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US employers added 216,000 jobs in December, a surprisingly strong increase that fuels doubt as to when the Federal Reserve will begin cutting rates this year.

Last month’s payroll growth came in over November’s higher-than-expected 199,000 advance — and well ahead of the 170,000 economists expected, according to Refinitiv data.

The figure marks an average monthly payroll gain of 232,000 over the previous 12 months — a strong figure considering the economy was gripped with stubbornly high inflation and the highest borrowing rate Americans have seen in 22 years.

It reinforces the notion that the Feds not going to be in a rush to cut rates. former New York Fed President William Dudley told Bloomberg on Friday.

Dudley added that the economys doing pretty well and that May is more likely for the Fed to start cutting.

“Theyll need to see some signs that the economy is slowing,” Dudley said. “The wage trend for now is something that is likely concerning to policymakers.”

The Labor Department said employment continued to trend up in government, which saw the biggest gain of 52,000 in December — followed by health care, social assistance, and construction, the Labor Department said on Friday.

Only two industries lost jobs: transportation and warehousing, which dipped 23,000 last month.

The Labor Department’s data revised November’s payroll gains down by 26,000, while October’s figure was revised down by 45,000.

The Fed has lifted the benchmark federal funds rate to a 22-year high, between 5.25% and 5.5%, in hopes of tamping down inflation to its highly-coveted 2% target.

But at the minutes of its December meeting released Wednesday, Federal Reserve officials indicated that interest rates were at or near their peak when they voted to leave the rate unchanged last month but offered few clues as to when they might implement cuts.

Almost all participants indicated that a lower target range for the federal funds rate would be appropriate by the end of 2024, said the minutes, with a number of participants highlighting increased uncertainty about how long strict monetary policy would need to be maintained.

Data released by the Bureau of Labor Statistics on Friday also noted that the unemployment rate stayed the same, at 3.7%, a tick lower than the 3.8% rate Refinitiv economists also predicted.

Average hourly earnings — a key measure of inflation — increased 15 cents, or 0.4% for the month, to $34.27. Over the past 12 months, hourly earnings are up 4.1%.

The wage advance comes just after New York’s minimum-wage pay bump took effect, lifting the minimum wage in New York City, Long Island, and Westchester County $1, from $15 to $16.

In the remainder of New York State — which is one of 22 states getting minimum wage hikes in the new year — the new minimum wage is $15, up from $14.20.

A separate report released by the Labor Department on Tuesday showed that job openings unexpectedly slowed to 8.7 million at the end of November, the lowest level since March 2021.

The figure marks a decrease from the downward revised 9.3 million openings reported the previous month, a signal of shaky confidence in the job market.

Though the dip came out of the blue for economists, it backs up data recently released by American employment website Indeed, which found that as of Dec. 29, 2023, open positions on the site declined more than 15% from a year earlier.

Following the release of the latest Consumer Price Index in November — which tracks changes in the costs of everyday goods and services and showed that US inflation rose 3.1% — Fed chair Jerome Powell said the historic tightening of monetary policy is likely over.

Powell dovetailed the report with projections from all 19 policymakers that showed near unanimity that borrowing costs would fall in 2024 — as many as three times.

While Fed policymakers did not want to take another rate hike off the table, it is no longer the central banks base case, he said in remarks made in a press conference following the end of the central banks final policy meeting of 2023.

December’s CPI report is set to be released on Jan. 11.

Central bankers will decide on whether or not to keep interest rates steady, between 5.25% and 5.5%, following their next two-day meeting, which will conclude on Jan. 31.

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Heathrow Airport closed after ‘significant power outage’ due to nearby fire

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Heathrow Airport closed after 'significant power outage' due to nearby fire

Heathrow Airport is to remain shut until midnight after a large fire at a nearby electricity substation, disrupting travel for thousands of passengers.

Tracking site Flightradar24 estimates 1,357 flights would be affected (679 into and 678 out of Heathrow) today, including around 120 which were already in the air this morning before the shutdown.

Energy Secretary Ed Miliband told Sky News “it was too early to know” what caused the “catastrophic fire”.

Follow live updates on Heathrow closure

Passengers have been warned to stay away from the airport and all trains to Heathrow have been suspended.

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Substation fire near Heathrow Airport

“To maintain the safety of our passengers and colleagues, we have no choice but to close Heathrow until 23h59 on 21 March 2025,” Heathrow said in a statement.

“We expect significant disruption over the coming days and passengers should not travel to the airport under any circumstances until the airport reopens.”

Police direct traffic outside Terminal 5 at the Heathrow International Airport.
Pic: Reuters
Image:
Police directing traffic away from Heathrow’s Terminal 5. Pic: Reuters

Airplanes remain parked on the tarmac at Heathrow International Airport.
Pic: Reuters
Image:
It is estimated up to 1,357 flights could be affected. Pic: Reuters

Airplanes remain parked on the tarmac at Heathrow International Airport.
Pic: Reuters
Image:
Airplanes stuck at terminal gates. Pic: Reuters

Planes usually begin landing and taking off at around 5am after the regular overnight quiet period.

Around 120 flights were bound for Heathrow when the airport announced it would be closing for the day. Some will have turned back to the airport they departed from. But others were already crossing the Atlantic and have been diverted to airports in Europe.

Data from Flightradar24 shows Amsterdam has taken the most diversions at seven, while Gatwick, Frankfurt and Shannon have all taken six flights each.

Heathrow is one of the world’s busiest airports and had a record 83.9 million passengers last year, with a plane landing or taking off around every 45 seconds.

Flight delayed or cancelled? What are your rights?

Stranded passengers

Flightradar24 estimates that means there are about 220,000 passengers using the hub every day.

Its total closure is set to have knock-on effects on airline operations around the world for several days to come.

Matt, who is waiting at Canada’s Vancouver International Airport, told Sky News that British Airways “have been great” and they had been rebooked for a flight on Saturday. “Fingers crossed Heathrow is open!” he added.

But Raman who is stuck in Dubai said: “Flight keeps getting delayed – just seems crazy that BA won’t cancel it considering Heathrow is closed anyway. Zero comms from BA.”

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‘It’s all dark here, mate’: Fire cuts Heathrow power

British Airways, the biggest carrier at Heathrow, reiterated that customers should not go to the airport until further notice.

A statement said: “This will clearly have a significant impact on our operation and our customers and we’re working as quickly as possible to update them on their travel options for the next 24 hours and beyond.”

Gatwick Airport said in a statement that it is “supporting by accepting diverted flights as required” and that it is operating “as normal today”.

Meanwhile Ryanair has launched what it is calling eight “rescue flights” for passengers affected by the Heathrow closure.

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16,000 homes without power

The fire that caused the power outage is at a substation in Hayes, about 1.5 miles to the north of the airport, and an estimated 16,000 homes nearby are also without electricity.

London Fire Brigade (LFB) said the blaze was now under control and, while there have been no casualties, crews evacuated 29 people from neighbouring properties.

Drone footage shows the fire blazing at the substation in Hayes, west London
Image:
Drone footage shows the fire at the substation in Hayes, west London

The fire at Hayes electrical substation.
Pic:London Fire Brigade/PA
Image:
Fire crews attended the blaze overnight. Pic:London Fire Brigade/PA

Smoke rises from a fire at the North Hyde Electricity Substation.
Pic: Reuters
Image:
In the morning, smoke continued to rise from the substation. Pic: Reuters

Firefighters at the North Hyde electrical substation which caught fire. More than 1,300 flights to and from Heathrow Airport will be disrupted on Friday due to the closure of the airport following the fire. Picture date: Friday March 21, 2025. PA Photo. See PA story FIRE Hayes. Photo credit should read: Jonathan Brady/PA Wire
Image:
Fire crews said the blaze was now under control. Pic: PA

Earlier pictures from the scene – on Nestles Avenue – showed large flames and plumes of thick black smoke.

LFB said 10 engines and around 70 firefighters had been working to extinguish the blaze – with the first 999 call received at 11.23pm on Thursday.

It said a transformer within the North Hyde substation had caught alight but the cause is so far unknown.

A National Grid spokesperson said they “working at speed to restore power supplies as quickly as possible” after the fire damaged equipment.

Emergency services at the cordon near North Hyde substation in Hayes. Pic: PA
Image:
Emergency services at the cordon near North Hyde substation in Hayes. Pic: PA

Pic: PA
Image:
Pic: PA

Backup generator also failed

Energy Secretary Ed Miliband told Sky News there was a backup generator but it was also affected by what he called a “catastrophic fire”.

He described the situation as “unusual and unprecedented” adding it was “too early to know” what caused the substation blaze.

Fire was ‘significant incident’

LFB Assistant Commissioner Pat Goulbourne said it was a “significant incident” but crews “successfully contained the fire and prevented further spread”.

“While power has been restored to some properties, we continue to work closely with our partners to minimise disruption,” he added. Local residents have been told to keep their windows and doors closed.

Scottish and Southern Electricity Networks said shortly after midnight that a “widespread power cut” was affecting Hayes, Hounslow and surrounding areas.

A graphic on the company’s website suggested around 16,000 homes were affected.

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Heathrow Airport closed after ‘significant power outage’ due to nearby fire

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Heathrow Airport closed after 'significant power outage' due to nearby fire

Heathrow Airport is to remain shut until midnight after a large fire at a nearby electricity substation, disrupting travel for thousands of passengers.

Tracking site Flightradar24 estimates 1,357 flights would be affected (679 into and 678 out of Heathrow) today, including around 120 which were already in the air this morning before the shutdown.

Energy Secretary Ed Miliband told Sky News “it was too early to know” what caused the “catastrophic fire”.

Follow live updates on Heathrow closure

Passengers have been warned to stay away from the airport and all trains to Heathrow have been suspended.

Please use Chrome browser for a more accessible video player

Substation fire near Heathrow Airport

“To maintain the safety of our passengers and colleagues, we have no choice but to close Heathrow until 23h59 on 21 March 2025,” Heathrow said in a statement.

“We expect significant disruption over the coming days and passengers should not travel to the airport under any circumstances until the airport reopens.”

Police direct traffic outside Terminal 5 at the Heathrow International Airport.
Pic: Reuters
Image:
Police directing traffic away from Heathrow’s Terminal 5. Pic: Reuters

Airplanes remain parked on the tarmac at Heathrow International Airport.
Pic: Reuters
Image:
It is estimated up to 1,357 flights could be affected. Pic: Reuters

Airplanes remain parked on the tarmac at Heathrow International Airport.
Pic: Reuters
Image:
Airplanes stuck at terminal gates. Pic: Reuters

Planes usually begin landing and taking off at around 5am after the regular overnight quiet period.

Around 120 flights were bound for Heathrow when the airport announced it would be closing for the day. Some will have turned back to the airport they departed from. But others were already crossing the Atlantic and have been diverted to airports in Europe.

Data from Flightradar24 shows Amsterdam has taken the most diversions at seven, while Gatwick, Frankfurt and Shannon have all taken six flights each.

Heathrow is one of the world’s busiest airports and had a record 83.9 million passengers last year, with a plane landing or taking off around every 45 seconds.

Flight delayed or cancelled? What are your rights?

Stranded passengers

Flightradar24 estimates that means there are about 220,000 passengers using the hub every day.

Its total closure is set to have knock-on effects on airline operations around the world for several days to come.

Matt, who is waiting at Canada’s Vancouver International Airport, told Sky News that British Airways “have been great” and they had been rebooked for a flight on Saturday. “Fingers crossed Heathrow is open!” he added.

But Raman who is stuck in Dubai said: “Flight keeps getting delayed – just seems crazy that BA won’t cancel it considering Heathrow is closed anyway. Zero comms from BA.”

Please use Chrome browser for a more accessible video player

‘It’s all dark here, mate’: Fire cuts Heathrow power

British Airways, the biggest carrier at Heathrow, reiterated that customers should not go to the airport until further notice.

A statement said: “This will clearly have a significant impact on our operation and our customers and we’re working as quickly as possible to update them on their travel options for the next 24 hours and beyond.”

Gatwick Airport said in a statement that it is “supporting by accepting diverted flights as required” and that it is operating “as normal today”.

Meanwhile Ryanair has launched what it is calling eight “rescue flights” for passengers affected by the Heathrow closure.

SHARE WITH SKY NEWS

You can share your story, pictures or video with us using our app, private messaging or email.

:: Your Report on Sky News apps

:: WhatsApp

:: Email

By sending us your video footage/ photographs/ audio you agree we can broadcast, publish and edit the material.

16,000 homes without power

The fire that caused the power outage is at a substation in Hayes, about 1.5 miles to the north of the airport, and an estimated 16,000 homes nearby are also without electricity.

London Fire Brigade (LFB) said the blaze was now under control and, while there have been no casualties, crews evacuated 29 people from neighbouring properties.

Drone footage shows the fire blazing at the substation in Hayes, west London
Image:
Drone footage shows the fire at the substation in Hayes, west London

The fire at Hayes electrical substation.
Pic:London Fire Brigade/PA
Image:
Fire crews attended the blaze overnight. Pic:London Fire Brigade/PA

Smoke rises from a fire at the North Hyde Electricity Substation.
Pic: Reuters
Image:
In the morning, smoke continued to rise from the substation. Pic: Reuters

Firefighters at the North Hyde electrical substation which caught fire. More than 1,300 flights to and from Heathrow Airport will be disrupted on Friday due to the closure of the airport following the fire. Picture date: Friday March 21, 2025. PA Photo. See PA story FIRE Hayes. Photo credit should read: Jonathan Brady/PA Wire
Image:
Fire crews said the blaze was now under control. Pic: PA

Earlier pictures from the scene – on Nestles Avenue – showed large flames and plumes of thick black smoke.

LFB said 10 engines and around 70 firefighters had been working to extinguish the blaze – with the first 999 call received at 11.23pm on Thursday.

It said a transformer within the North Hyde substation had caught alight but the cause is so far unknown.

A National Grid spokesperson said they “working at speed to restore power supplies as quickly as possible” after the fire damaged equipment.

Emergency services at the cordon near North Hyde substation in Hayes. Pic: PA
Image:
Emergency services at the cordon near North Hyde substation in Hayes. Pic: PA

Pic: PA
Image:
Pic: PA

Backup generator also failed

Energy Secretary Ed Miliband told Sky News there was a backup generator but it was also affected by what he called a “catastrophic fire”.

He described the situation as “unusual and unprecedented” adding it was “too early to know” what caused the substation blaze.

Fire was ‘significant incident’

LFB Assistant Commissioner Pat Goulbourne said it was a “significant incident” but crews “successfully contained the fire and prevented further spread”.

“While power has been restored to some properties, we continue to work closely with our partners to minimise disruption,” he added. Local residents have been told to keep their windows and doors closed.

Scottish and Southern Electricity Networks said shortly after midnight that a “widespread power cut” was affecting Hayes, Hounslow and surrounding areas.

A graphic on the company’s website suggested around 16,000 homes were affected.

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Sudan’s military says it has seized control of presidential palace

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Sudan's military says it has seized control of presidential palace

Sudan’s military has said it has retaken the Republican Palace in Khartoum, the last heavily guarded bastion of rival paramilitary forces in the capital, after nearly two years of fighting.

The current conflict in Sudan erupted in April 2023 when a power struggle between the leaders of the military and the Rapid Support Forces (RSF) boiled over into open fighting in Khartoum and other cities.

Social media videos showed the military’s soldiers inside on the 21st day of Ramadan, the holy Muslim fasting month.

Sudanese army members inside the presidential palace. Pic: X/Reuters
Image:
Sudanese army members inside the presidential palace. Pic: X/Reuters

A Sudanese military officer wearing a captain’s epaulettes made the announcement in a video and confirmed the troops were inside the compound.

Eyewitness: Waiting and praying for news of victory after two years of war

The palace appeared to be partly in ruins, with soldiers’ steps crunching broken tiles underneath their boots.

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Inside the ‘world’s worst’ looting campaign

Soldiers carrying assault rifles and rocket-propelled grenade launchers chanted: “God is the greatest!”

Sudan’s information minister said the military had retaken the palace in a post on X.

“Today the flag is raised, the palace is back and the journey continues until victory is complete,” he wrote.

Read more: Maps show Sudan conflict’s shifting frontlines as SAF regains territory

The Republican Palace was the seat of government before the war erupted and is immortalised on Sudanese banknotes and postage stamps.

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Horrors Sudan’s children face

Its recapture by the military marks another gain for Sudan’s military which has made steady advances in recent months.

The rival RSF has been mostly expelled from the capital of Khartoum after Sudan’s war began in April 2023.

Gunfire was heard in the capital overnight on Friday, although whether this was from fighting or celebrations is unclear.

The RSF hasn’t acknowledged the loss of the presidential palace but the group still holds territory elsewhere in Sudan so fighting is likely to continue.

The war has killed more than 28,000 people, according to UN figures, and forced millions to flee their homes.

Families have been left eating grass in a desperate attempt to survive a famine that is sweeping through parts of the country.

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