The Day at a Glance | October 8 2021

The Top

*Unemployment data in the United States disappoints (194k vs 500k e.); this raises doubts on the FED`s normalization process.

*U.S. Senate approved the debt ceiling`s temporary increase; risks of default will be delayed until December if it`s approved by Deputies.

*Electricity problems in China could significantly reduce production in the country and put more pressure on global productive chains.

*Ireland and Estonia accept 15% minimum corporate tax rate at a global level; only Hungary`s approval is missing as the OECD`s meeting in Paris will take place this weekend.

*Estimates forecast indemnity costs close to 10% of GDP if Mexico`s Electric Reform is approved: Movimiento Ciudadano.

*United Kingdom records its highest salary increase among newly hired employees in 24 years.

*Evergrande`s bankruptcy is imminent: Moelis & Co., dollar bondholder advisers.

Economic environment

Disappointing figures in U.S. employment data. According to figures made public by the U.S. Bureau of Labor Statistics, a slower than estimated recovery in employment during September was confirmed. 194 thousand new jobs were created during the month, mostly among industries like leisure & lodging (74 thousand), professional services (60 thousand), retail (56 thousand), transportation and storage (47 thousand). Figures suggest that the virus could still be having a negative effect on employment among services, as businesses in the restaurant and leisure & lodging industries generated levels of employment below those during the reopening. Despite the disappointing figure in created jobs, the unemployment rate fell to 4.8% (vs 5.1%e.); while the participation rate remained practically unchanged at 61.6%, which is a sign that many people are still not actively looking for jobs. So far this year the monthly amount of created jobs set at 561 thousand and new jobs have increased in 17.4 million since their lowest level in April of 2020. 5 million jobs are still needed in order to return to pre-pandemic levels. Wages increased in line with estimates (4.6% annual). In sum, these figures could start raising doubts about the FED starting to withdraw stimuli. Weakness in the labor market could be an argument used to delay the normalization process or cause the withdrawal of purchases to be slower than originally suggested by the FED in its most recent monetary policy meeting. The dollar receded in light of the news.