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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: i-node who wrote (719483)	6/5/2013 12:37:55 PM
From: FJB	1 Recommendation Recommended By Bill Read Replies (1) \| Respond to of 1582684

Hourly Compensation Crashes Most Ever, Labor Costs Drops By Most In 4 Years, Manufacturing Compensation Plummets By 7% Submitted by Tyler Durden on 06/05/2013 - 08:51 So much for the thesis of declining labor slack and rising labor leverage. Moments ago the BLS reported its Q1 labor costs which poured cold water over all recent hypotheses that the US worker's plight is improving. It isn't: productivity increased by 0.5% in Q1 in ling with expectations of 0.6% (on what is not exactly clear - everyone on their iPhones?) but it was labor costs which plunged -4.3% on expectations of a +0.5% increase driven by a 3.8% collapse in hourly compensation that was the stunner. This was the biggest labor cost drop in four years and the biggest collapse in hourly compensation in well, ever and confirms our observations from the last NFP report that quantity gains in jobs continue to be offset by quality declines in actual worker pay. As a reminder we were scratching our heads following the soaring Q4 labor cost and declining productivity data which made no sense in the general context of deteriorating labor conditions. Following this print, it all falls back into place and confirms the Q4 data was nothing but an outlier. Also,this may be the end of the core thesis behind David Rosenberg's recently developed reflationary argument.

To: i-node who wrote (719483)	6/5/2013 12:41:16 PM
From: FJB	Read Replies (1) \| Respond to of 1582684

ADP Misses Expectations, Second Worst Print In Last 8 Months; Sequester Blamed Submitted by Tyler Durden on 06/05/2013 - 08:27 By now it is futile to point out the woeful inability of the ADP report to predict the NFP's ARIMA X 12 output of pure noise so we'll leave it at that. Here is the headline: May private payrolls created 135K with consensus looking for 165K - only two analysts were looking for a weaker number. This was the second lowest print since September excluding only the April 113K print. What's worse is that the prior number which usually is revised to match the NFP was revised lower from 119K to 113K, confirming that the quality of NFP reporting in the past month is suspect to quite suspect. Don't expect the imminent arrival of a manufacturing renaissance: mfg jobs were down 6,000. But fear not - Mark Zandi blames it on the sequester: "Manufacturers are reducing payrolls. The softer job market this spring is largely due to significant fiscal drag from tax increases and government spending cuts." At least it wasn't the May weather or tornadoes...