US jobs growth faster than forecast; South Africa sees retail job losses; GM back as US’ most valued carmaker

1 US jobs growth faster than forecast (BBC) US employment rose by more than expected last month, but wage growth remained subdued, latest figures show. The economy added 222,000 jobs in June, the US Department of Labor said, and job creation in April and May was higher than previously estimated.

However, despite the job gains and a low 4.4% unemployment rate, wage growth remained tepid. Average wages rose 2.5% year-on-year, which analysts said was a sign the market still had room to improve.

Economists have expected job growth to slow and wages to rise, as more people are employed and firms have a harder time hiring. Some of the strongest employment growth in June came in the fields of health care and social assistance, financial activities and mining. Government employment also increased.

But there are still more than five million Americans working part-time who would like to have full-time work, according to the Labor Department’s report.

2 South Africa sees retail job losses (Palesa Vuyolwethu Tshandu in Johannesburg Times) As retail and consumer businesses continue to see margins freeze, industry pundits warn that job losses may be on the horizon for what were once the darling stocks of the JSE.

Rod Salmon, a consumer and retail analyst at Barclays, said the retail industry was expected to see job cuts. “If you look at how many jobs Edcon cut, they are going to have the same in Woolworths, Truworths and TFG … everyone will cut jobs to become more efficient.”

He added that for retailers the two biggest costs were rent and staff and to create greater efficiencies retailers would now have to start shedding in those key areas. Edcon CEO Bernie Brookes has not been immune to job losses, having closed down 100 stores last year, with 150 more expected to close this year.

Retail is one of the biggest employers in the country, with consumption contributing about 63% of the country’s GDP. According to the Quarterly Labour Force Survey, in the first quarter 3.2 million people were employed in the trade sector. This makes the sector the second-largest employer after the government.

On a quarterly basis 15 000 jobs were lost in the sector, which could be an early indication of worse to come or could be explained by a temporary increase in seasonal workers over the festive season. On an annual basis 49 000 more people were employed in the trade sector.

Andre Kriel, general secretary at the South African Clothing and Textile Workers’ Union (Sactwu), said the organisation was concerned about the state of retail, as most of Sactwu’s members were in manufacturing and were affected by retail’s struggles.—spending-is-squeezed/

3 GM back as US’ most valued carmaker (Khaleej Times) After three months as the nation’s most valuable automaker, a bad week in an otherwise stellar year has knocked Tesla from the top perch. Over the first six months of the year, Tesla shares gained more than 50 per cent and the electric car company passed General Motors and Ford in market cap.

But shares have plunged almost 15 per cent this week, translating to lost market value of $8.7 billion. GM has regained the top spot with a value of $52.67 billion compared with $50.74 billion for Tesla. Tesla has been hit by a trifecta of bad news.

Tesla’s gains this year are still noteworthy. The shares are still up more than 40 per cent. GM shares gained about two per cent in the same period, while Ford’s have declined.

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Record quarterly profit for Samsung; Untreatable ‘superbug’ spreading; A robot waitress in Pakistan

1 Record quarterly profit for Samsung (BBC) Samsung Electronics has posted its biggest ever quarterly profit thanks to surging global demand for memory chips. The South Korean tech giant reported an operating profit of $12bn in the three months to June, up 72% on a year earlier.

Sales climbed 18% to 60 trillion won, buoyed by strong sales of smartphones including the new flagship Galaxy S8. Analysts say the results indicate Samsung has recovered from the disastrous Galaxy Note 7 recall. That handset was axed after a battery fault led to some devices catching fire.

Samsung also launched a new phone in South Korea using parts form the Note 7 to “minimise the environmental impact” of its high-profile flop. Some research firms predict that Samsung is set to overtake Intel as the world’s biggest chipmaker by sales this year.

2 Untreatable ‘superbug’ spreading (The Guardian) The World Health Organization has warned of the spread of totally untreatable strains of gonorrhoea after discovering at least three people with the superbug.

Giving details of studies showing a “very serious situation” with regard to highly drug-resistant forms of the sexually transmitted disease (STD), WHO experts said it was “only a matter of time” before last-resort gonorrhoea antibiotics would be of no use.

“Gonorrhoea is a very smart bug,” said Teodora Wi, a human reproduction specialist at the Geneva-based UN health agency. “Every time you introduce a new type of antibiotic to treat it, this bug develops resistance to it.“ The WHO estimates 78 million people a year get gonorrhoea, an STD that can infect the genitals, rectum and throat.

The infection, which in many cases has no symptoms on its own, can lead to pelvic inflammatory disease, ectopic pregnancy and infertility, as well as increasing the risk of getting HIV.

3 A robot waitress in Pakistan (San Francisco Chronicle) The owners of a pizza shop in Pakistan say business is booming now that they’ve introduced a robot waitress. Osama Jafri, the engineer who designed the 25-kilogram robot, says it can greet customers and carry pizzas to their tables.

The robot resembles a short, slender woman wearing a long dress and apron. He says he wrapped a scarf around the robot’s neck so as not to offend conservative patrons.

He says sales at, in the town of Multan, have doubled since the robot was unveiled in February. Jafri’s father Aziz, who owns the restaurant, says he has three more robot waitresses and plans to open a new branch.

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An electric future for car makers; UK productivity below 2007 level; Signs of a Canadian housing bubble

1 An electric future for car makers (Adam Vaughan in The Guardian) Volvo’s decision to exclusively build electrified or hybrid cars is the beginning of the end of the company’s relationship with fossil fuels, according to one motoring organisation.

One Swedish car maker starting down the road to a zero emissions future will not solve global warming alone. But the whole automotive industry following suit would begin to make a serious difference in reducing oil demand and emissions.

Transportation accounts for 14% of global greenhouse gas emissions and, as the US Environmental Protection Agency notes, almost all of the energy – 95% – powering those cars, planes, trains and ships still comes from petrol and diesel.

Electric cars show a route off that dependence, but their take-up has repeatedly disappointed. There are now 2m globally, out of more than 1bn cars in total, showing the mountain that still needs to be climbed. Bloomberg predicts 41m electric car sales a year in 2040, while BP this year revised its prediction to a total of 100m on the roads by 2035.

Renault-Nissan has arguably led the way in 100% electric cars so far, with 350,000 sold in total. VW, looking to clean up its image after the diesel scandal, plans to sell 1m electric cars a year by 2025. Volvo’s target is to sell 1m electric vehicles – that includes plug-ins and hybrids as well as pure battery-powered cars – by 2025.

2 UK productivity below 2007 level (BBC) The productivity of UK workers has dropped back to pre-financial crisis levels, according to official figures. Hourly output fell 0.5% in the first three months of the year, the Office for National Statistics said.

At the end of 2016, productivity returned to the level seen before the downturn, overturning years of decline which has weighed on wages. But it has now slipped back again and is 0.4% below the peak recorded at the end of 2007, according to the ONS.

Economists have warned that the UK’s productivity continues to lag behind its major trading partners such as the US, France and Germany.

3 Signs of a Canadian housing bubble (Matein Khalid in Gulf News) The Canadian housing bubble has gone so ballistic that the Ontario government is considering a 15 per cent tax on foreign buyers to cool down the speculative spiral in Toronto condominiums.

The smart money on Wall Street’ latest trade is to short Canadian banks and property developers, the fabled hedge fund Great White Short. Canadian property prices have doubled in the past decade, thanks to low interest rates, high-end immigration, flight capital from China/Southeast Asia, with Toronto and Vancouver the epicentre of the housing bubble.

A housing bubble is a money-spinning feast for speculators since they only put down 10-25 per cent as an initial downpayment. Yet as some learnt the hard way, leverage wipes out investor equity when a housing bubble bursts, often taking down entire banking systems and consumer economies.

In countries that criminalise bankruptcy, the choice for a leveraged homeowner when a bubble bursts is to either face jail or flee. This is not the case in the US the Canada, where non-recourse mortgages make home price speculation a one-way bet when prices soar in a speculative bubble.

Canadian home prices have gone parabolic since 2010, up 60 per cent despite the plunge in crude oil prices and the election of a Liberal Party Prime Minister in Ottawa. Yet there are now unmistakable signs that the Canadian housing bubble is about to pop. New home sales have plunged even though prices are at record highs.

Ontario’s Fair Housing Plan only tells me this time the wolf is here. The near collapse of subprime mortgage lender. Home Capital Group has eerie echoes of the failure of Lehman Brothers. Home Capital shares fell 90 per cent before Warren Buffet financed C$2.4 billion lifeboat.

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Qatar rated negative by Moody’s; Boom in fintech jobs; Sex bots are revolutionary and risky

1 Qatar rated negative by Moody’s (Babu Das Augustine in Gulf News) Moody’s Investors Service has changed the outlook on Qatar’s credit rating to negative from stable and affirmed the long-term issuer and senior unsecured debt ratings at Aa3.
The key driver for the outlook change to negative is the economic and financial risks arising from the ongoing dispute between Qatar and a group of countries, including its fellow Gulf Cooperation Council neighbours Saudi Arabia, the UAE and Bahrain, as well as Egypt.

In Moody’s view, the likelihood of a prolonged period of uncertainty extending into 2018 has increased, which carries the risk that Qatar’s sovereign credit fundamentals could be negatively affected.

The coalition countries have enacted a series of measures such as severing diplomatic relations, closing land, sea and air links, and expelling Qatari nationals from their countries. In addition, they have submitted a list of 13 demands as condition for removing these actions.

Credit rating agency Standard & Poor’s (S&P) was the first to take rating action on Qatar within days after the diplomatic row erupted. The rating agency has lowered its long-term rating on the State of Qatar to AA- from AA and placed the rating on credit watch with negative implications.

2 Boom in fintech jobs (Yasmine Yahya in Straits Times) Never mind numeracy skills. To work in a bank these days, a job-seeker is better off being a designer, digital data analyst or tech developer.

The Monetary Authority of Singapore in its annual report last week noted a net increase of 2,800 financial sector jobs last year, despite the slowdown in financial sector growth to 0.7 per cent from 5.7 per cent in 2015.

MAS managing director Ravi Menon noted that with digitisation and automation gathering pace, many global financial institutions have been downsizing and restructuring their operations, mainly in back office functions such as operations, IT and technical support.

Banks and human resource experts said the rise of technology has led to an increase in demand for many new positions in the banking sector which did not previously exist, such as UX/UI designers, digital data analysts and app developers. Management consultancy Kelly Services estimates that IT on the whole will require between 15,000 and 30,000 more workers by 2020.

OCBC Bank is looking to recruit more talent with expertise in cyber security, digital and Web development and data analytics. Similarly, DBS Bank has been looking for data scientists, UX/UI designers, app developers and people familiar with cloud computing, agile development, development operations and information security to support its digital initiatives.

3 Sex bots revolutionary and risky (Haroon Siddique in The Guardian) Sex robots have the potential to provide a valuable service for people who are elderly, disabled or who find intercourse traumatic, but they also carry ethical risks, experts say. Sex robots that look like humans can already be bought or leased for parties in the US, and plans for a cafe staffed by “erotic cyborgs” in Paddington, London, have been mooted.

The authors behind the Foundation for Responsible Robotics’ report believe they could herald a “revolution” in sex, helping people who would otherwise find it hard to have intimate relationships. But they also raise concerns that sex robots could increase the objectification of women, alter perceptions of consent and be used to satisfy desires that would otherwise be illegal.

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China factory output perks up; Hong Kong’s 20 years with China; India’s sweeping tax reform

1 China factory output perks up (Straits Times) China’s manufacturing sector expanded at the quickest pace in three months last month, buoyed by strong production and new orders, reassuring news for the authorities trying to strike a balance between deleveraging and keeping the economy on an even keel.

The official manufacturing Purchasing Managers’ Index (PMI) was at 51.7 last month, the eleventh straight month of expansion, and up from 51.2 in May, a monthly survey by the National Bureau of Statistics showed. It was the fastest pace since March.

The survey supports broad consensus that China’s economy is stabilising at a moderate pace rather than slowing sharply, suggesting that it is on track to meet its annual growth target of 6.5 per cent for this year.

Still, most China observers agree that the world’s second-biggest economy will continue to cool as the authorities reduce high levels of debt across many of the heavy industries, crack down on financial risks and tighten monetary conditions.

2 Hong Kong’s 20 years with China (BBC) The Chinese president has sworn in the new leader of Hong Kong, Carrie Lam, as the territory marks 20 years since its handover to China from Britain. Xi Jinping joined a series of lavish events, including a flag-raising ceremony, amid tight police security.

But clashes have taken place between pro-democracy and pro-Beijing demonstrators close to the site, with several arrests made. Many parts of the city were shut down as part of the security operation.

The pro-democracy party, Demosisto, said police had arrested five of its members, and four members from the League of Social Democrats. Among those said by the group to have been arrested was Joshua Wong, the leader of the so-called umbrella protest movement.

3 India’s sweeping tax reform (Financial Express) India introduced a historic tax reform, bringing in the Goods and Services Tax. The GST regime would subsume various taxes and there would be a single tax law and four tax rates—5%, 12%, 18% and 28%—that would be charged by the federal government and the states.

Also, a number of goods and services have been exempted from the tax structure. Tax rates under GST have been largely kept at existing levels for most sectors, barring a few. The threshold limit for exemption from levy of GST is Rs 2 million for the states except for the special category northeastern states, where it is Rs 1 million.

A cess would be levied on certain goods such as luxury cars, aerated drinks, pan masala and tobacco products, over and above the GST rate of 28% to recover amount for compensation to the states. In fact, GST will bring in transparency and encourage investments in organised sectors, helping the economy gather growth momentum.

GST will create a level playing field between unorganised and organised segments. Moreover, GST will lower logistics costs due to the decline in transit time because of elimination of multiple check points – octroi, state borders.

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Stocks flying, oil crying at 2017 halfway; ‘Hearables’ market set to take off; OED lists zyzzyva as last word

1 Stocks flying, oil crying at 2017 halfway (Khaleej Times) World stocks could be about to record their best start to a year since 1998, when global markets were recovering from the Asian crisis, while oil and the dollar are facing their worst first-half in years.

It has been a six months marked, first, by the crumbling of so-called Trump trades that were premised on US President Donald Trump’s pledges of multi-trillion dollar spending. The second feature has been a political and growth outlook shift in Europe which has lured investors back to the continent.

Emerging markets and Europe have seen 16 to 17 per cent gains on a dollar-adjusted basis. This has boosted world stocks around 10 per cent so far this year. Oil on the other hand is 2017’s worst performer, despite almost 2 million barrels-per-day of Opec supply cuts. Brent crude futures have slumped 20 per cent in their biggest first-half drop since 1997.

But equities have held up well despite a hefty tech share selloff earlier in June and a run of softer US economic data which hint at slowing price growth and a major setback for the ‘Trumpflation’ trades in vogue at the start of 2017.

2 ‘Hearables’ market set to take off (Sean Hargrave in The Guardian) When you’ve invested in a set of ‘hearables’, you might handle earphones more carefully. These in-ear computers could help you get fit, improve your hearing and translate foreign languages.

The global market for Bluetooth-connected and wireless earbuds and headphones will be worth $40bn by 2020, calculates Nick Hunn, an analyst and chief technology officer at WiFore Consulting. His figures show a surge in the sales of Bluetooth-connected devices, which surpassed wired headphone sales, the former market leader.

It’s tempting to suggest this is thanks to Apple’s decision to ditch the headphone socket in its latest iPhone in favour of AirPods (Apple-branded wireless earbuds). But it seems this merely accelerated an existing trend: people started buying these wireless devices two to three years ago, before AirPods launched.

3 OED lists zyzzyva as last word (Johannesburg Times) The Oxford English Dictionary identified more than 600 words, phrases and senses that have relatively recently entered common parlance. They include zyzzyva, a genus of tropical weevil native to South America. The word replaces zythum – an ancient Egyptian malt beer – as the OED’s final entry.

The name was apparently coined by the US entomologist Thomas Lincoln Casey, who described the bugs in a 1922 work, the OED said. The quarterly update includes “post-truth”, previously announced by the OED as its word of the year for 2016 following Britain’s Brexit referendum and Donald Trump’s presidential victory.

Other new senses this time include “thing”, as in “a genuine or established phenomenon or practice”, often used when you’re incredulous about something. Further additions to the English lexicon are chana dal, the Hindi phrase for chickpeas, and doenjang, a paste made from fermented soya beans used in Korean cookery. A gin daisy is a cocktail.–last-word-on-english-zyzzyva/

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WhatsApp rises as news media; Opec caught in oil bear market; Uber to run McDonald’s UK deliveries

1 WhatsApp rises as news media (Leo Kelion on BBC) WhatsApp is becoming one of the prevailing ways people discover and discuss news, according to a study. But use of the messaging app appears to vary widely between countries.

In Malaysia, more than 50% of those surveyed said they used WhatsApp for news at least once a week. But in the US, the figure was only 3%, and in the UK it was 5%. The Digital News Report also indicates the Brexit debate has led to growing mistrust of the UK’s media.

It said only 43% of respondents declared that the news could be trusted – down from 50% last year – with the BBC in particular criticised for having both a pro-EU bias and failing to expose the “distortions” of the leave campaign.

The research was carried out by the Reuters Institute for the Study of Journalism and covered 34 countries in Europe, the Americas and Asia, in addition to Taiwan and Hong Kong. It was sponsored by the BBC and Google among others.

The results indicate that Facebook remains the most popular social media and messaging service for news engagement in all but two countries – Japan and South Korea – where, respectively, YouTube and Kakao Talk dominate.

But it adds that use of Facebook for news had dipped in more than half of all the territories where a year-on-year comparison was possible. By contrast, sharing news stories and chatting about them appears to be on the rise within private instant messaging apps, and WhatsApp in particular.

2 Opec caught in bear market (Gulf News) Oil’s back in a bear market and investors remain unmoved by last month’s agreement to prolong supply cuts, leaving Opec and its allies with few remaining tools to boost prices.

As Saudi Arabia, Russia and their allies reduce output, supply that’s beyond their control keeps rising. Libya and Nigeria — Opec members exempt from the curbs — and US shale producers are resurgent, undermining efforts to tame a global glut. Prices are back below where they were when the Organisation of Petroleum Exporting Countries first struck its historic deal last year.

Cutting even deeper — an idea rejected just a month ago — still looks unlikely. For now at least, the Saudi pledge to do “whatever it takes” to stabilise prices looks like not much at all.

Further curbs could be necessary, but reaching a consensus will be difficult, Iran’s Oil Minister Bijan Namdar Zanganeh said. A committee meeting in Vienna this week gave only cursory attention to the possibility of deepening the existing cuts, focusing instead on the problem of rising output in Libya and Nigeria.

Russia has indicated on several occasions that it’s opposed to any additional reductions, said one delegate. Nations that have made the production cuts already appear to be ceding ground as rival supplies grow.

Next year, new oil supplies from Opec rivals, chiefly the US, will be more than enough to meet demand growth, the International Energy Agency said. As a result, demand for the group’s crude will be about 200,000 barrels a day lower than this year, the agency said.

3 Uber to run UK McDonald’s delvieries (The Guardian) McDonald’s has launched its long-awaited ‘McDelivery’ trial in the UK after teaming up with Uber’s food delivery service, UberEats.

McDonald’s will offer the service from 22 outlets across the capital and another 10 restaurants in Leeds and Nottingham – although customers will have to live within a 1.5 mile radius of a restaurant. Customers can place orders through the UberEats app between 7am and 2am.

McDonald’s said it would be monitoring the trial closely to see whether it proved popular. Mathieu Proust, general manager of UberEats, said the trial would let people “get the food they want” quickly and reliably.

The launch comes after KFC launched home deliveries from 30 outlets in greater London via the Just Eat platform earlier this year. The McDonald’s move follows similar tie-ups with Uber in the US, while the chain already delivers in China and Singapore.

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