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    US adds 216,000 jobs in December as stronger than expected rise caps robust year

    The US workforce added 216,000 jobs last month, more than expected by economists, capping another robust year of growth in the face of higher interest rates.Policymakers, weighing when to start cutting borrowing costs, are closely monitoring the strength of the labor market as they try to guide the world’s largest economy to a so-called “soft landing”, where price growth normalizes and recession is avoided.American employers had been expected by economists to add about 164,000 jobs in December, down from 173,000 the previous month. Recruitment across the public, healthcare, social assistance and construction sectors helped drive growth as 2023 drew to a close.Overall, Friday’s official data showed that 2.7m jobs were added in the US economy over the course of last year – down from 4.8m in 2022.While its growth has slowed, the labor force has defied fears of a downturn after the Federal Reserve launched an aggressive campaign to pull back inflation from its highest levels in a generation. It remained resilient last year in the midst of layoffs and strikes.The headline unemployment rate stood at 3.7% in December, according to data released by the Bureau of Labor Statistics, in line with November.While last month’s jobs growth reading was significantly higher than forecast by economists, the agency revised its estimates for October and November lower. As a result, the US workforce in these two months was some 71,000 jobs smaller than previously reported.As price growth continues to decline, officials at the Fed – which last hiked interest rates in July – are now mulling the future of its battle. Jerome Powell, the central bank’s chairman, said last month that the historic tightening of monetary policy was probably over, and that discussions on cuts in borrowing costs were coming “into view”.The official jobs report is closely scrutinized by Wall Street each month for signs of how the US economy is faring. The S&P 500 started the day slightly higher in New York.Nancy Vanden Houten, lead US economist at Oxford Economics, said: “There is a lot of noise in the data, but we continue to expect that there will be enough evidence of a further loosening in labor market conditions and a decline in inflation more broadly to allow the Fed to begin cutting rates in May.”Growth in private sector employment “continues to slow relentlessly, even after the upside surprise” in December, said Ian Shepherdson, chief economist at Pantheon Macroeconomics. “Behind the headline, the trend in job growth is slowing, with more softening to come.” More

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    Senator John Fetterman vows to block ‘outrageous’ $14.9bn US Steel sale

    The US senator John Fetterman has vowed to block the multibillion-dollar sale of US Steel to the Japanese company Nippon Steel, calling the potential deal “outrageous”.The former mayor of the south-west Pennsylvania town of Braddock, which is home to a major US Steel plant, Fetterman has long advocated for the rights of American steel workers and positioned himself as a pro-union Democrat.In the video posted to X and taken from the roof of his house in Braddock, which overlooks the plant, Fetterman criticized the proposed $14.9bn sale, decrying US Steel for selling itself “to a foreign nation and company”.“Steel is always about security,” Fetterman said. “And I am committed to anything I can do, from using my platform or my position, in order to block this.“I’m going to fight for the steelworkers and their union way of life here as well, too.”The acquisition was announced on Monday and saw US Steel’s stock price jump 25%. The company confirmed the deal in a statement on Tuesday, saying its board unanimously approved the acquisition and calling Nippon Steel “a global leader in steelmaking, innovation and decarbonization”.The United Steelworkers (USW) union, meanwhile, denounced Nippon Steel for agreeing to an acquisition deal without prior approval from the union, Axios reported.David McCall, the president, called the deal “greedy” and a “violation” of a union agreement that requires any buyer of US Steel to agree to a new labor agreement prior to any sale.“Neither US Steel nor Nippon reached out to our union regarding the deal, which is in itself a violation of our partnership agreement that requires US Steel to notify us of a change in control or business conditions,” McCall told Axios, calling the sale “shortsighted”.A previous buyout offer in August, worth $7.3bn, by rival company Cleveland Cliffs, was rejected by US Steel. That offer did have the support of the USW union, which praised the Ohio-based Cleveland Cliffs as being “in the best position to ensure that US-based manufacturing remains strong in this country”, and noted it didn’t cut jobs during previous acquisitions in 2019 and 2020. More

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    Joe Biden signals he has no interest in signing US-UK trade agreement

    Ministers have given up on signing a trade agreement with the US before the next election, after the Biden administration signalled it had no interest in agreeing one.British officials had been hoping to agree a “foundational trade partnership” before both countries head to the polls in the next 12 months, having already decided not to pursue a full-blown free trade agreement.However, sources briefed on the talks say they are no longer taking place, thanks to reluctance among senior Democrats to open US markets to more foreign-made goods. The story was first revealed by Politico.A British government spokesperson said: “The UK and US are rapidly expanding cooperation on a range of vital economic and trade issues building on the Atlantic declaration announced earlier this year.” Multiple sources, however, confirmed the foundational trade partnership was no longer on the table.Vote Leave campaigners said giving the UK the freedom to sign bilateral trade agreements with other countries would be one of the biggest benefits of Brexit, with a US trade deal often held up as the biggest prize of all.Talks over a free trade agreement stalled early on, however, thanks in part to resistance from Democratic members of Congress and concerns in the UK about opening up UK markets to chlorine-washed chicken and hormone-injected beef.Earlier this year, the Guardian saw documents outlining how Washington and London could instead coordinate over a partnership covering digital trade, labour protections and agriculture. The deal would not have included lower barriers for service companies, meaning it fell short of a fully fledged free trade deal, but could have paved the way for one in the future.skip past newsletter promotionafter newsletter promotionSources say the deal was always likely to prove difficult to finalise, in part because the US still wanted greater access for their agricultural products. The prime minister, Rishi Sunak, said at a food security summit earlier this year that he would not allow either chlorine-washed chicken or hormone-injected beef into the UK.It also became clear in recent weeks that the Biden administration had no interest in signing any kind of a deal before the election, given how Donald Trump had weaponised international trade agreements during his first run for president.A spokesperson for Ron Wyden, the Democratic chair of the Senate finance committee, told Politico: “It is Senator Wyden’s view that the United States and United Kingdom should not make announcements until a deal that benefits Americans is achievable.” More

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    ‘There’s no limit’: one congressman’s solitary crusade to rein in sports betting

    As Las Vegas prepares to host Super Bowl LVIII sports betting is preparing to celebrate its remarkable shift from the illegal fringes of American sports to the heart of its establishment. In Congress, one man is not cheering.Congressman Paul Tonko fears the industry has already gone too far. “There’s no limit to this,” he told the Guardian. “You can’t have this wild west environment.” So far Tonko is a rare voice of dissent in Washington, another arena where the new gambling establishment is gaining ground.The gambling capital of the world is playing host to one of its largest sporting events for the first time in February – less than six years after the supreme court set the stage for sports betting’s surge across much of the United States.The transformation of official attitudes to online gambling has been head-spinning. Barely a dozen years ago, US authorities were still arresting and jailing online gambling executives. Now, in most of America, placing a wager has never been so easy.This now-legal sector’s sprint must be stopped, according to Tonko, who has become its fiercest critic on Capitol Hill. The congressman is calling for a federal crackdown to halt a “public health crisis” from engulfing the country – starting with a nationwide ban on advertising.The crusade has so far been a solitary one. No other member of Congress has yet publicly endorsed his campaign against betting ads, launched nine months ago. But Tonko is not prepared to throw in the towel.Over the course of an hour-long interview, the Democrat of New York let rip at a sector he believes must be reined in, accusing it of “preying on” the vulnerable, targeting ads at recovering addicts and putting “profits over people”.Back in May 2018, when the US supreme court struck down a decades-old law which had prohibited legal sports betting across much of the country, it knew the ruling would be divisive. Supporters of the ruling believed it would prompt a financial boon for states and “critically weaken” illegal platforms, Justice Samuel Alito wrote in the court’s opinion. Opponents feared it would “hook the young on gambling” and corrupt professional and college sports.The sports betting industry loudly highlights potential signs that its supporters were right. The American Gaming Association (AGA), which represents legal gambling companies, estimates they paid $13.5bn in taxes to state and local governments last year.So far the opponents of legalization have tended to speak more quietly. Signs of climbing youth addiction rates are more likely found in treatment clinics and helpline call centers than in political press releases.Tonko is trying to turn up the volume. “I’m very academic about this job,” he said. “And if I see something as a looming crisis… then I should respond.”The congressman was drawn to scrutinize the burgeoning gambling market after hearing “routinely” from younger constituents about a “constant bombardment” of ads. This is a “known addictive product” which, as far as he’s concerned, should be regulated like any other.At 74, Tonko noted that his generation was not “much of a target” for the sector’s marketing blitz. “But high schoolers, young children, college students and, believe it or not, people that were on the list as people in recovery were a targeted list of populations that sportsbooks went after.”With online sportsbooks now live and legal in more than two dozen states, Tonko is alarmed that this liberalization has triggered a sharp increase in compulsive gambling rates. “It’s an issue that needs to be addressed before we are overwhelmed by pain and suffering.”Back in February, on the eve of the last Super Bowl, Tonko proposed the Betting on our Future Act, based on legislation that banned tobacco advertisements in the 1960s. It is designed to “protect the innocent” from the betting commercials that have flooded television, radio and the internet in recent years. “We didn’t outlaw smoking,” he said, “and we’re not outlawing gambling here.”Days later, with 115 million people tuned into the Kansas City Chiefs’ victory over the Philadelphia Eagles, and companies reportedly shelling out up to $7m per ad to reach them, gambling giants dug deep. DraftKings, one of the biggest players in sports betting, recruited a cadre of celebrities to promote its special offer: a “FREE BET” for all customers. “Man, that’s big,” the comedian Kevin Hart said during its advert. Only the small print (displayed in the last seven seconds) explained it was impossible to withdraw winnings from such a “non-cashable” wager.The wider industry continues to spend heavily. The top four operators – FanDuel, DraftKings, BetMGM and Caesars – spent $825.3m on advertising last year alone, according to data from the advertising intelligence groups Vivvix and Pathmatics, and an estimated $417.2m on adverts in the first eight months of this year; more than the same period of 2022.These digital gladiators are still battling to dominate this nascent arena. Their extensive marketing campaigns have made gambling more visible than ever before; their innovations have made it more accessible, too. Regular prompts and opportunities to gamble have made the practice “far more destructive”, argued Tonko, who believes legal operators want “free rein” to do as they please. This is a market with “no parameters”, he claimed, laying out his case for swift action.So far, however, support for his proposal has been muted. Privately, some in Washington question whether advertising restrictions would make more sense than outright ban. The pushback has been blunt.The congressman’s comments “ignore the hard work and commitment of thousands of state and tribal gaming regulators who work every day to safeguard consumers, uphold marketplace integrity, and enforce the law”, Cait DeBaun, the AGA’s vice-president for strategic communications and responsibility, said. “The only ‘Wild West’ out there is the unchecked illegal market enabled by failed federal legislation, which handed bad actors a monopoly for almost three decades.“Offshore sportsbooks pad their pockets by targeting kids, college students and those with gambling problems. Anyone interested in protecting vulnerable Americans should focus their efforts on strengthening and enforcing existing laws to stop illegal gambling.”The industry has made some changes. The AGA’s marketing code, for example, was updated in March to prohibit use of the term “risk free”, and clarify that ads should be “designed to appeal primarily” to people aged 21 and over. Insiders deny this move was prompted by anything in particular. (Asked if it still uses the term “free bet” in ads following the change, DraftKings did not respond.)“As legalized gaming expands, our commitment to responsibility continues to grow and evolve in tandem,” said DeBaun. “The changes to the Code enacted by AGA members demonstrate this commitment by raising standards and introducing increased protections for college-aged audiences who are more vulnerable.”Such action is not enough for Tonko. “Intervening here, I think, is the just and right thing to do,” he said. The congressman is focused “for now” on advertising, but in time believes his colleagues should consider the best ways to both prevent and treat compulsive gambling.Congressional hearings could explore what should be “off limits” for this industry, he suggested. “There will be ripple effects of all sorts that, I hope, will be reviewed, and given intense examination. And if it warrants public policy, let’s do the bills. Let’s do that legislation.”Tonko is not sure the current safety net for problem gamblers is sufficient. “We do a lot to fund efforts to address people with alcohol, tobacco and heroin” issues, he said. When it comes to gambling, “you’ll tell me there’s an 800 number. How strong is it? How functional is it? You don’t treat any mental health disorder, any addiction, [with] a simple telephone number.”Media companies selling ads, gambling operators pursuing customers and states collecting tax revenue “all stand to gain” from sports betting’s rise, Tonko observed. “But at what price?”Toward the end of his interview, the congressman trailed off. “Look, I have a horse track in my district,” he said. “I’m not against gambling.”Tonko visits the Saratoga course, in upstate New York, from time to time. His staffers reckon the congressman most recently placed a bet last summer.But attending a track to wager on which horse finishes first seems quaint in an era when smartphones have enabled myriad bets – from the length of the longest touchdown to the number of passes two players might complete – during a single football game. The congressman believes tougher regulations are needed to reduce the odds of addiction trapping a new generation. More

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    Change is coming. The question is: what kind of change will it be? | Bernie Sanders

    We are living in the most difficult moment in modern history. If you feel anxious and overwhelmed about what’s going on, you’re not alone. The extraordinarily challenges we face are very real, but we can never let them become excuses for checking out of the political struggles that address these crises and will define our future.Our nation and, indeed our planet, are at a critical juncture. It is imperative that we recognize what we are up against, and what we must do to move our politics toward justice and human decency. And we can start by acknowledging that the American people have been through a lot, and that their confidence in politics and in government has been shaken.The Covid pandemic, the worst public health crisis in 100 years, took over a million lives in our country, and millions more became ill. The pandemic created the most painful economic downturn since the Great Depression, disrupted the education of our young people, increased isolation, anxiety and mental illness.The climate crisis is ravaging the planet. The last eight years have been the hottest on record and floods, droughts, forest fires and extreme weather disturbances have brought death and destruction to almost every part of the globe. Scientists tell us that unless there is a major reduction in carbon emissions over the next several decades, the planet will become increasingly uninhabitable.Amid unprecedented income and wealth inequality, with three people owning more wealth than the bottom half of American society, a handful of oligarchs control the economic and political life of our nation for their own greedy ends.With a dysfunctional government, and growing economic anxiety for millions of Americans, 60% of whom live paycheck to paycheck, faith that our flawed democracy can respond to the needs of working families is ebbing, and more and more Americans believe that authoritarianism might be the best way forward.Artificial intelligence is exploding. There are deep concerns not only that this new technology will displace millions of workers but about the real possibility that human beings could actually lose control over the future of society.The US healthcare system is broken beyond repair. Despite spending twice as much per capita as any other country, 85 million are uninsured or underinsured, our life expectancy is declining and we have nowhere enough doctors, nurses, dentists or mental health practitioners.Our educational system is in crisis. Childcare is too often unaffordable and unavailable, many of our public schools are unable to attract the quality teachers they need, and 45 million Americans struggle with student debt. In 1990, the US led the world in the percentage of 25- to 34-year-olds who had college degrees. Today, in a competitive global economy, we are in 15th place.And, oh yes, Donald Trump, who is becoming more rightwing and extremist every day, is leading many of the presidential polls. In a recent speech, using language that echoes Adolf Hitler, Trump stated: “We will root out the communists, Marxists, fascists and the radical left thugs that live like vermin within the confines of our country.” He also had strong praise for Hungary’s authoritarian leader, Viktor Orbán. In an interview, Trump said migrants were “poisoning the blood of our country”, promising in another speech that he would round up undocumented people on a vast scale, detain them in sprawling camps, and deport millions of people per year.Frighteningly, the growth of rightwing extremism is not just growing in the United States.As the Washington Post reports, “far-right parties have taken power in Italy, extended their rule in Hungary, earned a coalition role in Finland, become de facto government partners in Sweden, entered parliament in Greece and made striking gains in regional elections in Austria and Germany”. Within the past few weeks, a far-right candidate was elected president of Argentina and a rightwing extremist party won the most seats in the election in Holland.That’s the bad news. The very bad news. But there’s also good news.The good news is that all across the country workers and their unions are fighting back against corporate greed. We are seeing more union organizing and successful strikes than we have seen in decades. Whether it’s the Teamsters at UPS, the UAW at the big three automakers, the Screen Actors Guild (Sag) at the large media production companies, Starbucks workers, graduate students on college campuses, or nurses and doctors at hospitals, working people are making it clear that they are sick and tired of being ripped off and exploited. They are no longer sitting back and allowing large corporations to make record breaking profits while they fall further and further behind. They will no longer accept CEOs making nearly 350 times more than the average worker.The good news is that more and more Americans are making the connections between the reality of their lives and the corrupt and destructive nature of our uber-capitalist system which prizes greed and profiteering above any other human value.Whether they are Democrats, Republicans or independents, Americans want change – real change.They are disgusted by a political system which allows the wealthiest people in this country, through their Super Pacs, to buy elections. They want structural campaign finance reform based on the principle of one person, one vote.They are outraged by billionaires paying a lower effective tax rate than they do because of massive tax loopholes. They want real tax reform which demands that the wealthy and large corporations start paying their fair share of taxes.They are frightened for the future of this planet when they see oil companies make record-breaking profits as the carbon emissions they produce destroy the planet.They are offended to see ten giant pharmaceutical companies making over $110bn in profits last year, while they cannot afford the outrageous price of prescription drugs they need to stay alive.They are shocked as they see Wall Street investment firms buy up affordable housing, gentrify neighborhoods, while they are unable afford to afford the outrageous rents being charged by their unaccountable Wall Street landlords.They are humiliated by having to stay on the phone for an hour, arguing with an airline company machine about a plane reservation, while the industry makes huge profits.The American people today are angry. They are anxious about their present reality and worried about the future that awaits their kids. They know that the status quo is not working and that, in many respects, the system in breaking down.Change is coming. The question is: what kind of change will it be? Will it be a Trumpian, authoritarian type change that exploits that anger and turns it against minorities and immigrants, blaming them for the crises we are experiencing? Or will it be a change that revitalizes American democracy, unites and empowers working people of all backgrounds and has the courage to take on a corrupt ruling class whose greed is causing irreparable destruction in our country and around the world?There is no question but that the challenges we face today are enormous – economic, political and environmental. There is no easy path forward when we take on the oligarchs and the most powerful entities in the world.But, in the midst of all that, here is the simple truth. If we stand together in our common humanity – Black, white, Latino, Asian American, Native American, gay and straight, people of all religions, there are enormous opportunities in front of us to create a better life for all. We can guarantee healthcare to every man, woman and child as a human right. We can create millions of good paying jobs transforming our energy system. We can create the best educational system in the world. We can use artificial intelligence to shorten our work-week and improve our lives. We can create a society free of bigotry.But here is the other simple truth. None of that happens if we are not prepared to stand up and fight together against the forces that work so hard to divide and conquer us. This is a moment in history that cannot be ignored. This is a struggle that cannot be sat out. The future of the planet is at stake, democracy is at stake, human decency is at stake.Let’s go forward together and win.
    Bernie Sanders is a US senator, and chairman of the Senate health, education, labor and pensions committee. He represents the state of Vermont, and is the longest-serving independent in the history of Congress More

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    Biden plans to use cold-war era law in attempt to lower US prices

    The White House has announced it plans to use a cold-war era law to ease supply chain issues that the administration argues are contributing to higher inflation – a key electoral challenge to Joe Biden’s re-election chances next year as polling consistently suggests voters are not buying his Bidenomics pitch.In a statement, the White House said Biden will use the Defense Production Act to improve the domestic manufacturing of medicines deemed crucial for national security and will convene the first meeting of the president’s supply chain resilience council to announce other measures tied to the production and shipment of goods.“We’re determined to keep working to bring down prices for American consumers and ensure the resilience of our supply chains for the future,” said Lael Brainard, director of the White House national economic council and a co-chair of the new supply chain council, in a separate statement.The Defense Production Act of 1950, which was passed to streamline production during the Korean war, was last used in early 2021 during the coronavirus pandemic to accelerate and expand the availability of ventilators and personal protective equipment.The supply chain council is set to address issues ranging from improved data sharing between government agencies, supplying renewable energy resources and freight logistics.Jake Sullivan, the White House national security adviser, will be co-chair of the council, which includes the heads of cabinet departments, the administration’s council of economic advisers, the US director of national intelligence, the Office of Management and Budget, and other agencies.Monday’s announcement arrived as the US economy appears to be doing well on paper. But the White House has acknowledged that improving economic picture is not shared by consumers, and the administration has explicitly tied the economy to the president by calling it Bidenomics.A recent Economist/YouGov poll found that only 39% of voters approve of Biden’s handling of jobs and the economy. And a separate Reuters/Ipsos poll puts the economy as the most important issue to Americans for the past two years.Even as the pace of inflation has slowed, consumers are shouldering an economic burden they had not experienced in years. Prices have risen as much in the past three years as they had in the previous decade, according to a report by Bloomberg, and it now costs almost $120 to buy the same goods and services a family could afford with $100 before the pandemic.According to Bloomberg, groceries and electricity are up 25%, used car prices have climbed 35%, auto insurance 33% and rent roughly 20% since January 2020. Housing affordability is at its worst on record. Auto-loan rates and credit card interest rates are also at a peak.As a result, many Democrats say it is time for Biden to adjust the economic message ahead of the 2024 election.In a statement, the White House said that “robust supply chains are fundamental to a strong economy”.“When supply chains are smooth, prices fall for goods, food, and equipment, putting more money in the pockets of American families, workers, farmers, and entrepreneurs,” the statement added.“Supply chain stress has eased measurably over the past year and the Biden administration’s announcement is another step in the right direction,” the Moody’s economist Jesse Rogers said.Rogers added: “While unlikely to resolve some of the more complex issues plaguing supply chains in one go, measures targeting pharmaceuticals, climate infrastructure, data security and logistics will bolster resilience and get the ball rolling on smart infrastructure and global cooperation.”In addition to domestic production measures, the administration said it will work to strengthen global supply chains internationally, including by developing early warning systems with allies and partners to detect and respond to supply chain disruptions in critical areas.Those include measures “to improve the weather, water, and climate observing capabilities and data-sharing” with countries “needed to produce global climate information and minimize impacts upon infrastructure, water, health, and food security”. More

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    Hunt’s tax cuts mean interest rates won’t drop until summer 2024, economists warn

    For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Jeremy Hunt’s move to cut national insurance risks interest rates remaining high until the summer of 2024, economists have warned. The chancellor cut national insurance contributions (NIC) by […] More

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    New York judge suspends Trump gag order in fraud trial, citing free speech

    A New York appeals court judge on Thursday paused a gag order that barred Donald Trump from commenting on court staffers in his civil fraud trial. The trial judge had imposed the gag order last month and later fined Trump $15,000 for violations after the former president made a disparaging social media post about a court clerk.In his decision, Judge David Friedman of the state’s intermediate appeals court cited constitutional concerns about restricting Trump’s free speech. He issued a stay of the gag order, allowing Trump to comment freely about court staff while a longer appeals process plays out.Trump’s lawyers filed a lawsuit against the trial judge, Arthur Engoron, late on Wednesday challenging the gag order as an abuse of power. Friedman scheduled an emergency hearing for Thursday afternoon around a conference table in a state appellate courthouse a couple of miles from where the trial is unfolding.Trump’s lawyers had asked the appeals judge to scrap the gag order and fines imposed by the trial judge, after the former president and his attorneys claimed that a law clerk was wielding improper influence.Trump and his lawyers have repeatedly put the law clerk, Allison Greenfield, under a microscope during the trial. They contend that the former Democratic judicial candidate is a partisan voice in Judge Engoron’s ear – though he also is a Democrat – and that she is playing too big a role in the case involving the former Republican president.Engoron has responded by defending Greenfield’s role in the courtroom, ordering participants in the trial not to comment on court staffers and fining Trump a total of $15,000 for what the judge deemed violations. Engoron went on last week to prohibit attorneys in the case from commenting on “confidential communications” between him and his staff.Trump’s lawyers – who, separately, sought a mistrial on Wednesday – contend that Engoron’s orders are unconstitutionally suppressing free speech, and not just any free speech.“This constitutional protection is at its apogee where the speech in question is core political speech, made by the frontrunner for the 2024 Republican presidential nomination, regarding perceived partisanship and bias at a trial where he is subject to hundreds of millions of dollars in penalties and the threatened prohibition of his lawful business activities in the state,” they wrote in a legal filing. More