Scrounge for Workers Sees US Jobless Claims Hit 48-Year Low

New U.S. claims for jobless benefits fell for the third week in a row, hitting their lowest level in nearly 49 years for the third straight week, the Labor Department reported Thursday.

The new figures suggest the U.S. economy’s vigorous job creation continued unabated this month as the data were collected during the survey week for the department’s more closely watched monthly jobs report, due out next week.

Amid a widely reported labor shortage, employers are reluctant to lay off workers who are difficult to replace.

For the week ended September 12, new claims for unemployment insurance fell to 201,000, down 3,000 from the prior week. Economists had instead been expecting a result of 209,000.

The result was the lowest level since November of 1969, whereas the prior week’s level had been the lowest since December 1969.

However, economists say that in reality the levels are likely the lowest ever, given demographic changes in the United States in the past half century.

Claims have now held below the symbolic level of 300,000 for more than 3.5 years, the longest such streak ever recorded.

Though they can see big swings from week to week, jobless claims are an indication of the prevalence of layoffs and the health of jobs markets.

In a decade of economic recovery, the United States has seen uninterrupted job creation, driving the unemployment rate to historical lows.

In light of these trends, the Federal Reserve is widely expected to raise interest rates next week to prevent inflation from rising too quickly.

 

 

 

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For My Birthday, Please Give: Facebook Feature Raises Cash for Causes

When Behnoush Babzani turned 35, she threw a party. She also used her birthday to ask friends to donate to a cause she cares about deeply: helping people who need bone marrow transplants.

She herself received a bone marrow transplant from her brother.

“It’s not that my body was making cancerous cells, it was that my body was making no cells,” she said. “So think about the boy in the bubble. I had to be isolated. I didn’t have an immune system to protect me.”

Using a new feature on Facebook, Babzani in a few clicks posted a photo of herself in a hospital gown when she was receiving treatment and she asked her friends to help raise $350.

 

WATCH: Facebook’s Birthday Fundraiser Feature Brings Smiles to Charitable Causes

New way to raise money for causes

Facebook has always been a convenient way to send birthday wishes to friends. Now users have started taking advantage of a new feature introduced a year ago by the popular social networking site to turn birthday wishes into donations to help a favorite cause.

It’s turned into a huge success for charities. In its first year, Facebook’s birthday fundraiser feature raised more than $300 million for charities around the world. With a new revenue source, some charities are rethinking some of their standard fundraising activities.

The success of the Facebook birthday feature comes as social media users have begun to question how internet services connecting friends and family around the world have also become a mechanism for some to spread hate or influence foreign elections.

​Networks used to spread hate

Along with Twitter CEO Jack Dorsey, Sheryl Sandberg, Facebook’s chief operating officer, testified in the U.S. Senate recently about steps the company has taken to identify and remove posts that violate the company’s terms of service.

“We were too slow to spot this, and too slow to act. That is on us,” Sandberg told the Senate committee.

Yet, the birthday fundraiser feature shows the power of using social media for good, says Facebook spokeswoman, Roya Winner.

“It gives people who are celebrating a birthday, a chance to turn that day into something that’s bigger than themselves,” she said.

Some of the biggest recipients have been St. Jude, the children’s hospital, the Alzheimer’s Association, the American Cancer Society, No Kid Hungry, which focuses on child hunger in the U.S., and the American Society for the Prevention of Cruelty to Animals.

In the days that followed, Behnoush surpassed her goal, raising more than $1,700. Her social network became an army pulling together to do good.

Rescuing sea lions

Two weeks before his 65th birthday, Stan Jensen, retired from working in sales at a Silicon Valley firm, received a message from Facebook asking if he wanted to mark the occasion of his birthday by dedicating the day to a cause. He did.

He turned to 1,400 Facebook friends to help raise money for the Marine Mammal Center in Northern California, where he volunteers once a week helping injured sea lions.

He raised $2,300. 

“It surpassed my wildest dreams,” he said, and he let his friends know they made a difference.

“You’ve bought a ton of fish,” he told them. “You are feeding all the animals we have on site for several days.”

His birthday is coming up again, and the sea lions are always hungry. He’s perfecting his pitch: “I know I’m special to you, but I’d like just the cost of a Starbucks coffee. Just $5. Please.”

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Facebook’s Birthday Fundraiser Feature Brings Smiles to Charitable Causes

Facebook has always been a convenient way to send birthday wishes to friends. But many users have started taking advantage of a new feature introduced a year ago by the popular social networking site to turn birthday wishes into donations to help a favorite cause. And it’s turned into a huge success for charities. In its first year, Facebook’s birthday fundraiser feature raised more than $300 million for charities around the world. Michelle Quinn has more.

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China’s Alibaba Scraps Plan to Create 1M US Jobs

Alibaba Chairman Jack Ma said Wednesday that the Chinese e-commerce giant had canceled plans to create 1 million jobs in the U.S., blaming the ongoing trade war for the decision, according to Chinese news agency Xinhua.

“This commitment is based on friendly China-U.S. cooperation and the rational and objective premise of bilateral trade,” Ma told Xinhua. “The current situation has already destroyed the original premise. There is no way to deliver the promise.”

Ma originally pledged to spur job growth by letting American small businesses and farmers sell their goods on Alibaba, which is one of the world’s largest online retailers, when he visited then-President-elect Donald Trump early 2017.

Trump imposed 10 percent tariffs on $200 billion worth of Chinese imports on Monday, threatening to place taxes on an additional $267 billion worth of Chinese imports if China attempts to retaliate.

China placed tariffs on about $60 billion worth of U.S. products the next day as previously planned, though it reduced the size of the tariffs.

At an Alibaba investor conference Tuesday, Ma described the state of economic relations between the two countries as a “mess” with consequences that could last for decades.

Some experts said Ma’s plan to bring 1 million jobs to the U.S. might have been overly ambitious in the first place.

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Canada Wants to See Flexibility in NAFTA Talks With US

Canada said on Wednesday that it would need to see movement from the United States if the two sides are to reach a deal on renewing NAFTA, which Washington insists must be finished by the end of the month.

Although the administration of U.S. President Donald Trump and its allies are increasing pressure on Canada to make the concessions they say are needed for the North American Free Trade Agreement, Canadian Prime Minister Justin Trudeau made clear he also wanted to see flexibility.

“We’re interested in what could be a good deal for Canada but we’re going to need to see a certain amount of movement in order to get there and that’s certainly what we’re hoping for,” he told reporters in Ottawa.

Shortly afterwards, Canadian Foreign Minister Chrystia Freeland met U.S. Trade Representative Robert Lighthizer for their fourth set of talks in four weeks with the two sides still disagreeing on major issues.

Trump has already wrapped up a side deal with Mexico and is threatening to exclude Canada if necessary. Canadian officials say they do not believe the U.S. Congress would agree to turn NAFTA into a bilateral treaty.

U.S. Chamber of Commerce President Thomas Donohue said it would be extremely complicated, if not impossible, for the administration to pull off a Mexico-only agreement.

“If Canada doesn’t come into the deal there is no deal,” Donohue told a media breakfast in Washington.

Donohue said he believed that if the administration wanted to end the current NAFTA, such a move would be subject to a vote in Congress, which would be difficult to get.

The Chamber, the most influential U.S. business lobby, wants NAFTA to be renegotiated as a tri-lateral agreement, citing how highly integrated the three member nations’ economies have become since the pact came into force in 1994.

Negotiators are arguing over cultural protections, dispute resolution, and a U.S. demand for more access to Canada’s protected dairy market. Sources say Ottawa has made clear it is prepared to make concessions, which would anger the influential dairy lobby.

“For American farmers the Canadian market is a drop in the bucket. For us it’s our livelihood,” Dairy Farmers of Canada vice president David Wiens told reporters in Ottawa. Concessions in past trade deals had already hurt Canadian farmers, he said.

“The dairy sector cannot be negatively impacted again by a new trade agreement,” he said. “Enough is enough.”

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Kenya’s Finance Minister Cuts Spending, Money Transfer Taxes to Rise

Kenya’s Finance Minister Henry Rotich has cut the government’s spending budget by 55.1 billion shillings ($546.90 million), or 1.8 percent, for the fiscal year from July this year, a Treasury document showed on Wednesday.

The government is facing a tough balancing act after a public outcry over a new 16 percent value added tax on all petroleum products forced President Uhuru Kenyatta to suggest to parliament to keep the VAT and cut if by half.

In the document detailing the new spending estimates, Rotich said the budget had to be adjusted because of the amendments to tax measures brought by lawmakers when they first debated it and passed it last month.

The proposed halving of the VAT rate on fuel has left the government with a funding shortfall, hence the cuts in spending.

Parliament will vote on a raft of proposals, including the 1.8 percent cut on spending, in a special sitting on Thursday.

Kenya’s economy is expected to grow by 6 percent this year, recovering from a drought, slowdown in lending and election-related worries that cut growth in 2017, but investors and the IMF have expressed concerns over growing public debt.

While the next election is still four years away, the government’s economic policies are chafing with citizens angered by increasing costs of living. Fuel dealers protested when the VAT on fuel kicked in this month and citizen groups have gone to court to try to block new or higher taxes.

Separate documents sent by Kenyatta to parliament ahead of Thursday’s sitting underscored the debate in government over how to boost revenues without hurting the poor.

His government has to reduce a gaping fiscal deficit while boosting spending on priority areas such as healthcare and affordable housing.

In order to balance the government’s books after the reduction of the fuel tax, he is trying to reinstate several tax measures struck out by parliament, including a 2 percentage hike on excise duty for mobile phone money transfers to 12 percent.

Kenya’s biggest mobile phone operator Safaricom said in June it was opposed to any tax rise on mobile phone-based transfers, arguing that it would mainly hurt the poor, most of whom do not have bank accounts and rely on services such as its M-Pesa platform.

The president also asked parliament to double the excise duty on the fees charged by banks, money transfer services, and other financial institutions to 20 percent.

Parliament in August threw out an earlier version of proposed fees on bank transfers, a so-called “Robin Hood” tax of 0.05 percent on transfers of more than 500,000 shillings.

The president has not yet signed the budget due to the dispute over the planned tax hikes. Kenyatta’s Jubilee party and its allies have a comfortable majority in parliament.

The Kenya National Chamber of Commerce and Industry this month said the government should widen the tax base. It also urged the state to cut expenditure, reduce wastage of public funds and deal with corruption, which some studies have found lose the government about a third of its annual budget.

 

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Amazon’s Use of Merchant Data Under EU Microscope

EU regulators are quizzing merchants and others on U.S. online retailer Amazon’s use of their data to discover whether there is a need for action, Europe’s antitrust chief said on Wednesday.

The comments by European Competition Commissioner Margrethe Vestager came as the world’s largest online retailer faces calls for more regulatory intervention and even its potential break-up because of its sheer size.

Vestager said the issue was about a company hosting merchants on its site and at the same time competing with these same retailers by using their data for its own sales.

“We are gathering information on the issue and we have sent quite a number of questionnaires to market participants in order to understand this issue in full,” Vestager told a news conference.

“These are very early days and we haven’t formally opened a case. We are trying to make sure that we get the full picture.”

Seattle-based Amazon had no immediate comment.

Vestager has the power to fine companies up to 10 percent of their global turnover for breaching EU antitrust rules.

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