Business

September US Job Growth Reaches 8-Month High; Wage Inflation Eases

(CTN News) – In September, the US job market grew by the most in eight months, giving the Federal Reserve ammunition to raise interest rates again.

In its closely watched employment report on Friday, the Labor Department reported a bigger-than-expected surge in nonfarm payrolls last month and sharply higher revisions to July and August US Jobs. That confirms the third-quarter economic activity accelerated.

It looks like monetary policy may remain tight for a while, 18 months after the US central bank started raising rates to cool demand. In September, first-time unemployment benefit applications stayed low and US Job openings jumped in August.

Yields on bonds

Since long-term US Treasury yields are at 16-year highs, most economists believe the Fed is done hiking rates.

There’s a new tightening of financial conditions that does some of the work for the Fed, so it’s not a done deal for the Fed to hike rates again,” said Kathy Bostjancic, chief economist at Nationwide.

Last month, nonfarm payrolls increased by 336,000, the most since January. The economy created 119,000 jobs in July and August. In a Reuters poll, economists expected 170,000 payroll gains. Keeping up with the growth in the working-age population will require about 100,000 new jobs each month.

A few economists argued that payrolls had been boosted by difficulties adjusting data for returning education workers, a notion dismissed by most since private payrolls increased by 263,000.

Chris Low, chief economist at FHN Financial in New York, said, “The surge in teachers hired in September cannot be compared to the strength in payrolls now stretching back to July.”

A total of 96,000 jobs were added to the payroll in the leisure and hospitality sector. The restaurant and bar sector created 61,000 jobs, returning employment to its pre-pandemic level.

Including education, state and local government employment increased by 73,000 jobs. There are 9,000 fewer government US Jobs than prior to the pandemic. Hospitals, nursing homes, and residential care facilities added 41,000 jobs to the healthcare sector.

Despite the decline in temporary help hiring, professional, scientific, and technical services employment grew. Despite mortgage rates at a 20-year high, employment in transportation and warehousing, retail, and construction rose.

The United Auto Workers’ (UAW) strike at General Motors, Ford Motor and Chrysler parent Stellantis, which began at the end of the week that the government surveyed businesses for the employment report, did not affect payrolls. There was an increase of 17,000 jobs in manufacturing.

A months-long Hollywood writers’ strike recently ended, costing the industry 7,000 US Jobs.

Stocks on Wall Street were up. Dollar fell against a basket of currencies. Bond yields on the benchmark 10-year note and 30-year bond hit 2007 levels, sending Treasury prices down.

“It feeds into the higher (rates) for longer story,” said Gina Bolvin, president of Bolvin Wealth Management.

Stable unemployment rate

Slowing wage growth could provide some comfort to policymakers eager to see the labour market ease. After a similar gain in August, hourly earnings rose 0.2%. From 4.3% in August, the increase in wages slowed to 4.2%.

It’s likely that wages moderated because most of the US Jobs added last month were low-paying.

However, wages are still rising faster than the Fed’s 2% inflation target. However, fewer people are quitting their US Jobs for greener pastures, which could moderate wage growth.

Rates are expected to stay the same at the Fed’s Oct. 31-Nov. 2 policy meeting, though the odds of a hike are increasing. Next week’s inflation data might help clarify things. The Fed raised its benchmark overnight rate by 525 basis points since March 2022.

Household employment rose modestly in September while more people entered the workforce, keeping the unemployment rate unchanged at 3.8%.

Despite that, 156,000 fewer people were working part-time.

The broader measure of unemployment, which includes people who are looking for work but have given up, dropped to 7.0% from 7.1% in August. Unemployment was also shorter for fewer people.

Growth US Jobs estimates for the third quarter are at 4.9% annualized, more than double what Fed officials regard as the non-inflationary rate of around 1.8%.

In spite of slower wage growth for most workers, the still-solid rate of hiring suggests that aggregate incomes from the labor market continue to grow at a decent clip, which should help consumers spend more,” said Sarah House, a senior economist at Wells Fargo in Charlotte, North Carolina.

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