U.S. employers slashed payrolls by 524,000 in December, driving the unemployment rate to its highest level in almost 16 years, suggesting that the year-long recession was deepening. Here are experts' reactions to the jobs report and their forecasts before it was released:
"No Solace" in Jobs Report
There is much work to be done to stimulate the economy and more job losses may be on the way, Pimco's Bill Gross told CNBC after the jobs report was released. Three million more jobs may be lost before the economy turns around, Gross added.
Why Jobs May Fall by Less than Expected
There is a good chance that Friday's nonfarm payrolls may surprise with a less-than-expected fall, says Michael Woolfolk, senior currency strategist at the Bank of New York Mellon. He tells CNBC why.
US Nonfarm Payrolls May Not Shock
Dariusz Kowalczyk, chief investment strategist at SJS Markets does not expect a dramatic figure from Friday's U.S. nonfarm payrolls. He explains to CNBC why he sees a lower-than-expected 550,000 job losses.
US Unemployment Rate Could Hit 7%
The U.S. unemployment rate is likely to rise to 7% with up to 700,000 nonfarm payrolls lost in December, Sarah Hewin from Standard Chartered Bank told CNBC.
'Worst Jobs Numbers Since 1982' Seen
Ahead of the December US nonfarm payrolls data Friday, Vince Farrell from Soleil Securities Group sees a bearish 600,000 jobs lost in the US. While Peter Cardillo from Avalon Partners is less pessimistic, witha prediction of 450,000 jobs lost.
Dollar May See Short-Term Weakness
The dollar will come under pressure if there is a larger-than-expected jump in Friday's jobs report, says Jeff Halley, senior manager of FX trading at Saxo Capital Markets. But he tells CNBC that the weakness probably won't last.
IPOs to Dry Up in 2009
The fourth quarter of '08 was the worst quarter in 5 years for initial public offering activity, according to Tom Troubridge from PricewaterhouseCoopers. He sees European IPO's drying up in 2009.
Don't Put the Blame on US Housing Crisis
The problem was not due to the U.S. housing crisis but because the "financing through securitization" model is broken, says Joshua Rosner, MD at Graham Fisher & Co.
What Lies Ahead for Obama
Obama is likely to assume similar policies to Bush with regards to the U.S.' national security, believes John Bolton, former U.S. Ambassador to the UN. He also assesses the future of China-U.S. relations.
Global Rate Cutting Cycle Likely to Continue
Thomas Harr, senior FX strategist at Standard Chartered foresees the global rate cutting cycle to continue for the next 1-2 quarters.
Asia: Worst-Performing Economic Region in '09?
Export-dependent Asia, excluding China and India, may be the worst-performing economic region in the world this year, according to Dariuz Kowalczyk, chief investment strategist at SJS Markets.
Real Risk of Global Deflation
The Japanese economy faced deflation in the 80s when U.S. consumers stopped spending. And China is probably facing the same problem now, says Joshua Rosner, MD at Graham Fisher & Co. He tells CNBC this may lead to a global deflation.
Japan Q4 May Slump 11.3% q/q
Japan's fourth-quarter GDP could slump by 11.3% on quarter, says Junko Nishioka, Japan economist at RBS Securities. But she does not think that will spur the BOJ to go back to quantitative easing.