1.0Verbank Advisors & Agriculturehttps://verbank.luverbankfarmshttps://verbank.lu/author/verbankfarms/rich600338<blockquote class="wp-embedded-content"><a href="https://verbank.lu/july102017/">US + Brazil Financial News (7/10)</a></blockquote> <script type='text/javascript'> <!--//--><![CDATA[//><!-- /*! This file is auto-generated */ !function(c,d){"use strict";var e=!1,n=!1;if(d.querySelector)if(c.addEventListener)e=!0;if(c.wp=c.wp||{},!c.wp.receiveEmbedMessage)if(c.wp.receiveEmbedMessage=function(e){var t=e.data;if(t)if(t.secret||t.message||t.value)if(!/[^a-zA-Z0-9]/.test(t.secret)){for(var r,a,i,s=d.querySelectorAll('iframe[data-secret="'+t.secret+'"]'),n=d.querySelectorAll('blockquote[data-secret="'+t.secret+'"]'),o=0;o<n.length;o++)n[o].style.display="none";for(o=0;o<s.length;o++)if(r=s[o],e.source===r.contentWindow){if(r.removeAttribute("style"),"height"===t.message){if(1e3<(i=parseInt(t.value,10)))i=1e3;else if(~~i<200)i=200;r.height=i}if("link"===t.message)if(a=d.createElement("a"),i=d.createElement("a"),a.href=r.getAttribute("src"),i.href=t.value,i.host===a.host)if(d.activeElement===r)c.top.location.href=t.value}}},e)c.addEventListener("message",c.wp.receiveEmbedMessage,!1),d.addEventListener("DOMContentLoaded",t,!1),c.addEventListener("load",t,!1);function t(){if(!n){n=!0;for(var e,t,r=-1!==navigator.appVersion.indexOf("MSIE 10"),a=!!navigator.userAgent.match(/Trident.*rv:11\./),i=d.querySelectorAll("iframe.wp-embedded-content"),s=0;s<i.length;s++){if(!(e=i[s]).getAttribute("data-secret"))t=Math.random().toString(36).substr(2,10),e.src+="#?secret="+t,e.setAttribute("data-secret",t);if(r||a)(t=e.cloneNode(!0)).removeAttribute("security"),e.parentNode.replaceChild(t,e)}}}}(window,document); //--><!]]> </script><iframe sandbox="allow-scripts" security="restricted" src="https://verbank.lu/july102017/embed/" width="600" height="338" title="“US + Brazil Financial News (7/10)” — Verbank Advisors & Agriculture" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"></iframe>UNITED STATES   June NFP surprised on the upside confirming that the economy is at full employment, despite a tick up in the unemployment rate, most likely due to summer entrants into the labor force. Wage growth was weak again. And the minutes of June’s FMOC meeting confirmed bitter suspicions. The committee is divided about low inflation, its causes and implications for future policy. While “most” members expect inflation to increase to target by 2018/2019, there seems to be near unanimity in working with a flat Phillips curve, and trouble about the transmission of wages to prices. So, the trajectory of rate hikes is again into question. The economy seems to be doing well, vide the job market. This should support the start of balance sheet adjustment, aka tapering—I maintain my expectation for September. But a rate hike in December would now depend on inflation, and wages. Average hourly earnings rose by only 0.15%momsa in June, while growth in May was revised down by 0.1pp to 0.1%. The year-over-year rate stands at 2.5%, below consensus expectations. We should get more talk about this in Janet Yellen’s semiannual statements to Congress on Tuesday and Wednesday; and there is the June CPI data on Friday. […]