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Miami Herald
5 days ago
- Business
- Miami Herald
Veteran investor makes surprising Fed rate call after jobs report
Okay, Jerome Powell, now it's your turn. President Donald Trump on June 6 took a break from bashing Elon Musk to vent his spleen - again - at Federal Reserve Chairman Jerome Powell. Don't miss the move: Subscribe to TheStreet's free daily newsletter Trump took to his social media platform to call on Powell to slash interest rates by a full percentage point. "'Too Late' at the Fed is a disaster!" Trump said on Truth Social. "Europe has had 10 rate cuts, we have had none. Despite him, our Country is doing great. Go for a full point, Rocket Fuel!" Trump made his demand even though the Bureau of Labor Statistics reported that U.S. hiring in May rose more than predicted. Nonfarm payrolls rose 139,000 for the month, exceeding estimates for 125,000. The last time the central bank made a single rate cut of a full percentage point was in March 2020 to address economic fallout from the onset of the Covid-19 Fed cut rates by one full point in total during President Joe Biden's final year in office. "If 'Too Late' at the Fed would CUT, we would greatly reduce interest rates, long and short, on debt that is coming due," Trump said, using the two-word name he calls Powell. "Biden went mostly short term." More Economic Analysis: Hedge-fund manager sees U.S. becoming GreeceA critical industry is slamming the economyReports may show whether the economy is toughing out the tariffs "There is virtually no inflation (anymore), but if it should come back, RAISE "RATE" TO COUNTER. Very Simple!!! He is costing our Country a fortune. Borrowing costs should be MUCH LOWER!!!" It seems like only yesterday when the president was giving Musk - Tesla's (TSLA) CEO and a big-time Trump backer - all kinds of misery after the former head of the Department of Government Efficiency decried Trump's "big beautiful bill" of tax breaks and spending cuts as pork-laden and a "disgusting abomination." Actually, it was yesterday, come to think of it, when Trump suggested that an easy way to save "Billions and Billions of Dollars" was to terminate all of Musk's government contracts and subsidies. Tesla and Musk's rocket company, SpaceX, both benefit from a a number of government programs. Musk, who took credit for getting Trump elected, also decided it would be a good idea to bring up Jeffrey Epstein's name while Tesla shares nosedived. TheStreet Pro's Peter Tchir says that if you're looking for excitement, this is the social-media donnybrook to watch. Unlike the payroll data. The veteran investor said in a recent TheStreet Pro column that the report looked decent on the surface but "there are a lot of things to pick on." "The prior two months were revised down by 95,000," he said. "That negates much of this month's reported gain in the Establishment Survey." The Establishment Survey, also known as the Current Employment Statistics survey, provides monthly data on employment, hours and earnings of workers on nonfarm payrolls. "The Household Survey, used for the unemployment rate, lost over 600,000 jobs," Tchir said. "The unemployment rate remained unchanged only because labor-force participation dropped by a similar amount." Related: An investor looks at navigating tariff wars The birth/death model, which estimates the number of jobs created by new businesses and lost from defunct businesses, added 199,000 jobs, he added. "With low survey response rates, etc., there are a lot of things to question about the quality of the data (the seemingly endless downward revisions validate that 'questioning'), but this number is back to 'bothering' me,'" Tchir said. Without this calculated number, he explained, "we would have lost jobs in the Establishment Survey "kind of like the Household Survey indicated." "Sure, it is possible that in a time of peak uncertainty, lots of new businesses were formed, but the number seems high," Tchir said. "It is the second month in a row when there is a lot of uncertainty, where birth/death adjustment was bigger than the number itself. That is why I would weigh this into being more dovish, if I was at the Fed." Foul weather might have also had a negative impact on the data. "If the Fed was looking to cut rates, it could probably come up with a story around this data to let it do so," Tchir said. "Since the Fed doesn't seem to be looking to cut rates, though, there is enough of a narrative in this report to keep it on hold." "After this data, I remain in the three-to-four-cuts-this-year camp, starting in July." Related: Fund-management veteran skips emotion in investment strategy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
5 days ago
- Business
- Yahoo
Nonfarm Payrolls Increased More Than Expected
We've experienced an abnormally newsworthy week for the stock market, but arguably this morning brings us the biggest news of all: the May Employment Situation report from the U.S. Bureau of Labor Statistics (BLS). Headline jobs growth came in at +139K — +14K higher than the +125K anticipated. The Unemployment Rate from the Household Survey repeats for the third-straight month at an historically low +4.2%. Revisions to the previous months are considerable, though. April's original +177K has been reduced by -30K to +147K this morning. March's previous +185K has shrunk to +120K today. In fact, that March number, back when it was originally posted, was +228K — more than +100K higher than we now see. Through 2025 so far, based on these revisions, we're now range-bound between +110-150K new job gains. This is good and positive — and does provide more jobs than needed to account for new retirees per month — but it is demonstrably coming down. Full-year 2024, even with notably weak job gains in the summertime, averaged +164K per month. Hourly Wages ticked up to +0.4%, 10 basis points (bps) higher than expected and double the wage growth in April. Year over year, this brings us to +3.9% — this is where we were in January and February this year. This demonstrates continued economic resilience, but will keep Fed rate cuts at bay for now. The Average Workweek also remained consistent at 34.3 hours, now for the third straight month. But Labor Force Participation dropped 20 bps to 62.4%, which is the lightest print year to date, and the lowest we've seen since December of 2022. The U-6, aka 'real unemployment,' reached 7.8% for the second-straight month. By sector, Healthcare provided +68K new positions filled last month. Leisure & Hospitality illustrated a still-healthy travel & leisure economy with +48K new jobs. But government jobs shed -22K (-59K from the start of the year; there were many more layoffs than that, likely resulting in severance packages or outright retirement), Manufacturing lost -8K and Retail was -6.5K. This begs the question whether the consumer is feeling the strength in the overall economy. Pre-market futures are breathing a sigh of relief this morning, especially following the paltry +37K jobs posted on private-sector payrolls from ADP (ADP) on Wednesday. The Dow was +150K ahead of the BLS report and has now roughly doubled. The S&P is presently up +45 points, on its way back to 6K. The tech-heavy Nasdaq is adding +180 points at this hour. Bottom-line: slowing employment growth is still employment growth, and this equals economic growth. It won't bring us lower interest rates from the Fed next week, but those weren't expected anyway. And, as news programming clogs its headlines with news of the public spat between Elon Musk and President Trump, we can see that the underlying U.S. economy continues to chug along. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
6 days ago
- Business
- Yahoo
Pre-Markets Relieved with Strong Jobs Headline; Revisions Lower
Friday, June 6, 2025We've experienced an abnormally newsworthy week for the stock market, but arguably this morning brings us the biggest news of all: the May Employment Situation report from the U.S. Bureau of Labor Statistics (BLS). Headline jobs growth came in at +139K — +14K higher than the +125K anticipated. The Unemployment Rate from the Household Survey repeats for the third-straight month at an historically low +4.2%. Revisions to the previous months are considerable, though. April's original +177K has been reduced by -30K to +147K this morning. March's previous +185K has shrunk to +120K today. In fact, that March number, back when it was originally posted, was +228K — more than +100K higher than we now see. Through 2025 so far, based on these revisions, we're now range-bound between +110-150K new job gains. This is good and positive — and does provide more jobs than needed to account for new retirees per month — but it is demonstrably coming down. Full-year 2024, even with notably weak job gains in the summertime, averaged +164K per month. Hourly Wages ticked up to +0.4%, 10 basis points (bps) higher than expected and double the wage growth in April. Year over year, this brings us to +3.9% — this is where we were in January and February this year. This demonstrates continued economic resilience, but will keep Fed rate cuts at bay for Average Workweek also remained consistent at 34.3 hours, now for the third straight month. But Labor Force Participation dropped 20 bps to 62.4%, which is the lightest print year to date, and the lowest we've seen since December of 2022. The U-6, aka 'real unemployment,' reached 7.8% for the second-straight sector, Healthcare provided +68K new positions filled last month. Leisure & Hospitality illustrated a still-healthy travel & leisure economy with +48K new jobs. But government jobs shed -22K (-59K from the start of the year; there were many more layoffs than that, likely resulting in severance packages or outright retirement), Manufacturing lost -8K and Retail was -6.5K. This begs the question whether the consumer is feeling the strength in the overall futures are breathing a sigh of relief this morning, especially following the paltry +37K jobs posted on private-sector payrolls from ADP ADP on Wednesday. The Dow was +150K ahead of the BLS report and has now roughly doubled. The S&P is presently up +45 points, on its way back to 6K. The tech-heavy Nasdaq is adding +180 points at this hour. Bottom-line: slowing employment growth is still employment growth, and this equals economic growth. It won't bring us lower interest rates from the Fed next week, but those weren't expected anyway. And, as news programming clogs its headlines with news of the public spat between Elon Musk and President Trump, we can see that the underlying U.S. economy continues to chug or comments about this article and/or author? Click here>> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Hans India
12-05-2025
- Politics
- Hans India
Split option in ration card issuance demanded
Kakinada: Secretary of Citizens' Initiative, Kakinada Duvvuri Subrahmanyam has urged the government to allow the split option for issuing ration cards based on affidavit submission. He expressed concerns that many families are being deprived of ration cards due to the government's recent decision to grant them solely based on the 2016 Praja Sadhikarika Survey (Household Survey). Subrahmanyam stated that several small families, living separately due to various reasons, are unable to secure ration cards under the current system. He said that in today's society, a significant number of people live together without marriage, or live separately without legal divorce. Many couples have been living apart for years due to pending divorce cases in court. Additionally, numerous individuals have migrated to distant areas for livelihood, leaving their parents in their native villages. Under the existing guidelines, such individuals are being denied ration cards because their household details do not match the 2016 survey data. Subrahmanyam stressed that separated spouses cannot come to the village secretariat and provide fingerprints together to prove their separate living status. He demanded that the government recognise this reality and allow the split option for ration cards based on affidavit declarations instead. In his representation to Civil Supplies Minister Nadendla Manohar and the Civil Supplies Commissioner, Subrahmanyam requested that all eligible applicants, including newly formed families, be granted ration cards. He also appealed for an increase in the income limit for ration card eligibility.
Zawya
31-01-2025
- Business
- Zawya
Will lower interest rates drive buy-to-let investment in South Africa?
Despite economic headwinds and high inflation, South Africa's rental market showed resilience throughout 2024. However, a quick succession of interest-rate cuts has many speculating about whether more tenants will finally make the move to homeownership. '2024 was another big year for South Africa's property rental market, with all major regions registering positive growth,' shares Grant Smee, chief executive officer of Only Realty Property Group, pointing to June 2024 when rental growth outpaced inflation for the first time in nearly five years, increasing by 5.2% year-on-year. 'The country's most expensive province, the Western Cape, saw a rental growth rate of 9.7%, narrowly outperformed by the country's front runner, the North West by just 0.1%. Conversely, Gauteng and KwaZulu Natal registered some of the lowest growth rates.' StatsSA's Household Survey revealed a notable increase in the percentage of households opting to rent, climbing from 17.7% in 2020 to 23.9% in 2022. Building on this trend, TPN reported a slowdown in rental escalations to 4.29% in Q2 2024, further reinforcing the growing shift toward renting. 'Rental properties provide flexibility, lower overhead costs and give tenants access to areas and homes that might otherwise be unaffordable if purchased. This is especially true in gated estates, where monthly levies can reach tens of thousands of rands,' explains Smee. Will rate cuts impact the performance of the buoyant rental market? 'While the rate cuts coming into play are notable, we are still a long way off the multi-decade lows of 2020,' he says. 'In addition, many potential homebuyers are grappling with the high cost of living and reduced savings.' Smee adds that financial stability and savings are two important considerations for any lender approving a home loan. 'There is also generally a requirement to put down a deposit and without ample savings, this is not always possible.' He does, however, add that for those with some liquidity, lowered interest rates may draw in buy-to-let investors who have been waiting in the wings. 'Buy-to-let investors are on the rise – particularly in the Western Cape – where there is high demand. For those who have been waiting, now is a good time to secure a property that covers the bills and can potentially yield additional income,' says Smee. 'It's also an opportune time for investors wanting to expand their portfolios and for property owners wanting to upscale.' Overall, Smee believes that the advantages of interest-rate cuts far outweigh any potential downfalls. 'While areas privy to high levels of rental property vacancies such as Gauteng may feel the impact more than others, it will certainly offer some benefits too.' Smee highlights one potential drawback of the current climate for tenants, saying: 'For those who own a home, the benefits of rate cuts are immediate. For tenants on the other hand, the financial benefits will most likely not be felt at all.' Tips to go from renting to buying: For those looking to capitalise on a year of interest-rate cuts, Smee offers four tips: - Know your credit score: Your credit score tells the bank whether you can repay your debts on time and - without a good credit score - you will not be approved for a home loan. A number over 610 is generally acceptable and nothing less will suffice. - Research: Once you know your credit score and what you can afford, get to know what's available. Set some alerts so that you have an idea of property prices in your desired area (and within your range of requirements) and become more knowledgeable on the market. Understanding the market will provide you with better leverage in a case where you may need to negotiate. - Start saving: Home loans are expensive and paying them down quickly will make you more financially resilient in times of high interest rates. Remember, interest rates do fluctuate so you need to understand best- and worst-case scenarios when it comes to your repayments. I recommend that potential buyers set up a separate account for savings, preferably a fixed, interest-earning account. This way, you can't touch the money and it starts to grow as it earns interest. I would also advise that you set up an automatic debit order so that it becomes routine. All rights reserved. © 2022. Provided by SyndiGate Media Inc.
