Stock Markets and Economy: Live Update

Daily business briefing

June 22, 2021, 7:52 EST

June 22, 2021, 7:52 EST

Breaking news

credit…Pool photo by John Thys

European Union regulators said on Tuesday: Google It has been the subject of a new antitrust investigation for the potential to exploit its advantage in the online advertising market to eliminate competition.

The study, which aims at the center of Google’s business model, was conducted by European authorities. World’s largest technology company.. Amazon, Apple And Facebook Is also the subject of antitrust investigations from blocks in 27 countries, and the European Union has introduced new antitrust and digital services laws. Further strengthen big tech surveillance..

Online advertising has helped Google become one of the most valuable and powerful companies in the world. However, publishers such as News Corp have long complained that Google’s dominance makes it difficult to attract advertising revenue from their websites.

The European Commission, the executive body of Brock, said the study focused on the display advertising market, where Google offers many services to both advertisers and publishers. The company collects data for targeting ads, sells ad space on websites over the Internet, and provides a service that acts as an intermediary between advertisers and publishers.

Google French authorities This month, the company paid a fine of about $ 270 million and agreed to make some changes to its advertising practices in France.

According to a European Union survey, “Google is concerned that rival online advertising services are making it difficult to compete in the so-called ad tech stack.” Marguerite Vestagar, The Executive Vice President of Competition Policy for the European Commission said in a statement.

“A fair competition is essential for everyone in the supply chain,” she said.

Bestagger is a familiar enemy to Google. The company has been charged with violating the European Union’s antitrust law three times in recent years and has been fined billions of dollars in a lawsuit over Google’s online shopping service. Android mobile operating system And other advertising practices.

All proceedings have been appealed by Google.

Federal Reserve Board Chair Jerome H. Powell is expected to tell lawmakers that growth is
credit…Pool photo by Aldrago

Federal Reserve Board Chair Jerome H. Powell is optimistic about the US economy, but in a prepared statement to Congressman Tuesday afternoon, the next step in monetary policy. There are few hints about.

Powell said economic growth “seems to be on track to record the fastest growth in decades,” and said its strength is showing a recovery from very low levels. ..

His testimony followed last week’s Fed meeting, where authorities stabilized interest rates, but were expected to rise moderately from near zero levels by the end of 2023.

“The pace is uneven, but labor market conditions continue to improve,” Powell told lawmakers. “As vaccination increases, employment growth will recover in the coming months and the current pandemic. Some of the related factors should be mitigated. ” Weigh them. “

But Inflation has recovered In Washington and Wall Street, the debate over whether the government has over-responded the pandemic has intensified, and the Fed’s chair said it is unlikely that the pace of recent inflation will continue. But he gives little guidance on what the combination of economic strengthening and price stability means for central bank policy.

“The Fed’s policy actions are guided by our dual mission of promoting maximum employment and stable prices for Americans and our responsibility to promote the stability of the financial system,” Powell said. He says without going into details.

Since March 2020, the Federal Reserve Board has kept policy rates firm and has purchased $ 120 billion in government-sponsored bonds each month. This is a policy aimed at keeping different types of borrowing cheap, boosting money through the economy and boosting demand.

Powell’s testimony will take place after the Fed’s June policy meeting. Fuel date for sale In the stock market. Policy makers have released a series of optimistic economic forecasts, with more than half announcing interest rate hikes in 2023. This was earlier than previously expected. Powell downplayed the importance of these forecasts, but provided a bright economic outlook and showed that the Fed has begun to talk about when and how to slow down asset purchases.

Federal Reserve Board is likely to face questions about central banks Vast coronavirus rescue The package blocked the corporate bond market, municipal bonds, and even mid-sized businesses. Market turmoil last year. He will speak in front of the selection subcommittee on the coronavirus crisis.

Justin Hoffman, who is looking for a job, said he would probably eventually quit his job. But the pandemic hastened his decision, he said.
credit…The New York Times Madim McGarbay

Recently, millions of workers have voluntarily quit their jobs. This is one of the most striking elements of the newly burning job market.

According to the Ministry of Labor, nearly 4 million people quit their jobs in April, the highest on record, pushing up to 2.7% of employers.

This was especially high in the leisure and hospitality industry, where workers are particularly competitive.However, the number of people who quit was fully registered, the New York Times Sydney Ember Report..

Economists believe that one of the reasons more workers quit is simply the backlog. Over 5 million quit Last year, more than expected, some workers overcame labor market cramps and were obsessed with jobs that they might have wanted to quit anyway. (And millions of unwilling unemployment during the pandemic have certainly explained some of the decline in resignation.) Now that the economy is regaining its foothold, workers are to pay attention to their urges. You may suddenly feel more bold.

But another factor may be the speed at which the economy awakens. As the pandemic receded and large-scale reopenings spread nationwide, companies that hibernated or reduced their workforce during the pandemic competed to hire employees to meet the surge in demand.

At the same time, many are hesitant to return to work because of prolonged fear of the virus, childcare and long-term care challenges, still large unemployment benefits, low wages, or other reasons.

As a result, despite the relatively high unemployment rate, job vacancies are skyrocketing as companies struggle to hire and retain employees. This is the driving force that gives workers more strength. Many workers, especially low-paying jobs in restaurants and hotels, have quit their jobs and jumped into slightly higher-paying jobs as employers offer higher wages to attract candidates. I will.

Approximately 3,000 sawmills in countries, primarily in the south, are increasing production to meet demand.
credit…Karen E. Segrave of The New York Times

Wood price Soaring over the past year, frustrating potential pandemics, raising the cost of new homes, and persuading debates about whether government stimulus would jeopardize the resurgence of 1970s-style inflation. It served as a powerful issue.

The housing and home remodeling boom has driven an insatiable demand for timber, even in a pandemic idle sawmill that has already been slowed down by the anemic construction sector since the 2008 financial crisis. Timber futures soared to new heights, peaking at over $ 1,600 per 1,000 board feet in early May. Matt Phillips reports.

However, since then, the prices of the same plywood sheets and pressure-treated planks have fallen as factories have resumed or increased production and some customers have postponed purchases until prices have fallen.

This is a dance of supply and demand, and many experts and the Federal Reserve Board believe that as the economy returns to normal, prices for various products such as airline tickets and used cars will ease. I will.

For example, timber prices in the futures market have fallen by more than 45% since their peak, falling below $ 1,000 for the first time in months. It’s still high — from 2009 to 2019, prices average less than $ 400 per 1000 board feet — but sold-out has gained momentum over the past few weeks. Prices fell 0.5% on Friday to $ 900.80, falling in 11 of the last 12 trading sessions, according to FactSet data.

Why did the price go down so quickly? This is partly due to the surge in production at about 3,000 sawmills in the country.

The factory, which was primarily concentrated in the rich belt of Southern Yellow Pine that stretches from the forests of eastern Texas to Carolinas, hastily regained its vitality to sell timber at prices unimaginable a few years ago. ..

Joe Hankins, Sales Manager for Hankins Lumber, a sawmill and timber company in Grenada, a town in north-central Mississippi, said:

Fed officials, who have long argued that inflation is temporary, see the situation in much the same way.

“Our expectations are that these high inflation measurements we are seeing will begin to weaken,” he said at a press conference Wednesday after the central bank’s recent decision to keep interest rates unchanged. “That’s our idea, and it’s going to be like a timber experience.”

Stock Markets and Economy: Live Update

Source link Stock Markets and Economy: Live Update

Back to top button