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Roads ‘could come to a standstill’ as national highways workers go on strike
Union members working on England’s roads have announced 12 days of strike action over Christmas and the new year, PA Media report.
Members of the Public and Commercial Services union (PCS) at National Highways, who plan, design, build, operate and maintain the country’s roads, will take part in a series of staggered strikes from December 16 to January 7.
The union said the action risks bringing roads to a standstill.
The action will coincide with planned strikes by RMT members on the railways.
PCS general secretary Mark Serwotka said:
“We know our members’ action could inconvenience travellers who plan to visit their relatives over the festive period, but our members have been placed in this situation by a government that won’t listen to its own workforce.
“With the serious cost-of-living crisis, they deserve to be paid properly for the important work they do, keeping our roads running safe and free.
“The Government is in the driving seat here – it’s in a position to stop these strikes by putting money on the table.”
PCS will be announcing strike dates in other departments, including the Home Office, over the next few weeks.
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Stock have opened lower on Wall Street, following the stronger-than-expected jobs report.
The Dow Jones industrial average is down 239 points, or 0.7%, at 34,159.89 points.
Charles Hepworth, investment director at GAM Investments, says:
“US November payrolls increased more than forecast, showing 263k additions versus expectations of 200k whilst the unemployment rate remains unchanged at 3.7%. So, markets should view this as evidence of a continuingly strong labour market which seemingly remains unaffected by higher rates. This can only pile more pressure on the Fed to maintain a hawkish stance on rate policy. Equities falling, dollar strengthening and treasury yields drifting higher would be the normal market reaction, and at the moment this is playing to script.
However no doubt by the end of the trading day, some may find reason in the report to shift the narrative.
Either way, Fed Chair Powell’s more dovish statement, as received by markets on Wednesday, cannot be seen as that dovish in reality – wage growth and new job creation points to a super-hot employment market and one on which the Fed wants to crack down with ever higher rate moves.”
Here’s a neat breakdown of the US jobs report:
🇺🇸 U.S. Jobs Data:
🔹 NFP: 263K
🔹 GOVT JOBS +42,000 VS OCTOBER +36,000 (PREV +28,000)
🔹 GOODS-PRODUCING JOBS +37,000
🔹 CONSTRUCTION +20,000
🔹 PRIVATE SERVICE-PROVIDING JOBS +184,000
🔹 RETAIL -29,900
🔹 AVG HOURLY EARNINGS +0.6 PCT (CONS +0.3 PCT)
👇 Market Reaction pic.twitter.com/p1SHfIls86
— PiQ (@PriapusIQ) December 2, 2022
Daniele Antonucci, Chief Economist and Macro Strategist at Quintet Private Bank, predicts the Fed could slow its interest rate rises, despite such strong wage growth last month.
Here’s Antonucci’s take on today’s jobs report:
US labour market slows but demand for jobs remains strong
That the US economy added more jobs than expected in November is a sign that demand for new workers remains relatively resilient despite policymakers’ push to slow economic growth and curb inflation. However, much is going on under the surface and we suspect these underlying changes will allow The Federal Reserve to slow the pace of rate hikes later this month.
Last week, Federal Reserve Chair Jerome Powell said that “the time for moderating the pace of rate increases may come as soon as December’s meeting”, providing the clearest sign yet that policymakers are ready to ease off the accelerator.
Some of his colleagues subsequently reminded markets that an end to the rate hiking cycle is not imminent, presumably to avoid any unwarranted easing in financial conditions.
A good US jobs report is bad for stocks:
Today’s jobs report is a blow to hopes of a ‘dovish pivot’ from the Fed:
NFP report shows +263k jobs, but the household survey shows -138k. Unempl rate unchanged at 3.7%, mostly bc labor force participation fell from 62.3% to 62.1%.
📈 wage growth, 📈 high labor demand, 📉 labor supply…that backdrop is where dovish pivots go to die. pic.twitter.com/2oLuodU43w
— Liz Young (@LizYoungStrat) December 2, 2022
ING say:
Strong job creation and a big increase in wages underscore the Federal Reserve’s argument that a lot more work needs to be done to get inflation under control.
It has certainly jolted the market.
But with recessionary fears lingering, market participants will remain sceptical over how long the strong performance can last.
There were notable job gains at US leisure and hospitality companies, and in health care and government, the Bureau for Labour Statistics reports.
Employment declined in retail trade and in transportation and warehousing.
US jobs report stronger than expected
This month’s US labour market report was stronger than expected — both in terms of the headline figure and wage growth. That underscores the tightness of the labour market, which remains a bright spot in an otherwise weakening US economy.
Victoria Scholar, head of investment at Interactive Investor, says:
In terms of the Fed’s conundrum, this piece of data muddies the picture for a possible slowdown in rate hikes ahead, given that it suggests the employment market is slowing less than anticipated, adding to price pressures facing the economy.
US futures are trading sharply lower with the Nasdaq leading the losses. The US dollar has jumped while short-term interest rate futures have dropped on anticipation that the Fed may not have as much wiggle room to shift towards a more dovish approach to rate hikes in terms of its combat against inflation.
Ahead of the report the US dollar was trading modestly lower. However, the jobs report has bolstered risk-off sentiment with the greenback swinging into the green against most major currencies. US dollar strength is weighing on precious metals with gold, platinum and palladium trading sharply lower.”
Average US hourly earnings up 0.6%
The US unemployment rate held at 3.7% while month-on-month average hourly earnings grew by 0.6% month-on-month, which beats expectations for 0.3% growth..
US economy adds 263k jobs in November
Just in: America added more new jobs than expected last month, despite signs that the economy was slowing from higher interest rates.
The Non-Farm Payroll rose by 263,000 in November, beating forecasts of around 200,000 new hires.
October’s payroll has been revised up too, to show 284,000 new jobs were created, not the 261,000 first reported. September’s total has been revised down by 46,000.
This news is driving up the dollar, and hitting Wall Street futures, as it cuts the chances of the US Federal Reserve slowing its interest rate rises soon.
Roads ‘could come to a standstill’ as national highways workers go on strike
Union members working on England’s roads have announced 12 days of strike action over Christmas and the new year, PA Media report.
Members of the Public and Commercial Services union (PCS) at National Highways, who plan, design, build, operate and maintain the country’s roads, will take part in a series of staggered strikes from December 16 to January 7.
The union said the action risks bringing roads to a standstill.
The action will coincide with planned strikes by RMT members on the railways.
PCS general secretary Mark Serwotka said:
“We know our members’ action could inconvenience travellers who plan to visit their relatives over the festive period, but our members have been placed in this situation by a government that won’t listen to its own workforce.
“With the serious cost-of-living crisis, they deserve to be paid properly for the important work they do, keeping our roads running safe and free.
“The Government is in the driving seat here – it’s in a position to stop these strikes by putting money on the table.”
PCS will be announcing strike dates in other departments, including the Home Office, over the next few weeks.
Laura Joseph, Post Office Customer Experience Director says:
Royal Mail have now brought forward the last recommended posting dates for many of their services including 1st and 2nd class parcels – pop into your local Post Office branch to find out more.
“12th December is now likely to be even busier in Post Office branches as customers race to take advantage of the cheaper postage as this is now the last recommended date for sending 2nd class parcels to arrive for Christmas. As soon as you’ve got your parcels ready to go, don’t wait to come into branch and get them in the post – many Post Office branches are open long hours and some are open 7 days a week so pop into your local branch and get your gifts sent in time for Christmas”
Royal Mail are warning customers to expect disruption to deliveries and its services, due to strikes by members of the Communication Workers Union.
Items posted in the run up, during and after strike days are likely to be subject to delay. We’re sorry for any inconvenience this will cause.
On Tuesday the CWU warned there could be a “Christmas meltdown” in letters and deliveries, blaming Royal Mail’s management for refusing to enter negotiations that would avert strikes.
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