US Unemployment Rate Increased To 3.7%, UK Private Wealth Portfolios, PBoC Trying To Gain Access To Top Internet Companies Data
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Summary:
- In the biggest economy in the world, the jobless rate rose from 3.5% to 3.7% last month.
- The real worth of UK private wealth portfolios decreased by up to one-third.
- Beijing is working to tighten its control over the nation's digital sector.
US Unemployment rate rises
In October, the U.S. economy created 261,000 new jobs, according to Bureau of Labor Statistics data. The carefully watched reading from last Friday was lower than the upwardly revised amount of 315,000 in September but still higher above economists' projections of 200,000. In the biggest economy in the world, the jobless rate rose from 3.5% to 3.7% last month. The number was expected to increase to 3.6%, according to economists.
However, a jump in the unemployment rate to 3.7% signaled some easing in labor market conditions, which would allow the Federal Reserve to tilt towards smaller interest rate hikes beginning in December. In October, U.S. firms employed more workers than anticipated.
200,000 jobs were predicted by economists surveyed by Reuters, with estimates ranging from 120,000 to 300,000.
After rising 5.0% in September due to the removal of previous year's significant increases from the computation, wages climbed by 4.7% annually in October. Additionally, other pay metrics have cooled off, which is positive for inflation.
The Fed impact on Unemployment
The Fed announced a fresh 75 basis point increase in interest rates on Wednesday and warned that future increases in borrowing costs will be necessary to combat inflation, but it also hinted that it may be nearing the end of the sharpest tightening of monetary policy in 40 years.
Because businesses have been replacing workers who would have gone, job growth has remained strong despite a decline in domestic demand and an increase in borrowing prices. However, with recession threats rising, this practice may soon come to an end. According to a poll released by the Institute for Supply Management on Thursday, some businesses in the services sector "are delaying backfilling available positions" because of the unstable economic climate.
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— Investing.com (@Investingcom) November 4, 2022
*U.S. UNEMPLOYMENT RATE RISES TO 3.7% AS ECONOMY ADDS 261,000 JOBS IN OCTOBER
🇺🇸 🇺🇸 pic.twitter.com/Z0fiqgAI5X
UK Private wealth portfolios under pressure
In the first nine months of this year, the real worth of UK private wealth portfolios decreased by up to one-third on average as people's purchasing power was hammered by a combination of investment losses, inflation, and a weak pound.
According to research by Asset Risk Consultants (ARC), which examined the performance of strategies employed by more than 100 significant UK wealth managers, UK wealth management portfolios lost about 10% on average in the year ending in September, but price increases and the decline in the value of the pound against the US dollar increased the losses.
The numbers demonstrate that for UK investors this year, inflation and currency fluctuations have destroyed much more real value than the concrete losses on investment portfolios. Investors, according to Harrison, frequently think of their wealth in terms of a fixed amount and fail to mentally adapt when the purchasing power of their assets changes.
The sector responsible for managing the wealth of wealthy families is predicated on the principle of protecting money, therefore the losses will cause wealth managers and their customers to have difficult conversations.
UK private wealth portfolios down by up to a third https://t.co/TnUgAX5XGA
— Finance News (@ftfinancenews) November 4, 2022
PBoC trying to control digital sector
The Chinese central bank is having trouble persuading more than a dozen top internet companies to meet a deadline in December for sharing user data with state-backed credit-scoring firms.
Beijing is working to tighten its control over the nation's digital sector and consumer financing, which is why there is a dispute over who should govern access to the internet companies' enormous troves of user data.
According to insiders briefed on the negotiations, the People's Bank of China asked Tencent, Meituan, and other significant platforms to provide user data with two state-backed businesses, Baihang and Pudao, by the beginning of next month. This data includes everything from shopping records to travel histories.
PBoC struggles to impose personal data regime on China’s tech groups https://t.co/Olv9Tl3iMK
— Finance News (@ftfinancenews) November 4, 2022
Sources: ft.com, investing.com, twitter.com
