US lifts chip design export curbs as part of new China deal
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Business Times
an hour ago
- Business Times
Solid US job growth masks weakness underneath
[WASHINGTON] US job growth was unexpectedly solid in June, but nearly half of the increase in nonfarm payrolls came from the government sector, with private sector gains slowing considerably as industries like manufacturing and retail grappled with the Trump administration's aggressive tariffs on imports. While the Labor Department's closely watched employment report also showed the unemployment rate falling to 4.1 per cent last month from 4.2 per cent in May, that was partly because some people left the labour force. The average workweek was shorter last month, suggesting that businesses were probably reducing hours amid rising economic headwinds. 'Although the overall number of jobs was very strong, the weakness was broad-based across the private sector,' said Eugenio Aleman, chief economist at Raymond James. 'The labour market continued to weaken in June, which is in line with our view and should reignite the conversation regarding the Federal Reserve's interest rate path.' Nonfarm payrolls increased by 147,000 jobs last month after an upwardly revised 144,000 advance in May, the Labor Department's Bureau of Labor Statistics said on Thursday (Jul 3). Economists polled by Reuters had forecast payrolls rising 110,000 following a previously reported 139,000 gain in May. Estimates ranged from an increase of 50,000 to 160,000 jobs. The report was published a day early because of the Independence Day holiday on Friday. Despite the bigger-than-expected rise in payrolls, job growth is slowing and concentrated in a few sectors. Government employment rose by 73,000, boosted by a 40,000 increase in state government education, which economists brushed off as a seasonal quirk related to the end of the school year. Local government education increased 23,000. Federal government job losses continued, with 7,000 positions lost, and employment is now down by 69,000 since reaching a recent peak in January. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Private payrolls increased by 74,000 jobs, the fewest since October of 2024. Healthcare added 39,000 jobs, spread across hospitals nursing and residential care facilities. Social assistance employment increased by 19,000. Outside these non-cyclical sectors, job gains were weak. US stocks fell. The US dollar advanced against a basket of currencies. US Treasury yields rose. Economists say President Donald Trump's focus on what they call anti-growth policies, including sweeping tariffs on imported goods, mass deportations of migrants and sharp government spending cuts, has changed the public's perceptions of the economy. Business and consumer sentiment surged in the wake of Trump's victory in the presidential election last November in anticipation of tax cuts and a less stringent regulatory environment before slumping about two months later. Manufacturing shed 7,000 jobs, while wholesale trade lost 6,600 positions. Professional and business services payrolls decreased 7,000. Retailers added a paltry 2,400 jobs. The average workweek fell to 34.2 hours from 34.3 hours in May. The unemployment rate fell from 4.2 per cent in May. Economists had expected the jobless rate to tick up to 4.3 per cent. Indicators, including the number of people filing for state jobless benefits and receiving unemployment checks, have pointed to labour market fatigue after a strong performance that shielded the economy from recession as the US central bank aggressively tightened monetary policy to combat high inflation. Most economists expect the jobless rate will rise through the second half of this year, and potentially encourage the Fed to resume its monetary policy easing cycle in September. Some economists, however, see limited scope for the unemployment rate to rise as the immigration crackdown shrinks the labour pool. With the White House having revoked the temporary legal status of hundreds of thousands of migrants, economists said fewer than 100,000 additional jobs per month would likely be needed to keep the jobless rate stable. The Fed last month left its benchmark overnight interest rate in the 4.25-to-4.50 per cent range, where it has been since December. Fed chair Jerome Powell on Tuesday reiterated the central bank's plans to 'wait and learn more' about the impact of tariffs on inflation before lowering rates again. REUTERS
Straits Times
3 hours ago
- Straits Times
Trump close to victory on flagship tax Bill
Sign up now: Get ST's newsletters delivered to your inbox The tax and spending Bill would be a major landmark in US President Donald Trump's political life, sealing his vision of US domestic policy into law. WASHINGTON - US lawmakers teed up a final vote on US President Donald Trump's marquee tax and spending Bill for the morning of July 3 after bruising Republican infighting nearly derailed the centerpiece of the president's domestic agenda. Almost 24 hours after debate began, Mr Trump appeared close to victory as Congress edged towards passing his 'One Big Beautiful Bill', despite misgivings in his party over a text that would balloon the national debt while launching a historic assault on the social safety net. The Bill would be a major landmark in Mr Trump's political life, sealing his vision of US domestic policy into law – and coming after he scored recent wins including in the Supreme Court and with US strikes that led to a ceasefire between Israel and Iran. Speaker Mike Johnson struggled through the night to corral his rank-and-file Republican members after the package scraped through a series of 'test' votes in the House of Representatives that laid bare deep divisions in the party. It was on course for a final vote that would put it on Mr Trump's desk to be signed into law after passing its last procedural hurdle in the early hours of July 3 . 'We feel very good about where we are and we're moving forward,' an upbeat Mr Johnson told reporters at the Capitol. 'So we're going to deliver the Big, Beautiful Bill – the president's 'America First' agenda – and we're going to do right by the American people.' Funds for mass deportation The timetable could slip however as Democratic minority leader Hakeem Jeffries continued a long speech opposing the Bill that delayed proceedings by several hours. Originally approved by the House in May, Mr Trump's sprawling legislation squeezed through the Senate on July 1 but had to return to the lower chamber for a rubber stamp of the senators' revisions. The package honors many of Mr Trump's campaign promises, boosting military spending, funding a mass migrant deportation drive and committing US$4.5 trillion (S$5.7 trillion) to extend his first-term tax relief. But it is expected to pile an extra US$3.4 trillion over a decade onto the country's fast-growing deficits, while shrinking the federal food stamps program and forcing through the largest cuts to the Medicaid health insurance scheme for low-income Americans since its 1960s launch. While Republican moderates in the House are anxious that the cuts will damage their prospects of reelection, fiscal hawks chafed over savings that they say fall far short of what was promised. Mr Johnson has to negotiate tight margins, and can likely only lose three lawmakers in the final vote, among more than two dozen who had declared themselves open to rejecting Mr Trump's Bill. 'Abomination' The 869-page text only passed in the Senate after a flurry of tweaks that pulled the House-passed version further to the right. It offsets its tax relief with around US$1 trillion in health care cuts, and some estimates put the total number of recipients set to lose their insurance coverage under the bill at 17 million. Scores of rural hospitals are expected to close. Mr Johnson had been clear that he was banking on Mr Trump leaning on waverers, as the president has in the past to turn around contentious House votes that were headed for failure. The Republican leader has spent weeks hitting the phones and hosting White House meetings to cajole lawmakers torn between angering welfare recipients at home and incurring his wrath. 'FOR REPUBLICANS, THIS SHOULD BE AN EASY YES VOTE. RIDICULOUS!!!' Mr Trump, 79, thundered in one of multiple posts to his Truth Social platform as the July 2 marathon voting session spilled into July 3 . The Bill would underline Mr Trump's total dominance of the Republican Party in his second term, and comes as he relishes a major Supreme Court victory last week that curbed lone judges from blocking his radical policies. But House Democrats have signaled that they plan to campaign on the bill to flip the chamber in the 2026 midterm elections, pointing to data showing that it represents a historic redistribution of wealth from the poorest Americans to the richest. Mr Jeffries held the floor for his Democrats for more than four hours ahead of the final vote, as he told the stories of everyday Americans whom he argued would be harmed by Mr Trump's legislation. 'This bill, this one big, ugly Bill – this reckless Republican budget, this disgusting abomination – is not about improving the quality of life of the American people,' he said. AFP
Straits Times
3 hours ago
- Straits Times
Trump, Putin to talk on Thursday ahead of possible Zelenskiy call
Sign up now: Get ST's newsletters delivered to your inbox FILE PHOTO: Republican presidential nominee and former U.S. President Donald Trump and Ukraine's President Volodymyr Zelenskiy meet at Trump Tower in New York City, U.S., September 27, 2024. REUTERS/Shannon Stapleton/File Photo U.S. President Donald Trump said he will talk to Russian President Vladimir Putin on Thursday, while a Ukrainian source told Reuters Trump may speak with Ukrainian President Volodymyr Zelenskiy on Friday. "Will be speaking to President Putin of Russia at 10:00 A.M. Thank you!" Trump wrote on his social media platform. He did not say what they would discuss. On Friday, Trump and Zelenskiy are expected to discuss the abrupt halt in some key U.S. weapons deliveries to Kyiv, with Zelenskiy expected to raise potential future arms sales, the Financial Times earlier reported on Thursday. The timing of that call could change, the FT added, citing people familiar with the planning. The White House did not respond to a Reuters' request for comment on the reported Zelenskiy call. The U.S. has paused some shipments of critical weapons to Ukraine due to low stockpiles, sources earlier told Reuters. That decision led to Ukraine calling in the acting U.S. envoy to Kyiv on Wednesday to underline the importance of military aid from Washington continuing, and caution that the move would weaken Ukraine's ability to defend against intensifying Russian airstrikes and battlefield advances. Top stories Swipe. Select. Stay informed. Singapore 193ha of land off Changi to be reclaimed for aviation park; area reduced to save seagrass meadow Business More Singapore residents met CPF Required Retirement Sum when they turned 55 in 2024 Singapore PAP questions Pritam's interview with Malaysian podcast, WP says PAP opposing for the sake of opposing Singapore 1 in 4 appeals to waive HDB wait-out period for private home owners approved since Sept 2022 World Liverpool's Portuguese forward Diogo Jota dies in car crash in Spain Singapore Healthcare facility planned for site of Ang Mo Kio Public Library after it moves to AMK Hub Singapore $500 in Child LifeSG credits, Edusave, Post-Sec Education Account top-ups to be disbursed in July Business 60 S'pore firms to get AI boost from Tata Consultancy as it launches new innovation centre here The Pentagon's move led in part to a cut in deliveries of Patriot air defence missiles that Ukraine relies on to destroy fast-moving ballistic missiles, Reuters reported on Wednesday. REUTERS
