What's going on?

Data out on Friday showed strong American employment figures for July � and strong European shopping figures for June.

What does this mean?

The US economy added 164,000 jobs last month, bang on investors� forecasts. While that was less than the blockbuster hiring data for June � even after June�s additions were revised sharply lower � average American earnings rose faster in July: up 3.2% on a year ago (tweet this).

US unemployment held steady at 3.7%. Over in the eurozone, the rate�s double that, but it�s still the lowest since 2008. And despite economic woes, all those salaried Europeans clearly felt like treating themselves this summer: retail sales jumped much more than expected in June, with their biggest monthly gain since 2017 leaving them 2.6% higher than a year before. Tr�s chic…

Why should I care?

For markets: Interesting times for interest rate watchers.
The US Federal Reserve�s interest rate cut on Wednesday was widely expected, and another one may follow hot on its heels. While jobs and wages look strong, and the American labor force overall is its largest ever, an already weak manufacturing sector could suffer from prolonged (and proliferating) trade conflict further slowing global economic growth. If business slackens, firms may stop hiring all those workers � which would likely send the Fed rushing to slash rates more in a bid to prevent (or at least limit) any recession.

For you personally: Shopping might get more expensive.
The new US-China trade taxes announced last week mainly affect consumer products, including clothes, phones, and laptops. Many international retailers lined up to bemoan them, but Apple (which makes most of its gadgets in China) may be one of the hardest hit. The new tariffs could add around $40 to the cost of bringing an iPhone XS to America � and Apple would have to choose between swallowing that cost itself or passing it on to customers. In the latter case, non-US customers would likely shoulder a share.