Rabu, 05 Juni 2019

Sephora to give staff diversity training - can it help? - BBC News

Beauty chain Sephora has closed its US stores for Diversity training, a month after a singer said she had been racially profiled.

RnB star SZA said she had been targeted while shopping at a branch in California.

The firm told Reuters it was aware of the incident but said the training was not "a response to any one event".

The BBC spoke to Asad Dhunna from the Unmistakables, who advises companies on how to be more racially inclusive.

Video journalist: Sophie Van Brugen

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https://www.bbc.com/news/av/business-48513629/sephora-to-give-staff-diversity-training-can-it-help

2019-06-05 14:15:56Z
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These charts show how Fed Chair Jerome Powell is the most important thing to the market now - CNBC

The Dow Jones Industrial Average rallied more than 500 points on Tuesday (and was continuing that rally Wednesday) after Federal Reserve Chairman Jerome Powell opened the door to a rate cut that traders have been crying for because of fears the economy is slowing.

Their love of Powell's pivot is evident in this Dow chart here:

"We will act as appropriate to sustain the expansion," was all Powell said, but that was enough to cause the market to leap.

Now contrast that with what happened on May 1, when Powell disappointed investors by appearing to downplay the odds of a rate cut by saying that he believed a slowdown in inflation was likely "transitory."

The Dow shed 150 points during that session.

What a difference a month makes when there's a vicious sell-off in risk assets.

"Powell's assurance the Fed will 'act as appropriate to sustain the expansion' was confirmation that not only is a rate cut on the table, but it is nearing on the horizon," Ian Lyngen, head of U.S. rate strategy at BMO, wrote in an email. "Risk assets improved in the wake of the dovish undertones; at least that aspect of Tuesday's price action fit with our broader understanding of the world."

"A preemptive cut was priced-in, which suggests if the Fed doesn't follow-through it will be risk off," he added.

— CNBC's Jeff Cox contributed reporting.

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https://www.cnbc.com/2019/06/05/investors-warm-up-to-fed-policy-outlook-after-powell-hints-at-rate-cut.html

2019-06-05 14:13:09Z
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Private sector employment growth decelerates sharply in May: ADP/Moody's - Yahoo Finance

Job growth in the private sector slowed dramatically in May, adding to concerns of a deceleration in U.S. economic expansion.

New private sector payrolls rose by just 27,000 in May, ADP Research Institute and Moody’s reported Wednesday, versus 185,000 new private payrolls expected by consensus economists polled by Bloomberg. The disappointing reading represented the smallest gain in private positions since the start of the current U.S. economic expansion.

May’s reading also marks a sharp reduction from April’s slightly downwardly revised reading of 271,000 new private sector positions, from 275,000 seen previously.

“Job growth is moderating. Labor shortages are impeding job growth, particularly at small companies, and layoffs at brick-and-mortar retailers are hurting,” Mark Zandi, chief economist at Moody’s Analytics, said in a statement.

via ADP Research Institute

Small businesses bore the brunt of May’s deceleration, with companies employing fewer than 50 workers seeing a loss of 52,000 payrolls between April and May.

By sector, goods-producing companies lost 43,000 private positions in May, with construction firms leading declines. The service sector added a total of 71,000 jobs, the slowest pace of gains since September 2017.

Wednesday’s report from ADP/Moody’s adds to a roster of softening data on the U.S. economy. IHS Markit’s survey of U.S. manufacturers fell to a near decade low in April. Its survey of activity in the services sector – typically the more robust portion of the U.S. economy – fell to a more than three-year low.

“Bottom line, the slowdown seen in many non labor economic statistics finally showed up in a slower rate of hiring,” Peter Boockvar, chief investment officer for Bleakley Advisory Group, wrote in an email.

Stock futures pared gains Wednesday morning following the report, with contracts on the Dow retreating from advances of more than 150 points earlier in the session. In bond markets, the 2-year U.S. Treasury yield fell 9 basis points to below 1.80%, marking the lowest level since December 2017, and the 10-year yield broke below 2.10%.

The Bureau of Labor Statistics releases its monthly report on nonfarm payrolls and the state of the U.S. job market on Friday. Consensus economists are expecting that 180,000 new non-farm payrolls and 175,000 private payrolls were added in May.

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

Read more from Emily:

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and reddit.

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https://finance.yahoo.com/news/adp-national-employment-report-may-2019-123123509.html

2019-06-05 12:31:00Z
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Job growth screeches to a near halt in May, with private payrolls up just 27,000 - CNBC

Job creation skidded to a near-halt in May in another sign that the U.S. economic momentum is slowing.

Companies added just 27,000 new positions during the month, according to a report Wednesday from payroll processing firm ADP and Moody's Analytics that was well below Dow Jones estimates of 173,000.

The reading was the worst since around the time the economic expansion began and the jobs market bottomed in March 2010 with a loss of 113,000. Since then, the private payrolls count has increased by 21.3 million.

"Job growth is moderating," Mark Zandi, chief economist at Moody's Analytics, said in a statement. "Labor shortages are impeding job growth, particularly at small companies, and layoffs at brick-and-mortar retailers are hurting."

Indeed, the most damage came at companies with fewer than 50 employees, which reported a loss of 52,000 jobs, and in the goods-producing sector, which saw a decline of 43,000. Almost all of the small business loss (50,000) came at firms with fewer than 20 employees, while the big loser in the goods sector was construction, where 36,000 positions were lost.

Large companies withstood the slowdown, adding 68,000 jobs, while those with 50 to 499 employees contributed 11,000.

The anemic May growth comes after a powerful surge in April of 271,000, the highest since July though revised down 4,000 from the initial reading. Private job creation in the ADP/Moody's count has averaged 188,000 a month in 2019.

"Following an overly strong April, May marked the smallest gain since the expansion began," Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, said in a statement. "Large companies continue to remain strong as they are better equipped to compete for labor in a tight labor market."

The disappointing report comes two days before the more closely watched official government reading on nonfarm payrolls. Economists surveyed by Dow Jones expect the Labor Department to report growth of 180,000, down from April's 263,000, and the unemployment report to hold at a 50-year low of 3.6%. The ADP report occasionally can cause economists to revise their expectations for nonfarm payrolls, though the two numbers can differ widely.

Zandi later told CNBC that the May ADP number probably "overstates the case" for a weakening economy and estimated that the nonfarm payrolls report probably would come in around 150,000 based on the average of the past two months' private payrolls numbers.

At a sector level, all the gains came on the services side, which added 71,000 positions. Health care and social assistance grew by 34,000, followed by professional and business services (22,000), and leisure and hospitality (16,000). The "other services" category saw a drop of 9,000, while information lost 3,000 and education decreased by 1,000.

All of the major goods producing categories reported losses, with natural resources and mining down 4,000 and manufacturing off by 3,000. Franchise jobs also fell by 4,800.

The news comes at a sensitive time for the economy.

After a solid 2018 that saw GDP up 2.9% and an unusually strong first-quarter growth rate of 3.1%, economists now expect a slowdown through at least the next two quarters. CNBC's Rapid Update survey forecasts gains of just 1.7% in the second quarter.

Financial markets have slowed considerably after a record-setting pace to start the year. Even with Tuesday's powerful rally, the Dow Jones Industrial Average has fallen 4.4% in the past month.

Markets are betting that the Federal Reserve steps in with at least two and possibly three rate cuts this year. In a speech Tuesday, Fed Chairman Jerome Powell said the central bank is prepared to "act as appropriate" to keep the expansion going, which markets took as an encouraging sign that policy easing could be on the way.

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https://www.cnbc.com/2019/06/05/job-growth-screeches-to-near-halt-in-mayprivate-payrolls-up-just-27k.html

2019-06-05 12:30:01Z
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Gold Prices Up 1% After 27K Job Growth In U.S. ADP Employment Report - Kitco News

(Kitco News) - Gold prices are up 1% on the day and near session highs following significantly weaker growth in private sector employment, according to the latest report from private payrolls company ADP.

Wednesday, ADP said that 27,000 jobs were created in May, missing expectations; consensus forecasts were calling for job growth of 185,000.

Gold prices were in positive territory ahead of the report and have jumped higher in initial reaction. August gold futures last traded at $1,342.10 an ounce, up 1.02% on the day.

According to reports, this is the slowest growth rate in the private sector since March 2010. Small businesses and the manufacturing sector were the hardest hit with jobless in all major sectors.

Along with gold prices pushing to session highs, the U.S. dollar is trading at session lows; the U.S. dollar index last traded at 96.99 points.

Although the ADP data is not a consistent predictor ahead of Friday's report, some economists have said that it does provide some downside risk to the official government numbers. The labor market has been a significant bright spot for the U.S. Economy and the latest employment data could add jitters to a marketplace that is already concerned about rising recession risks, said some economists.

"Even when considering the average absolute difference between this series and private non-farm payrolls on first release, this adds to the downside risk to Friday's report," said Katherine Judge, senior economist at CIBC Capital Markets.

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https://www.kitco.com/news/2019-06-05/Gold-Prices-Up-1-After-25K-Job-Growth-In-U-S-ADP-Employment-Report.html

2019-06-05 12:18:00Z
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From Amazon To Walmart, 2020 Candidates Take On Big Corporations By Name - NPR

Democratic presidential candidate Sen. Bernie Sanders speaks during a 2015 rally to push for a raise to the minimum wage to $15 an hour. Andrew Harnik/AP hide caption

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Andrew Harnik/AP

Bernie Sanders may not have his usual adoring crowds at his Wednesday campaign stop. That's because he'll be speaking to Walmart shareholders at their annual meeting.

The Vermont senator and 2020 Democratic presidential candidate will present a proposal aimed at giving workers representation on the company's board, echoing a policy he is reportedly working on. (Elizabeth Warren has released a similar policy.)

On Tuesday afternoon, Sanders released a statement criticizing Walmart for issues beyond worker representation on the board.

"It is time for Walmart to pay all of its workers a living wage, give them a seat at the table, stop blocking them from joining a union and allow part-time employees to work full-time jobs," he said.

It's not just Sanders; this is an example of a tactic that has gained traction in the 2020 presidential race, of candidates calling out specific companies in their campaigning and their policies.

Sanders is presenting the resolution on behalf of Cat Davis, a Walmart worker and shareholder, and a leader of the group United for Respect, which aims to protect workers' rights at large corporations.

The proposal would require that the board include hourly associates on its lists of potential new members. Sanders will have three minutes to present the resolution, and it will be put to a vote on Wednesday. The resolution is not expected to pass.

Candidates vs. corporations

Sanders in 2018 already took aim at Walmart with the Stop WALMART Act — "WALMART" here standing for "Welfare for Any Large Monopoly Amassing Revenue from Taxpayers." That bill would have stopped large employers from undertaking stock buybacks unless they take particular steps to boost workers, like paying them at least $15 an hour.

He's introduced another bill with a pointed acronym, the Stop BEZOS Act (That is, "Stop Bad Employers by Zeroing Out Subsidies") — a title aimed at Amazon CEO Jeff Bezos. That bill would tax large employers for the social safety net programs, like food stamps, that their workers use.

Technology firms have also come under scrutiny among candidates, as they are under scrutiny on Capitol Hill. Sen. Elizabeth Warren, D-Mass., in March released a plan to break up big tech companies, with the aim of allowing smaller companies to thrive. In her unveiling, she called out particular companies by name.

"My administration will make big, structural changes to the tech sector to promote more competition — including breaking up Amazon, Facebook, and Google," Warren wrote in a March Medium post. Since then, Sanders and Hawaii Rep. Tulsi Gabbard have voiced support for her plan.

In addition, strikes at the grocery store chain Stop and Shop drew support from candidates including Warren, South Bend Mayor Pete Buttigieg, Minnesota Sen. Amy Klobuchar and former Vice President Joe Biden. Similarly, strikes at McDonald's restaurants have drawn support from multiple candidates.

Rising populism on display

Democratic candidates did take aim at corporations in the 2016 campaign — Bernie Sanders took aim at McDonald's for its wages. Both he and Hillary Clinton did join striking Verizon workers in 2016.

"We were always struggling with, 'How do you make policy tangible?'" said Amanda Renteria, political director for the 2016 Clinton campaign. "And that's a really easy way to do so. People know what Walmart is. People have a conception about it."

But Clinton rarely referenced specific companies negatively on the 2016 campaign trail.

"That really wasn't her style," said Renteria.

It's a tactic that relatively few major candidates have made central to their campaigns in recent years. But the willingness to aggressively call out big companies was arguably long in coming.

"I feel like the political moment we're in is really an outgrowth of really the worker militancy that started in 2012, 2013," said Joseph Geevarghese, executive director of Our Revolution, an advocacy group that grew out of Sanders' 2016 presidential run.

He's talking about walkouts among fast food workers and other low-wage workers that took place in those years (at the time, he was at worker-advocacy group Good Jobs Nation).

Those walkouts themselves had a variety of even older potential causes, he added – long-building inequality; a long, slow recovery from the Great Recession; and the subsequent Occupy Movement, for example.

But whatever the path, the culmination is a political atmosphere where anger is a dominant emotion — and something President Trump has modeled, as well as liberal figures.

"We have been in a populist moment over the last six, seven years," Geevarghese said. "I think Occupy, the strike wave, those are all symbols of that. But I also think Donald Trump is a symbol of the populist wave, at least when it comes to his willingness to go after companies like GM, companies like Carrier."

For her part, Renteria credits Sanders and Warren with having popularized tough anti-corporate rhetoric as a campaign strategy. But she also cautions that it might not work for everyone.

"For somebody like Elizabeth Warren, she has been in this space since the beginning of her career, and so for her it's just validating her brand," Renteria said.

That means calling out Amazon or Walmart seems authentic for candidates like Sanders, Warren and Trump. It might not have for a candidate like Hillary Clinton, and could be a stretch for other Democrats running in 2020.

"I think if other candidates were to take a look at this and go, 'Wow, I can do it too. It makes whatever policy I'm working on more concrete,' that could backfire," Renteria said.

In addition, there's the simple possibility that this kind of rhetoric could create powerful corporate enemies for a candidate at a time when unlimited money is pouring into the coffers of superPACs.

But then, an event like the Walmart shareholders' meeting does allow a candidate to have a media moment that an ordinary policy release might not create. And that's particularly important in a field of about two dozen candidates.

Walmart is one of NPR's financial sponsors.

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https://www.npr.org/2019/06/05/729735727/from-amazon-to-walmart-2020-candidates-take-on-big-corporations-by-name

2019-06-05 11:38:54Z
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Traders bet Bank of Canada will follow Fed with rate cuts this year - Financial Post

The Bank of Canada is likely to join the U.S. Federal Reserve with an interest rate cut this year to deal with the fallout from rising trade tensions, according to trading in the swaps market.

Investors are betting Canadian policymakers will follow an expected U.S. rate cut in September. The chances of a Bank of Canada match at the Oct. 30 meeting jumped above 50 per cent Tuesday, up from about 25 per cent last week, according to data compiled by Bloomberg. The market is implying 20 basis points of easing over the next six months. The odds of a cut soared after U.S. President Donald Trump threatened to impose tariffs on Mexican products to stem illegal immigration, raising concerns about the ratification of the revised North America Free Trade Agreement.

Traders are increasing their bets on a rate cut even as economic data signal the economy is showing signs of pulling out of a first-quarter slowdown. The median consensus of analysts expect that the benchmark rate will remain unchanged this year at 1.75 per cent.

“The data for Canada is unfolding in a manner about as expected, but the medium-term outlook has definitely been impacted by trade/tariff developments of late,” said Mark Chandler, head of fixed income research at Royal Bank of Canada, which sees the central bank on hold through 2020. “Most of the fear surrounds the potential impact on the U.S. factory sector. Analysts have not fully incorporated this into their forecasts, I believe, because of a belief that the tariffs may yet be avoided.”

Federal Reserve Chairman Jerome Powell signaled Tuesday an openness to cut interest rates if necessary, pledging to keep a close watch on fallout from a deepening set of disputes between the U.S. and its largest trading partners. Investors have aggressively increased bets the Fed will cut interest rates this year after Trump widened ongoing trade tensions with the new Mexico threat.

In the U.S., swap traders assign an 89 per cent chance of the Fed cutting rates as soon as September, Bloomberg data show. Investors may get fresh signals on rates this weekend when finance ministers and central bankers from the Group of 20 economies meet in Japan.

“We should get more clarity on both Mexico and China, at the G-20,” said Chandler. If over the coming weeks there is “no improvement, you might see more analysts believing that rate cuts in the U.S. — and maybe Canada — are more likely.”

Bank of Canada Governor Stephen Poloz said as recently as last month he still believes interest rates are poised to continue rising once headwinds to growth dissipate. “The natural tendency is for interest rates to still go up a bit,” Poloz said in an interview on BNN Bloomberg, adding he didn’t yet know the size or the timing of any increases.

Bloomberg.com



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June 05, 2019 at 03:04AM