S&P 500, Nasdaq end at new record highs
Unemployment fell to 4.1% last month, a better than the 4.3% expected. Volumes were lighter than usual on Thursday with markets due to close early.
(This is a Reuters story)
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First Post
20 minutes ago
- First Post
Germany choosing soldiers over workers may hurt businesses, economy: Report
Germany plans to introduce a voluntary six-month military service scheme as Berlin tries to train more reservists and bolster national defences over security concerns about Russia. This may strain efforts to recruit workers amid a tight labour market read more German reservist Hannes stands for a portrait after completing shooting training at barracks in Beelitz near Berlin, Germany, March 6, 2025 REUTERS Germany is planning to draft more people into the army as it tries to meet its military targets, but business owners in the country are worried that it will decrease the number of workers, eventually hampering the economy. People from corporate companies have told the Financial Times that while they support the German government's efforts to bolster the military in the face of the Russia-Ukraine war, the practice of conscription may strain their efforts to recruit workers amid a tight labour market. STORY CONTINUES BELOW THIS AD 'The security situation is dramatic. Yes, we need more active soldiers. Yes, we need to expand the system of reservists. But only a strong economy can make that possible,' said Steffen Kampeter, director of the BDA, the country's biggest employers' group. Why does Germany need more soldiers? Germany plans to introduce a voluntary six-month military service scheme as Berlin tries to train more reservists and bolster national defences over security concerns about Russia. Volunteers would be sought for training in simple tasks such as guard duties under the scheme, but a military draft to recruit more people could be considered if uptake were deemed too low, sources told Reuters. The country's Defence Minister, Boris Pistorius, has announced plans to open the scheme to about 5,000 young adults (18-year-olds) who want to join the army voluntarily each year. Pistorius wants to increase the number of soldiers in service from 180,000 to 260,000. Germany hopes the voluntary six-month scheme would help double the number of trained reservists from the current level of around 100,000 and that some of the volunteers would go on to have a career in active service. Also, the country has to fulfil its commitment to Nato under which it has to expand its military by about 80,000 people by the next decade, as US President Donald Trump pushes for more defence spending by the alliance. Germany's labour problem Despite record-high employment, Germany has the shortest average working hours among wealthy nations, according to OECD data. The country's new conservative-led government, under Chancellor Friedrich Merz, has pledged to increase working hours as part of broader efforts to reinvigorate the sluggish economy. Merz has vowed to increase working hours in the country, which he thinks will address the acute skill shortage in sectors like health, education and the engineering industry. STORY CONTINUES BELOW THIS AD 'If the necessary personnel are pulled away from us, that means issues like weekly working hours, the length of the working life, better integration of part-time workers into the labour market — all of those topics become even more important,' Kampeter told FT. With inputs from agencies
Time of India
32 minutes ago
- Time of India
Oil market watch: Saudi, Russia-led OPEC+ eyes fresh hike for August; focus to likely shift from price stability to market share
Saudi Arabia, Russia and six other major oil producers from the OPEC+ alliance will meet on Saturday to decide their crude output strategy for August, with analysts expecting the bloc to approve another production hike of 411,000 barrels per day (bpd), mirroring decisions made for May, June and July. Tired of too many ads? go ad free now The meeting will be held virtually and will include representatives from Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman, according to news agency AFP. The so-called 'Voluntary Eight' (V8) group within OPEC+ had earlier stunned markets by reversing course from prolonged supply cuts and opting to raise production sharply from May onwards. This shift has pulled down oil prices to a narrow band of $65–$70 per barrel, far below the highs seen earlier during Middle East tensions. Analysts cited by AFP say that the alliance appears increasingly focused on reclaiming market share over price stability. 'The group has placed an increased focus on regaining market shares over price stability,' said Saxo Bank analyst Ole Hansen, highlighting the competitive pressure from rising supply elsewhere, including the United States. Despite the scheduled hike, actual supply additions could fall short. As per AFP, Rystad Energy's Jorge Leon said that the real increase might be only 250,000–300,000 bpd, much like May's 200,000 bpd gain, despite doubled quotas. This shortfall is partly due to non-compliance by countries like Kazakhstan and Iraq, whose production exceeded agreed limits. UBS analyst Giovanni Staunovo added that such inconsistencies may be pushing leading producers like Saudi Arabia to tighten enforcement via output-driven price pressure. Tired of too many ads? go ad free now While market watchers are bracing for the expected rise, there is little anticipation of price shocks, especially as geopolitical concerns have eased. A recent 12-day conflict between Iran and Israel, which had temporarily pushed prices over $80, didn't cause supply disruptions. 'Given there were no supply disruptions so far, the war is unlikely to impact the decision,' Staunovo said, as cited by AFP. Hansen echoed that the conflict could even justify faster production increases if Iran's exports face future hurdles. According to news agency Reuters, earlier, some OPEC+ insiders believed that the group could consider a hike larger than 411,000 bpd. But consensus still leans toward a continuation of the current pace, especially as Brent futures hovered around $68.30 per barrel and WTI near $66.50 in holiday-thinned trade ahead of the meeting. Analysts such as Tamas Varga of PVM warned that additional output, if sustained, may swell global oil inventories in the second half of the year. 'Oil balance estimates will be reassessed and will suggest accelerated swelling in global oil reserves,' Varga said, as quoted by Reuters. The eight OPEC+ countries have already committed to raising production by 1.37 million bpd over four months, roughly 62% of the 2.2 million bpd they initially pledged to cut. With US nuclear talks with Iran possibly resuming and global economic policies shifting, the alliance's strategy is under growing scrutiny. Still, Saturday's meeting is not expected to trigger any major market volatility, as traders are largely in a 'wait-and-see mode', said Price Futures Group's Phil Flynn, who cited upcoming US fiscal changes and lingering tariff uncertainty as additional variables, according to Reuters.
Fibre2Fashion
36 minutes ago
- Fibre2Fashion
ASEAN manufacturing PMI slips to 48.6, sharpest decline since 2021
The S&P Global ASEAN Manufacturing Purchasing Managers' Index (PMI) posted 48.6—down from 49.2 in May—the index remained below the neutral 50 mark for the third consecutive month, signalling a modest but accelerating contraction. The ASEAN manufacturing sector slipped into contraction at the start of the second quarter, with the following months signalling further deteriorations in operating conditions. In fact, June marked the most worsening in the health of the sector since August 2021. A sharper decrease in new orders was accompanied by more substantial cuts to staffing levels and purchasing activity. Although production was also reduced, this was only marginal. Furthermore, despite a strongly optimistic outlook for output in the year ahead, confidence slightly waned since May and was historically subdued. This suggests a continuation of the lacklustre performance of the ASEAN manufacturing sector, S&P Global said in a press release. ASEAN's manufacturing sector saw its sharpest downturn since August 2021, with the S&P PMI falling to 48.6 in June. New orders, exports, employment, and purchasing activity declined, reflecting weakening demand. Despite subdued inflation and mild production cuts, business confidence remained historically low. S&P Global warns of ongoing downside risks due to global tensions and tariff uncertainties. Both new orders and output remained in contraction territory since April. Recent figures revealed a sharper decline in incoming new orders for ASEAN goods producers, marking the most significant drop since August 2021. The overall new orders landscape was once again hampered by declining foreign demand for ASEAN goods, which continued to worsen. In fact, the rate of decrease in new export orders was solid and the most pronounced in eight months. Meanwhile, the downturn in production remained shallow, with the rate of decrease consistent with that observed in May. Manufacturing companies across ASEAN aligned their purchasing of inputs and employment in line with the deteriorating demand picture. Both measures recorded steeper contractions, with payroll numbers being reduced to the greatest extent since October 2021. The latest ASEAN manufacturing performance was coupled with historically muted inflationary pressures. The rate of input price inflation softened further since May, to indicate only a modest increase in cost burdens, which was the slowest in just over five years. Although the pace of charge inflation accelerated during the month, manufacturers raised their prices only marginally, added the release. While goods producers were optimistic about an increase in output over the coming year, the overall degree of optimism diminished and was historically subdued. Sentiment is currently the second-least optimistic since July 2020, suggesting a muted manufacturing performance in the year ahead. 'The ASEAN manufacturing sector concluded the first half of the year on a worrying note, with the headline index dropping to a 46-month low. Production continued to contract, and new orders, purchasing activity, and employment all experienced sharper declines. Although subdued inflationary pressures may partially assist the sector in reviving sales, the current downside risks stemming from ongoing international tensions and tariff-related announcements inject uncertainty into the outlook for the year ahead,' said Maryam Baluch, economist at S&P Global Market Intelligence. Fibre2Fashion News Desk (SG)
