A Jobs Jamboree Friday.

* UK election results send pounds soaring!.
* Chinese exports and imports disappoint.
* Catching up with Don Brash.
* Gold continues to find shaky ground….

And Now. Today’s A Pfennig For Your Thoughts.

Good day.. And a Happy Friday to one and all! I’m a little shaky this morning, so right now, I could go either way, good or bad day, so let’s just hope for the good day, and move on. I was treated by friends Kevin and Lisa to the baseball game yesterday. A beautiful day, a wonderfully pitched game by my beloved Cardinals, and a win to finish up a 3 of 4 series with the Cubs, and a 9-2 home stand. I absolutely love baseball parks, when you first walk in you get the aroma of hot dogs, and other things being cooked, then you come out of the tunnel and see the lush green field, and the crack of a bat hitting a ball, people cheering. Well, there have been some developments and news overnight, so I better stop talking about baseball parks and get to work!

Front and Center this morning. Well, it appears that all the talk about a toss-up vote in the U.K. was just that, talk. Because. The Conservatives of PM Cameron picked up enough seats to probably not only for a Government, but also have a majority Government. And the pound sterling (pound) has gone on a moon shot higher! The pound is up 2 full cents overnight and looks like it wants to go even higher when the election results are confirmed. This election result is a HUGE surprise to everyone that was following the run-up to voting, so the knee-jerk reaction by pound traders is probably to be expected.

As far as the rest of the currencies this morning, we’re seeing some dollar strength ahead of the all so important Jobs Jamboree here in the U.S. this morning. Remember Fed member, Lockhart told us that this April report will be a key in decided whether rates will be raised in June or not. For those of you who give a hoot (because I’m not one!) about what the BLS surveys and hedonic adjustments have to say today, the expectations are for 228,000 jobs to have been created, whether out of thin air or not… You know, one thing that the media or markets fail to discuss every month when the jobs report prints, is the fact that Manufacturing Jobs here in the U.S. are dropping and simply not adding to the jobs total. I find this to be very scary for the U.S. going forward. But since the markets and media don’t seem to think it’s a problem, I’m probably just making a mountain out of a mole hill.

The Chinese printed some very weak data last night that not only signals that the slowdown in China continues, but that the global economy / growth, is also going to continue to slowdown. China’s exports unexpectedly fell in April by 6.2% from a year earlier. Imports also fell 16.1% VS a year ago, which shows the domestic economy is as slow as molasses. And all the good performance of the renminbi / yuan this week was stopped and the currency was weakened on the data last night.

Here in the U.S. Consumer Credit (read debt) spiked in March from $14.789 Billion to $20.523 Billion. Now this spike could be viewed two ways. I’ll let you decide for yourself which way you think it should be viewed, and then take a guess at which way you think I view it. Here we go. 1. This is evidence consumers are beginning to feel confident about taking on debt, to finance purchases, which could revitalize the economy. OR
2. That Consumers are using their credit cards just to survive.

The euro is down another ½-cent this morning. Greece, the Jobs Jamboree, China’s slowdown, it’s all piling up on the poor beleaguered euro, after having a nice recovery in April the euro is back to taking hits to the midsection.. But that could all change today, should the Jobs Jamboree disappoint. But like I said the other day, I’m convinced that the BLS will see to it that the Jobs Jamboree is not disappointing!

The yield on German 10-year Bunds spiked from .50 to .78 in one day’s trading yesterday, and then settled down a bit. it was a crazy day all around the world with spikes in all asset classes good and bad. Here in the U.S. the 10-year Treasury saw a two-day spike that took the yield from 2.13% to 2.27%, only to see it settle down to 2.15% this morning. And the price of Oil which had spiked earlier this week to $61.90, has fallen back to $58.88 this morning.. Apparently, the U.S. production has slowed, but the stockpiles of Oil continue to rise. In fact the stockpiles are more than 100 Million barrels above the 5-year average for this time of year.

The Aussie dollar (A$) is basically flat to up a bit this morning, as the A$ attempts to gain back the lost ground this week after hitting 80-cents earlier in the week. The A$’s kissin cousin across the Tasman has seen its value whacked this week, after Traders felt the Reserve Bank of New Zealand (RBNZ) might be considering a rate cut soon. Longtime readers, and I mean longtime, will recall when Don Brash was the Gov. of the RBNZ, and how I always talked about him in high regards, as a Central Banker that believed in instilling the pride of a country with a strong currency. Those types of Central Bankers (and there were few even then!) don’t really exist any longer, as all have gone to the same Central Banker College, where they teach them how to debase their currencies as a means of promoting economic growth, and exports. Isn’t there anyone out there that didn’t go to this college? Maybe I’ll start my own college for Central Bankers! HAHAHAHAHAHA! As if! I’m not worthy! I’m not worthy! – Wayne and Garth!

Well, I told you all that to tell you that I was in contact with Don Brash yesterday. He was kind enough to send me birthday wishes last month, and so I sent a note of thanks to him and asked him to “come on our show”. That won’t work right now, but maybe sometime in the future it will be worked out.. I tell you when it does, it will be a HUGE treat for you dear readers, for this man not only has his finger on the pulse of the economy, the central bank, but also the country’s politics. So, I look forward to when he is ready to “come on our show”.

Gold is flat to up a buck or two this morning. No big shakes, at least not right now ahead of the Jobs Jamboree. Like I said above, I suspect the BLS will make certain that the Jobs Jamboree doesn’t disappoint, and if that holds true, then I would suspect that Gold would get whacked today. Of course the opposite could occur should we get disappointed.

The other day I talked about how I hadn’t seen any articles on bullionstar.com that Google+ posts by Gold researcher, Koos Jansen, and then voila! I find one! Apparently Koos Jansen got interviewed by the largest Newspaper in the Netherlands. And apparently, Koos Jansen, isn’t his real name! it’s Jan Nieuwenhuijs. So, Koos, or Jan, titled his interview “China Conquers The World With Gold”. So, I read through the interview. great stuff. as always I must say! Here’s a snippet for the article that can be read in its entirety here or you can settle for my snippet! https://www.bullionstar.com/blogs/koos-jansen/biggest-newspaper-netherlands-interviews-koos-jansen/

When asked about Gold’s relevancy in today’s world.

“Oh it’s relevant, the base of each financial system remains confidence. Throughout history goldsmiths and banks could create a multiple of the gold in their vaults as paper and book money. But the people knew that there was always a partial backing held in reserve. The United States dollar was backed by gold until 1971. Money has been printed full speed since then. As the European Central Bank is now doing in the Eurozone. Through leverage massive debt structures are built that are not sustainable. For the moment, the Chinese support the United States dollar. But its leaders want absolutely no more dollars. They buy gold. On a massive scale. However, only half of Chinese gold demand turned out to be in the books.” – Koos Jansen

I’ll skip the U.S. Data Cupboard talk today, since it’s all about the Jobs Jamboree today anyway. So, let’s hit the recap, and then the Big Finish!

To recap. the U.K. election was everything but a toss-up as was talked about leading up to the vote. The Conservatives appear to have won a majority and will be able to form a government, which has allowed the pound to jump 2-cents overnight. Now that the election is over, the focus switches to the U.S. Jobs Jamboree, which is expected to show 228,000 jobs created in April. And Chuck believes the BLS will make certain they don’t disappoint us! And Chinese exports and imports slump indicating that not only is the Chinese economy slow, but the global economy is also slow.

For What It’s Worth. Dear reader, Bog G. sent me a link to an article on zerohedge.com and it plays well with the Jobs Jamboree print today. So, here are some snippets, and of course you can read the whole article here: http://www.zerohedge.com/news/2015-05-07/texas-job-recession-now-literally-chart

“But while there may be massive confusion when it comes to the data propaganda and the clear agenda behind the seasonally-adjusted, policy-specific government data, there is no confusion when it comes to one thing: the job recession in Texas has not been this bad since the last of the second Great Depression.

Recall what we said last month when we “welcomed” Texas to the recession with some 47,043 layoffs through March:
… when broken down by state, things get bad for Texas, very bad. As in recession bad, because with 47K total layoffs, or 10K more than all energy-related layoffs, in just this one state so far in 2015, it means that the energy sector weakness has moved beyond just the oil patch and has spread to the broader economy and related industries in the one state that until recently had the best jobs track record since Lehman.

Fast forward to today when we find that what we thought was bad for Texas with 47K layoff announcements in the highest-paid energy sector, just got far, far worse when in its monthly update earlier today, Challenger announced that just in the month of April another 22,760 jobs were lost in Texas, bringing the total to a whopping 69,803 layoff announcements.”

Chuck again. But I’m sure the BLS has an answer or solution to this report of all these layoffs.

Currencies today 5/8/15. American Style: A$ .7910, kiwi .7440, C$ .8265, euro 1.1225, sterling 1.5430, Swiss $1.0820, . European Style: rand 12.0380, krone 7.4590, SEK 8.2740, forint 270.65, zloty 3.6245, koruna 24.4120, RUB 50.55, yen 120.15, sing 1.3295, HKD 7.7540, INR 63.93, China 6.1147, pesos 15.29, BRL 3.0250, Dollar Index 94.76, Oil $58.88, 10-year 2.15%, Silver $16.37, Platinum $1,136.66, Palladium $786.80, and Gold. $1,186.62

That’s it for today. Well, this Sunday is Mother’s Day, so it’s Mother’s Day Weekend. It’s supposed to be a rainy weekend, so hopefully that’ll end by Sunday, for the moms deserve a beautiful day. For all of you who still have your mom around. Give her a Big Hug and tell her you love her. I lost my mom on New Year’s Eve 1997, but I never quit thinking about her, and how she was my biggest fan, and how she would sit in the basement while we would play our guitars, and tell us how good we sounded. In those days, our Little League (Khoury League) started their games on Mother’s Day Weekend. We would almost always spend that Mother’s Day Weekend at the ballpark, while I played baseball. So. I miss my mom, even though it’s been so long now that she’s gone. I think she would enjoy this little poem and for all you moms out there, I hope you do too!

Of all the Special joys in life,
The big ones and the small
A mother’s love and tenderness
Is the greatest of them all.

There is no blessing
Quite so dear.
As a mom like you
To love year after year.

Happy Mother’s Day to all you beautiful moms out there!

Chuck Butler
Managing Director
EverBank Global Markets
Editor of A Pfennig For Your Thoughts