Fed’s James Bullard says the jobs report on Friday will be one of the worst ever
“St. Louis Federal Reserve President James Bullard said Wednesday that the April jobs report being released on Friday will likely be one of the worst in American history.
“But that’s kind of expected because you’re using the unemployment insurance program to provide pandemic relief,” Bullard told CNBC’s Steve Liesman. “That’s exactly what we want to do.”
Bullard’s comments came minutes before ADP reported that private payrolls shed more than 20 million jobs in April as employers slashed worker positions amid widespread shutdowns and forced government closures to help contain the spread of the coronavirus.
The decline totaled 20,236,000 and represented by far the worst loss in the survey’s 18-year history. Despite the eye-watering number, the 20.2 million wasn’t as bad as the 22 million that economists surveyed by Dow Jones had forecast.
Gold price holding support above $1,700 as 20 million private sector jobs lost in April
“Gold prices are relatively unchanged on the day, holding support above $1,700 an ounce as the U.S. economy lost just over 20.2 million private sector jobs last month, according data from private payrolls company ADP.
Wednesday, ADP said that 2.02 million jobs were lost in April, slightly better than expectations; consensus forecasts were call for job declines of nearly 21 million.
The ADP report shows that every major sector and labor group saw significant job destruction. For nearly two months the U.S. economy has been shutdown as non-essential business have been closed and people have been asked to stay at home in an atempt to slow the spread of the coronavirus. The U.S. has the highest number of COVID0-19 cases in the world with more than 1.2 million people infected. Nearly 71,000 people have died from the virus according to data from Reuters.”
The stock market may get cut in half, but this ‘most undervalued’ asset is about to surge, billionaire investor says
“Paul Singer, the hedge-fund billionaire behind Elliott Management, warned last month that the ultimate path of global stock markets is a drop of at least 50% from February highs.
What’s an investor to do in the face of such a grim outlook? Load up on gold, perhaps. After all, according to a report this week from the Financial Times, that’s what the smart money’s doing.
Gold, advised Singer, is “one of the most undervalued” assets available and it’s worth “multiples of its current price” due to the “fanatical debasement of money by all of the world’s central banks.” His fund gained about 2%, the FT reported, thanks primarily to profits from its gold position.”