth Until 2025
The European Central Bank's expected monetary loosening will boost eurozone growth, but not until 2025, according to Tomas Dvorak, senior economist at Oxford Economics. After recent sharp falls in inflation in the bloc, the market view is of a series of interest rate cuts this year, he says. "However, monetary policy transmission takes time and we don't think growth will receive much of a boost from monetary loosening until 2025," he says. The impact of cuts usually peaks around eight quarters later, Dvorak says, but there is scope for faster pass-through due to healthy balance sheets, being in a stronger position in the financial cycle and shortfalls in consumption of durables. Oxford Economics expects the eurozone to grow 0.6% this year and 1.8% in 2025, he says.
-Ed Frankl
Commentary Can Dividend Investing Rise From the Dead?
Amid a confusion of artificial-intelligence narratives, "quant" analyses and sustainable funds, the oldest and simplest stock-picking strategy-dividend investing-lies almost forgotten, Jon Sindreu writes.
Executive Insights
Here is our weekly roundup of stories from across WSJ Pro that we think you'll find useful. They are unlocked for WSJ subscribers.
Sunday's Super Bowl ads will share one thing in common: An even deeper-than-usual desire by marketers to avoid offending anybody . Finance chiefs are taking advantage of favorable conditions in the bond market while they last. Adam Neumann is trying to buy back WeWork as creditors mull a sale. Corporate America's diversity initiatives aren't dead , but the prescription has changed. Basis Points Applications for unemployment benefits in the U.S. in the first week of February fell to 218,000 from a three-month high of 227,000 in the prior week. (MarketWatch) Mortgage rates in the U.S. stayed the course in the most recent week, with the 30-year fixed-rate mortgage averaging 6.64% as of Feb. 8, up 1 basis point from the prior week, according to Freddie Mac. A year ago, the 30-year averaged 6.12%. The average rate on the 15-year mortgage ticked down to 5.9% from 5.94% last week. The 15-year averaged 5.25% a year ago. (MarketWatch) U.S. wholesale inventories rose 0.4% in December from the month before, according to adjusted Commerce Department numbers set out Thursday. The increase matched expectations of economists polled by The Wall Street Journal. Inventories in November fell by 0.4%, a little more than previously estimated, according to revised figures. (Dow Jones Newswires) Inflation in Mexico picked up pace in January for a third consecutive month, led by a rise in fresh produce prices, while core inflation continued to ease. The consumer price index rose 0.89% last month, pushing the 12-month inflation rate up to 4.88% from 4.66% in December, the National Statistics Institute said Thursday. Core CPI, which excludes energy and agricultural prices, rose 0.40% in January and 4.76% from a year earlier, compared with a 5.09% annual rate in December. (DJN) China's central bank signalled in a report that aggressive rate cuts aren't around the corner, challenging hopes of a coming salve for the country's slowing economy and sold-off stock markets. (DJN) China's vehicle sales made a strong start to the year. Retail sales of passenger cars in the world's biggest auto market rose 57% in January from a year earlier to 2.035 million units, the China Passenger Car Association said, compared with a 38% drop a year earlier when the country was still feeling the aftermath of pandemic lockdowns. (DJN) Feedback Loop
This newsletter is compiled by James Christie in San Francisco.
Send us your tips, suggestions and feedback. Write to:
James Christie , Perry Cleveland-Peck [mailto:perry.cleveland-peck@wsj.com], Nihad Ahmed , Michael Maloney
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
02-09-24 0721ET
