Wall Street stocks continued to rise while government bonds softened as investors addressed the effects of US employment reports, which were much weaker than expected for the world’s largest economy.

U.S. employer Added 235,000 jobs In August, the government’s monthly non-farm payrolls survey showed about one-third of economists’ forecasts for more than 728,000 new hires. Wages rose more than expected, but participation remained unchanged at 61.7%.

Wall Street’s leading S & P 500 Index rose 0.1% by mid-afternoon in New York, while the technology-focused Nasdaq Composite rose 0.2%. Both indices were high. Meanwhile, the STOXX 600 stock index in Europe fell 0.6%.

Yields on 10-year Treasuries, which are inversely proportional to price, rose 0.04 points to 1.32 percent. The dollar index, which measures the US currency, fell 0.3 percent against the other six.

Investors were steeled for employment reporting to provide catalysts for market revisions or extended rallies after Federal Reserve Chairman Jay Powell signal The central bank said this year it would cut $ 120 billion in monthly bond purchases, emphasizing the need for further development of the pandemic-damaged labor market.

Kasper Elmgreen, Head of Equity for Amundi, Fund Manager, said: “As the Fed has a strong focus on employment, these next months’ employment reports will be very important.”

Powell admitted at the Jackson Hall Central Bank symposium last month after U.S. consumer prices rose 5.4% in the 12 months to July. call From reducing stimulus spending from some Fed officials to avoid further inflationary pressures and financial market bubbles.But the Fed’s chief also warning Of the danger of acting too fast.

Guillaume Paillat, multi-asset portfolio manager at Aviva Investors, said the decline in employment “supports the Fed’s cautious approach.” “Now I can sit down and wait for more data,” the central bank said.

Schroders Chief Investment Officer Johanna Kyrklund said the payroll report was “disruptive”, citing results that eased concerns about economic slowdown and inflation, “in the number of Goldilocks that many expected. No, “he explained.

“At the same time there are several pockets of the economy facing labor shortages. [economic] Growth momentum has peaked, “says Kyrklund. She added that employment data was added to the “slightly stagnant trend” after US gross domestic product growth also fell short of economists’ expectations in the second quarter of this year.

Prior to the announcement of payrolls, investors focused on whether the Fed would announce the start of tapering in any of its monetary policies. meeting Some have argued that in the month following this month or November, the numbers may indicate a slower tapering date than expected.

Cima Shah, Chief Strategist of Principal Global Investors, said: “The rate hike should take place in late 2023, but I don’t think the Fed is rushing to normalize the policy rate.”

The euro was stable against the dollar and bought $ 1.189. Sterling rose 0.4% to $ 1.139. Brent crude, the oil benchmark, fell 0.6% to $ 72.63 a barrel.

Markets steady as US jobs report comes in under forecast Source link Markets steady as US jobs report comes in under forecast

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August consumer sentiment drops around the country amid worries about U.S. economy

August 31, 2021

GAINESVILLE, Fla. — Consumer sentiment among Floridians fell 4.7 points in August to 78.7 from a revised figure of 83.4 in July. Notably, national consumer sentiment dipped by 10.9 points.

“The decline in consumer confidence comes as no surprise as it remains unclear whether the recent spike in inflation due to supply chain bottlenecks, pent-up demand, and labor shortages is temporary. Additionally, the latest surge in coronavirus cases and hospitalizations brought on by the Delta variant has spooked consumers resulting in event cancellations, hindering consumer spending, and casting a shadow on the economic recovery in the short-run,” said Hector H. Sandoval, director of the Economic Analysis Program at UF’s Bureau of Economic and Business Research.

All five components that make up the index declined.

Floridians’ opinions about their personal finances now compared with a year ago decreased 3.9 points from 75.8 to 71.9. Similarly, opinions as to whether this is a good time to buy a big-ticket item, such as refrigerators, cars, or furniture dropped 1 point from 74.8 to 73.8. Both downward readings were shared by all Floridians with the exception of men in the former component and people with an annual income over $50,000 in the latter, whose readings were more optimistic.  

Similarly, the three components representing the expectations of future economic conditions deteriorated considerably in August. In particular, outlooks about expected national economic conditions recorded the steepest declines.

Expectations of personal financial situations a year from now fell 2 points from 93.8 to 91.8. However, responses were split across sociodemographic lines with people younger than 60 and people with an annual income under $50,000 reporting more-favorable views. Expectations of U.S. economic conditions over the next year plummeted 7.1 points from 85.2 to 78.1. Likewise, expectations of U.S. economic conditions over the next five years plunged 9.3 points from 87.4 to 78.1. These expectations were shared by all Floridians, and were particularly stronger among men, people older than 60, and people with an annual income over $50,000.

“While the decline in confidence was fueled by growing pessimism in all five components, the main factors behind the downturn were Floridians’ expectations about U.S. economic conditions in the short- and long-run. These expectations signal a potential decline in discretionary spending that could hinder the economic recovery,” Sandoval said.

“Consumer confidence is far from the levels observed before the pandemic. The decline in August brought consumer sentiment just 2.4 points above its lowest level since the pandemic started. Looking ahead, we expect consumer sentiment to remain weak in the months ahead,” Sandoval said.

Conducted July 1 through August 26, the UF study reflects the responses of 210 individuals who were reached on cellphones and 286 individuals reached through an online panel, a total of 496 individuals, representing a demographic cross section of Florida. The index used by UF researchers is benchmarked to 1966, which means a value of 100 represents the same level of confidence for that year. The lowest index possible is a 2, the highest is 150.

Details of this month’s survey can be found at http://www.bebr.ufl.edu/csi-data

 Writer: Perry Leibovitz, perry86@ufl.edu

Contact: Hector Sandoval, 352-392-2908, ext. 219, hsandoval@ufl.edu

University of Florida News Center http://www.news.ufl.edu| News@ufl.edu| 352-846-3903

******************************

The University of Florida’s mission is to prepare our students to lead and influence the next generation and beyond for economic, cultural and societal benefit. Recognized as among the top 10 public universities by U.S. News & World Report, UF is one of the nation’s largest public universities, and is the only member of the Association of American Universities in Florida. Teaching, research and scholarship, and service span all of the UF’s academic disciplines and represent its commitment to be a premier university that the state, nation and world look to for leadership. www.ufl.edu.

Perry Leibovitz August 31, 2021

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A lobbying group representing the interests of Apple has joined a coalition of corporate titans and industry organizations in a concerted effort to derail portions of President Joe Biden’s $3.5 trillion economic agenda.

The Business Roundtable, a group of U.S. business leaders that counts Apple CEO Tim Cook as a board member, is preparing to oppose corporate tax increases designed to fuel the Democratic spending initiative, reports The Washington Post.

Biden proposed a hike in corporate tax rates from 21% to 28%, while placing heftier burdens on profits earned overseas. Democratic lawmakers are hoping to push the laws through as a reconciliation bill, a procedure that allows Congress to pass legislation with a simple majority. Passage is not guaranteed by the 117th Congress, however, as Democrats enjoy only narrow control over both houses, a precarious position potentially vulnerable to intense lobbying.

Business Roundtable’s concerns are part of a wider effort that targets key sections of Biden’s budget plan. A “lobbying blitz” is being organized by the U.S. Chamber of Commerce, which seeks support from all corners to fight the economic package, including its cost, policy scope and tax demands, according to the report.

In a statement, Business Roundtable spokesperson Jessica Boulanger said the group is engaged in “a significant, multifaceted campaign” to fight tax increases, adding that it would “continue to ramp up our efforts in the coming weeks.”

Organizations taking part in the strategy are expected to lean on traditional lawmaker lobbying as well as more modern maneuvering like advertising campaigns, sources told the publication. Companies and lobbying groups have committed to or are already running ads against the reconciliation package.

In addition to Business Roundtable, the RATE Coalition is also at odds with the Democrats’ tax agenda. RATE Coalition includes members Disney, FedEx and Lockheed Martin. Broader opposition might also be mounted by the National Association of Manufacturers, a major advocacy group representing more than 14,000 members. NAM’s board includes executives from Dow Inc., Exxon, Caterpillar and Johnson & Johnson. A parallel effort from the pharmaceuticals industry targets drug pricing proposals.

Guided by Biden’s spending proposals, Democrats are crafting legislation that will expand Medicare coverage, combat climate change, increase access to education, introduce broad subsidies for low- and medium-income families and more.

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A measure of business conditions in the Chicago region slipped in August, but not because of delta: Most companies said they still can’t get enough supplies or labor to keep up with new orders.

The Chicago Business Barometer, also known as the Chicago PMI, fell to 66.8 last month from 73.4 in July.

Just a few months earlier, the index had touched a 47-year high.

A surge in demand after the economy mostly reopened this year has forced businesses to scramble to keep up. Yet many can’t get enough materials on time to keep assembly lines running at full tilt. And finding enough labor to do the job has also become a major headache.

These problem are not just in the Chicago area. These are hurting the entire U.S. economy.

As a result, companies have big backlogs of orders that are going unfilled. These problems are expected to clear up eventually as the U.S. and global economies return to normal, but it could take months or even longer.

The surge in delta cases, meanwhile, hasn’t caused a notable decline in orders. Yet it could exacerbate bottlenecks in supply chains and deter some people from returning to work.

Businesses are paying higher prices for many materials and even raising wages in a bid to attract more workers. They also trying to pass on these extra costs to customers in the form of higher prices.

The upshot? Inflation in the U.S. is running at the highest level in 30 years based on the Federal Reserve’s preferred price barometer.

The decline in August was worse than expected. Economists polled by the Wall Street Journal had forecast the index to decline to 69.4.

Readings over 50 signal expansion, and numbers above 60 are considered exceptional.

Read: Consumer confidence sinks to 6-month low on delta anxiety and high inflation

The index is produced by the ISM-Chicago with MNI. It’s the last of the regional manufacturing indices before the national ISM report for August is released on Wednesday.

The ISM factory index stood at 61.2% in July. It’s been extremely strong for months, but it also reflects the ongoing logjam with supplies and labor.

Stocks 
DJIA,
-0.18%

SPX,
-0.20%
fell slightly in Tuesday trades.

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DENVER–(BUSINESS WIRE)–Following its announcement earlier this year, BEUMER Corporation has now celebrated the official opening of the North American Headquarters in Denver for its Airport division and its Conveying & Loading division.

BEUMER, a leading global supplier of automated baggage handling systems and a recognized leader for its expertise in conveying & loading and material handling, established their new office at 6430 S. Fiddlers Green Circle, Suite 250, in Greenwood Village.

The Denver-based divisions will be led respectively by David Delaney, Vice President and General Manager of the BEUMER Airport Division North America and Daniel Uttelbach, Managing Director and Vice President BEUMER Conveying & Loading Systems.

The Denver office brings BEUMER closer to customers in the airline, mining, power and cement industries.

The company is now hiring engineers and product managers for the two Denver-based divisions.

BEUMER installed the first live Independent Carrier System (ICS) in the United States at the San Francisco International Airport in March 2020. The CrisBag® system enables 100% track and trace throughout the baggage handling and security screening processes and can be designed to accommodate shared airline use.

A global leader in overland conveying and long-distance material handling solutions for more than 50 years, BEUMER has the expertise gained in hundreds of installations and operations worldwide and the technology to improve efficiency, reduce capital and operating costs, and make the conveying process more environmentally friendly and sustainable.

About BEUMER Group

The BEUMER Group is an international leader in the manufacture of intralogistics systems for conveying, loading, palletizing, packaging, sortation and distribution. With 4,500 employees worldwide, the BEUMER Group has annual sales of about EUR 950 million. The BEUMER Group and its group companies and sales agencies provide their customers with high-quality system solutions and an extensive customer support network around the globe and across a wide range of industries, including bulk materials and piece goods, food/non-food, construction, mail order, post and airport baggage handling. For more information, please visit: www.beumer.com.

ABOUT BEUMER Corporation

BEUMER Corporation, headquartered in Somerset, NJ, is the wholly owned U.S. subsidiary of Beckum, Germany-based BEUMER Group. Founded in 1977, BEUMER Corporation is an industry leader in the design and manufacture of material handling, automation and intralogistics systems, operating four U.S. business lines: Conveying & Loading, Packaging & Palletizing, Sortation & Distribution and Airport Baggage Handling. BEUMER Corporation offers a complete range of design/build services, including engineering and systems design, project management, installation and commissioning, and customer support. For more information, visit www.beumer.com.

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Published August 31, 2021 1:36PM

by Belinda Mackay, Gisborne Chamber of Commerce president

Belinda Mackay

This weekend, while contemplating the move to Level 3, I happened upon a podcast by Spinoff contributor, Bernard Hickey. In the face of businesses throughout Aotearoa being given half a billion dollars within two days of the wage subsidy version 2021 being available, Hickey made some very salient points. It got us thinking; should businesses, and this includes Tairawhiti businesses, while they qualify for the subsidy during lockdown, take it?

When we went into lockdown last year the landscape looked very different. We didn’t know what our economy would look like when we came out of lockdown and things looked very scary. This time around, while there is concern, there is not the same uncertainty.

Last year, the wage subsidy worked well. Some may argue it worked too well and is moving our country into a period of inflation. What can’t be disputed is that at the time it saved jobs and stimulated economic activity.

We know that some businesses (including local businesses) did very well after lockdown, particularly construction. Of the top five businesses that received the largest subsidy pay-out (Air New Zealand, Fletcher Building, The Warehouse Group, Downer & Fulton Hogan), one could argue that this time around only Air NZ would truly have a case for claiming an additional wage subsidy. The remainder of those businesses all reported strong profit at the end of their financial year, some paid shareholder dividends. Did those businesses pay back the subsidy in the face of strong profit? Well, The Warehouse paid back the money after they took the subsidy, made staff redundant and then reported a full year profit of $44.5m, and Fulton Hogan paid back $1m. I’m sure that this happened locally too.

Many businesses that took the subsidy, in hindsight, didn’t need it, generated profit, made people redundant, paid out dividends and did not pay the money back. All parties would argue that “at the time they thought they needed it and they received it within the parameters of the scheme”.

Another point Hickey makes in his podcast, which I agree with, is that while government agencies are not concerned with getting money back from business, they have been litigating to ensure beneficiaries pay back the money they owe. This says, “it’s OK for business to keep, say, the $33m that Fulton Hogan got but if you’re a beneficiary, watch out”.

Hickey suggests the Government should have taken the $14 billion that businesses received and distributed that instead amongst our team of 5 million, so each of us received $2800 each. Imagine the impact for the people of Tairawhiti.

For some of us, that would mean spending money with local businesses affected by lockdown. For others, it would mean the ability to help feed, heat and clothe their family which would also benefit local business. Any which way you look at it, that payment would generate economic activity and would help lower-income families, who have not been positively affected by the post-2020 Covid lockdown boom.

The horse has bolted on this idea this time but until we’re a well-vaccinated country, lockdown will continue to be a tool used to deal with Delta.

So, for any future lockdowns, perhaps, before business approaches the Government for yet another wage subsidy, us business owners should ask, “just because our business can qualify, does that mean we should?” And because lockdowns may well continue to occur until we are a well-vaccinated country, the Government should look at the scheme and ask themselves if there is a better way.

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ATLANTA: The Delta variant has muted the progress of the United States economic recovery from the Covid-19 pandemic, with consumers putting off some leisure spending and businesses delaying a return to normal operations, according to a number of high-frequency reports that show softness in August.

For airlines, the number of travellers moving through airport checkpoints has started to drop again.

Last week, 1.47 million travellers took flights, the fewest in more than three months, according to Transportation Security Administration data.

The seven-day average has declined to around 1.76 million passengers a day in late August from around 2.05 million a month earlier.

While this partly reflects the end of the summer vacation season, airlines have also cited the Delta variant.

There’s been a “deceleration in leisure booking and an increase in cancellations,” said Helane Becker, senior reseach analyst with Cowen Inc.

As companies have delayed a return to offices, the return of business air travel is also likely delayed, she said.

Seated dining at US restaurants has been running at about 10%-11% below 2019 levels in recent weeks, after narrowing the gap to just 5%-6% below in late July, according to OpenTable, which processes reservations online. Concern about Delta and city mandates are playing a role, according to the company.

“We see a pronounced decline in late July and August,” said Debby Soo, chief executive officer at OpenTable.

“While several factors could be at play here, we believe the primary driver of the downturn is diners’ concerns about the rise in Covid cases.”

“The Delta variant has shown some signs of restraining vigour in consumer spending on in-person services.

The softer-than-expected July retail sales report, combined with moderating demand for dining out and air travel, and delayed back-to-office plans, flag downside risks to consumer momentum in the second half,” said economist Eliza Winger.

While leisure travel helped to boost some popular destinations over the summer, hotel occupancy has now declined for four consecutive weeks, according to STR, a lodging data tracker. Average room rates have declined for three weeks.

Among 25 large US markets, none saw increased occupancy in the week ended Aug 21 compared with the same week of 2019, STR found.

Occupancy dropped by more than 40% in San Francisco, the most of any market.

“Demand looks like it is running slightly worse than the typical seasonal decline,” said Bill Crow, Raymond James Financial analyst.

There’s “a chill on travel caused by the Delta variant case increases” with business-travel markets doing poorly.

While the labour market has become tighter this year, and many employers say they are struggling to fill positions, there are a few signs of slackening demand amid Delta.

For example, there’s been a decline in job postings on Indeed for dental office and child-care jobs, positions that would call for close contact with the public.

“During the latest wave of the virus, those virus-sensitive sectors have already seen a drop in job postings,” said Jed Kolko, Indeed’s chief economist.

If the wave continues, “Labour demand might drop if people cut back on travel, eating out, and other services spending.” And potential workers might be reluctant to look for work, he added.

The plans of big US companies to return workers to their offices in bustling business districts are going in reverse.

Average office occupancy in 10 of the largest business districts fell to 31.3% of pre-Covid-19 levels in the week ended Aug 18, according to data from Kastle Systems.

While August vacations may be contributing, “the return to normal offices has been slowed up a bit because of delta,” said JPMorgan Chase real estate investment trust analyst Anthony Paolone.

That affects not only real estate but also a swath of businesses that depend on offices, like dry cleaners and urban restaurants, and cities through taxes.

“There is a cascading effect to the vibrancy of different urban cores,” he said. — Bloomberg

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Mars is planning to cut corporate travel by half and book 145,000 fewer flights each year in one of the clearest signals yet from a big company about how they plan to change business trips after the pandemic.

The world’s largest confectioner and one of America’s biggest privately owned businesses has said it will tell staff to get on a plane for “purpose, rather than presence”.

Nici Bush, vice-president for workplace transformation at Mars, also said that the company wanted to rethink the “obsolete” approach to fixed office hours because the pandemic has led to “myth-busting” about productivity.

Mars employs 135,000 people globally, almost a quarter of whom are office-based. In the UK, Mars has 4,000 staff, including 1,900 in office-based roles.

The Virginia-based company

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The Australian and New Zealand Dollars firmed on Friday as demand for higher risk assets rose following a sharp break the previous session. Despite the rally, the risks are still pointed to the downside due to the recent weakening in commodity prices.

On Friday, the AUD/USD settled at .7749, up 0.0042 or +0.54% and the NZD/USD finished at .7196, up 0.0031 or +0.43%.

During the previous session, the Aussie slipped to a one-week low and the Kiwi weakened on reports U.S. President Joe Biden was planning to nearly double capital gains tax on wealthy Americans hit risk appetite. The Kiwi was also pressured after the government said it intended to regulate bank lending standards, traditionally the domain of the Reserve Bank of New Zealand (RBNZ).

The Australian and New Zealand Dollars recovered on Friday as U.S. equity markets rose after analysts downplayed the impact of the potential tax increases. Policy strategists said that Democrats are expected to raise taxes for the wealthy, but the plan is not likely to pass as proposed.

“We expect Congress will pass a scaled back version of this tax increase,” wrote Goldman Sachs economists in a note. “We expect Congress will settle on a more modest increase, potentially around 28%.”

Australia Economic News

The manufacturing sector in Australia is continuing to expand in April, and at a faster pace, Friday’s flash estimate from Markit Economics revealed on Friday with a survey record manufacturing PMI score of 59.6.

The number is up from 56.8 in March and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

Markit Economics said the upturn was associated with improve client confidence, buoyant market conditions, strengthening demand, the easing of COVID-19 restrictions and low interest rates.

Aggregate new orders likewise increased at a survey-record pace, while the rise in total sales was supported by a recovery in new export orders.

Also, the services index improved to 58.6 in April from 55.5 in March and the composite index climbed to 58.8 in April from 55.5 in March.

Story continues

US Economic News

Markit’s preliminary U.S. manufacturing purchasing manager’s index for April came in at 60.6, slightly ahead of estimates from economists surveyed by Dow Jones. The composite came in at 62.2. The readings for manufacturing, services and the composite index were all at a record high for Markit’s flash series.

New home sales jumped in March after February’s cold weather across the country, with more than a million houses sold, the Census Bureau said Friday.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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