Bloomberg Surveillance

Here are the key takeaways for the US employment report for September, released Friday:

The US added fewer jobs than expected in September and wage growth slowed, signaling some caution among employers amid rising costs.

The Treasury secretary is critical of claims of a “K-shaped” US economy

Premier Giorgia Meloni’s government will pare back defense spending in a late change to the budget as it seeks to shrink Italy’s deficit, according to people familiar with the matter.

French President Emmanuel Macron spoke with his US and Canadian counterparts overnight and plans to convene a meeting of Group of Seven leaders as soon as possible to help curb rising fuel prices and a crunch in refined products worldwide.

Euro-area inflation quickened more than expected to the highest in three years, bolstering expectations that the European Central Bank will lift interest rates further.

The resurgence in oil and gas prices drove up UK businesses’ inflation expectations last month with firms planning to pass on costs to consumers as well as taking a hit to profit margins.

Traders reduced bets on Polish interest-rate increases after the government moved to quickly lower fuel prices, which jumped 36% in the year to September and boosted inflationary pressure.

Global food prices extended gains in September, reaching the highest since November 2022 as mounting geopolitical and weather disruptions roil the farm sector.

Japanese Prime Minister Sanae Takaichi said she was told during her talks with President Donald Trump in New York last month that US trade is suffering due to the weakness of the yen.

Governments around the world are running out of room to shield consumers from higher energy prices resulting from the Iran war and other crises, with fuel subsidies potentially costing more than $1 trillion this year, a United Nations study found.

Japan’s Economic Policy Minister Minoru Kiuchi declined to elaborate on remarks made by a government representative at the Bank of Japan’s latest policy meeting that appeared to urge caution over the pace of further interest rate hikes.

Indonesia’s new finance chief signaled he’ll stay in his lane and let the central bank and the Danantara sovereign wealth fund handle their own mandates, a bid to restore investor confidence in President Prabowo Subianto’s broad economic policy.

Bond traders are betting so heavily that more interest-rate hikes from the Federal Reserve are on the horizon that even the anticipated slowdown in job growth is unlikely to significantly alter the outlook.

Tokyo’s key inflation gauge rose sharply as the effects of some temporary government measures faded, backing the Bank of Japan’s stance on continuing to raise the benchmark rate after authorities accelerated the pace of policy normalization.

Federal Reserve Bank of Dallas President Lorie Logan said the central bank must continue raising interest rates to fully cool inflation and suggested that rising Treasury yields may also help slow the economy.

The new head of Bank Indonesia said the intensity of its rupiah defense remains unchanged even as it relies less on costly spot-market interventions and increasingly uses derivatives.

South Korea’s pace of inflation stayed firm in September, signaling persistent price pressures and supporting the case for the central bank to keep its tightening bias.

The International Monetary Fund approved a $139 million disbursement to El Salvador after granting a waiver for the government’s breach of a condition limiting further Bitcoin accumulation.