Below is a brief excerpt transcribed from Monday's edition of The Macro Show hosted by Hedgeye CEO Keith McCullough.
Oil was down almost 2.5% last week. Down over 17% in the last month. It's moving towards crash mode.
Don’t forget that we also have natural gas crashing, down another 3.7% this morning along with rubber prices from last week down over 7.7%
All of these things happen in Dollars. The vast majority of global commodities settle in dollars. They don't settle in the Chinese Yuan.
By the way, the Chinese Yuan was weaker last week, along with the Australian dollar down 5% for 2020. All of this happening. The deflation is a rate of change comment that has to do with the strengthening dollar, that can only be offset by the US Federal Reserve, which is currently not dovish enough.
So when you look at the Friday U.S. jobs number, the people who don’t do a lot of research saw the headlines and thought, “Huh? I thought it was better than expected?”
It was slower in rate of change terms! It was a slower rate of change for jobs growth at 1.37%. It was slower again on hours worked.
The jobs market is slowing.