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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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Business

Primark boss Paul Marchant resigns and admits ‘error of judgement’ after allegation over his behaviour towards woman

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Primark boss Paul Marchant resigns and admits 'error of judgement' after allegation over his behaviour towards woman

The boss of Primark has resigned after admitting an “error of judgement” in his behaviour towards a woman in a social environment.

Paul Marchant stepped down as chief executive of the high-street fashion brand with immediate effect following an investigation.

Primark‘s parent firm, Associated British Foods (ABF), said he had co-operated with the investigation, and “acknowledged his error of judgment and accepts that his actions fell below the standards expected by ABF”.

“He has made an apology to the individual concerned, the ABF board and also to his Primark colleagues and others connected to the business,” the firm added.

The group’s overall chief executive George Weston said he is “immensely disappointed”.

“At ABF, we believe that high standards of integrity are essential,” he said in a statement.

“Acting responsibly is the only way to build and manage a business over the long term.

“Colleagues and others must be treated with respect and dignity.

“Our culture has to be, and is, bigger than any one individual.”

ABF’s finance director Eoin Tonge will take over as chief executive on an “interim basis” – and his role will be taken up by Joana Edwards, the group’s financial controller.

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A Primark store. Pic: PA
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File pic: PA

The group’s statement added it “seeks to provide a safe, respectful, and inclusive work environment where all employees and third parties are treated with dignity and respect”.

“Primark is committed to doing business the right way at all levels of the company,” it said.

ABF promised to continue supporting the woman who made the complaint.

Primark results due soon

The group will still publish its interim results for the financial year as planned on 29 April, according to its statement.

In January, ABF reported an uncharacteristic decline in like-for-like sales at Primark across the UK and Ireland.

Sales at the store fell by 6% – with Primark saying it expects “low single-digit” sales growth for 2025 as a result – down from mid single-digit levels in November 2024.

Speaking at the time, Russ Mould, investment director at AJ Bell, said: “If Primark is struggling, you know the UK retail sector is in trouble.”

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Politics

Japan to classify cryptocurrencies as financial products: Report

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Japan to classify cryptocurrencies as financial products: Report

Japan to classify cryptocurrencies as financial products: Report

Japan’s finance regulator is planning to change the country’s laws to classify cryptocurrencies as financial products as early as 2026, according to the local outlet Nikkei.

The Financial Services Agency (FSA) plans to submit a bill to parliament to revise the Financial Instruments and Exchange Act as early as next year after having considered the changes through internal study groups, Nikkei reported on March 30 without citing a source.

The outlet reported that the details are still being finalized, but the change would see cryptocurrencies likely put under insider trading laws that currently apply to other financial products, such as stocks, which outlaw trades based on insider information.

However, cryptocurrencies are likely to be put in a separate category from securities such as stocks and bonds.

If the changes go through and crypto is regulated under the country’s finance laws, companies offering crypto would have to register with the FSA.

Nikkei reported that the regulator plans to enforce the new rules regardless of whether a company operates in Japan, but it was unclear how the laws would be enforced against overseas entities.

Also unclear was what cryptocurrencies would be regulated and how distinctions would be made between widely traded assets such as Bitcoin (BTC) and Ether (ETH) compared to speculative and high-risk tokens such as memecoins.

Japan to classify cryptocurrencies as financial products: Report

The FSA’s headquarters is in central Tokyo, just across the street from the Ministry of Finance. Source: Wikimedia

The reported upcoming change comes amid a wave of pro-crypto moves made by Japan’s regulators and government.

Related: USDC stablecoin receives approval for use in Japan, says Circle 

Earlier this month, the country issued its first license allowing a company to deal with stablecoins to SBI VC Trade, a subsidiary of the local financial conglomerate SBI, which said it was preparing to support Circle’s USDC (USDC).

The country’s ruling Liberal Democracy Party also moved ahead with reforms to slash the capital gains tax on crypto from 55% to 20% and categorize digital assets as a distinct asset class.

In February, local reports said the FSA was looking to lift a ban on crypto-based exchange-traded funds (ETFs) to align with the policy position of Hong Kong, which approved crypto ETFs for trading in April 2024.

Asia Express: Bitcoiner sex trap extortion? BTS firm’s blockchain disaster 

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World

Myanmar earthquake: Military regime targeting ‘civilian areas’ with airstrikes in wake of disaster, armed group claims

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Myanmar earthquake: Military regime targeting 'civilian areas' with airstrikes in wake of disaster, armed group claims

An armed resistance group in Myanmar has accused the ruling military government of continuing to carry out airstrikes on “civilian areas” in the wake of the huge earthquake in the country.

The 7.7 magnitude quake struck near the city of Mandalay at around 12.50m local time (6.20am UK time) on Friday while Myanmar is in the grips of a bloody civil war.

The number of people confirmed dead after the quake stands at more than 1,700, with 3,400 others injured and 300 missing, according to pro-military government Telegram channels, citing the country’s rulers.

Chinese rescuers looks at a collapsed building before conducting a search and rescue operation in Mandalay. Pic: Myo Kyaw Soe/Xinhua via AP)
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Chinese rescuers prepare to carry out a search and rescue operation in Mandalay. Pic: Myo Kyaw Soe/Xinhua via AP)

But the US Geological Survey’s (USGS) predictive modelling estimates that the number of dead will increase into the thousands, and could reach 10,000.

It comes as rescue and relief efforts in the country have been hampered by the ongoing civil war, which has raged since 2021.

Buddhist monks walk past a collapsed building in Naypyitaw, Myanmar. Pic: AP Photo/Aung Shine Oo
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Buddhist monks walk past a collapsed building in Naypyitaw, Myanmar. Pic: AP Photo/Aung Shine Oo

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Monks film as building collapses

The Karen National Union (KNU), one of Myanmar’s oldest ethnic armies, has said in a statement that the military government, known as a junta, is continuing to “carry out airstrikes targeting civilian areas”.

It said the strikes come “even as the population suffers tremendously from the earthquake”.

The KNU said that under normal circumstances, the military would be prioritising relief efforts after an earthquake, but instead it is focused on “deploying forces to attack its people”.

The Free Burma Rangers, a relief organisation, said military jets launched airstrikes and drone attacks in Karen state, near the KNU headquarters, in the south of the country, shortly after the quake on Friday.

It came before there were reports of mortar and drone attacks on Saturday.

A Karen National Union soldier in 2024. Pic: Reuters
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A Karen National Union soldier in 2024. Pic: Reuters

The junta has not confirmed whether or not it has been carrying out strikes since the disaster.

The epicentre of the quake was in an area held by junta forces, but the devastation is widespread and also affected some territory held by armed resistance movements.

On Sunday, the opposition National Unity Government, which includes remnants of the government ousted in a 2021 coup, said anti-junta militias under its command would pause all offensive military action for two weeks.

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Rescuers look for survivors of Myanmar earthquake

A Buddhist monk walks near Maharmyatmuni pagoda in Mandalay after the earthquake. Pic: AP
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A Buddhist monk walks near a pagoda in Mandalay after the earthquake. Pic: AP

Richard Horsey, the senior Myanmar adviser at Crisis Group, which works to resolve armed conflicts, said some anti-junta forces have halted their offensives, but fighting continues elsewhere.

“The regime also continues to launch airstrikes, including in affected areas. That needs to stop,” he said.

He claimed that the junta was not providing much visible support in quake-hit areas.

“Local fire brigades, ambulance crews, and community organisations have mobilised, but the military – who would normally be mobilised to support in such a crisis – are nowhere to be seen,” Mr Horsey said.

The junta broke its self-imposed isolation to appeal for help from the outside world following the earthquake. However, the country’s inaccessibility will likely remain a huge obstacle to aid efforts.

Read more:
Families of those trapped in rubble face agonising wait
Why Friday’s earthquake was so destructive
Inside Myanmar – the hidden war
Quake is first major disaster to suffer the brunt of Trump cuts

Rescuers work at the site of a collapsed building in Mandalay, Myanmar. Pic: Reuters
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Rescuers work at the site of a collapsed building in Mandalay, Myanmar. Pic: Reuters

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Building in Thailand collapses after earthquake

The junta has said the earthquake is one of Myanmar’s strongest in a century – while the USGS suggests financial losses due to the disaster could exceed the country’s annual economic output.

While emergency rescue teams have started trickling into the area hardest hit by the quake, efforts have been hindered by damaged roads, downed bridges, poor communications and the challenges of operating in a country in the middle of a civil war.

Many areas still have not been reached.

Rescuers workers at the site of a collapsed building in Mandalay: Pic: Myo Kyaw Soe/Xinhua via AP
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Rescuers workers at the site of a collapsed building in Mandalay: Pic: Myo Kyaw Soe/Xinhua via AP

A building tilts precariously in Mandalay, Myanmar. Pic: Reuters
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A building tilts precariously in Mandalay, Myanmar. Pic: Reuters

Most rescues occur within the first 24 hours after a disaster, with the chances of survival diminishing as each day passes.

Neighbouring Thailand was also shaken, such as in the capital, Bangkok, where 18 people were killed, including 11 who died when an under-construction skyscraper collapsed. At least 76 people are missing and believed to be trapped under the debris.

Twelve Chinese nationals are among the injured, according to Chinese state media.

Map
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The earthquake struck Myanmar and Thailand, and tremors also affected Laos, Vietnam, and Bangladesh

Debris of damaged building near Maha Myat Muni Pagoda. Pic: AP
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Debris of a damaged building in Mandalay. Pic: AP

An initial report on earthquake relief efforts issued on Saturday by the UN Office for the Coordination of Humanitarian Affairs noted the severe damage or destruction of many health facilities in Myanmar.

And it warned that a “severe shortage of medical supplies is hampering response efforts, including trauma kits, blood bags, anaesthetics, assistive devices, essential medicines, and tents for health workers”.

India, China and Thailand are among the neighbours that have sent relief materials and teams, along with aid and personnel.

The UK government has announced a package of £10m to support the people of Myanmar in the aftermath of the quake.

Four years of civil war

Myanmar has been locked in a conflict involving multiple armed opposition groups since a 2021 coup, when the military seized power from the elected government of Nobel Peace Prize laureate Aung San Suu Kyi.

Many places are now dangerous or impossible for aid groups to reach.

More than three million people have been displaced by the fighting and nearly 20 million are in need, according to the United Nations.

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