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In 2016, facing the looming threat of layoffs, Nelly Agbogu took a bold leap into entrepreneurship. Launching Nellies Nigeria, a snack business, marked the beginning of her journey.

However, it was the subsequent realization of a gap in the market that would truly shape her entrepreneurial path.

“At the time, I was aware of a wave of layoffs happening within my company, and I realized it was only a matter of time before I would be affected,” Agbogu recalls. “This served as a wake-up call, it fueled my passion to become my own boss and embark on my entrepreneurial journey,” she said.

As she grew Nellies Nigeria, Lagos-based Agbogu recognized the power of social media in driving business success.

“My own experiences with growing Nellies Nigeria using social media revealed a gap in knowledge among other business owners, inspiring me to share my strategies and insights,” she explains.

From Nigeria to the world

This led to her creating Naijabrandchick, a platform that she says was designed to “empower and propel Nigerian SMEs towards sustainable growth and dominance through effective use of social media and access to new markets.”

To achieve this, she identified key challenges faced by Nigerian SMEs, including limited access to markets, inadequate business education, and insufficient funding.

To address these challenges, Agbogu launched the Naija Brand Chick Trade Fair, a platform connecting SMEs directly with customers.

“Many Nigerian SMEs struggle to reach a buying audience, which is a significant barrier,” she explains. “The trade fair creates a platform where businesses can connect directly with customers.”

The trade fair has become a resounding nationwide success attracting thousands of exhibitors yearly since it started in 2018.

Its impact has also been significant.

“One standout example involves a shoemaker from Lagos who sold 1,000 pairs of shoes in just two days, marking a record high for her business,” Agbogu said.

“One story I will never forget was that of a widow from Benin who took part in the trade fair and sold products worth millions of naira, enabling her to pay her children’s school fees. It’s heartwarming. We are always oversubscribed because entrepreneurs consistently tell us they achieve sales they have never achieved before in just two days at the fair,” Agbogu said.

As Naijabrandchick continues to grow, Agbogu’s has now extended her vision globally.

Agbogu is heading to London with a contingent of Nigerian entrepreneurs who will take their goods and services to England’s capital city from August 17 to 18. The fair will be held at the Intercontinental O2 hotel and is free to attendees, who must register ahead of time.

“My motivation for expanding Naijabrandchick to London has always been deeply rooted in my commitment to SMEs,” she explains. “I constantly think about how I can help Nigerian SME owners thrive and improve their businesses.”

The London event will feature workshops and networking sessions designed to offer participants high-end sales and marketing strategies.

“These events will provide attendees with exposure to international business leaders and market trends, offering a unique learning atmosphere compared to events held in Africa,” Agbogu says.

Ambitious plans

Agbogu has ambitious goals to replicate the Naijabrandchick model in other countries such as Rwanda, Kenya, the US, Canada, and the United Arab Emirates, as well as generate more than $10 million in revenue per event by 2029.

Part of her plan to help African SMEs scale and grow is to offer access to quality business education. “High-quality business education is often expensive and out of reach for many which is why I created the Dominate Sales and Influence (DSI) program to provide affordable training alongside top business leaders, to equip entrepreneurs with essential growth strategies.”

Financial support is another critical area. “The lack of access to funds is perhaps the greatest challenge for Nigerian SMEs,” she notes. In response, she partnered with Wema Bank to offer single-digit loans to SME owners, providing the financial backing needed to thrive.

Agbogu is determined that through her work African entrepreneurs will access a global market. “I envision a vibrant future for African entrepreneurship, characterized by innovation, increased global visibility, and significant economic impact,” she says.

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A United Nations investigation has found that nine employees from its main agency for Palestinian humanitarian relief, UNWRA, “may have” been involved in the October 7 attack and no longer work at the agency.

UNRWA has 14,000 staff members in Gaza.

The investigation was launched in January after Israel accused some UNRWA employees of participating in the attack that left 1,200 people in Israel dead. UN investigators were not able to speak with the accused, though some accused responded to written questions.

The UN’s Office of Internal Oversight Services (OIOS) investigated a total of 19 employees who were accused by Israel of participation in the attack.

“The evidence obtained by OIOS indicated that the UNRWA staff members may have been involved in the armed attacks of 7 October 2023,” OIOS said in a statement. In nine other cases, OIOS said that the evidence was “insufficient” for the employees to be fired, but that “appropriate measures will be taken in due course.” In the final case, “no evidence was obtained by OIOS to support the allegations of the staff member’s involvement.”

In a statement on X, a spokesperson for the Israel Defense Forces (IDF), Nadav Shoshani, said: “9 of your employees might have participated in the largest massacre of Jews since the Holocaust.”

“Your ‘relief’ agency has officially stooped to a new level of low, and it is time that the world sees your true face.”

UNRWA was founded by the UN a year after the 1948 Arab-Israeli war, which marked the creation of Israel and the displacement of more than 700,000 Palestinians from their homes in an event known by Palestinians as the Nakba (catastrophe).

The agency provides a wide range of aid and services to Palestinian refugees and their descendants. It is a major source of employment for the refugees, who make up most of its more than 30,000 employees across the Middle East, and has representative offices in New York, Geneva and Brussels.

In a statement on Monday, UNRWA Commissioner-General Philippe Lazzarini said that his agency’s “priority is to continue lifesaving and critical services for Palestine Refugees in Gaza and across the region, especially in the face of the ongoing war, the instability and risk of regional escalation.”

“UNRWA is committed to continue upholding the fundamental principles and values of the United Nations, including the humanitarian principle of neutrality, and to ensuring that all its staff abide by the Agency’s policy on outside and political activities.”

Cut off from vital funding

The Israeli government in January accused some UNRWA staff members of involvement in the October 7 attacks. The Israeli government did not make their evidence public, nor – according to UNRWA – did they share it with UNRWA. Nonetheless, UNWRA in January said that it had terminated the accused employees’ contracts.

Israel in February released some details about 12 employees whom it accused, including their names, photos and alleged roles with Hamas. The additional details also included screengrabs of what Israel said were two UNWRA employees – a social worker and math teacher – in Israel on October 7.

The allegations led to several UNRWA’s most important donor countries to withdraw funding from the agency. Most of those countries have reinstated their funding. The United States – historically, UNRWA’s largest donor – has not.

Israel accused further employees of involvement in March and April.

OIOS investigators met with Israeli officials as part of their investigation and review their intelligence. They also reviewed UNRWA employees’ communications and media reports.

“Because of safety concerns,” they did not meet with the accused UNRWA staff or corroborating witnesses.

“In some cases, however, OIOS was able to request and secure videorecorded statements from the subjects who responded to a series of set questions addressing the allegations of their involvement in the armed attacks of 7 October 2023,” the UN said in a statement.

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Venezuela’s Public Ministry has opened a criminal investigation into presidential candidate Edmundo González Urrutia and opposition leader María Corina Machado, the country’s Attorney General Tarek William Saab said in a statement on Monday.

The Public Ministry said the investigation was sparked by the two opposition figures’ call for the military and police to stand “on the side of the people” in an open letter published on social media on Monday.

Venezuela’s electoral body, long stacked with regime allies, declared strongman Nicolas Maduro the winner of the recent presidential election, but has yet to provide tallies proving his win. The opposition, which enjoyed strong polling figures prior to the vote, says it won by a landslide.

The Public Ministry accused the defendants of “falsely announcing a winner of the presidential elections,” adding that only the country’s official National Electoral Council is qualified to make that call.

According to the agency, González and Machado will be investigated for “the alleged commission of the crimes of usurpation of functions, dissemination of false information to cause unrest, incitement to disobey the law, incitement to insurrection, association to commit crimes and conspiracy.

“We have known for years what tricks the regime uses, and we are well aware that the National Electoral Council is entirely under its control. It was unthinkable that Mr. Maduro would concede defeat,” she wrote.

Venezuela’s opposition and multiple other nations have refused to recognize Maduro’s victory in the July 28 vote until the release of the full vote tally.

The US, among the countries that consider González the winner, said last week that it was“clear” President Maduro lost the popular vote. Maduro’s government has in turn accused the US of attempting to orchestrate a coup – which it denies.

Though Maduro had promised free and fair elections, the process was marred with allegations of foul play – with opposition figures arrested, their key leader Machado banned from running, opposition witnesses allegedly denied access to the centralized vote count, and overseas Venezuelans largely unable to cast ballots.

Protests broke out across Venezuela following the vote, which saw the government detain hundreds of opposition supporters. Maduro has warned that he will send them to high-security prisons.

As foreign governments implore Maduro to respect Venezeualan’s human rights, Pope Francis issued a statement on X on Sunday calling for all parties in Venezuela to engage in dialogue.

Venezuela was once the fifth-largest economy in Latin America, but under Maduro’s watch, it has seen the worst economic collapse of a peacetime country in recent history. The country suffers from chronic shortages of vital goods and soaring inflation, which has pushed millions to flee.

This is a developing story and will be updated.

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Prek Takeo, Cambodia — Cambodia broke ground Monday on a controversial, China-funded canal to link the capital Phnom Penh to the sea, despite environmental concerns and the risk of straining ties with neighboring Vietnam.

The $1.7 billion, 180-kilometer (111 miles) Funan Techo canal is planned to connect the country’s capital with Kep province on Cambodia’s south coast, giving it access to the Gulf of Thailand.

Cambodia hopes the 100-meter (328 feet)-wide, 5.4-meter (17.7 feet)-deep canal will lower the cost of shipping goods to the country’s sole deep-sea port, Sihanoukville, and reduce reliance on Vietnamese ports.

The project highlights the outsized role that China plays in Cambodian politics and economy. Meanwhile, concerns remain about the potential environmental impacts of the canal, especially on the flow of the Mekong River, which feeds millions of people across six countries through its fish and the agriculture that it sustains.

The project has Vietnam worried, both about the effect on its Mekong Delta rice-growing and about Cambodia moving out of its orbit, said Nguyen Khac Giang, an analyst at Singapore’s ISEAS-Yusof Ishak Institute.

“There is a concern that most of the Cambodian exports might be diverted from the current route, crossing the Vietnamese border to Vietnamese ports and moving away from that to Cambodian ports,” he said.

But Hanoi has expressed its concerns quietly, if at all, Giang said. Given the “complex historical legacy” between Cambodia and Vietnam — despite strong bilateral ties, the two nations have a contentious relationship — Vietnam is reticent to openly criticize Cambodia lest it be seen as impinging on its neighbor’s sovereignty, he said.

Analysts say that the infrastructure project is in part an effort by Cambodia’s ruling elite to invigorate support for Hun Manet, who last year took over the wheel of government from his father, Hun Sen, who led Cambodia for 38 years.

The government declared Monday — also Hun Sen’s birthday — a holiday so Cambodians could participate in the “celebration in a joyful, crowded and proud manner.” Thousands of people wearing t-shirts with photographs of the father and son began gathering at the canal site, that was covered in Cambodian flags. Billboards promoting the economic benefits of the canal dominated the countryside.

The canal will promote “national prestige, the territorial integrity and the development of Cambodia,” Manet said, adding that the country had built bigger and more expensive infrastructure projects before. But this “historic” canal was different and had nationwide support, he said.

“We will build this canal, no matter the cost,” he said.

He emphasized that while the canal would be jointly built by Chinese and Cambodian companies, the latter would have a 51% majority share and thus maintain control. Deputy Prime Minister Sun Chanthol confirmed that the Chinese state-owned construction giant China Road and Bridge Corporation had landed the contract to build the canal.

The US-based nonprofit Stimson Center has warned that the canal would cause “significant transboundary impacts to water availability and agricultural production in Vietnam’s Mekong Delta.” The region is where 90% of rice exported from Vietnam is grown.

The Cambodian government has dismissed these concerns.

Earlier in April, Vietnam had asked Cambodia to share information about the canal. “We have asked Cambodia to collaborate closely with Vietnam and the Mekong River Commission in sharing information and assessing the project’s impacts on water resources and ecosystem in the Mekong Delta region.”

Cambodia is a key Chinese diplomatic partner, helping dampen criticism of Beijing within the 10-member Association of Southeast Asian Nations, several of whose members, including Vietnam, are engaged in territorial disputes with China in the South China Sea.

China’s outsized presence can be seen in the numerous Chinese-funded projects, hotels and casinos dotting the Cambodian landscape. China’s state banks have financed airports, roads and other infrastructure built with Chinese loans. Nearly 40% of Cambodia’s over $11 billion in foreign debt is owed to China.

In June 2022, China and Cambodia broke ground on a naval port expansion project that has raised concerns from the U.S. and others that it could give Beijing a strategically important military outpost on the Gulf of Thailand. Hun Sen in 2019 reportedly granted China the right to set up a military base at the Ream Naval Base. He has long denied that, saying Cambodia’s Constitution prohibits foreign military facilities.

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Jayapura, Indonesia — Gunmen stormed a helicopter and killed its New Zealand pilot shortly after it landed in Indonesia’s restive Papua region on Monday, and they released two health workers and two children it was carrying, police said.

Glen Malcolm Conning, a pilot for Indonesian aviation company PT Intan Angkasa Air Service, was shot to death by gunmen allegedly with the West Papua Liberation Army, the armed wing of the Free Papua Movement, after landing in Alama, a remote village in Mimika district of Central Papua province, said Faizal Ramadhani, a National Police member who heads the joint security peace force in Papua.

He said the gunmen released the Indigenous Papuan passengers and set fire to the plane.

“All passengers were safe because they were local residents of Alama village,” said Ramadhani, adding that the village is in a mountainous district which can be reached only by helicopter. A joint security force was deployed to search for the attackers, who ran into the dense jungle.

West Papua Liberation Army spokesperson Sebby Sambom told The Associated Press that he had not received any reports from fighters on the ground about the killing.

“But, if that happens, it was his own fault for entering our forbidden territory,” Sambom said. “We have released warnings several times that the area is under our restricted zone, an armed conflict area that is prohibited for any civilian aircraft to land.”

Sambom called on Indonesian authorities to stop all development in Papua until the government is willing to negotiate with the rebels, and “if anyone disobeys, they must bear the risk themselves.”

New Zealand’s foreign ministry said in a statement that it was aware of reports of the death and the country’s embassy in Jakarta was seeking information from authorities. A spokesperson could not confirm any details.

Conflicts between Indigenous Papuans and Indonesian security forces are common in the impoverished Papua region, a former Dutch colony in the western part of New Guinea that is ethnically and culturally distinct from much of Indonesia. Conflict has spiked in the past year, with dozens of rebels, security forces and civilians killed.

Monday’s killing was the latest violence against New Zealand nationals in the Papua region.

In February 2023, Egianus Kogoya, a regional commander in the Free Papua Movement, abducted Philip Mark Mehrtens, a pilot from Christchurch who was working for Indonesian aviation company Susi Air.

Kogoya and his troops stormed a single-engine plane shortly after it landed on a small runway in a mountainous village. Planning to use the pilot to negotiate, Kogoya has said they won’t release Mehrtens unless Indonesia frees Papua as a sovereign country.

In 2020, seven employees of PT Freeport Indonesia, including a New Zealand miner, Graeme Thomas Wall from Ngaruawahia, were attcked by gunmen in a parking area in Tembagapura mining town. Wall was shot in his chest and died.

Papua was incorporated into Indonesia in 1969 after a U.N.-sponsored ballot that was widely seen as a sham. Since then, a low-level insurgency has simmered in the mineral-rich region, which is divided into six provinces.

Flying is the only practical way of accessing many areas in the mountainous easternmost provinces of Papua and West Papua.

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Inside Bangladesh it’s being dubbed a Gen Z revolution – a protest movement that pitted mostly young student demonstrators against a 76-year-old leader who had dominated her nation for decades and turned increasingly authoritarian in recent years.

There was jubilation on the streets of the Bangladeshi capital Dhaka on Monday after Prime Minister Sheikh Hasina resigned and fled the country by helicopter following weeks of deadly anti-government unrest.

Hasina’s abrupt exit ends 15 years in power that has been marked by a stifling of civil freedoms and the heavy-handed use of security forces to crush dissent, critics and rights groups say.

In a national address, Bangladesh’s army chief Gen. Waker-uz-Zaman said the military would form an interim government, but student protest leaders have called for Nobel laureate Muhammad Yunus to lead a temporary administration.

What began as peaceful protests by students against civil service job quotas morphed into a nationwide push to force Hasina out after demonstrators were met with a government crackdown that killed about 300 people, according to local media and agencies.

Hasina blamed the opposition for the violence and imposed internet blocks and an indefinite curfew across the country.

Her response inflamed the protesters further and, in the end, the world’s longest-serving female head of government had to quickly flee the country with her sister to India before crowds stormed her official residence, smashing walls and looting its contents.

Why were Bangladeshis on the streets?

Students began protesting on July 1 at the prestigious Dhaka University demanding an end to the government’s quota system, which reserves 30% of civil service posts for relatives of veterans who fought in Bangladesh’s war of independence from Pakistan in 1971.

Many of the country’s contemporary political elite are related to that generation – including Hasina, a daughter of Sheikh Mujibur Rahman, the widely regarded founder of modern Bangladesh who was assassinated in 1975.

The reserved roles were linked to job security and higher pay, and protesters said the quota system is discriminatory and favors supporters of Hasina’s ruling Awami League party.

Driving the anger was high unemployment levels in the country, especially among young people. Bangladesh has seen strong economic growth under Hasina, but it slowed in the post-pandemic era and is beset with high inflation and depleted foreign currency reserves. In a nation of 170 million people, more than 30 million are not in work or education.

The protests turned violent on July 15 and the government’s increasingly deadly response fueled their anger further, even after the Supreme Court rolled back most of the controversial quotas on government jobs and internet blocks were lifted.

On Sunday, at least 91 people were killed and hundreds injured in clashes between police and protesters, the highest for a single day from any protests in the country’s recent history.

‘Blood in front of my university’

“Things turned ugly really quickly,” said Raiyan Aftab, 23, a student at BRAC University, who said police shot at protesters outside the campus. “They shot everybody. There is blood in front of my university right now. There’s like 30 bodies… I couldn’t sleep all night.”

Students and protesters at Dhaka University Campus and the Shaheed Minar, a national monument in the capital, were beaten by police as they assembled at these locations.

“I went to Shaheed Minar with my friends to celebrate. It was epic. There’s like thousands of people there, everybody went, regardless of class, heritage, religion, we’re all together and all the students met up with flags and everything. It was a historic moment,” said Aftab. “But it was short lived.”

Meanwhile, images appeared online of young people guarding Hindu temples as misinformation swirled online and a mob attacked a temple, according to the director of the Meherpur ISKCON temple.

Hasina’s legacy

The demonstrations became the ultimate challenge to Hasina since she secured a fourth consecutive term in January elections, which were boycotted by the main opposition party to protest what they said was a widespread crackdown on their ranks.

On Tuesday, Bangladesh President Mohammed Shahabuddin announced the release of opposition leader and former Prime Minister Khaleda Zia – a longtime Hasina rival – who had been jailed in 2018 on graft charges which she denies. Other student protesters and those arrested on “false cases,” were also released, the president said.

Hasina’s political career spanned decades since returning from exile in the early 1980s following the assassination of her father and most of her family. In 1990 she led a popular democratic uprising against military rule and has survived several assassination attempts in the years since.

She first became prime minister in 1996 and served for one term before returning to power in 2008, ruling Bangladesh with her Awami League party until Monday.

Human rights organizations have warned that Hasina and her government were headed toward a one-party system, and critics expressed concerns over increased reports of political violence, voter intimidation, and harassment of the media and opposition figures.

During her time in power, rights groups say the government has used its cyber security law to crack down on freedom of expression online, arresting journalists, artists and activists, with reported cases of arbitrary detention and torture.

But Hasina had managed to weather many previous protests against her rule that erupted particularly during elections, so her resignation after five weeks of unrest was seen as sudden and unexpected.

Young people, who witnessed their peers shot and killed, fueled by dismal job prospects and who were tired of corruption and repression, could not be stopped by curfews, internet blocks or security forces.

“This might very well be the first successful Gen Z led revolution,” said Sabrina Karim, associate professor of government at Cornell University, who specializes in the study of political violence.

The military may have also played a role in Hasina’s resignation. Karim said in a statement that it “appears that the military were not always a unified force backing the Hasina regime.”

“While there are many photos and videos circulating of soldiers using deadly force and shooting at unarmed protesters, some members of the military called for an independent UN-led investigation into these atrocities,” she said. “In addition, some members of the military announced yesterday that they would not use deadly force on protesters who convened on the capital.”

What comes next?

On Tuesday, Bangladesh awaited the formation of the interim government and protest organizers with the Students Against Discrimination said they will meet with Bangladesh’s army chief.

Student leader Muhammad Nahid Islam said they hadn’t met all of their goals, and after Hasina’s resignation, the group wanted to “abolish fascist systems forever.” The leaders say they won’t accept a military-led or supported government.

The protest group say the interim government should be led by Yunus, a social entrepreneur and banker who won the 2006 Nobel Peace Prize for his pioneering microfinance work that helped alleviate poverty in Bangladesh.

“People are celebrating on the street and millions and millions of people all over Bangladesh [are] celebrating as if this is our liberation day,” he said.

While Hasina’s resignation was celebrated, some Bangladeshis expressed trepidation over the path ahead as the country attempts to fill a leadership vacuum.

Protester Aftab was wary of the military holding on to power.

“We have to remember the last 15 years, the army didn’t do anything. They protected this regime so they can’t just come into power and become good guys. We know who they are and what they’re going to do,” he said.

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Delta Air Lines CEO Ed Bastian on Friday offered employees two free travel passes to thank staff members who were caught in massive disruptions last month sparked by a botched CrowdStrike software update that stranded thousands of customers and crew.

Delta had more trouble than competitors in recovering from the outages that took thousands of Windows machines offline. The carrier canceled more than 5,000 flights from July 19 through July 24, more than it did in all of 2019, according to FlightAware, in an incident that CEO Bastian said earlier this week cost the company about $500 million, a sum that is equal to about 40% of Delta’s second-quarter profit.

The disruption “has been a humbling moment for our company,” Bastian said in his note on Friday, which was seen by CNBC. “I know it’s been extremely difficult, and I’m deeply sorry for what you have endured. An operational disruption of this length and magnitude is simply unacceptable — you and our customers deserve better.”

The flight cancellations and delays stranded thousands and scarred Delta’s reputation as a standout in reliability. Its executives frequently point out Delta’s work to win over customers willing to pay more to fly the carrier, marketing itself as a premium airline.

Bastian said Delta plans to pursue legal action against CrowdStrike and Microsoft “to recover our losses caused by the outage” and that it has hired law firm Boies Schiller Flexner.

“Your efforts throughout have been nothing short of heroic,” he told staff.

Microsoft and CrowdStrike didn’t immediately comment on Friday.

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The U.S. unemployment rate rose to 4.3% in July and hiring slowed, adding to signs of a broader downturn in what has been a solid U.S. economy.

The Bureau of Labor Statistics reported Friday that the U.S. added 114,000 jobs, down from 206,000 in June and well short of expectations. Economists were expecting the unemployment rate to have been unchanged from June’s 4.1% reading.

The latest report will likely add to worries from some economists that the Federal Reserve has waited too long to cut interest rates in its bid to stamp out inflation. Earlier this week, Fed Chair Jay Powell indicated the first rate cut of the post-pandemic period would come in September, even as many economists flagged signs of a rapidly cooling labor market.

Friday’s report adds further evidence to those concerns.

A worker moves packages at an Amazon same-day delivery fulfillment center in Bronx, N.Y., on July 16, 2024. Stephanie Keith / Bloomberg via Getty Images

‘Oh dear, has the Fed made a policy mistake?’ wrote Seema Shah, chief global strategist at Principal Asset Management based in the UK, in a note to clients following the jobs report’s release. ‘The labour market’s slowdown is now materialising with more clarity.’

She noted job gains have now dropped below the 150,000 threshold ‘that would be considered consistent with a solid economy,’ and that a September rate cut ‘is in the bag.’

‘The Fed will be hoping that they haven’t, once again, been too slow to act,’ Shah said.

Beyond the report’s headline figures were mitigating factors and other signs that the economy remains on relatively firm footing.

Much of the increase in the unemployment measure was driven by temporary layoffs, while the BLS indicated that weather-related factors had temporarily increased the ranks of those who still hold jobs but were technically not at work during the month.  

Meanwhile, wage gains continued to outpace inflation — continuing a trend that has now taken hold for months — and more people rejoined the workforce last month, something reflected in an increased labor force participation rate.

Yet outside of health care, construction and some transportation and warehousing roles, there was little meaningful job growth, with manufacturing adding just 1,000 to its payrolls and professional and business services positions declining by 1,000.

‘Even a few months ago, the labor market seemed fine, the trajectory looked stable,’ said Guy Berger, director of economic research at the Burning Glass Institute, a think tank. ‘Today, things look a bit shakier.’

While Berger doesn’t see an imminent recession, it wouldn’t take much for the gradual downturn to become a more significant one, he said.

The Federal Reserve doesn’t envision that outcome — and in fact is largely in control of it, economists say.

On Wednesday, the Fed announced that it was leaving its key interest rate unchanged at about 5.5% even as Powell said a cut at its next meeting was ‘on the table.’

By cutting interest rates, the central bank would reduce the cost of borrowing for goods and services, which would result in lower monthly payments for consumers and businesses alike who are subject to variable annual percentage rates.

In turn, demand and hiring are likely to increase throughout the economy.

On average, companies are hanging on to their current workers — something reflected in the rate of layoffs’ falling to a record low.

Yet the hiring rate has also fallen to a level not seen since the onset of the pandemic — and before that, 2014.

The upshot: If you have a job, you’re unlikely to lose it these days, barring some exceptions.

But you’re going to struggle if you’re looking for a new one.

The Fed therefore believes it can put a floor underneath the labor market that prevents it from deteriorating further, Berger said.

While there is reason to believe it can accomplish that, there is an alternative view that it is already behind the curve and should have cut interest rates by now.

‘Historically, deteriorating labor markets generate a self-reinforcing feedback loop,’ former New York Federal Reserve President Bill Dudley wrote in a Bloomberg News op-ed last week. ‘When jobs are harder to find, households trim spending, the economy weakens and businesses reduce investment, which leads to layoffs and further spending cuts.’ 

Another worrying sign: The job growth that is occurring has been in an exceptionally narrow range of occupations, like health care and, to a lesser extent, government, particularly at the state and local levels.

From 2015 to 2019, the average monthly pace of payrolls growth outside of those industries was about 137,000, said Julia Pollak, chief economist at ZipRecruiter.

For the past six months, it has averaged 90,000, Pollak said.

And for the past three months, it has averaged just 58,000.

‘What we need to see is strong private-sector labor market growth, and outside of health care, what we’ve seen instead is a very, very rapid deceleration that has shown no signs yet of stabilizing,’ Pollak said.

The result has been an economy of haves and have-nots, she said.

‘The demand for labor has softened substantially; [high] interest rates are having a real effect,’ Pollak said. ‘They are causing businesses to forgo growth opportunities, something that’s causing consumers, especially low-end consumers, to pull back. We’re seeing a bifurcation in consumer behavior.’

Pollak also said leisure and hospitality jobs — a key entry point into the labor market — have actually declined outright in recent months, putting further pressure on workers to secure employment.

Berger said the best outcome is that there won’t be further deterioration. Sluggish growth, he said, is likely to continue for the foreseeable future.

‘I think the Fed is going to keep a lid on how much things heat up — it probably has a soft ceiling on how high it wants to go,’ he said.

‘So we’re going to be stuck in this period for quite a while, where the environment for someone looking for a job is just not great. Things could always get a lot worse, but if you’re hoping for things to turn around, I don’t think the prospect of a big rapid rebound is feasible. It’s going to be gradual and going to take time.’

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The average rate on the popular 30-year fixed mortgage dropped 22 basis points to 6.4% Friday, according to Mortgage News Daily. That is the lowest rate since April 2023. The 15-year fixed rate fell to 5.89%, its lowest level since early May 2023.

The drop followed a weaker-than-expected monthly employment report, which sent bond yields falling fast. Mortgage rates loosely follow the yield on the 10-year U.S. Treasury.

“Between [Federal Reserve Chairman Jerome] Powell’s equivocal openness to “multiple cuts” in 2024 on Wednesday and this morning’s sharply weaker jobs report (something Powell didn’t even know about on Wednesday), the more aggressive rate cut narrative is quickly coming into focus,” wrote Matthew Graham, chief operating officer at Mortgage News Daily. 

There are still two inflation reports and another employment report before the Fed’s September meeting, Graham noted, adding, “If they don’t offer strong counterpoints to recent data, the rate cut cycle has not only begun, but it will likely involve a certain sense of urgency.”

The 30-year fixed rate started the week at 6.81%, so the drop in just the past five days is dramatic. The recent high was 7.52% in late April, and home sales have been falling ever since. Buyers were battling not just high interest rates but high home prices and a lack of supply. Supply has since improved, but prices are still overheated.

The difference in just a few months is stark when it comes to affordability. In April, a buyer looking to purchase a $400,000 home with a 20% down payment and a 30-year fixed mortgage would have been facing a monthly payment of about $2,240, not including insurance and property taxes. Today, that monthly payment would be about $2,000. More buyers would also qualify for the loan at today’s lower rates.

Mortgage applications to purchase a home have been running about 15% below where they were at this time last year, according to the Mortgage Bankers Association. This latest drop could kickstart demand.

“The market is moving ahead of the Fed, bringing down longer-term rates including those for mortgages, which should lead to both more home purchases and a pickup in refinance activity,” wrote Mike Fratantoni, chief economist for the Mortgage Bankers Association, in a news release.

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Warren Buffett’s Berkshire Hathaway dumped nearly half of its gigantic Apple stake last quarter in a surprising move for the famously long-term-focused investor.

The Omaha-based conglomerate disclosed in its earnings filing that its holding in the iPhone maker was valued at $84.2 billion at the end of the second quarter, suggesting that the Oracle of Omaha offloaded a little more than 49% of the tech stake. Even after the selling Apple remains the largest stock stake by far for Berkshire.

The Apple share sale comes amid a broader pattern of selling by Buffett in the second quarter as Berkshire unloaded more than $75 billion in equities in the period, raising the conglomerate’s cash fortress to a record $277 billion.

Buffett had trimmed the Apple stake by 13% in the first quarter and hinted at the Berkshire annual meeting in May that it was for tax reasons. Buffett noted that selling “a little Apple” this year would benefit Berkshire shareholders in the long run if the tax on capital gains is raised down the road by a U.S. government wanting to plug a climbing fiscal deficit.

But the magnitude of this selling suggests it could be more than just a tax-saving move.

After declining in the first quarter on concerns it was falling behind on artificial intelligence innovation, Apple shares took off in the second quarter, gaining 23% to a new record as it gave more detail to investors about its future in artificial intelligence.

It won’t be clear exactly why Buffett is selling down the holding Berkshire first bought more than eight years ago, whether company reasons, market valuation or because of portfolio management concerns (Buffett typically doesn’t want a single holding to grow too large). Berkshire’s Apple holding was once so big that it took up half of its equity portfolio.

The 93-year-old investor largely avoided technology companies for most of his career before Apple. Berkshire began buying the stock in 2016 under the influence of Buffett’s investing lieutenants Ted Weschler and Todd Combs. Over the years, Buffett grew so fond of Apple that he increased the stake drastically to make it Berkshire’s biggest and called the tech giant the second-most important business after his cluster of insurers.

Buffett has been on a bit of a selling spree as of late with his top holdings. Buffett recently starting downsizing his second biggest stake — Bank of America, shedding $3.8 billion worth of the bank shares after a 12-day selling spree.

Overall, the quarterly report showed Buffett dumping stock last quarter, which saw the S&P 500 rise to a record in anticipation of a “soft landing” for the U.S. economy. That soft landing was called into question this week with Friday’s weaker-than-expected July jobs report.

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