Business
US jobs bounce back after hurricanes and strikes
Hiring in the US jumped in November, extending a long-running streak of gains that has bolstered the world’s largest economy.
The report from the Labor Department showed employers added 227,000 jobs, led by healthcare firms, restaurants and bars.
It marked a strong rebound from October, when jobs growth dropped sharply amid disruption from major storms and labour strikes.
The figures emerged as analysts debate how much the US central bank will cut interest rates in the months ahead.
The Federal Reserve started reducing rates in September, saying lower borrowing costs were needed to keep the economy on track and stave off weakening in the labour market.
A month later, jobs growth flatlined, as strikes at Boeing and other firms as well as hurricanes put millions of workers off the payroll.
But the bounceback in growth in the latest report supports the view that the weakness was largely temporary. Hiring in October and September was also stronger than previously estimated, the Labor Department said.
Many analysts said they still expected a rate cut to be announced when Fed officials meet this month, noting a rise in the unemployment rate.
The jobless rate ticked up from 4.1% to 4.2%, returning to the highest level since August.
But in recent remarks, Federal Reserve chairman Jerome Powell has emphasised that bank officials did not feel a need to cut rates quickly.
“The economy has reached a point where it is growing healthily, with fairly full employment, and consistent wage growth – we are seeing very little evidence that there are issues needing to be addressed,” said Richard Flynn, managing director at Charles Schwab UK.
“Although it’s unclear what lies ahead, for now, the macroeconomic backdrop remains positive, and the market’s mood music appears to be suitably perky.”
Diane Swonk, chief economist at KPMG US, said the Fed needed to move carefully, given uncertainty about how plans by President-elect Donald Trump to cut taxes and raise tariffs might affect the economy.
Over the past 12 months, average hourly pay has also risen 4%, which some analysts said could set the stage for a resurgence in inflation.
“The Fed has already begun to warn they are going to slow down the cadence of cuts going forward because of how strong the economy has been,” she said.
“Given the resilience of the jobs market, I think that the issue is still how to win the battle against inflation.”
Business
UnitedHealthcare names new boss after former CEO killed
UnitedHealthcare has named a new boss almost two months after its then-chief executive Brian Thompson was shot and killed in New York.
Company veteran Tim Noel will take charge of the largest health insurer in the US, which has more than 50 million customers, at a critical moment.
Mr Thompson’s killing on 4 December in central Manhattan ignited a wide debate about how the US healthcare system operates.
Many Americans, who pay more for healthcare than people in any other country, have expressed anger over what they see as unfair treatment by insurance firms.
Mr Noel “brings unparalleled experience to this role with a proven track record and strong commitment to improving how health care works for consumers, physicians, employers, governments and our other partners,” UnitedHealthcare’s parent company UnitedHealth Group said.
A manhunt ensued for days as police worked to identify who was responsible in the December killing, which happened outside a Manhattan hotel where the CEO was staying.
After five days, Luigi Mangione, 26, was arrested in a McDonald’s restaurant in Pennsylvania after a worker called police.
Mr Mangione has pleaded not guilty to charges in the killing. He is facing 11 state criminal counts, including murder as an act of terrorism.
As well as the state-level charges, he is also accused of federal – national-level – stalking and murder offences that could lead to a death penalty sentence.
Prosecutors allege that Mr Mangione shot Mr Thompson before going on the run.
Business
Clampdown on fake Google reviews announced
Google has agreed to make “significant changes to its processes” to help tackle fake reviews of UK businesses, the regulator has announced.
The Competition and Markets Authority (CMA) says the firm – which accounts for 90% of search in the UK – will attach warnings to companies found to have artificially boosted their star rating.
The worst offenders will have their review function deactivated, meaning they cannot receive any new reviews.
Individuals who repeatedly post fake or misleading reviews will be banned from posting – regardless of where they are in the world.
Consumer group Which? called the changes “a step in the right direction” but said they would need to be backed up with strong enforcement action, potentially including “heavy fines” if Google failed to stick to them.
Sarah Cardell, the Chief Executive of the CMA, said: “The changes we’ve secured from Google ensure robust processes are in place, so people can have confidence in reviews and make the best possible choices.”
The measures only relate to reviews for businesses when searching on Google or on Google maps.
They will not apply to reviews of products.
A spokesperson from Google told the BBC: “Our longstanding investments to combat fraudulent content help us block millions of fake reviews yearly – often before they ever get published.
“Our work with regulators around the world, including the CMA, is part of our ongoing efforts to fight fake content and bad actors.”
Business
Bank of Japan raises rates to highest in 17 years
Japan’s central bank has increased the cost of borrowing to its highest level in 17 years after consumer price rises accelerated in December.
The move by the Bank of Japan (BOJ) to raise its short-term policy rate to “around 0.5 per cent” comes just hours after the latest economic data showed prices rose last month at the fastest pace in 16 months.
The BOJ’s last interest rate hike in July, along with a weak jobs report from the US, caught investors around the world by surprise, which triggered a stock market selloff.
The bank’s governor, Kazuo Ueda, signalled this latest rate hike in advance in a bid to avoid another market shock.
According to official figures released on Friday, core consumer prices in Japan increased by 3% in December from a year earlier.
The decision marks the BOJ’s first rate hike since July and came just days after Donald Trump returned to the White House.
During the election campaign Trump threatened to impose tariffs on all imports into the US, which could have an impact on exporting countries like Japan.
By raising rates now the bank will have more scope to cut rates in the future if it needs to boost the economy.
The move highlights the central bank’s plans to steadily increase rates to around 1% – a level seen as neither boosting or slowing the economy.
The BOJ signalled that interest rates will continue to rise from ultra-low levels.
Neil Newman, the head of strategy at Astris Advisory Japan said: “rates will continue to rise as wages increase, inflation remains above 2% and there is some growth in the economy.”
“We look for another 25-basis point hike in six months,” said Stefan Angrick, a Japan economist at Moody’s Analytics.
Last year, the BOJ raised the cost of borrowing for the first time since 2007 after rates
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