Employers added 223,000 new positions last month, pushing the jobless rate down from 3.6% in November to 3.5%, sparking hopes that the largest economy in the world will avoid a drastic economic downturn.
The US Central Bank continues to increase borrowing costs in an attempt to to cool the economy and ease the price pressures.
As businesses struggle with the effect of higher interest rates and the fears of a decrease in consumer spending, recent news of job cuts at financial institutions and tech firms has drawn attention.
However, the monthly report from the US Labor Department revealed that nearly every sector is adding new jobs.
Although job losses are on the rise, especially in the tech world, the figures overall remained near historic lows last year, said Andrew Challenger, SVP at Challenger, Gray & Christmas.
"The overall economy is still creating jobs, though employers appear to be actively planning for a downturn," he said.
It is raising its key interest rate by 0.75 percentage points, taking the bank's benchmark lending rate to 3.75% - 4%. It now sits at its highest rate since January 2008.
The bank's hopes are that the hike will bring down price inflation but critics are worried about the 'serious downturn' that will come with it.
Further increases are expected asFederal Reserve Chairman Jerome Powell said: "We still have some ways to go."
Similar announcement is expected in the UK today, as countries across the globe continue to raise their own interest rates in an attempt to solve their inflation problems.
“Strategic options through which Cineworld may achieve its restructuring objectives include a possible voluntary Chapter 11 filing in the United States,” the company said.
Cineworld is approximately $5 billion in debt and has struggled to recover from the Covid-19 lockdowns which saw the chain close its doors for several months. Analysts say that, while recent films such as the Top Gun, Thor, and James Bond releases have performed well, there haven’t been enough of these big titles to lure enough customers back to the big screen.
Cineworld has 750 sites in the UK and employs more than 28,000 people across 10 countries.
The cinema chain has warned of what its latest plans could mean for investors.
In a Monday statement, the company said: “Cineworld would expect to maintain its operations in the ordinary course until and following any filing and ultimately to continue its business over the longer term with no significant impact upon its employees. As previously announced, any deleveraging transaction would, however, result in very significant dilution of existing equity interests in Cineworld.”
Speaking to CNBC, Barkin said, “So we’re happy to see inflation start to move down [..] I’d like to see a period of sustained inflation under control, and until we do that I think we’re just going to have to continue to move rates into restrictive territory.”
According to the Bureau of Labor Statistics, headline consumer prices were flat in July while producer prices were down 0.5%.
However, this figure is just one month’s data, with CPI still up 8.5% on a year-over-year basis and the producer price index climbing 9.8%. Each of these figures is still notably over the Federal Reserve’s target of 2%, meaning the central bank must continue to push forward in order to meet this goal.
“You’d like to see inflation running at our target, which is 2% at the PCE, and I’d like to see it running at our target for a period of time,” Barkin commented.
Even as the pandemic has started to wind down slightly, reports found that more than 13.5 million, roughly one in five renters, were still not caught up with their rent as early as February 2021. This, and many other rental or property-related issues have been plaguing American households, even as rental prices in 47 states have increased by as much as 5% in the last year.
While the property market has shown signs of cooling down, as the Federal Reserve aggressively hikes interest rates to combat soaring inflation, a new challenge is looming on the horizon which has now left millions concerned over their privacy and safety.
As the rise of technology, software, and the Internet of Things (IoT) filter through every industry, real estate, and property management is no different in this regard.
The technologies being used by corporate property owners and landlords are raising questions over the amount of data and information of tenants that are being shared or sold to third-party agents or bad actors.
Seeing as many landlords or owners are now looking to modernise their rental units, utilising the capabilities technology and the internet has to offer, with products such as security monitors, facial recognition, augmented reality facility management, and smart entry systems, among others - tenants want to know how much of their data is being obtained and stored by their landlords.
The gathering of personal information and data, in regards to property management and rental units, has been a long road of concern for many American households. Seeing as state and local laws regulate what information landlords are allowed to obtain, there’s been a discrepancy in terms of how much available data is being shared or sold to third parties.
The rental rewards platform and proptech startup Bilt recently came under fire for its almost seemingly endless pit of personal information and data it has on millions of American renters. The startups' software and collaboration with major corporate landlords such as Equity Rental means that they have access to renters' personal information and addresses.
Privacy concerns are nothing new, and for renters, it’s becoming more and more alarming how much of their private records or information is in the hands of their landlords.
It’s not at all possible to trace and find every server that has some dossier of your personal information. Regardless thereof, both tenants and landlords should consider some of the key real estate privacy risks they could encounter.
As already mentioned, technology and software, with the help of the internet is creating a new breed of homes and apartments across America.
The rise of smart homes has been a long time coming, but it’s only more recently that landlords have been focused on implementing certain technological features in both old and new buildings to upgrade security and tenant features.
While these features are making homes and rental properties more attractive for American renters, it now also comes with an increased risk of data and information exposure.
Smart doorbells, automated thermostats, wifi-connected delivery and security systems, and even smart entry systems may contain some trace of renter data. From fingerprints to facial recognition, information such as this is being captured and stored in various servers unknown to tenants.
Today, more than ever before it’s become important for landlords and owners to oblige state and local laws regulating the protection of tenant data when utilising IoT systems. States such as California and Oregon have in more recent times moved to implement specific security standards for IoT devices in smart homes.
Even though these regulations exist within a minority of states, landlords should carefully review the type of security systems and devices they’re looking to use and indicate this to their tenants. Furthermore, landlords should consider vendor protocols and security measures to protect personal data and information in the event of a breach.
Applying for a rental could mean that a renter will need to give up a lot of their personal information for review by the landlord.
While landlords may be obligated to request these personal documents, many times tenants feel unsafe or wary of having to simply offer up their private information to landlords.
Recent changes in state privacy laws have meant that renters now have rights concerning the personal information they share with landlords, the right to access, correct, and delete or obtain portable copies. Seeing as much of this information is shared via the internet or online platforms, keeping track of all documents shared can be a tremendous challenge.
To ensure data protection and privacy, landlords are urged to utilise systems and data collecting points that are centralised on a secure database, and keep these files under a digital lock and key.
Applying for a rental, whether it’s through the internet or in person does come with an administrative burden, and it’s important that both parties, the landlord and tenant remain compliant with state and local laws, and ensure that data collection points are secure at all times.
Tenants will need to be informed by their landlords or building management company about the required personal information that is needed during the application process and throughout the rental period.
Various state laws and amended regulations have now become more focused on protecting renters’ personal information, and ensuring that landlords communicate any form of the privacy notice.
For most cases, it’s also important that renters read through privacy notices during the screening period, and ensure they raise any concerns or questions they might have. In states such as California, corporate renters and property management groups will need to disclose the information they obtained from renters, for what purpose, and rights assigned to individuals or renters to exercise their privacy rights.
It’s not just in California where landlords are now coming under question in regards to the information they collect from their renters. Some states, such as Colorado, Connecticut, Utah, and Virginia, among others, have changed and improved state privacy laws related to personal information.
New York has also recently made changes to tenant privacy laws and looks to mitigate the sharing of tenants' data and information regardless of the point through which it has been collected.
Renters run an increased risk of exposure if not aware of the different points at which their personal information and data can be obtained. While smart technologies and systems have upgraded our homes, it’s also increased exposure to personal information.
Landlords will need to take caution when implementing certain management systems to ensure they comply with state and local regulations. Above that, it’s advised they exercise due diligence when working with digital platforms and technologies to collect and store applicant information.
Regardless of the position held, whether a tenant or a landlord, there are particulars required by each party to ensure a partisan agreement. More so, it’s important for tenants to have a clear understanding of their rights, and how they can be used to protect their personal information.
The news comes not long after the Federal Reserve upped interest rates by three-quarters of a percentage point to a range of 2.25%-2.50% in a bid to curb growth and ease price pressures.
Despite the report, Federal Reserve Chair Jerome Powell thus far maintains the view that an economy that is adding hundreds of thousands of jobs per month is not experiencing a recession. Over the past months, Powell has vowed to take action against record-high inflation.
"We do want to see demand running below potential for a sustained period to create slack and give inflation a chance to come down," Powell commented on Wednesday.
"It's also worth noting that these rate hikes have been large and they've come quickly, and it’s likely that their full effect has not been felt by the economy. So there’s probably some additional tightening - significant additional tightening in the pipeline."
Barclays reported a pre-tax profit of £3.7 billion in the first six months of 2022, down from £4.9 billion a year ago. Analysts had predicted the bank to report a Q2 pre-tax profit of £3.9 billion.
Barclays’ most recent results were tainted by a £1.3 billion charge in the half to meet the costs of buying back the $17.6 billion worth of securities that it sold in breach of US regulations.
The bank previously admitted to selling more products to US investors than it was permitted to, which triggered an approximate loss of £450 million.
Since Russia’s invasion of Ukraine, some of the structured goods have increased in popularity, attracting further regulatory scrutiny for Barclays over the error.
According to a new report from McKinsey and Co, approximately 40% of employees in the US are considering quitting their current roles over the next 3-to-6 months. McKinsey and Co surveyed over 6,000 US employees between February and April.
“This isn’t just a passing trend or a pandemic-related change to the labour market,” commented Bonnie Dowling, one of the report’s authors.
“There’s been a fundamental shift in workers’ mentality, and their willingness to prioritise other things in their life beyond whatever job they hold […] We’re never going back to how things were in 2019.”
As well as speaking to employees in the US, McKinsey and Co also spoke to people in Australia, Canada, Singapore, India, and the UK.
“Respondents across the six countries showed a consistently high desire for work that is better paying, more satisfying, or both, as well as a conviction that they can find better jobs elsewhere,” the report said.
“To navigate this new playing field successfully, hiring managers can look beyond the current imbalance in labour supply and demand and consider what different segments of workers want and how best to engage them.”
Johnson, ministers, and executives from the London Stock Exchange have been involved in an 11th-hour bid to persuade SoftBank to consider at least a partial listing of Arm in the country. However, higher valuations have recently made New York a more attractive choice for most of the world’s largest tech flotations.
“We want to make the UK the most attractive place for innovative businesses to grow and raise capital,” a government spokesperson commented in May.
Back in February, SoftBank CEO Masayoshi Son disregarded the UK when outlining backup plans for the flotation of Arm following the collapse of a $40 billion takeover deal by its California-based rival Nvidia.
“We think that the Nasdaq stock exchange in the US, which is at the centre of global hi-tech, would be most suitable,” Son commented at the time.
However, more recently, Son said London was still an option for the company’s upcoming stock market listing, though added that his top preference was the US’s tech-focused Nasdaq stock exchange.
Compared to one year ago, the CPI hit 9.1% in June, jumping from the 8.6% year-on-year rise seen the month before. The increase maintains the highest inflation seen in four decades for the US economy.
Wall Street analysts had predicted a month-on-month increase of 1.1% and an annual increase of 8.8%.
June’s rise was heavily influenced by higher fuel and food costs. The price of petrol increased 11.2% from May while energy prices rose 60% over the past year. Food prices were up 1% from May and 10.4% over the previous 12 months.
Last month, Federal Reserve Chair Jerome Powell vowed that policymakers would not allow inflation to overcome the US economy in the long term:“The risk is that because of the multiplicity of shocks you start to transition to a higher inflation regime. Our job is literally to prevent that from happening, and we will prevent that from happening,” Powell said.
“We will not allow a transition from a low-inflation environment into a high-inflation environment.”
Cohen is a protege of former Google CEO Eric Schmidt. In 2010, Cohen went on to establish technology incubator Jigsaw. His recruitment is the most recent step taken by Goldman Sachs to inject a technology focus into the bank.
Cohen is set to lead the group, known as the Office of Applied Innovation, alongside co-chief information officer George Lee.
“Working closely with leaders across Goldman Sachs, George and Jared will specifically identify and advance commercial opportunities for the firm that are at the intersection of a changing global marketplace, shifts in the geopolitical landscape and rapidly evolving technology,” Solomon said.
Cohen will be joining New York-based Goldman Sachs at its senior-most rank, serving as a partner, management committee member and also as president of global affairs.
In June, Federal Reserve officials highlighted the need to tackle inflation, even if it came at the cost of slowing the economy amid the looming threat of recession. They said that the US central bank’s July meeting would likely see another 50 or 75 basis point move on top of a 75 basis point increase that was approved in June.
“In discussing potential policy actions at upcoming meetings, participants continued to anticipate that ongoing increases in the target range for the federal funds rate would be appropriate to achieve the Committee's objectives,” the minutes read.
“In particular, participants judged that an increase of 50 or 75 basis points would likely be appropriate at the next meeting. Participants concurred that the economic outlook warranted moving to a restrictive stance of policy, and they recognised the possibility that an even more restrictive stance could be appropriate if elevated inflation pressures were to persist.”