Trump hits India with 25% tariff and ‘penalty' over Russia ties
The measures will kick in on Friday, Trump posted on his Truth Social platform, adding to a host of other
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1News
8 hours ago
- 1News
Wall Street falls after employers slash hiring and tariffs roll out
The US stock market had its worst day since May after the government reported a sharp slowdown in hiring and President Donald Trump imposed sweeping tariffs on imports from a number of US trading partners. The S&P 500 fell 1.6%, its biggest decline since May 21 and its fourth straight loss. The index also posted a 2.4% loss for the week, marking a sharp shift from last week's record-setting streak of gains. The Dow Jones Industrial Average fell 1.2%, while the Nasdaq composite fell 2.2%. Worries on Wall Street about a weakening economy were heavily reinforced by the latest report on job growth in the US, employers added just 73,000 jobs in July. That is sharply lower than economists expected. The Labor Department also reported that revisions shaved a stunning 258,000 jobs off May and June payrolls. ADVERTISEMENT Markets also reacted to the latest tariff news. President Donald Trump announced tariff rates on dozens of countries and pushed back the scheduled effective date to August 7, adding more uncertainty to the global trade picture. "The market has been felled by a one-two punch of additional tariffs, as well as the weaker-than-expected employment data — not only for this month, but for the downward revisions to the prior months," said Sam Stovall, chief investment strategist at CFRA. Trump's decision to order the immediate firing of the head of the government agency that produces the monthly jobs figures will only fuel the market's uncertainty, Stovall added. The surprisingly weak hiring numbers led investors to step up their expectations for an interest rate cut in September. The market's odds of a quarter-point cut by the Federal Reserve rose to around 87% from just under 40% a day earlier, according to data from CME FedWatch. The question now: Will the Fed's policymakers consider a half-point cut next month, or even a quarter-point cut sometime before their next committee meeting, Stovall said. The yield on the 10-year Treasury fell to 4.21% from 4.39% just before the hiring report was released. That's a big move for the bond market. The yield on the two-year Treasury, which more closely tracks expectations for Fed actions, plunged to 3.68% from 3.94% just prior to the report's release. The Fed has held rates steady since December. A cut in rates would give the job market and overall economy a boost, but it could also risk fueling inflation, which is hovering stubbornly above the central bank's 2% target. ADVERTISEMENT An update on Thursday (local time) for the Fed's preferred measure of inflation showed that prices ticked higher in June, rising to 2.6% from 2.4% in May. The Fed has remained cautious about cutting interest rates because of worries that tariffs will add more fuel to inflation and weigh down economic growth. The central bank, though, also counts "maximum employment" as one of its two mandates along with keeping prices stable. Issues with either of those goals could prompt a shift in policy. The Fed held rates steady again at its most recent meeting this week. Fed Chair Jerome Powell has been pressured by Trump to cut the benchmark rate, though that decision isn't his to make alone, but belongs to the 12 members of the Federal Open Market Committee. "What had looked like a Teflon labour market showed some scratches this morning, as tariffs continue to work their way through the economy," said Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management. "A Fed that still appeared hesitant to lower rates may see a clearer path to a September cut, especially if data over the next month confirms the trend." Businesses, investors and the Fed are all operating under a cloud of uncertainty from Trump's tariff policy. The latest moves give 66 countries, the European Union, Taiwan and the Falkland Islands another seven days, instead of taking effect on Friday, as Trump stated earlier. Companies have been warning investors that the policy, with some tariffs already in effect while others change or get extended, has made it difficult to make forecasts. Walmart, Procter & Gamble and many others have warned about import taxes raising costs, eating into profits and raising prices for consumers. ADVERTISEMENT Internet retail giant Amazon fell 8.3%, despite reporting encouraging profit and sales for its most recent quarter. Technology behemoth Apple fell 2.5% after also beating Wall Street's profit and revenue forecasts. Both companies face tougher operating conditions because of tariffs, with Apple forecasting a USD$1.1 billion (NZ$1.8 billion) hit from the fees in the current quarter. Exxon Mobil fell 1.8% after reporting that profit dropped to the lowest level in four years and sales fell as oil prices slumped as OPEC+ ramped up production. All told, the S&P 500 fell 101.38 points to 6,238.01. The Dow dropped 542.40 points to 43,588.58, and the Nasdaq gave up 472.32 points to finish at 20,650.13. Stocks fell across the world. Germany's DAX fell 2.7% and France's CAC 40 fell 2.9%. South Korea's Kospi tumbled 3.9%
1News
11 hours ago
- 1News
Trump wants director of jobs data fired after dismal employment report
President Donald Trump removed the head of the agency that produces the monthly jobs figures after a report showed hiring slowed in July and was much weaker in May and June than previously reported. Trump, in a post on his social media platform, alleged that the figures were manipulated for political reasons and said that Erika McEntarfer, the director of the Bureau of Labor Statistics, who was appointed by former President Joe Biden, should be fired. He provided no evidence for the charge. "I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY," Trump said on Truth Social. "She will be replaced with someone much more competent and qualified." Trump later posted, "In my opinion, today's Jobs Numbers were RIGGED in order to make the Republicans, and ME, look bad". The charge that the data was faked is an explosive one that threatens to undercut the political legitimacy of the US government's economic data, which has long been seen as the "gold standard" of economic measurement globally. Economists and Wall Street investors have for decades generally accepted the data as free from political bias. Trump's move to fire McEntarfer represented another extraordinary assertion of presidential power. He has wielded the authority of the White House to try to control the world's international trade system, media companies, America's top universities and Congress' constitutional power of the purse, among other institutions. McEntarfer's firing was roundly condemned by a group that included two former BLS commissioners, including William Beach, who was appointed by Trump to the position. They particularly objected to the charge that the data was altered for political reasons. "This rationale for firing Dr McEntarfer is without merit and undermines the credibility of federal economic statistics that are a cornerstone of intelligent economic decision-making by businesses, families, and policymakers," the statement from the group, the Friends of BLS, said. In addition to Beach, the statement was signed by Erica Groshen, BLS commissioner under former President Barack Obama. "Firing the Commissioner ... when the BLS revises jobs numbers down (as it routinely does) threatens to destroy trust in core American institutions, and all government statistics," Arin Dube, an economist at the University of Massachusetts-Amherst, said on X. "I can't stress how damaging this is." After Trump's initial post, Labor Secretary Lori Chavez-DeRemer said on X that McEntarfer was no longer leading the bureau and that William Wiatrowski, the deputy commissioner, would serve as the acting director. "I support the President's decision to replace Biden's Commissioner and ensure the American People can trust the important and influential data coming from BLS," Chavez-DeRemer said. Friday's jobs report showed that just 73,000 jobs were added last month and that 258,000 fewer jobs were created in May and June than previously estimated. The report suggested that the economy has sharply weakened during Trump's tenure, a pattern consistent with a slowdown in economic growth during the first half of the year and an increase in inflation during June that appeared to reflect the price pressures created by the president's tariffs. "What does a bad leader do when they get bad news? Shoot the messenger," Democratic Senate Leader Chuck Schumer of New York said in a speech. McEntarfer was nominated by Biden in 2023 and became the Commissioner of the Bureau of Labor Statistics in January 2024. Commissioners typically serve four-year terms but since they are political appointees can be fired. The commissioner is the only political appointee of the agency, which has hundreds of career civil servants. The Senate confirmed McEntarfer to her post 86-8, with now Vice President JD Vance among the yea votes. Trump focused much of his ire on the revisions the agency made to previous hiring data. Job gains in May were revised down to just 19,000 from a previously revised 125,000, and for June they were cut to 14,000 from 147,000. In July, only 73,000 positions were added. The unemployment rate ticked up to a still-low 4.2% from 4.1%. "No one can be that wrong? We need accurate Jobs Numbers," Trump wrote. "She will be replaced with someone much more competent and qualified. Important numbers like this must be fair and accurate, they can't be manipulated for political purposes." Trump has not always been so suspicious of the monthly jobs report and responded enthusiastically after the initial May figures came out on June 6, when it was initially reported that the economy added 139,000 jobs. "GREAT JOB NUMBERS, STOCK MARKET UP BIG!' Trump posted at the time. That estimate was later revised down to 125,000 jobs, prior to the most recent revision down to just 19,000. During the 2016 campaign, Trump was more critical. He often attacked the jobs figures as they showed the unemployment rate steadily declining while Obama was still president, only to immediately switch to praising the data once he was in office, as steady job gains continued. The monthly employment report is one of the most closely-watched pieces of government economic data and can cause sharp swings in financial markets. The disappointing figure sent US market indexes about 1.5% lower on Friday. The revisions to the May and June numbers were quite large and surprising to many economists. At the same time, every monthly jobs report includes revisions to the prior two months' figures. Those revisions occur as the government receives more responses from businesses to its survey, which helps provide a more complete picture of employment trends each month. In the past decade, companies have taken longer to respond, which may have contributed to larger monthly revisions. The proportion of companies responding to the surveys has also fallen steadily over the past 10 years, but the survey still gets responses from roughly 200,000 business locations, which can be independent companies or franchises of larger chains. The monthly jobs report has long been closely guarded within the BLS, with early copies held in safes under lock and key to prevent any leaks or early dissemination.
RNZ News
12 hours ago
- RNZ News
US President Donald Trump fires labour statistics official over jobs numbers
A news ticker broadcasts the news of the firing of the commissioner of the Bureau of Labor Statistics on the floor of the New York Stock Exchange on 1 August, 2025. Photo: AFP / MICHAEL M. SANTIAGO By Kit Maher , Matt Egan and Alicia Wallace , CNN President Donald Trump has fired Dr Erika McEntarfer, the commissioner of the Bureau of Labor Statistics, whom he accused, without evidence, of manipulating the monthly jobs reports for "political purposes". The BLS' monthly labour report Friday (US time) showed that the US economy added only 73,000 jobs in July, far below expectations. It also sharply revised down the employment growth that had been previously reported in May and June - by a combined 258,000 jobs. After the revisions, the jobs report showed the weakest pace of hiring for any three-month period since the pandemic recession in 2020. "In my opinion, today's Jobs Numbers were RIGGED in order to make the Republicans, and ME, look bad," Trump said in a Truth Social post. Although the May and June jobs numbers were worse than initially believed, revisions are normal in this process. The BLS' initial monthly jobs estimates are often based on incomplete data, so they are revised twice after the initial report - followed by an annual revision every February. Additionally, BLS economists use a formula to smooth out jobs numbers for seasonal variations and that can exacerbate revisions, when they fall outside economists' expectations. On Friday, Trump incorrectly called the revisions a "mistake". "McEntarfer said there were only 73,000 Jobs added (a shock!) but, more importantly, that a major mistake was made by them, 258,000 Jobs downward, in the prior two months," Trump said on Truth Social. "Similar things happened in the first part of the year, always to the negative. The Economy is BOOMING under 'TRUMP'." Trump said McEntarfer "faked" the jobs numbers before the election to try to boost former Vice President Kamala Harris' chances in the 2024 presidential election. "We're doing so well. I believe the numbers were phony, just like they were before the election, and there were other times. So, you know what I did? I fired her, and you know what? I did the right thing," Trump told reporters Friday on the South Lawn. Trump has also threatened the firing of Federal Reserve Chaie Jerome Powell. Photo: AFP McEntarfer was confirmed by the Senate 86-8 in January 2024 for a term of four years. CNN has reached out to McEntarfer for comment. Until Trump replaces McEntarfer, Deputy Commissioner William Wiatrowski will serve as Acting Commissioner, the administration said. Trump has previously criticised the BLS for its jobs data and revisions, and he told reporters Friday evening he's "always had a problem with these numbers". In 2016, during his first presidential campaign, Trump claimed that the unemployment rate was significantly higher than the BLS let on. In 2024, he accused former President Joe Biden's administration of orchestrating a cover-up, after the BLS reported that it had overcounted jobs by 818,000 over the previous 12 months. "I was thinking about it this morning, before the numbers that came out. I said, 'Who is the person that does these numbers?' And then they gave me stats about before the election," Trump said. "We need people that we can trust," he added. Trump and his administration have also praised the BLS data when it has been favourable to them. During Trump's first term, former White House Press Secretary Sean Spicer said, in March 2017, that the jobs data was no longer "phony", after the BLS issued a strong jobs report. A month ago, current White House Press Secretary Karoline Leavitt posted on social media that the economy had beaten expectations for jobs in four straight BLS labour reports. The BLS is nonpartisan, and businesses and government officials rely on the accuracy of its data to make determinations about investment, hiring, spending and all sorts of key decisions. "It's outrageous for anyone in government to question the integrity of the BLS," said Jason Furman, a Harvard professor and former Obama economic adviser. "Accurate statistics are essential to the economy." Furman doubted that replacing McEntarfer would compromise the BLS, but he said even the possibility or appearance of that notion "would be bad". "Countries that have tried to fake those statistics have often ended up with economic crises as a result," Furman said. Mark Zandi, chief economist at Moody's Analytics, said the BLS data is at the "highest standard", and "as accurate as it can be". "Anything that undermines that or even the perception of that high standard is deeply worrisome," Zandi said. "I've never seen anything even close to this." At Moody's, Zandi said he has hired a number of former BLS economists, whom he called "fantastic". "They do great work," Zandi said. "They are critical to a well-functioning economy." Democratic Virginia Senator Mark Warner accused Trump of working the referees. "Firing the ump doesn't change the score," Warner said in a statement. "Americans deserve to know the truth about the state of the Trump economy." Labor Secretary Lori Chavez-DeRemer said she supported replacing McEntarfer. "A recent string of major revisions have come to light and raised concerns about decisions being made by the Biden-appointed Labor Commissioner," Chavez-DeRemer said on X. "I support the President's decision to replace Biden's Commissioner, and ensure the American People can trust the important and influential data coming from BLS." The BLS jobs survey is widely considered by economists to be robust. It samples more than 100,000 businesses and government agencies each month, representing roughly 629,000 individual worksites. As part of larger cost-cutting taking place around practically every part of Trump's government, the BLS is laying off staff and, as a result, reducing the scope of its work. For example, the BLS posted a notice in June stating it stopped collecting data for its Consumer Price Index in three cities - Lincoln, Nebraska; Buffalo, New York; and Provo, Utah - and increased "imputations" for certain items - a statistical technique that, when boiled down to very rough terms, essentially means more educated guesses. That worried Federal Reserve Chair Jerome Powell. In testimony before Congress in June, Powell said he believed the BLS data to be accurate, but he was upset about what could become a trend. "I wouldn't say that I'm concerned about the data today, although there has been a very mild degradation of the scope of the surveys," Powell said at the time, in response to a question about survey data quality. "I would say the direction of travel is something I'm concerned about." - CNN
