US stocks rallied on Friday following a blockbuster jobs report and reassurances from Federal Reserve Chairman Jerome Powell that the US central bank is not on a fixed path to push interest rates higher.
The Labor Department said on Friday the US economy added a 312,000 jobs last month, well above analysts’ expectations, while average hourly earnings rose 3.2 percent from a year earlier.
The unemployment rate ticked up slightly in December to 3.9 percent, reflecting an increase in jobseekers – a positive trend.
The robust pace of hiring offered a dose of reassurance to investors following a tumultuous few weeks in which US financial markets have been roiled by concerns over rising borrowing costs, the US-China trade war, slowing global growth and the waning stimulus from President Donald’s Trump’s tax cuts.
After posting the worst two-day start to the year since 2000, US stocks opened higher Friday on the heels of the stronger-than-expected jobs report and news overnight that the US and China will resume trade talks next week.
Stocks then extended gains after Powell told a conference in Atlanta that the US central bank is prepared to adjust course on interest rate policy if necessary to support the economy, and that the Fed is listening “sensitively to the message that markets are sending”.
His remarks assuaged investors’ concerns that the Fed could rigidly implement two projected interest rate hikes this year, despite market volatility and decelerating global growth.
The major indices ended the day up more than three percent, wiping out all of the losses from the previous day. The S&P 500 rose 84 points, or 3.4 percent. The Dow Jones Industrial Average surged 746 points, or 3.3 percent, while the Nasdaq gained 275 points, or 4.3 percent.
The good news for financial markets on jobs, trade tensions and interest rates followed a raft of troubling signals earlier this week.
Major companies such as Apple say their sales are being jeopardised by the tariff-fueled trade war between the United States and China. Factory activity in China and the US have both weakened, with the Institute for Supply Management’s US manufacturing index on Thursday posting its steepest decline in a decade.
The government is about to enter its third week of a partial shutdown, with negotiations stalled over Trump’s insistence that Democrats agree on funding for a wall along the border with Mexico. And attacks by Trump on the Federal Reserve over its rate increases have raised doubts about Chairman Powell’s tenure and the independence of the US central bank – a concern for both the markets and the economy.
‘Don’t see any slowdown yet’
According to Friday’s labour report, the healthcare, food services, construction and manufacturing sectors were the primary contributors to last month’s hiring.
Healthcare and education services added 82,000 jobs in December, the biggest jump since February 2012. Restaurants and drinking placed posted a net gain of 40,700 jobs. Builders added 38,000 construction jobs, while manufacturers increased their payrolls by 32,000 workers.
Businesses are still searching for more workers. The employment site Glassdoor found that job postings have risen 17 percent in the past year to 6.7 million.
“We really don’t see any slowdown yet,” said Andrew Chamberlain, chief economist at Glassdoor.
Despite the increase in the unemployment rate, the influx of people searching for work coupled with the job gains is an indication that the rate should decline in the coming months. Economists estimate that it requires roughly 100,000 job gains each month to satisfy population growth and keep the unemployment rate at its current level.
Hiring has easily eclipsed that pace. In 2018, employers added 2.6 million jobs, or an average of nearly 217,000 a month, according to the Labor Department.
Al Jazeera and news agencies
UK spy chief warns China, Russia racing to master AI
MI6 chief Richard Moore says Beijing and Moscow ‘pouring money’ into technological advances that will reshape espionage and geopolitics.The chief of the United Kingdom’s foreign spy service is to warn that China and Russia are racing to master artificial intelligence in a way that could revolutionise geopolitics over the next 10 years. Richard Moore, who…
MI6 chief Richard Moore says Beijing and Moscow ‘pouring money’
into technological advances that will reshape espionage and geopolitics.The chief of the United Kingdom’s foreign spy service is to warn that China and Russia are racing to master artificial intelligence in a way that could revolutionise geopolitics over the next 10 years.
Richard Moore, who heads the Secret Intelligence Service, known as MI6, is due to make his first public speech since becoming chief of the organisation on Tuesday.
In extracts of the speech released in advance by the British government he will say quantum engineering, engineered biology, vast troves of data and advances in computer power pose a threat that needs to be addressed by democratic powers.
“Our adversaries are pouring money and ambition into mastering artificial intelligence, quantum computing and synthetic biology, because they know that mastering these technologies will give them leverage,” Moore, who rarely makes public speeches, will say when he sets out his view of current threats.
The world’s spies are trying to grapple with seismic advances in technology that are challenging traditional human-led spying operations, which have dominated espionage for thousands of years.
Moore, a former diplomat, became MI6 chief in October 2020.
Speaking at the Institute for International and Strategic Studies think tank, he will stress that technological progress over the next decade could outstrip all the tech advances made over the past century.
“As a society, we have yet to internalise this stark fact and its potential impact on global geopolitics. But it is a white-hot focus for MI6,” he will say.
Of particular concern to the spies in the world’s liberal democracies are Russian and Chinese intelligence agencies, which have rushed to harness the power of a range of sophisticated technologies, sometimes at a faster pace than in the West.
Western intelligence agencies fear Beijing could dominate all key emerging technologies within decades, particularly artificial intelligence, synthetic biology and genetics.
China’s economic and military rise over the past 40 years is considered one of the most significant geopolitical events of recent times, alongside the 1991 fall of the Soviet Union, which ended the Cold War.
MI6, depicted by novelists as the employer of some of the most memorable fictional spies from John le Carré’s George Smiley to Ian Fleming’s James Bond, operates overseas and is tasked with defending the UK and its interests.
Moore says the service will have to give up some of its deep-rooted secrecy and work with technology firms to combat the rapidly developing threats.
MI6 and western intelligence agencies will have to “become more open to stay secret” in a world of destabilising technological change, he will say.
“We cannot hope to replicate the global tech industry, so we must tap into it.”
The agency has become more open in recent years, even allowing publication of an authorised history although it only covers the period up until 1949.
MI6 began publicly naming its chief, who uses the code name C and is the only publicly identifiable member of the organisation, in the 1990s.
Pentagon to review deadly 2019 US bombings in Syria
US will look into whether procedures were followed after NY Times reported dozens of civilians were killed in bombings.United States Secretary of Defense Lloyd Austin has ordered a review into US military bombings in Syria in March 2019 that the New York Times recently reported killed dozens of civilians during the battle for the final…
US will look into whether procedures were followed after NY Times reported dozens of civilians were killed in bombings.United States Secretary of Defense Lloyd Austin has ordered a review into US military bombings in Syria in March 2019 that the New York Times recently reported killed dozens of civilians during the battle for the final stronghold of ISIL (ISIS).
Pentagon Press Secretary John Kirby announced the probe on Monday, saying it would be led by General Michael Garrett, the head of US Army Forces Command.
Earlier this month, the US military acknowledged that civilians may have been killed in the bombings in Baghouz, near the Iraqi border in 2019. At the time, the US-backed Syrian Democratic Forces (SDF) were leading the fight on the ground with American air support.
“Likely a majority of those killed were also combatants at the time of the strike. However, it is also highly likely that there were additional civilian casualties,” Bill Urban, a US military spokesman, said in a statement on November 14.
He added that “investigations were unable to conclusively characterize the status of more than 60 other casualties that resulted from these strikes”.
US Defense Secretary Lloyd Austin ordered the review into the 2019 US military bombings, the Pentagon spokesman announced [File: Patrick Semansky/AP Photo]Urban’s statement came a day after the New York Times, citing anonymous sources and classified documents, published a report that accused the US military of concealing the bombings.
The newspaper reported that the bombing struck a “crowd of women and children”, killing 64 people.
“Without warning, an American F-15E attack jet streaked across the drone’s high-definition field of vision and dropped a 500-pound bomb on the crowd, swallowing it in a shuddering blast. As the smoke cleared, a few people stumbled away in search of cover. Then a jet tracking them dropped one 2,000-pound bomb, then another, killing most of the survivors,” the Times wrote.
On Monday, Kirby said the review would look into “record keeping and reporting procedures” and “whether mitigation measures identified in previous investigations into the incident were in fact implemented effectively”.
The probe, which is due in 90 days, will also assess whether “accountability measures” will be appropriate, Kirby added.
The US-led coalition started a bombing campaign against the ISIL (ISIS) group in Syria and Iraq in 2014, and the American military maintains troops in both countries with the stated goal of preventing the group’s resurgence.
Former US President Donald Trump touted the territorial defeat of ISIL (ISIS) as a major policy achievement in his failed 2020 re-election bid.
Rights groups previously accused the US-led coalition of killing civilians during their bombing campaign. A 2019 investigation by Amnesty International, for instance, found that the coalition had killed 1,600 civilians in Raqqa, the ISIL (ISIS) group’s former de-facto capital.
The Associated Press news agency reported on Monday that after the New York Times story was published, Austin received a briefing on the Syria bombings from General Frank McKenzie, the head of US Central Command.
AP reported that McKenzie’s command said “an initial investigation concluded that the strike constituted legitimate self-defence in support of Syrian partner forces under fire from ISIL”.
The probe into the Syria bombings comes after the Pentagon admitted in September that a US drone attack previously described as “righteous” by a top general had killed 10 civilians, including children, in Kabul during the chaotic US withdrawal from Afghanistan.
But a subsequent internal review by the Pentagon concluded that the bombing did not violate the laws of war or amount to criminal conduct or negligence, prompting outrage.
Arab Coalition carries out 15 strikes against Houthi militants in Marib
JEDDAH: An influential watchdog body of the Organization of Islamic Cooperation has called for an end to Israel’s occupation of Palestine as the only way to stop ongoing human rights abuses against Palestinians. The OIC’s Independent Permanent Human Rights Commission made its appeal on Monday to coincide with the UN-run International Day of Solidarity with…
JEDDAH: An influential watchdog body of the Organization of Islamic Cooperation has called for an end to Israel’s occupation of Palestine as the only way to stop ongoing human rights abuses against Palestinians.
The OIC’s Independent Permanent Human Rights Commission made its appeal on Monday to coincide with the UN-run International Day of Solidarity with the Palestinian People 2021.
In a statement, the IPHRC pointed out that the solidarity day highlighted the urgent need for the global community to recognize the inalienable right to self-determination of Palestinian people.
“Today is not only an opportunity for the international community to remember that the question of Palestine remains unresolved, but it is also an opportunity to focus attention on the increasing suffering of the Palestinian people, under the Israeli occupation, and to unify all efforts for assisting them to attain their fundamental rights, including the right to self-determination and the right to return for Palestinian refugees to their homes and property, from which they have been displaced,” the commission said.
It also expressed grave concerns over the increasing, “range of violations committed by Israel … particularly the recent draconian measures against Palestinian prisoners and detainees as well as the harassment of Sheikh Jarrah (neighborhood of East Jerusalem) families who remain under the threat of eviction from their houses under baseless and illegal arguments.”
The IPHRC statement urged all human rights groups to raise awareness of what it described as “egregious human rights violations” aimed at “separating Al-Quds (Jerusalem) from its original inhabitants, which is yet another vicious attack on the right to self-determination of the Palestinian people.”
In addition, commission members condemned the recent Israeli designation of six Palestinian human rights and civil society groups as terrorist organizations, a move the IPHRC claimed represented Israel’s misuse of counterterrorism and security legislation to silence opponents and innocent Palestinians.
Israel’s demolition of Palestinian homes and forced evictions of residents in Jerusalem and other areas was also slammed by the commission.
It added that there was a “need to investigate these abuses by relevant international mechanisms with a view to holding Israel, the occupying power, accountable for violating international human rights and humanitarian laws.”