US employment figures encouraging
Although Europe's debt crisis continues, the news coming out of the US shows its economy is definitely on the mend.
The latest unemployment figure fell to its lowest level in three and a half years, giving Wall Street a boost and helping President Obama's re-election prospects.
3 News business editor Michael Wilson joined Firstline this morning to discuss the “massive boost to confidence”.
He says with the job increase people will start spending more, which will boost the economy, and investments will also rise as “things start to look like they’re on the up
“People feel a lot more secure if they can see unemployment falling… there’s some hope there,” he says.
The unemployment drop is “encouraging for the world economy”, Mr Wilson says, and sharemarkets have done extremely well throughout January.
Mr Wilson also spoke about the transfer of wealth from traditionally affluent countries, including the US and countries in Europe, to Asia and the Middle East.
Watch the video for the full interview