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1709745349 Job openings fall to 2021 lows but job market 39still

Job openings fall to 2021 lows, but job market 'still quite strong'

Business News /

The number of job vacancies in January reached the lowest level since March 2021, showing further signs of a realignment in the labor market.

There were 8.86 million job openings at the end of January, a slight decline from the 8.89 million job openings in December, according to new Bureau of Labor Statistics data released Wednesday. Economists surveyed by Bloomberg had expected 8.85 million openings in January.

The report also showed that the churn rate, a sign of confidence among workers, fell to 2.1% from 2.2% the previous month, reaching its lowest level since August 2020. Additionally, the Job Openings and Labor Turnover Survey (JOLTS) showed. There were 5.7 million new hires this month, down slightly from December's 5.8 million.

The hiring rate was 3.6% in January. In summary, Oxford Economics' lead U.S. economist Nancy Vanden Houten described Wednesday's report as “consistent with a labor market that is still quite strong.”

The release comes as Federal Reserve Chairman Jerome Powell testifies on Capitol Hill. Powell described the labor market as “relatively tight” but noted that “supply and demand conditions have continued to become more balanced.”

Elsewhere on Wednesday, the ADP Research Institute's monthly Pay Insights report showed that wage gains for people changing jobs rose in February for the first time since November 2022.

ADP chief economist Nela Richardson told Yahoo Finance this was notable because wage increases for job changers are “most sensitive to current labor market activity.” Richardson added that the figure shows that massive wage growth during the pandemic “is not going to sleep quietly.”

“[Wages] “Actually show that labor market tensions are still widespread,” Richardson said.

But there were other signs on Wednesday that could suggest wage growth is slowing, which many believe would be a welcome sign in the fight against inflation. Liz Young, head of investment strategy at SoFi noted on X These layoffs tend to boost wage growth by about nine months. So the drop in quit rates observed in the January JOLTs report points to “further wage slowdown.”

The story goes on

A further update on wages will come with the February jobs report, scheduled for release Friday at 8:30 a.m. ET. Economists polled by Bloomberg expect wages rose 4.3% in February, compared with 4.5% in January. Broadly speaking, economists forecast that 200,000 jobs were added to the U.S. economy while the unemployment rate remained steady at 3.7%.

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A “Hiring Now” sign is posted outside Taylor Party and Equipment Rentals in Somerville, Massachusetts, on September 1, 2022. (Brian Snyder/Portal) (Portal / Portal)

Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.

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1709742626 Her cryptocurrencies disappeared in 45 seconds She is suing Bell

Her cryptocurrencies disappeared in 45 seconds: She is suing Bell for $12 million

Business News /

An entrepreneur whose cryptocurrencies were allegedly scammed in 45 seconds by a Virgin Mobile employee while purchasing a new tablet has just filed a $12 million civil lawsuit against the company's parent company, Bell Mobility, which is refusing to do so , to admit some wrong.

“The tablet had been tampered with before it was sold and spyware had been installed on it, which made this possible [au fraudeur] to control it remotely,” claims Andria D'Elia in a civil lawsuit released this Tuesday at the Montreal courthouse.

Ms. D'Elia, an entrepreneur from Mirabel, explains that she was scammed three years ago when she decided to invest in cryptocurrencies. She then purchased just over half a million Bitcoins and another virtual currency. She then wanted to buy a tablet to secure her digital wallet, so she went to Place Rosemère, to a Virgin Mobile kiosk owned by Bell Mobilité.

Her cryptocurrencies disappeared in 45 seconds: She is suing Bell for $12 million

Andria D'Elia is suing Bell and one of his employees for $12 million for fraud that allegedly caused her to lose $314,000 in Bitcoin cryptocurrency after she traded at a Virgin Mobile kiosk owned by Bell , bought an iPad tablet. Photo courtesy of Andria D'Elia. Courtesy of Andria D'Elia

“Because of Bell’s reputation, she had complete trust,” the court document states.

Spyware

On site she spoke to the kiosk manager Guillaume Veillette, against whom charges were also brought. And he then claimed that he had run out of iPad tablets so much that he had to get some from the Bell store next door. He reportedly returned 20 minutes later with the device ready to use.

When she arrived home, the woman said she wanted to connect to a legitimate cryptocurrency site, but without knowing it, she was instead redirected to a fake site where she entered her credentials only to be scammed.

“Within about 45 seconds […]An unscrupulous individual managed to steal $314,000 in Bitcoin cryptocurrency.”

She was frightened and called this theft “worthy of a spy movie” and said she returned to the kiosk where she was allegedly arrested for “intimidation and threats” after a complaint from the manager. The woman was arrested, but ultimately no charges were filed.

Investigation

Determined to find her money, the woman then conducted her investigation, including hiring the services of a computer security firm, to discover that her iPad contained spyware. She also had to retain the services of a criminal defense attorney, Me Christopher Mediati.

She was also able to obtain surveillance footage that allegedly shows the manager photographing confidential information on the kiosk's computer.

Ms D'Elia said she explained the situation to Bell, who replied that it was “more likely” she was responsible for her misfortune.

“Ms. D'Elia was just an innocent victim of this fraudulent scheme,” replied Me Damien Pellerin, who is leading the civil lawsuit.

He has therefore taken legal action to recover the lost amounts, but also to seek compensation totaling $12 million for the 14,235 hours that Ms. D'Elia says she spent trying to prove that she was indeed cheating and for all associated costs.

Unless an amicable settlement is reached, the civil lawsuit will soon be referred to the Quebec Superior Court.

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Cryptocurrencies are recovering after Bitcoin falls back from a new

Cryptocurrencies are recovering after Bitcoin falls back from a new record high

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Selim Korkutata | Anadolu Agency | Getty Images

Cryptocurrencies rallied on Wednesday, recouping much of the losses from the previous day's selloff, which occurred shortly after Bitcoin hit an all-time high.

According to Coin Metrics, Bitcoin was last up 6% at $66,315.19, while Ether shot up more than 11% to $3,785.76, its highest level since January 2022.

On Tuesday, Bitcoin hit a new intraday record of $69,210 for the first time since November 2021. The price had been rising for weeks – up 55% in the last month – and plunged shortly after reaching the new high.

See grafic…

Bitcoin is recovering from Tuesday's sell-off

“Yesterday it seemed like a sharp upward correction to me, which is pretty typical when you hit a multi-year all-time high,” said David Wells, CEO of Enclave Markets.

“There will likely be a second test of the highs and if we break through that, things could get interesting given the large options positions,” he added. “These declines include sharp corrections, which are likely related to leveraged long momentum positions booking profits at key levels and then returning lower.”

As of Wednesday morning, $100 million in short liquidations and $236 million in long liquidations occurred on centralized exchanges in the past 24 hours, according to CoinGlass.

When traders use leverage to sell Bitcoin and the price of the cryptocurrency rises, they buy Bitcoin back from the market to close their positions, driving up the price and causing more positions to be liquidated. In contrast, traders who bet on a price rise must sell their assets to cover their losses.

Other crypto coins rallied with Bitcoin and Ether. Binance rose almost 11% while Solana gained 7%. Meme coins were the biggest winners – Dogecoin rose 18% and Shiba Inu coin rose 23%.

Crypto-related stocks also rose. Coinbase and Microstrategy gained 5% and 8%, respectively. Marathon Digital rose nearly 6% and Riot Platforms rose 5.5%.

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1709738669 STACE is on the verge of bankruptcy and is protecting

STACE is on the verge of bankruptcy and is protecting itself from the courts

Business News /

A major manufacturer of solar panels and electrical components for renewable energy producers is saddled with debt and has just sought protection in the courts Bankruptcy and insolvency law.

The Journal has learned that Saint-Augustin Canada Électrique Inc., better known by its acronym STACE, filed a letter of intent last week to make a proposal to its creditors.

The 250-employee Quebec company faces about $74 million in unpaid debts to a staggering 274 creditors, according to preliminary documents filed in Superior Court.

Stace

Normand Lord, President and CEO of STACE Photo Stevens LeBlanc

For now, only the Bank of Montreal (BMO) appears among the secured creditors. Stace would have accumulated debts to him of no less than $65 million.

The 273 other named creditors, all unsecured, have accumulated $8.7 million in debt. The largest shortfall ($3.3 million) goes to Barr Fabrication Field Services, a Texas company active in the wind industry.

Stace

Stace's headquarters and principal locations are located in Saint-Augustin de Desmaures, west of Quebec. Image credit: Google Earth Google Earth

In addition to affiliated companies, Stace's other major unsecured creditors include KPMG ($301,000), Plessisville-based CBR Laser ($292,000), Fasken Martineau ($223,000), IDE Trois-Rivières ($205,000 ) and Plate 2000 ($182,000). from Saint Anselme.

Factory confiscated in Matane

The company's difficulties unfortunately come at a time when Quebec is beginning to seriously embrace the potential of wind and solar energy production to support its hydroelectric fleet. As is well known, this is no longer enough to cover the growing demand for electricity.

Recall that in early February, at the request of the Business Development Bank of Canada (BDC), the court appointed a receiver to take control of Stace's assets in Matane and begin a process to sell the assets.

Stace

The former German Enercon factory in Matane was purchased by Stace in autumn 2021. Wec Tours (Enercon)

Formerly owned by Germany's Enercon, this wind turbine tower manufacturing facility was to be used to produce renewable energy batteries, a technology that Stace had developed in collaboration with the University of Sherbrooke.

In addition to this Gaspé factory, Stace had operations in Trois-Rivières, producing photovoltaic panels for solar energy producers, and in Saint-Augustin-de-Desmaures, near Quebec, where its headquarters are located.

After seeing some of his panels purchased by Hydro-Québec for its La Prairie solar farm and being involved in the development of dozens of solar farms in Europe and the United States, Stace was hired by Quebec 18 months ago to build a solar farm commissions 32 MW solar park in Gaspésie. This project is now on hold.

–In collaboration with Philippe Langlois, Investigation Bureau

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Fed Chairman Powell still expects to cut interest rates this

Fed Chairman Powell still expects to cut interest rates this year, but not yet

Business News /

Federal Reserve Chairman Jerome H. Powell said Wednesday that he expects the central bank to begin cutting borrowing costs in 2024, but that policymakers still need to gain “greater confidence” that inflation was overcome before they could take action.

“We believe our federal funds rate is likely to peak during this tightening cycle,” Powell said in remarks prepared for testimony before the House Financial Services Committee. “If the economy performs broadly as expected, it will likely be appropriate to begin unwinding policy restraint sometime this year.”

The Fed's next meeting is March 19-20, but few investors expect officials to cut interest rates at that meeting. Markets see the Fed's June meeting as a more likely candidate for the first rate cut and are betting that central bankers could cut borrowing costs three or four times by year's end.

The Fed chair warned against cutting rates too soon – before inflation is sufficiently suppressed – and noted that “reducing policy restraint too soon or too much could lead to a reversal of the progress we have made on the “We have seen inflation and may ultimately require even stricter policies.”

He also acknowledged that waiting too long could be fraught with risks, adding that “reducing policy restraint too late or too little could unduly weaken economic activity and employment.”

Mr. Powell and his colleagues are trying to strike a delicate balance as they plan their next policy moves. Policymakers quickly increased interest rates between March 2022 and July 2023, increasing them to the current level of 5.25 to 5.5 percent. That has made mortgages, business loans and other forms of borrowing more expensive, helping to slow an economy that otherwise still shows significant momentum.

Politicians do not want to leave interest rates at this high level for too long. A sharper economic slowdown than necessary could lead to an increase in unemployment.

But you also want to avoid declaring victory too early. Although inflation has fallen significantly, it is still above the Fed's 2 percent target.

The central bank's preferred inflation measure rose 2.4 percent on an annual basis in January, well below its peak of nearly 7 percent. The metric rose 2.8 percent after volatile food and fuel prices were removed to provide a clearer view of the inflation trend. (A separate but related measure of inflation, the consumer price index, peaked higher in 2022 and remains slightly higher.)

So far there has been progress in the slowdown, although the labor market has remained strong. New hiring and the unemployment rate are stable at 3.7 percent, which is a low level by historical standards.

Inflation “has slowed significantly, and the slowdown in inflation has occurred without a significant increase in unemployment,” Powell said.

Fed officials hope their policies will help rebalance the economy so price increases can return to fully normal levels. For example, the number of job openings has declined over the past year, and as companies compete less aggressively for employees, wage growth is slowing. This could result in companies having less incentive to raise prices to cover rising costs.

Mr. Powell noted that in the labor market, “supply and demand conditions have continued to find a better balance.”

Fed Chairman Powell still expects to cut interest rates this year, but not yet Read More »

ADP February 2024 Job Report

ADP February 2024 Job Report

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There were employment gains in several sectors, particularly in leisure and hospitality with 41,000 jobs and construction with 28,000 job gains. Other sectors with solid increases included trade, transport and utilities (24,000), finance (17,000) and the “other services” category (14,000).

Of these, 110,000 were in the service sector and 30,000 in goods production. Growth was concentrated in larger companies, as businesses with fewer than 50 employees contributed just 13,000 to the total growth.

Along with job growth, annual wages for those who keep their jobs also rose 5.1%, the smallest increase since August 2021, according to ADP, a possible sign that inflation pressures are easing.

The report comes as the labor market pays increased attention to signals about whether U.S. economic growth will stall this year after gross domestic product posted a solid 2.5 percent annual gain in 2023.

“Employment growth remains solid. Wage growth tends to be lower, but still above inflation,” said ADP chief economist Nela Richardson. “In short, the labor market is dynamic, but it will not determine a Fed rate decision this year.”

The ADP report precedes the Labor Department's official release of nonfarm payrolls on Friday. In recent months, the ADP has consistently underperformed the closely watched Bureau of Labor Statistics report, which recorded an increase of 353,000 in January, more than three times the ADP estimate.

Economists polled by Dow Jones expect a rise of 198,000 in Friday's report.

ADP February 2024 Job Report Read More »

1709730572 Transporter He sells the successful company founded by his mother

Transporter: He sells the successful company founded by his mother to Americans

Business News /

The president of Fourgons Transit, Louis Leclair, announced on Tuesday the sale of this Laval company, founded in 1978 by his mother Suzanne, to an American group. Transit is the largest manufacturer of truck boxes in Quebec.

• Also read: A company to which we loaned $100 million is being sold to Americans

• Also read: Another Quebec flagship is about to go on sale to Americans

• Also read: From Quebec Inc.'s perspective: Major acquisition for a local company

Texas conglomerate JB Poindexter & Co. will integrate the company into its Morgan Truck Body subsidiary, which bills itself as the largest manufacturer of light- and medium-duty trucks in North America.

“With the Transit team known for its quality and efficiency and a manufacturing facility of more than 120,000 square meters in the heart of Quebec, Morgan Truck Body is committed to meeting the growing needs of customers with quality products for the North American market. “Tom Diez, chief commercial officer of Morgan Truck Body, said in a statement.

Front of a van

Louis Leclair photo from Fourgons Transit website

He already saw his daughters succeeding him

From 1986 to 1990, Fourgons Transit was listed on the Montreal Stock Exchange thanks to the defunct Stock Savings Plan (REA). The company was then purchased by its founder Suzanne Leclair and her husband. In 2005, her son Louis took control of Transit and became its CEO.

In an interview with La Presse in 2016, he said that he started working in the family business at the age of 13. He then expressed his wish that his two daughters would succeed him at the helm of Transit.

Louis Leclair did not respond to requests for comment from the Journal on Tuesday.

Transit has manufactured more than 72,000 vans since its inception. Around 200 people work there. In 2020, the company received a grant of $10 million from the Ministry of Economic Affairs.

Front of a van

Screenshot from a Transit Vans video

Sold to other local businesses

Two more Quebec companies have been sold to foreign buyers since the beginning of the week.

On Tuesday, Brossard-based investment firm Novacap announced the sale of its majority stake in AGA Assurances Collective to Boston-based TA Associates Group. AGA was founded 45 years ago and specializes in group insurance and pension plans. The Montreal company has more than 2,700 customers across Canada.

Front of a van

Martin Papillon, CEO of the AGA Assurances collective. Photo from LinkedIn

On Monday, Novacap and the Caisse de dépôt also sold minority stakes in Quebec travel technology company Plusgrade. The buyer is New York-based General Atlantic, which paid more than $1 billion to take control of Plusgrade.

These transactions add to the long list of Quebec companies that have accepted foreign purchase offers since last year: Uni-Select, Opsens, H2O Innovation, Logistec and QSL International.

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The US dollar slips ahead of Powell39s speech Bitcoin continues

The US dollar slips ahead of Powell's speech, Bitcoin continues its rally

Business News /

By Samuel Indyk and Brigid Riley

LONDON (Portal) – The U.S. dollar was slightly weaker on Wednesday as traders kept their powder dry ahead of U.S. Federal Reserve Chairman Jerome Powell's first testimony before Congress and the European Central Bank's policy announcement on Thursday.

Meanwhile, Bitcoin picked up speed again, but remained below the previous day's record high.

The lack of key catalysts kept the dollar on the back foot after slipping on Tuesday after data showed U.S. services industry growth slowed last month.

Traders now awaited Fed Chairman Powell's first day of testimony before Congress on the state of the U.S. economy, where he is expected to underscore that the Fed will wait for more data before cutting interest rates.

“I think he will address previous comments and point out that they are data dependent and that they may cut rates at an upcoming meeting without mentioning a specific point,” said Stefan Mellin, chief analyst for FX strategy at Danske Bank.

“We believe there will be a synchronized easing cycle, meaning the interest rate differential between Europe and the US will remain. This is positive for the dollar in our view,” Mellin added.

Markets are pricing in about 90 basis points of easing from the Fed and European Central Bank this year, with both expected to begin cutting rates in June.

Against the dollar, the euro rose almost 0.2% to $1.0873 as traders also prepared for the ECB's interest rate decision later on Thursday.

The central bank is expected to keep interest rates at a record 4%, with an emphasis on hints about when cuts might begin.

“We expect that they will reiterate their message and that nothing will change in the outlook tomorrow,” Danske Bank’s Mellin said.

“The ECB is on track for easing in June.”

The yen edged higher after reports some Bank of Japan board members deemed it appropriate to raise interest rates out of negative territory at the March meeting. The dollar was last down 0.2% at 149.75 yen.

The story goes on

Analysts largely expect the BoJ to exit negative interest rates at its April meeting if spring wage negotiations in Japan result in solid wage increases.

Sterling rose slightly to $1.2723 ahead of Britain's budget announcement on Wednesday. Reports on Tuesday suggest cuts to Social Security are likely. However, with markets still reeling from the unfunded tax cuts in the September 2022 mini-budget, the scope remains slim.

“Although the pound showed little reaction to yesterday's rumors, this could change if there are significant tax cuts,” said Michael Pfister, FX analyst at Commerzbank.

“With the country’s finances already strained, the market may once again wonder whether this is overkill.”

The Australian dollar beat gross domestic product data that showed the economy grew just 0.2% in the fourth quarter, bolstering the case for interest rate cuts. The currency was last up 0.3% at $0.6524.

As a result, the dollar index, which measures the currency against a basket of six other currencies, fell about 0.1% to 103.63.

Markets are also keeping an eye on the world's largest cryptocurrency, Bitcoin, after it rose to a record high on Tuesday and then fell sharply.

It was last up 5.7% at $66,975. Bitcoin has gained sharply since October as investors poured money into U.S. cryptocurrency exchange-traded products and the prospect of a decline in global interest rates, hitting an all-time high of $69,202 on Tuesday.

Ether, the second-largest cryptocurrency, rose 10% to its highest level since December 2021 at $3896.10.

(Reporting by Samuel Indyk and Brigid Riley; Editing by Shri Navaratnam, Lincoln Feast, Sharon Singleton and Emelia Sithole-Matarise)

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