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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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Politics

Water ombudsman will be created – as major report into ‘broken’ industry to be unveiled

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New water ombudsman to give public stronger protections, government pledges

Consumers will get stronger protections with a new water watchdog – as trust in water companies takes a record dive.

Environment Secretary Steve Reed will announce today that the government will set up the new water ombudsman with legal powers to resolve disputes, rather than the current voluntary system.

The watchdog will mean an expansion of the Consumer Council for Water’s (CCW) role and will bring the water sector into line with other utilities that have legally binding consumer watchdogs.

Consumers will then have a single point of contact for complaints.

Politics latest: Labour should let water companies ‘go bust’, Farage says

The Department for the Environment, Food and Rural Affairs (Defra) said the new watchdog would help “re-establish partnership” between water companies and consumers.

A survey by the CCW in May found trust in water companies had reached a new low, with fewer than two-thirds of people saying they provided value for money.

Just 35% said they thought charges from water companies were fair – even before the impact could be felt from a 26% increase in bills in April.

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‘We’ll be able to eliminate sewage spillages’

Mr Reed is planning a “root and branch reform” of the water industry – which he branded “absolutely broken” – that he will reveal alongside a major review of the sector today.

The review is expected to recommend the scrapping of water regulator Ofwat and the creation of a new one, to incorporate the work of the CCW.

Read more:
Labour will eliminate unauthorised sewage spillages in a decade
Under-fire water regulator could be scrapped

sewage surfers water pollution protest brighton
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A water pollution protest by Surfers Against Sewage in Brighton

Campaigners and MPs have accused Ofwat of failing to hold water operators to account, while the companies complain a focus on keeping bills down has prevented appropriate infrastructure investment.

On Sunday, Mr Reed avoided answering whether he would get rid of Ofwat or not when asked on Sunday Morning with Trevor Phillips.

He pledged to halve sewage pollution by water companies by 2030 and said Labour would eliminate unauthorised sewage spillages in a decade.

Mr Reed announced £104bn of private investment to help the government do that.

Victoria Atkins MP, shadow secretary of state for environment, food and rural Affairs, said: “While stronger consumer protections are welcome in principle, they are only one part of the serious long-term reforms the water sector needs.

“We all want the water system to improve, and honesty about the scale of the challenge is essential. Steve Reed must explain that bill payers are paying for the £104 billion investment plan. Ministers must also explain how replacing one quango with another is going to clean up our rivers and lakes.

“Public confidence in the water system will only be rebuilt through transparency, resilience, and delivery.”

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UK

Inquiry launched to ‘uncover truth’ behind bloody clashes at Orgreave miners’ strike

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Inquiry launched to 'uncover truth' behind bloody clashes at Orgreave miners' strike

A new public inquiry will “uncover the truth” behind the so-called “Battle of Orgreave”, a bloody fight between striking miners and police officers in the 1980s.

One hundred and twenty people were injured in the violent confrontation on 18 June 1984, outside a coal processing factory in Orgreave, South Yorkshire.

Five thousand miners clashed with an equal number of armed and mounted police during a day of fighting.

Police used horse charges, riot shields and batons against the picketers, even as some were retreating.

5000 miners clashed with an equal number of armed and mounted police during a day of fighting
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Masses of miners and police clashed during the day of fighting

Police also used horse charges against protesters
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Police officers on horses charged against protesters

In the aftermath, miners were blamed for the violence in what campaigners believe was an institutional “frame-up”.

“There were so many lies,” says Chris Peace, from campaign group Orgreave Truth and Justice, “and it’s a real historic moment to get to this stage.”

“There’s a lot of information already in the public domain,” she adds, “but there’s still some papers that are embargoed, which will hopefully now be brought to light.”

More on South Yorkshire

Campaigner Chris Peace
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Campaigner Chris Peace

Although dozens of miners were arrested, trials against them all collapsed due to allegations of unreliable police evidence.

Campaigners say some involved have been left with “physical and psychological damage”, but until now, previous governments have refused calls for a public inquiry.

Launching the inquiry today, Home Secretary Yvette Cooper told Sky Newsi that she wanted to “make sure” campaigners now got “proper answers”.

“We’ve obviously had unanswered questions about what happened at Orgreave for over 40 years,” Ms Cooper says, “and when we were elected to government, we determined to take this forward.”

Although dozens of miners were arrested, trials against them all collapsed due to allegations of unreliable police evidence
Image:
A police officer tackling a miner

Campaigners say some miners involved have been left with 'physical and psychological damage'
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A bleeding protester being led away by police during the ‘Battle of Orgreave’

The Bishop of Sheffield, Pete Wilcox
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The Bishop of Sheffield, Pete Wilcox, will chair the inquiry

The inquiry will be a statutory one, meaning that witnesses will be compelled to come and give evidence, and chaired by the Bishop of Sheffield, Pete Wilcox.

“I’m really happy,” says Carl Parkinson, a former miner who was at Orgreave on the day of the clash, “but why has it took so long?”

“A lot of those colleagues and close friends have passed away, and they’ll never get to see any outcome.”

Former miner Carl Parkinson
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Former miner Carl Parkinson

Former miner Chris Skidmore
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Former miner Chris Skidmore

Mr Parkinson and Chris Skidmore, who was also there that day, were among the group of campaigners informed first-hand by Ms Cooper about the public inquiry at the Orgreave site.

“It wasn’t frightening to start off with,” Mr Skidmore remembers of the day itself, “but then what I noticed was the amount of police officers who had no identification numbers on. It all felt planned.”

“And it wasn’t just one truncheon,” says Mr Parkinson, “there were about 30, or 40. And it was simultaneous, like it was orchestrated – just boom, boom, boom, boom.

“And there’s lads with a split down their heads for no good reason, they’d done nothing wrong. We were just there to peacefully picket.”

Police used horse charges, riots shields and batons against the picketers, even as some were retreating
Image:
Police used riot shields against the picketers, even as some were retreating

In the aftermath of the fighting, miners were blamed for the violence
Image:
In the aftermath of the fighting, miners were blamed for the violence

In the intervening years, South Yorkshire Police have paid more than £400,000 in compensation to affected miners and their families.

But no official inquiry has ever looked at the documents surrounding the day’s events, the lead-up to it and the aftermath.

Read more from Sky News:
E-bike riders are doing double the speed limit
Environment secretary pledges to cut sewage pollution

“We need to have trust and confidence restored in the police,” says South Yorkshire Mayor Oliver Coppard, “and part of that is about people, like this campaign, getting the justice that they deserve.

“Obviously, we’ve had things like Hillsborough, CSE [Child Sexual Exploitation] in Rotherham, and we want to turn the page.”

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Environment

Manitou and Hangcha commit to heavy equipment battery production JV

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Manitou and Hangcha commit to heavy equipment battery production JV

French equipment manufacturer Manitou has committed to a joint venture with Chinese forklift manufacturer Hangcha that will see the two companies develop and manufacture advanced lithium-ion batteries to support the electrification of the heavy material handler space.

Manitou is well-known in the West, so they need no introduction. Hangcha, though, is arguably just as capable of a company, having opened its first forklift plant in 1956, manufacturing others’ designs under license. They developed their own, in-house material handler in 1974, and have racked up hits ever since. Hangcha is currently the world’s eighth-largest manufacturer of industrial vehicles globally (sounds wrong, but here’s the source).

The plan for the JV is to upgrade the two companies’ deployed fleets of existing lead-acid battery-powered vehicle with longer lasting lithium-ion (li-ion) batteries to expand their operational lifespan. From there, the focus could switch to diesel retrofits and, eventually, the joint development of entirely new products.

“Deepening strategic cooperation with Manitou Group and jointly establishing a lithium battery joint marks a new phase in the partnership between the two sides, which is a milestone in Hangcha global industrial layout,” explains Zhao Limin, Chairman and General Manager of Hangcha Group. “Leveraging Hangcha’s core technological and manufacturing strengths in lithium battery solutions, we will collaboratively enhance solution capability of new energy industrial vehicle power systems. This partnership perfectly aligns with our shared objectives to accelerate electrification transformation and drive sustainable development, while providing robust support to the broader industrial vehicle market.”

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Manitou MHT 12330


MHT 12330 with 72,750 lb. lift capacity; via Manitou.

Once production begins, the joint venture factory will play a key role in supporting Manitou Group’s “LIFT” strategic roadmap. LIFT aims to expand Manitou’s electric vehicle lineup of telehandlers and forklifts, and have EVs account for 28% of total unit forklift sales by 2030. Hangcha Group, meanwhile, has publicly stated its intention to become 100% electric by the end of 2025.

This joint venture plans to recruit employees including engineers, operators, sales representatives and after-sales service technicians. Le Mans Metropole will support the recruitment and local integration and training of future employees.

SOURCE | IMAGES: Manitou; images by Manitou, via Belkorp AG.


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