Aurelia Butler

After four decades of factory closures and job cuts, the supply chain troubles caused by the Covid crisis boosted employment prospects in US manufacturing. High shipping costs and prolonged delays prompted companies to make more products in America.But, as economic growth has slowed and vacancies in traditional industries have dried up, manufacturing workers have become reliant on federally subsidised “cleantech” jobs for employment.However, many of these jobs have yet to be filled, leaving workers and economists questioning whether US manufacturing will ever boom again.As a part of its pandemic recovery plan, the Biden administration has sought to stimulate investment in new industrial projects, such as building electric vehicles and assembling semiconductors, through the Inflation Reduction and Chips and Science acts. Their aim is to create hundreds of thousands of what the government calls “good paying jobs” in manufacturing.Companies, including Intel, Micron, Analog Devices, and Taiwan Semiconductor Manufacturing Company, have pledged to spend over $200bn on more than 100 projects and thereby create tens of thousands of jobs, taking advantage of billions of dollars in federal subsidies.Spending on manufacturing construction in August reached its second-highest figure since the Census Bureau began tracking the data in 2002, up 143 per cent from the same month in 2019. But the jobs heralded as the future of US manufacturing have been slow to appear as raw material shortages have delayed construction. Companies also say they are struggling to find workers with the knowhow to operate high-tech facilities.You are seeing a snapshot of an interactive graphic. This is most likely due to being offline or JavaScript being disabled in your browser.“Manufacturers have been a standout during the jobs recovery over the past two years, particularly over the past eight months as the skilled service economy has slowed,” says Aaron Terrazas, chief economist at jobs site Glassdoor.While the elevated consumer spending that powered the jobs gains of the past two years has slowed “there are some legitimate points about changing trade patterns that would support the idea of a more enduring sustained recovery in manufacturing jobs”, he explains. However, he adds that “there are lingering questions over the degree to which that can or will continue”.The number of jobs and wages certainly grew dramatically during the Covid crisis, as spending shifted from services to goods, and manufacturers hired rapidly to keep up with demand.By May 2022, more Americans were working in manufacturing than before the pandemic. By this September, manufacturing employed 13mn people, up from 12.8mn in the same month in 2019. Job creation and wage growth have slowed but remain elevated, according to Indeed, the largest the jobs site in the US. On September 22, there were 51.3 per cent more manufacturing jobs posted on Indeed than in February 2020. Total postings on the site were up just 26.6 per cent over the same time period.Growth has slowed, though. Manufacturing vacancies on the site are down more than 20 per cent on September last year, according to Indeed economists Cory Stahle and Nick Bunker, compared with a 15 per cent fall overall.The new “cleantech” jobs have yet to fill the gap, Terrazas says, as many projects are still in their early stages.You are seeing a snapshot of an interactive graphic. This is most likely due to being offline or JavaScript being disabled in your browser.Semiconductor companies say that they are hiring as fast as they can, but have had to invest in workforce training for their highly specialised jobs. As many as 58 per cent of the 115,000 positions the semiconductor industry is predicted to add by 2030 may go unfilled because of the relatively small number of students who complete degrees in engineering and other science and technology subjects, according to a report published in August by the Semiconductor Industry Association.These roles require very different skills to those in traditional manufacturing — a factor in companies’ struggles to find qualified workers, says Jin Yan, an economist at workforce intelligence group Revelio Labs. The specialised work can also make it difficult for staff to transition to new jobs in a semiconductor fabrication plant, or ‘fab’.“The requirements are very different from an automaker factory, for sure,” says Yan. “When we look into the actual skills that are mentioned in job postings, we are seeing a lot of key words that would not show up in other manufacturing jobs . . . like ‘integrated circuit design’ or very specific programming languages other than the usual Python.”Many chipmakers are launching their own training programmes as part of efforts to expand workforces.Massachusetts-based Analog Devices, which is building a $1bn semiconductor wafer fabrication plant in Beaverton, Oregon, will welcome its first cohort of students into its eight-week semiconductor manufacturing class this month. The course is designed to transition military veterans and people re-entering the workforce into careers at the plant, as well as upskill existing employees, says Fred Bailey, vice-president of fab operations at the group.Intel has partnered with a group of community colleges near its Ohio fab to create a one-year semiconductor technician certificate programme. Gabriela Cruz Thompson, director of university research collaboration at Intel’s research organisation Intel Labs, says she hopes the initiative will also help diversify the workforce in addition to upskilling existing employees.The majority of Intel’s jobs will require a two-year associate degree, pay between $50,000 and $60,000 on average, and include full medical benefits as well as paid parental leave and sabbaticals, Thompson says.But, when asked if the semiconductor industry’s training and recruitment efforts will be enough to jump-start the manufacturing jobs market, she is hesitant. “We are hoping that we are doing enough in Ohio,” Thompson says. “But is it enough at the national level? I do not know the answer to that question.” More

NEW YORK (Reuters) -FTX founder Sam Bankman-Fried’s lawyer on Tuesday said the now-bankrupt cryptocurrency exchange’s investments were not “reckless and frivolous,” pushing back against testimony by former executive Nishad Singh portraying its spending on marketing and celebrity endorsements as excessive. Singh, FTX’s former engineering chief, testified for a second straight day at Bankman-Fried’s fraud trial in Manhattan federal court. Under cross-examination, Singh told the jury that he thought FTX would be able to stay in business upon learning in September 2022 of a $13 billion shortfall in customer funds, potentially bolstering Bankman-Fried’s argument that he believed the exchange’s troubles were manageable. FTX declared bankruptcy on Nov. 11, 2022.Singh testified on Monday that the company’s venture investments and $1.1 billion in planned marketing deals, including naming rights to the arena where the NBA’s Miami Heat play and featuring NFL quarterback Tom Brady in commercials, “reeked of excess and flashiness.” Defense lawyer Mark Cohen on Tuesday asked Singh, one of three former members of Bankman-Fried’s inner circle who have pleaded guilty to fraud and agreed to cooperate with prosecutors, whether promoting FTX’s brand could be useful. “I understood it had business benefits and costs,” Singh said in testimony that defense lawyers could use to argue that Bankman-Fried was making what he believed to be good-faith business decisions in shelling out funds for marketing and investments even if others disagreed. Bankman-Fried is in the third week of his trial on charges involving the looting billions of dollars in FTX customer funds to make investments, donate to U.S. political campaigns and prop up his hedge fund, Alameda Research. He has pleaded not guilty. Singh testified on Monday that he worried a deal the company had with an investment firm called K5, which Bankman-Fried described as a “one-stop shop” for brokering relationships with celebrities, would prove “toxic” for FTX’s culture. On Tuesday, Singh said K5 also helped Bankman-Fried invest in a tequila brand run by a “famous celebrity,” when asked by Cohen whether the firm was anything more than a relationship broker. “Yesterday (Monday) we were told these were all reckless and frivolous investments, and I’m entitled to show that there was way more to it than we were told yesterday,” Cohen said, after a prosecutor objected to his questioning about K5. In a lawsuit filed against K5 in June seeking to claw back $700 million, FTX’s current management said a Bankman-Fried-controlled shell company used $214 million in FTX funds to buy a stake in celebrity Kendall Jenner’s 818 Tequila brand at a time when the tequila company’s assets were valued at just $2.94 million. K5 said the lawsuit was without merit. Bankman-Fried has argued that while he made mistakes running FTX, he never intended to steal funds. His lawyers have said he is considering taking the witness stand in his own defense. Jurors have already heard from Gary Wang, FTX’s former chief technology officer, and Caroline Ellison, Alameda’s onetime chief executive officer and Bankman-Fried’s former girlfriend. Cohen questioned Singh on Tuesday about a confrontation he had with Bankman-Fried in September 2022 after learning Alameda owed billions of dollars to FTX customers. He confronted Bankman-Fried on the balcony of the $35 million Bahamas penthouse they shared with many FTX and Alameda employees.Singh acknowledged that he was anxious at the time, and said he was suicidal then and for several more months. He testified on Monday that Bankman-Fried was angry during the conversation. After telling Cohen he thought FTX could stay in business “for some amount of time” despite the shortfall, Singh said he had previously told U.S. authorities he thought the company could survive for years. Cohen also pressed Singh about a $3.7 million home he purchased using FTX customer funds in Washington state in the fall of 2022. Singh acknowledged buying the Orcas Island home, but said he was “ashamed” and had agreed to forfeit it as part of his plea agreement. “I was putting myself ahead of customers,” Singh said. More

SINGAPORE (Reuters) – The International Monetary Fund (IMF) downgraded its 2023 and 2024 growth forecasts for China, saying its recovery was “losing steam” and citing weakness in its property sector. The world’s second-largest economy is expected to expand by 5% this year and 4.2% next year, down from 5.2% and 4.5% in the IMF’s April forecast, the institution said in a regional economic outlook report released on Wednesday.”In China, the recovery is losing steam, with manufacturing purchasing managers’ indexes entering contracting territory from April to August and conditions in the real estate sector weakening further,” said the report. The report projected that a prolonged housing market correction in China would in the near-term “trigger greater financial stress among property developers and larger asset quality deterioration”. The impact of that could cause China’s gross domestic product (GDP) to decline by as much as 1.6% percent relative to the baseline by 2025, while world GDP would decline by 0.6% relative to the baseline, it added.The IMF’s 2023 outlook for Asia and the Pacific was brighter, with IMF calling it “the most dynamic region this year”. The agency maintained its earlier growth projection for the region at 4.6% in 2023 and said economic activity in the region was on track to contribute around two-thirds of global growth this year.Growth in Asia and the Pacific, however, is expected to slow to 4.2% next year. The IMF expects it to further moderate to 3.9% in the medium-term — the lowest in the past two decades except for 2020 — as China’s structural slowdown and weaker productivity growth in many other economies weigh on the region.Disinflation was a bright spot for Asia, with the region excluding Japan expected to return to respective central bank inflation targets by the end of next year. “This puts Asia ahead of the rest of the world, which, in general, will not see inflation returning to target until at least 2025,” it said.Central banks in the region, however, should guard against easing monetary policy prematurely, the IMF added.”Central banks should carry through with policies to ensure that inflation is durably at appropriate targets. As tight monetary conditions can place strains on financial stability, strengthening financial supervision, vigilant monitoring of systemic risks, and modernising resolution frameworks are critical.” More

SINGAPORE (Reuters) – The dollar stood its ground on Wednesday, though it struggled for further headway despite strong U.S. retail sales data, as traders turned their attention to looming Chinese growth figures and the escalating violence in the Middle East.A blast at a Gaza hospital dealt a blow to hopes the conflict could be contained. U.S. President Joe Biden is en route to Tel Aviv. The Israeli shekel fell back to the weaker side of 4-per dollar after a brief bounce overnight. U.S. yields had shot sharply higher after data showed retail sales increased strongly and more than expected last month, in the latest sign of the economy’s enduring strength. Two-year yields hit a 17-year high at 5.24%.Yet the dollar, which has moved in lockstep with yields lately, was supported without gaining much.Some traders pointed to a positive survey of German business morale and a Bloomberg report suggesting the Bank of Japan is likely to revise its inflation forecasts higher as helping the euro and yen lean against any dollar strength.The euro gained 0.1% overnight and was steady at $1.0570 in Asia on Wednesday. The yen jumped briefly, before falling back to trade steady at 149.75 on Wednesday.Others suggested the lagging dollar could be a sign its recent run is losing momentum. The benchmark 10-year Treasury yield has climbed about 100 basis points since mid July, and the dollar index is up 7% in the same period. “It’s had a really good run and it’s stalled a bit,” said Westpac analyst Imre Speizer. “Maybe it’s hitting the limits of this stage of the rally, and needs a bit of a correction.”The dollar index was up less than 0.1% overnight to 106.26.China’s yuan fell in overnight offshore trade ahead of GDP data due later on Wednesday. The Australian and New Zealand dollars were steady in early trade – though have started moving in opposite directions on interest rate expectations.On Tuesday data showed inflation had cooled in New Zealand, while the Reserve Bank of Australia struck a surprisingly hawkish tone in meeting minutes — sending the Aussie/kiwi cross sharply higher and through its 50-day moving average.The Aussie held Tuesday gains to buy $0.6358 on Wednesday. The kiwi nursed losses at $0.5894. [AUD/]========================================================Currency bid prices at 0038 GMTDescription RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar $1.0563 $1.0576 -0.12% -1.41% +1.0577 +1.0564 Dollar/Yen 149.7350 149.7900 -0.04% +0.00% +149.7900 +149.7300 Euro/Yen 158.17 158.44 -0.17% +12.74% +158.4500 +158.1800 Dollar/Swiss 0.9007 0.9005 +0.03% -2.59% +0.9007 +0.9002 Sterling/Dollar 1.2166 1.2184 -0.13% +0.62% +1.2183 +1.2168 Dollar/Canadian 1.3652 1.3648 +0.03% +0.76% +1.3655 +1.3648 Aussie/Dollar 0.6357 0.6366 -0.13% -6.73% +0.6367 +0.6358 NZ Dollar/Dollar 0.5890 0.5897 -0.03% -7.17% +0.5899 +0.5894 All spotsTokyo spotsEurope spots Volatilities Tokyo Forex market info from BOJ More

(Reuters) – Shares in AMP (OTC:AMLTF) touched a more than two-month low on Wednesday, after the Australian wealth manager flagged lower growth expectations for the rest of the year and a fall in annual margins as high interest rates hurt earnings.The 173-year old firm said it expected to record net interest margin below the prior guidance level of 1.30% to 1.35% for the full year ending December.”We expect to see subdued growth for the remainder of the year.””With higher rates expected to weigh on asset valuations and credit growth, it seems the cyclical headwinds are adding to the deeper strategic ones hurting AMP’s business,” said Kyle Rodda, senior market analyst at Capital.com.AMP’s platform net cashflows fell to A$426 million ($271.06 million) for the third quarter from A$748 million a year ago. Net cashflows fell due to a continued drop in discretionary investments, as AMP’s clients respond to the current macro-economic environment, CEO Alexis George said. AMP shares fell to its lowest since Aug. 10 earlier in the session, dropping as much as 4.4% to A$1.085. “We continue to actively manage the Bank portfolio in what remains a highly competitive environment, particularly as the Term Funding Facility (TFF) refinancing continues across the market,” George added. ($1 = 1.5716 Australian dollars) More

NEW YORK (Reuters) – U.S. equity options traders remain on edge, with much of their focus on U.S. Treasuries even as Middle East tensions persist.The Cboe Volatility Index rose 0.25 points to 17.46 on Tuesday, about 3 points shy of the recent high of 20.78 touched on Friday.The number of open VIX call options, derivatives contracts that help investors guard against a rise in stock market volatility, stands at about 11 million, near a record high, according to data from options analytics service Trade Alert.Concerns that the conflict between Israel and Hamas could spread to the region has fueled demand for safe-haven assets such as gold and the U.S. dollar, but Treasury yields still appear to be the main driver for U.S. equities, analysts said.Investors are chiefly concerned about the Federal Reserve’s actions and its impact on stock prices, despite rising geopolitical tension, said Chris Murphy, co-head of derivative strategy at Susquehanna Financial Group.On Tuesday, Wall Street’s main indexes fell as Treasury yields rose following data that showed U.S. retail sales increased more than expected in September, suggesting the economy ended the third quarter on a strong note.Investors worry that strength in consumer spending could force the Fed to keep interest rates higher for longer.U.S. Treasury yields have soared in recent weeks to multi-year highs. Higher bond yields, which offer a competing risk-free return, make stocks less attractive to investors.”With respect to the Israeli situation, no one really knows what it really means for global economic growth … generally the markets are pretty resilient to that kind of stuff,””From a VIX point of view Israel is a bit of a side show,” Tallbacken Capital CEO Michael Purves said.Stock investors are more likely to take their cues from the bond market, Purves said.The option market, meanwhile, reflects investors’ uncertainty about how stocks perform for the rest of the year.Activity in call options has slowed to the point where it is now slightly below that of put options, Brian Reynolds, chief market strategist at Reynolds Strategy LLC, said in a note.Calls convey the right to buy shares at a fixed price in the future, while puts offer the right to sell shares.”The resulting lack of clarity points toward more near-term stock market choppiness and reinforces our desire to sell overheated stock market sectors and accumulate oversold sectors that have improving momentum,” Reynolds said. More

(Reuters) -The Council of the European Union on Tuesday added the Indian Ocean island state of Seychelles and the Caribbean countries of Belize and Antigua and Barbuda to a list of 16 nations and territories deemed “non-cooperative” on taxes.The council said all three jurisdictions either lacked tax information or failed to deliver on commitments regarding governance and transparency reforms.The list also includes Russia, Panama, five other Caribbean states and territories and six in the Pacific Ocean.The EU broadly asks its members to take the list into account for diplomatic and economic decisions, and commits to stronger monitoring for transactions or taxpayers linked to these countries, and bans channeling some EU funds through them.The Council said in a statement the three new additions lacked a “largely compliant” rating from the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes, though Belize had made commitments to improve within the next year. Belize’s government blasted the move as an unjust “automatic” listing that disregarded reforms that addressed the Global Forum’s July concerns, adding it will request an immediate review.Barring Russia, it said in a statement, the EU list only includes “small and vulnerable countries like Belize yet fails to include any EU member state” which were given the same Global Forum rating.”The EU’s ‘listing’ process is devoid of the values of shared responsibility, mutual respect, accountability, fairness, and solidarity,” the government said.Oxfam’s EU tax expert Chiara Putaturo also slammed the list as “toothless” for not screening the United States, the UK, or EU states such as Luxembourg and Malta, adding “countries deemed too big to be listed can no longer escape scrutiny.”The EU Council did not immediately respond to a request for comment.The Council also removed the British Virgin Islands territory, the Marshall Islands and Costa Rica from the list. More