Reuters Insider - Inside the News: Jobs Data May Stir Winds of Change at Fed

Bsquare

13/06/2016 11:03

Click the following link to watch video:                              
 https://insider.thomsonreuters.com/link.html?cn=share&cid=194236&shareToken=Mzo0M2ZiMmE0Yy02NzVmLTRkYTItOTJhNi05MjEzOTM5NDJhMDQ%3D&playerName=ReutersNews 
                                                                       
 Source:             Thomson Reuters                                   
                                                                       
 Description:        Reuters Fed Correspondent Pedro da Costa says the 
                     latest U.S. employment report shows growth in the 
                     labor market and may influence decisions about    
                     policy at the Federal Reserve.                    
 
 
(To access all exclusive Reuters Insider programming visit: http://insider.thomsonreuters.com) 
 
 Short Link:  http://bit.ly/hSvwip  
 
 
Transcript (May be auto-generated)

                 Time to go Inside the News at 1PM. US stocks accelerating their losses with only
27 stocks up on the S&P 500, that's just 5%. The S&P financial sector leading 
the decline after Bank of America downgraded shares of Goldman Sachs and 
Citigroup. The brokerage saying subdued client activity and geopolitical risk to
weigh on the first quarter earnings of large US banks. Spiking oil prices also 
pressuring stocks. US crude prices jumping 2% to their highest level since 
September 2008. That after clashes in Libya intensify. 

Security forces cracked down on protesters in Tripoli and rebels near a key oil 
terminal. Investors not so impressed with today's better-than-expected jobs 
number. Hiring by US employers hit a 9-month high in February, increasing to 
192,000. And the unemployment rate fell to its lowest level in nearly two years.
Reuters Federal Reserve Correspondent Pedro Da Costa joins us now from 
Washington. Pedro, how does that jobs report affect the Fed's thinking? Hi, 
Rhonda. I think Fed officials will be encouraged by the report but not 
particularly convinced that this is the beginning of a sharp upward trend in 
employment. So I think where it leaves us is that the Fed will continue its bond
purchases through their June completion, the full $600 billion but it certainly 
strengthens the case of those who say that we certainly don't need more and 
perhaps we might even be able to cut it short. Although, I still think that the 
camp that says, "Let's complete the program through June," they will win the 
day. Pedro, thanks. Good to see you. 

Wall Street suits can expect their bonus packages this year to be 10% to 15% 
richer on average than last year. That's according to a financial compensation 
expert interviewed today on Reuters Insider. Asset managers and brokers will 
commend the biggest increases this year with incentive pay up by more than 20%. 
Alan Johnson who's been tracking Wall Street pay for two decades as head of 
Johnson Associates says fixed income and equity traders should not expect the 
same level of increase. You can watch the special program, New Wages of Wall 
Street right here on Insider. Couple of hot stocks for you now. 

Tracking shares of Orbital Sciences, it is plunging 5% after the aerospace 
company's rocket carrying a satellite failed to go into orbit, plummeting into 
the Pacific. That's according to NASA. Also watching shares of BSquare falling 
22%. The mobile set-top box software maker cut its outlook for the first quarter
citing higher cost and a revenue squeeze from its high-margin proprietary 
software business. US muni bond sales set to rise to $3.88 billion next week 
with 101 issues hitting the market, according to Thomson Reuters estimates. The 
biggest deals include New York City's $448.5 million tax exempt general 
obligation bond offering and Maryland's $385 million of GO bonds. But muni 
issuance continues to be light in 2011 with only $28.5 billion sold in the first
two months of this year, about half of what was sold in the same period a year 
ago. Coming up at 2PM, find out how worldwide private equity backed M&A are 
faring. I'm Rhonda Schaffler, this is Reuters Insider