1. To markets, and the US jobs report on Friday beat big, with the world’s biggest economy adding 222,000 jobs last month — more than 40,000 above expectations. But in what is becoming a familiar result, wages growth was weaker than expected. Healthcare was the industry that created the most jobs while the coal industry added none. The net effect was no change in market expectations on the Fed’s course of action. Elsewhere, iron ore prices had a tidy rebound in the Friday night spot fix, while Australian 10-year bond yields took another big leg up. Look:
2. Looking ahead, we get more information on the health of the property market with May housing finance data out tomorrow, as well as the NAB business survey and ANZ’s weekly consumer confidence. Westpac’s monthly consumer confidence is out on Wednesday. There are tourist arrivals and departures on Friday. Overseas, the key point to watch is Janet Yellen’s testimony to Congress on Wednesday night. SPI futures are pointing to a fractionally higher open for the ASX. Sam Jacobs has the full run-down here.
3. So the G20 was something of an anti-climax, with leaders failing to agree on a statement condemning North Korea’s missile tests and the continuing advance of its nuclear programme. Donald Trump met Vladimir Putin — Trump apparently started the meeting by asking him point blank if he was behind the hacking efforts seen as an attempt to influence the US election. What they agreed was to work together on cyber security threats — which one senior member of the House Intelligence Committee said was like “inviting the North Koreans to participate in a commission on non-proliferation — it tacitly adopts the fiction that the Russians are a constructive partner on the subject instead of the worst actor on the world stage.” One moment that caught attention was this:
It was a tweet posted by a Russian official (but quickly deleted) showing Ivanka Trump had taken her father’s seat — between Theresa May and Xi Jinping — during the talks.
4. As for Australia, Malcolm Turnbull was frustrated that there was no statement on North Korea, while analysis from ABC journalist Chris Uhlmann on Donald Trump’s failure of leadership went viral, after he described him as “an uneasy, lonely, awkward figure at this gathering and you got the strong sense that some of the leaders are trying to find the best way to work around him, adding he had “no desire and no capacity to lead the world”. Here’s the clip:
— Insiders ABC (@InsidersABC) July 8, 2017
5. Some of the global political forces that led to Trump’s election — voter disillusionment, low wages growth, and labour market disruption — are the key themes in the latest edition of our economics podcast, Devils and Details. Our guest was political strategist Mark Textor, an advisor to the Coalition here in Australia and the Conservatives in Britain. Textor talks about the failure of centre-right movements to offer hope to people, and the seeming absence of fresh ideas from the right that can connect with people. You can find the show on iTunes, or listen in below:
7. While we’re on it, Morgan Stanley believes renewable energy is at an inflection point, and will be the cheapest form of new power generation for the world within just a few years. “Numerous key markets recently reached an inflection point where renewables have become the cheapest form of new power generation,” the bank said in a note. “A dynamic we see spreading to nearly every country we cover by 2020. The price of solar panels has fallen 50% in less than two years.” This is the kind of economics that leads Elon Musk to believe the writing is on the wall for the long-term future of coal.
8. Human head transplant doctor Sergio Canavero says he really did take inspiration from Frankenstein. The surgeon, who plans to transplant the head of a Chinese patient onto the body of a brain-dead donor, told Business Insider that the use of electricity in the story helped him to think about one of the key cell fusion processes he will need to pull off in order for his procedure to be successful. Peers remain sceptical.
9. Australia’s Richie Porte had a huge crash in the Tour de France overnight. Here’s the moment:
The rider, who was won of the pre-race favourites, was unable to continue and was taken to a local hospital.
10. Handshakes. There are all sorts of rules around the world. We’ve got a guide to how to do it properly in 14 countries.
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