Business

US Employers Add 336,000 Jobs Amid Economic Uncertainty And High Interest Rates

https://apnews.com/article/jobs-inflation-rates-economy-federal-reserve-unemployment-8950494bcfcc717f7e6c18bc19ecaf6e

(CTN NEWS) – In a startling turn of events, the nation’s employers have defied expectations by adding a whopping 336,000 jobs in the month of September. This unexpected surge in job growth comes amid a backdrop of high interest rates and an uncertain economic outlook.

Are businesses more confident than we thought, or is there more to the story?

The Labor Department’s latest report showed a remarkable increase in hiring, which jumped from a revised 227,000 increase in August. July’s numbers were also revised upwards, suggesting that the job market has been stronger than initially estimated.

Over the past three months, the economy has averaged an impressive 266,000 new jobs each month.

Robust Job Market Poses Dilemma for Federal Reserve Amid Inflation Fight

But what does this mean for the Federal Reserve’s plans to combat inflation?

The sustained strength of the labor market is now raising questions about whether the Federal Reserve will raise its key interest rate again before the year’s end.

As the Fed continues its efforts to curb inflation, the robust job market could play a pivotal role in their decision-making process.

Despite high inflation and a rapid series of Fed interest rate hikes, the job market has remained resilient throughout the year.

The Fed’s rate hikes have made loans more expensive, but steady job growth has fueled consumer spending and kept the economy on an upward trajectory, defying earlier predictions of an impending recession.

Looking across various industries, the good news continues. Sectors such as healthcare, manufacturing, retail, and professional services have all seen job gains in September.

Government Employment and Slowing Wage Growth: Impact on Fed’s Interest Rate Decisions

Government employment at all levels has also increased, reflecting the healthy budgets of state and local governments.

However, there is a slight cause for concern as wage growth has slowed down. Average hourly pay only rose by 0.2% from August to September.

While wages are up 4.2% compared to a year earlier, this marks the mildest 12-month increase in over two years. Could this cooling of pay growth impact the Fed’s decisions on interest rates?

Some experts believe that the slowing wage growth may actually be a relief to the Fed’s inflation fighters, who are closely monitoring economic data to determine their next move.

Still, the remarkable job growth might lead to concerns that the economy is expanding too rapidly for inflation to cool down.

Recently, Mary Daly, president of the Federal Reserve Bank of San Francisco, hinted that the Fed could halt its rate hikes if the job market continues to slow.

Her statement highlights the delicate balance the Fed is trying to strike between controlling inflation and avoiding a potential economic downturn.

The Economic Landscape: Jobs Growth Resilience Amidst Growing Challenges

Over the past 2 1/2 years, job growth has remained resilient even in the face of high inflation and aggressive interest rate hikes by the Fed.

However, new threats to the economy have emerged, including higher long-term interest rates, rising energy prices, resuming student loan payments, labor strikes, and the looming possibility of a government shutdown.

The Fed’s benchmark interest rate currently stands at a 22-year high of approximately 5.4%, following 11 rate hikes that began in March 2022. These rate increases have led to higher borrowing costs for consumers and businesses across the board.

The Fed’s dilemma lies in the need to combat stubbornly high inflation while avoiding pushing borrowing rates so high that they trigger a recession.

Financial markets now anticipate that the central bank will keep its key rate elevated well into 2024, causing yields on the 10-year Treasury note to surge and mortgage rates to reach a 16-year high.

This higher yield has also taken a toll on the stock market, with the S&P 500 stock index experiencing a 7.2% drop since late July.

Goldman Sachs has even estimated that the economy’s growth in the current quarter could slow to a rate as low as 0.7%, a significant drop from the roughly 3.5% pace seen in the previous quarter.

In conclusion, the unexpected surge in job growth in September has brought new complexities to the economic landscape. While the job market remains strong, the Federal Reserve faces a delicate balancing act as it seeks to manage inflation without derailing economic growth.

The months ahead will undoubtedly be filled with uncertainty as the nation watches closely for the Fed’s next move.

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Business

PepsiCo Reduces Revenue Projections As North American Snacks And Key International Markets Underperform.

(VOR News) – In the third quarter of this year, Pepsi’s net income was $2.93 billion, which is equivalent to $2.13 per share. This was attributed to the company.

This is in stark contrast to net income of $3.09 billion, which is equivalent to $2.24 per share, during the same period in the previous year. The company’s earnings per share were $2.31 when expenses were excluded.

Net sales decreased by 0.6%, totaling $23.32 billion. Organic sales increased by 1.3% during the quarter when the effects of acquisitions, divestitures, and currency changes are excluded.

Pepsi’s beverage sales fell this quarter.

The most recent report indicates that the beverage and food sectors of the organization experienced a 2% decline in volume. Consumers of all income levels are demonstrating a change in their purchasing habits, as indicated by CEOs’ statements from the previous quarter.

Pepsi’s entire volume was adversely affected by the lackluster demand they encountered in North America. An increasing number of Americans are becoming more frugal, reducing the number of snacks they ingest, and reducing the number of times they purchase at convenience stores.

Furthermore, Laguarta observed that the increase in sales was partially attributed to the election that occurred in Mexico during the month of June.

The most significant decrease in volume was experienced by Quaker Foods North America, which was 13%. In December, the company announced its initial recall in response to a potential salmonella infection.

Due to the probability of an illness, the recall was extended in January. Pepsi officially closed a plant that was implicated in the recalls in June, despite the fact that manufacturing had already been halted.

Jamie Caulfield, the Chief Financial Officer of Pepsi and Laguarta, has indicated that the recalls are beginning to have a lessening effect.

Frito-Lay experienced a 1.5% decline in volume in North America. The company has been striving to improve the value it offers to consumers and the accessibility of its snack line, which includes SunChips, Cheetos, and Stacy’s pita chips, in the retail establishments where it is sold.

Despite the fact that the category as a whole has slowed down in comparison to the results of previous years, the level of activity within the division is progressively increasing.

Pepsi executives issued a statement in which they stated that “Salty and savory snacks have underperformed year-to-date after outperforming packaged food categories in previous years.”

Pepsi will spend more on Doritos and Tostitos in the fall and winter before football season.

The company is currently promoting incentive packets for Tostitos and Ruffles, which contain twenty percent more chips than the standard package.

Pepsi is expanding its product line in order to more effectively target individuals who are health-conscious. The business announced its intention to acquire Siete Foods for a total of $1.2 billion approximately one week ago. The restaurant serves Mexican-American cuisine, which is typically modified to meet the dietary needs of a diverse clientele.

The beverage segment of Pepsi in North America experienced a three percent decrease in volume. Despite the fact that the demand for energy drinks, such as Pepsi’s Rockstar, has decreased as a result of consumers visiting convenience stores, the sales of well-known brands such as Gatorade and Pepsi have seen an increase throughout the quarter.

Laguarta expressed his opinion to the analysts during the company’s conference call, asserting, “I am of the opinion that it is a component of the economic cycle that we are currently experiencing, and that it will reverse itself in the future, once consumers feel better.”

Additionally, it has been noted that the food and beverage markets of South Asia, the Middle East, Latin America, and Africa have experienced a decline in sales volume. The company cut its forecast for organic revenue for the entire year on Tuesday due to the business’s second consecutive quarter of lower-than-anticipated sales.

The company’s performance during the quarter was adversely affected by the Quaker Foods North America recalls, the decrease in demand in the United States, and the interruptions that occurred in specific international markets, as per the statements made by Chief Executive Officer Ramon Laguarta.

Pepsi has revised its forecast for organic sales in 2024, shifting from a 4% growth rate to a low single-digit growth rate. The company reiterated its expectation that the core constant currency profitability per share will increase by a minimum of 8% in comparison to the previous year.

The company’s shares declined by less than one percent during premarket trading. The following discrepancies between the company’s report and the projections of Wall Street were identified by LSEG in a survey of analysts:

SOURCE: CNBC

Business

Old National Bank And Infosys Broaden Their Strategic Partnership.

(VOR News) – Old National Bank, a commercial bank with its headquarters in the Midwest, and Infosys, a firm that specializes in information technology, have recently entered into a strategic expansion of their link, which has been in place for the past four years.

This expansion is more likely to take place sooner rather than later, with the likelihood being higher.

For the purpose of making it possible for Old National Bank to make use of the services, solutions, and platforms that are offered by Infosys, the objective of this expansion is to make it possible for the bank to transform its operations and processes through the application of automation and GenAI, as well as to change significant business areas.

This lets the bank leverage Infosys’ services, solutions, and platforms.

Old National Bank Chairman and CEO Jim Ryan said, “At Old National, we are committed to creating exceptional experiences for both our customers and our fellow employees.”

This statement is applicable to Old National Bank. Infosys is carefully managing the business process innovations that it is putting us through, putting a strong emphasis on efficiency and value growth throughout the process to ensure that it is carried out efficiently.

This is a routine occurrence throughout the entire operation. Because of Infosys’ dedication to our development and success, we are incredibly appreciative of the assistance they have provided.

Old National has been receiving assistance from Infosys in the process of updating its digital environment since the year 2020, according to the aforementioned company.

Ever since that time, the company has been providing assistance. The provision of this assistance has been accomplished through the utilization of a model that is not only powerful but also capable of functioning on its own power.

Infosys currently ranks Old National thirty-first out of the top thirty US banks.

This ranking is based on the fact that Old National is the nation’s largest banking corporation.

It is estimated that the total value of the company’s assets is approximately fifty-three billion dollars, while the assets that are currently being managed by the organization are valued at thirty billion dollars.

Dennis Gada, the Executive Vice President and Global Head of Banking and Financial Services, stated that “Old National Bank and Infosys possess a robust cultural and strategic alignment in the development, management, and enhancement of enterprise-scale solutions to transform the bank’s operations and facilitate growth.”

This remark referenced the exceptional cultural and strategic synergy between the two organizations. Dennis Gada is the one who asserted this claim. This was articulated explicitly concerning the exceptional cultural congruence and strategy alignment of the two organizations.

We are pleased to announce that the implementation of Infosys Topaz will substantially expedite the transformation of Old National Bank’s business processes and customer service protocols. We are exceedingly enthusiastic about this matter. We are quite thrilled about this specific component of the scenario.

Medium-sized banks operating regionally will continue to benefit from our substantial expertise in the sector, technology, and operations. This specific market segment of Infosys will persist in benefiting from our extensive experience. This phenomenon will enable this market sector to sustain substantial growth and efficiency benefits.

SOURCE: THBL

Business

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

The largest regulated water and wastewater utility company in the United States stated Monday that it had been the target of a cyberattack, forcing the company to halt invoicing to consumers.

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

American Water, based in New Jersey and serving over 14 million people in 14 states and 18 military facilities, said it learned of the unauthorized activity on Thursday and quickly took precautions, including shutting down certain systems. The business does not believe the attack had an impact on its facilities or operations and said employees were working “around the clock” to determine the origin and scale of the attack.

water

The corporation stated that it has alerted legal enforcement and is cooperating with them. It also stated that consumers will not be charged late fees while its systems are unavailable.

According to their website, American Water operates over 500 water and wastewater systems in around 1,700 communities across California, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, Tennessee, Virginia, and West Virginia.

SOURCE | AP