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The Week in Business: Booming Job Growth

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Analysts had forecast an increase of 250,000 jobs in July. So it came as a shock when the Department of Labor report showed more than double that number for him (528,000). was added last month. The ferocious pace of growth has brought total employment back to pre-pandemic levels. That’s a perplexing benchmark given recent signs of economic slowdown, such as lower GDP and a more subdued housing market. In fact, this latest jobs report offers more questions than answers about the state of the US economy. If many fear a recession, why are employers so confident in hiring? Why is the job market so resilient while the economy looks more depressed? Are they? These are clear contradictions that Fed officials will consider as they consider their course of action.

Citing a crash in the cryptocurrency market, inflation and a deteriorating economic outlook, trading app Robinhood announced on Tuesday that it would furlough 23% of its workforce. From last year’s “memetic stock” frenzy, when investors conspired to boost stocks in struggling companies like GameStop and AMC, ultimately leading to lawsuits, SEC reports, and Robinhood’s congressional hearings. are still dealing with the by-products of became the central figure in the transaction. But what is catastrophic for the company is its exposure to the cryptocurrency market, where analysts say many companies, such as crypto exchange Coinbase, overhire during market booms and lay off staff when it plummets. Robinhood CEO Vlad Tenev said the company misjudged the economy and trading activity. “As CEO, I have authorized and held an ambitious staffing trajectory, which is my responsibility,” he wrote in a blog post.

Elon Musk, in his first broad response to the Twitter lawsuit against him, accused the social media company of fraud and reiterated claims that it concealed the true number of spam and bot accounts on its platform.Thursday In a legal document published on , Musk’s lawyers claimed the percentage of these accounts was closer to 10%, while Twitter claimed it was less than 5%. His lawyer also accused Twitter of hiding the number of users who see ads. Twitter continues to say its numbers are accurate. The parties are set to resolve their dispute in Chancery Court in Delaware in October, when a judge will decide whether Musk’s claim that Twitter withheld information about spam accounts on the site is valid. Or determine if a $44 billion deal must be completed.

The Walt Disney Company’s bold subscriber ambitions may be checked in Wednesday’s quarterly earnings report. It added 11.8 million subscribers in February and announced another 7.9 million in May, bringing its total to 138 million. But he has set an aggressive goal of reaching 230 million to 260 million Disney+ subscribers worldwide by 2024, with analysts saying guidance Wednesday. He said it was likely to be lowered. They predict that Disney will instead want to focus on making the streaming site profitable. This is not the only challenge facing Disney. Shares have fallen this year, and the company has laid off top TV content executives. And while US theme parks have recovered, China is struggling due to pandemic restrictions.

This week’s consumer price index may send a somewhat confusing message. Analysts expect both year-over-year and month-over-month inflation to slow, but expect ‘core’ inflation — a measure that excludes volatile gas and food costs — to accelerate on an annual basis. increase. Gasoline prices, which have fallen sharply from recent highs, are likely to contribute to a slowdown in headline inflation. . Federal Reserve officials plan another big rate hike in September, but will be watching for signs of easing across the economy in determining the pace of rate hikes. doing. At the White House, President Biden is pushing the Inflation Reduction Act as an administration tool to keep prices down, but it’s unclear how effective the bill will be in that task.

In April, a New York Times transportation reporter asked: Can the industry catch up? ’ It seems like the answer these days is “no.” Dealing with an increase in delays and cancellations this summer is especially acute on holiday weekends with high travel volumes this summer. The Department of Transportation has proposed rules to provide more means for passengers experiencing significant disruption. Changes in travel plans, including significant changes to flight schedules, routes or seats. Airlines that have received pandemic support from the government will also have to issue full refunds to passengers who change their minds about traveling for Covid-related reasons. The agency said he will begin his 90-day public comment period before making a decision.

Stephen King testified in a Justice Department antitrust lawsuit blocking Penguin Random House from buying Simon & Schuster.Walmart is laying off 200 corporate employees. OPEC Plus has approved a small increase in oil production.