Business

While the headline November payrolls print came in almost on top of expectations at 178K, vs consensus of 180K there were two big surprises in today's report, one being the unemployment rate which plunged from 4.9% to 4.6%, well below the 4.9% expected, but the biggest negative surprise was that the Average hourly earnings in November dropped by 0.1%, far below last month's 0.4% rise, and below the 0.2% expected with the annual increase growing by a far more modest 2.5% than the 2.8% expected.

The final November fund flow numbers are in, and as BofA's Michael Hartnett puts it, November, it was a "watershed" month for fund flows with the largest 5-week
bond outflows in three and a half years at $10 billion...

... the largest 3-week precious metals outflows
in 3.5 years...

... and the largest 5-week equity inflows since October 2013 at $34.5 billion.

On the heels of Jeff Gundlach's "there's going to be a buyer's remorse period" warnings yesterday, the other 'bond king' has raised similar fears that the Trump rally is overdone (as are the prospects for growth behind it). Putting aside the book-talking as their bond portfolios suffer, Gross echoes Gundlach's "Trump's not the wizard of oz" comments, noting that the next president faces serious structural headwinds and warns investors "should move to cash," as any fiscal stimulus gains will be temporary at best.

Gold and silver coins will protect from the coming financial crash - James Rickards, author of The Road to Ruin told Sean O'Rourke in a must listen to RTE Radio interview this week.

Rickards is the best selling author on finance and money and advises the US intelligence community on international economics and financial threats.

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• China's Central Bank Is Facing a Major New Headache (BBG)
• Trump considering Goldman Sachs COO Cohn for energy secretary (Reuters)
• Trump considering Senator Heitkamp of North Dakota for Cabinet (Reuters)
• Italy Referendum to Set Renzi’s Fate (WSJ)