US Job Growth Cools, BOE Cuts Rates

(Bloomberg) — US employment growth moderated at the start of the year, partly a reflection of winter weather and Los Angeles-area wildfires, after two months of solid hiring.

Most Read from Bloomberg

With the labor market showing few signs of unraveling, the Federal Reserve will remain patient on interest rates as they await further progress in slowing inflation that’s at risk of staying elevated because of tariffs.

In the UK, the Bank of England cut interest rates to a 19-month low but signaled only a few more reductions are needed to bring inflation back down to its target.

Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy, markets and geopolitics:

World

The more President Donald Trump threatens tariffs on the US’s trading partners, the more the worry of another inflation wave troubles global economists.

The appetite for gold from the world’s central banks shows no signs of slowing, even as the gold industry comes off a record year of demand for the precious metal, according to the World Gold Council. Central banks bought 1,045 metric tons of gold last year, with Poland, India and Turkey the biggest buyers, according to the group.

In addition to the BOE decision, Iceland, Mexico and Kenya each lowered borrowing costs by a half percentage point. Czech Republic, Armenia and Lesotho cut rates by a quarter point. Poland and Uganda held interest rates steady. India reduced rates for the first time in five years.

US job growth moderated in January while annual revisions from the government also revealed less vigor in the labor market last year than previously thought. The report shows a moderating yet healthy labor market that helps explain why Fed policymakers have signaled they aren’t in a hurry to lower borrowing costs further after three interest-rate cuts last year.

Factory activity expanded last month for the first time since 2022 as orders ramped up and production quickened, pointing to a brighter manufacturing outlook. A measure of new orders showed the strongest growth since May 2022. The fifth straight monthly increase in the index, which illustrates a pickup in demand, led producers to ratchet up output.

Europe

Euro-area inflation unexpectedly accelerated, supporting the European Central Bank’s cautious approach to lowering interest rates while the sputtering economy faces intensifying trade threats from the US. The decline was mainly down to cars and machinery

German industrial production fell the most in five months at the end of 2024, extending the manufacturing sector’s malaise even as other data offer hope of a stabilization. The decline was mainly down to cars and machinery, the statistics office said.

Bank of England Governor Andrew Bailey does “very strongly agree” with Chancellor of the Exchequer Rachel Reeves’ plans to boost UK growth. His deputy, Clare Lombardelli, is also “very supportive.” They may well be, but the central bank’s latest forecasts are certainly not.

Norway’s adjusted home prices grew at the fastest pace in three years as a loosening of mortgage rules and an expected start to the central bank’s interest-rate cuts spurred demand.

Asia

Japan’s households boosted consumption at the fastest pace since August 2022, as strong wage gains led by bonuses helped loosen consumers’ purse strings.

Chinese consumers shattered records for travel and movie attendance during the Lunar New Year holiday, a splurge that has yet to translate into a turnaround for the consumer economy. Box office receipts soared to a historical high of $1.3 billion, and the number of trips taken by passengers and air travelers reached a single-day record on Feb. 3.

China put export controls on tungsten, a niche metal mined by his firm that’s crucial to weapons manufacturing. China accounts for about 80% of the world’s tungsten output, and there are concerns the government could add measures around tungsten scrap that would further constrict its availability. The super-dense material is used in armor-piercing munitions, as well for engine parts and chip making.

Emerging Markets

Brazil’s central bank said annual inflation will run above the tolerance range for the next six months, as food prices rise significantly and services costs remain elevated despite aggressive interest rate hikes.

–With assistance from Philip Aldrick, Maria Eloisa Capurro, Enda Curran, Katia Dmitrieva, Annie Lee, John Liu, Yujing Liu, Yoshiaki Nohara, Jana Randow, Jack Ryan, Augusta Saraiva, Zoe Schneeweiss, Mark Schroers, Ott Ummelas and Alexander Weber.