Employees seeking purpose at work; How it is impacting economy

    According to new survey studies by managment consulting firm McKinsey and Company, 82% of employees believe it is important for their company to have a purpose. There are many reports of people leaving their jobs unless they are to get more from the job, but not neccessarily in terms of a raise or more money. Business Insider report shows that companies who have "disengaged emplyoees could cost the economy upwards of 2 trillion dollars and are 18% less productive than those that are engaged (resulting in loss of one full workday of productivity). Other research states that 34% of employees would quit because of a toxic work environment and 48% would resign if a job "prevented them from enjoying their life.

    Now more than ever employees are valuing their time and what their job has to offer to them in terms of fulfillment. People do want to work, its just a matter of feeling purpose and engagement at all times. Employers need to recognize that these expectations have changed and will continue to change with the time. Specifically, in order to have a positive impact, companies must upgrade work culture, honor a work/life balance, ask about personal purpose, and clarify their purpose consistently. 

 Link to video article 

U.S. job growth totaled 275,000 in February but unemployment rate rose to 3.9%

The February jobs report showed stronger than expected job creation with 275,000 new jobs, surpassing Wall Street's expectation of 198,000. However, the unemployment rate rose to 3.9%, and revisions to December and January figures resulted in 167,000 fewer jobs than initially reported. Wage growth was minimal at 0.1% for the month and 4.3% year-over-year, slightly below expectations. Key sectors contributing to job growth included health care, government, and the hospitality industry. Despite the increase in part-time positions and a slight rise in the "real" unemployment rate to 7.3%, the report indicates that the job market remains robust. Average hourly earnings and hours worked suggest inflationary pressures may be easing, potentially influencing the Federal Reserve's future interest rate decisions. The mixed data reflects ongoing economic resilience amid uncertainties, including recent high-profile layoffs in the tech sector and mixed signals from Fed officials on the timing of potential rate cuts.

Link

Silver Lake's Endeavor Takeover: A Strategic Leap

In a strategic move that's causing quite the stir in the entertainment sector, Silver Lake has announced its plan to take the entertainment behemoth Endeavor Group Holdings private, offering $27.50 per share. This deal pegs Endeavor's equity at a whopping $13 billion. The significance of this acquisition is twofold. Firstly, it underscores Silver Lake's confidence in Endeavor's potential for growth and innovation. Endeavor, known for its talent agency WME, brand licensing, and event promotions, has recently expanded into sports betting with the acquisition of OpenBet and divested from IMG Academy, demonstrating its strategic diversification.

Moreover, this deal has implications for the broader entertainment industry, highlighting a trend towards consolidation and private investment. With Endeavor maintaining its majority stake in TKO Group Holdings, the parent company of UFC and WWE, the transaction ensures that Endeavor's influence in sports and entertainment continues unabated, albeit under a private banner. This move could signal a new chapter for Endeavor, focusing on growth and expansion without the scrutiny of public markets. As the deal is expected to close by the end of the first quarter of 2025, industry watchers are keenly observing how this acquisition will reshape the landscape of entertainment and media.

Paraguay records highest economic growth in the region in 2023

 Paraguay's Central Bank (BCP) reported a regional milestone with the country achieving the highest growth rate in the last quarter of 2023, marking a significant 4.9% expansion. This growth surpassed the previous quarter's 3.7% and the 1.8% recorded in the last quarter of 2022. The BCP's Quarterly National Accounts report highlighted positive performances in various sectors, including manufacturing, agriculture, and services.

Despite the overall positive outlook, challenges persist, particularly in construction, which saw its seventh consecutive negative quarter. Additionally, the agriculture sector faced difficulties due to lower production levels of key crops like corn, sunflower, and tobacco. Moreover, the rise of the dollar against the local guaraní raised concerns about inflationary risks, prompting calls for action from the BCP to control possible financial speculations and mitigate the impact on imports such as fuel and other basic inputs.

Source: https://en.mercopress.com/2024/04/01/paraguay-records-highest-economic-growth-in-the-region-in-2023 

California Holds Highest Minimum Wage for Fast Food Workers

 As of Monday, April 1st, California's state minimum wage jumps from 16 dollars per hour to 20 dollars per hour putting California at the top spot in terms of state minimum wage. 

For some, this is a great step in the right direction of making minimum wage more live-able, but for others it means potential loss. This article focuses on Mr. Bynum, a franchise owner of a small barbeque restaurant in Southern California. For him, this jump in minimum wage means a huge increase in monthly expenses and an inevitable increase in his prices which he has found in the past few years has significantly dropped the amount of customers. 

Restaurant owners are not the only ones concerned. An employee of the Californian barbeque joint shared his concerns of a more competitive job market as the minimum wage rises. 

The billion dollar Fast Food Industry can afford this raise according to the article, and it appears that it will be beneficial for many people. But the small businesses and employees of those small businesses will suffer. Some owners may have to cut costs, reduce employee's hours or even shut down because they cannot budget for thousands of dollars more in wages a month. 

A Professor of Economics at University of California, Irvine remarked that while the higher minimum wage creates winners, it also creates losers. Many appreciate the higher wage and it will improve their industry, but for others, it raises the cost of living and just isn't sustainable. 

https://www.nytimes.com/2024/03/28/business/economy/fast-food-minimum-wage-california.html

HDI and Measuring Living Standards

 In the article, the topic of change in living standards for the past four years is discussed. While there has been significant improvement in standards of living in the past couple of decades, the Human Development Index (HDI) has taken a significant hit within the past couple of years. This is largely due to the “unpredictable” events that have shaken the world, two examples include the pandemic in 2020 and the war between Russia and Ukraine.  D

The HDI gauges progress in terms of societal outcomes, such as life expectancy, childbirth, average years of schooling, and gross income per person. The economic measure was established in 1990 and has seen constant annual growth until its first drop in 2020 and 2021. The latest report published on March 13th indicated growth in the previous year. However, the HDI has still not reached the levels that it once was before the pandemic. This is simply because the pandemic has caused a permanent setback.

This setback has further increased the gap between countries with the highest and lowest HDIs. Historically, in the past 20 years, that gap was becoming more narrow as the years progressed.

https://www.economist.com/graphic-detail/2024/03/13/which-countries-have-the-best-and-worst-living-standards?utm_medium=cpc.adword.pd&utm_source=google&ppccampaignID=17210591673&ppcadID=&utm_campaign=a.22brand_pmax&utm_content=conversion.direct-response.anonymous&gad_source=1&gclid=CjwKCAjwtqmwBhBVEiwAL-WAYWocR7bKnAqVlU5bGQiVFbJgAGq1olME9cQ9yENq5VVyKMei944G9xoCLzgQAvD_BwE&gclsrc=aw.ds

More Volatility Ahead: BOJ Ends Negative Rates, Yen's Future Uncertain

The Bank of Japan (BOJ) ended its decade-long policy of negative interest rates on Tuesday. This is likely to cause the yen to become more volatile. The yen has been a popular currency for carrying trades because of its stability. However, with the BOJ raising interest rates, the yen is no longer as attractive for carry trades. This could lead to a decrease in demand for the yen and cause it to depreciate.

In the long run, the BOJ's decision could lead to the yen appreciating. This is because the Japanese economy is expected to improve in the coming years. However, in the short term, the yen is likely to be more volatile.

The BOJ's decision is also likely to impact investors, companies, and governments. Investors who were using the yen for carry trades will need to find a new currency to use. Companies that were using cheap yen funding to expand overseas may no longer be able to do so. And governments that have issued yen-denominated bonds may find it more expensive to pay back their debt.

Overall, the BOJ's decision to end negative interest rates is likely to have a significant impact on the yen and the global financial markets.

https://www.ft.com/content/7648a877-a693-4bf8-ab9f-ea71805b4401?accessToken=zwAAAY8a5HA-kc92SKh3ppNL-NOrn-pxgFtEAQE.MEYCIQCquTd_OQRic1D04uMTHMyQtcPeeO5biaLT8Q95UKpPKgIhAP_rbh_3MXOxtOHhw4kkWmugMHvbrBYp5j3qmCm2p8X7&segmentId=7d4bcc2e-e664-92ba-62e3-5590579f1902

Cost of the Baltimore Bridge Collapse

The Francis Scott Key Bridge in Baltimore, Maryland collapsed on Tuesday after being struck by a cargo ship. The port closure could cost up to $15 million per day that it is closed. The port of Baltimore, which is the ninth largest port in the United States, handles up to $80 billion worth of goods a year. The port is expected to be delayed by 24 days which could result in major disruption in US imports and exports.  The bridges' collapse is expected to result in a multi-billion dollar insurance loss and be the largest marine insurance loss in history. The port also supplies 15,000 jobs locally, and its closure may result in job loss and loss of wages. 

link: https://www.aljazeera.com/news/2024/3/30/what-is-the-economic-cost-of-baltimores-key-bridge-collapse

Key Fed inflation gauge rose 2.8% annually in February, as expected

 Inflation rose to the amount that the Fed had predicted for the month of February. The PCE index had increased by 0.3% from the previous month. It should be noted that the fed targets around 2 percent inflation annually but has not been below that in years. These numbers were not the best but are obviously not surprising based on the last months forecast for the number. Typically, the forecasts are not a good indicator, but this past month the fed seemed to predict it on the money. Part of the reason is due to the rising energy costs in the United States. Consumer spending and goods also increased with inflation, which were both major contributors to the increase. Another note was that personal income increased slower than predicted.

Disrupted Supply Chains: Baltimore Bridge Collapse

           The recent collapse of the Francis Scott Key Bridge in Baltimore on Tuesday disrupted crucial supply chains and threatened economic stability. This was a pivotal point for trading as it connected the Port of Baltimore to the mainland. With the collapse of the bridge, there was a suspension of vessel traffic, raising concerns about the flow of essential goods. Since the Port of Baltimore is the 17th largest in the nation, its suspension caused a huge disruption in supply chains. It handled 52.3 million tons of foreign cargo which was worth 81 billion dollars in 2023 and created more than 15,000 jobs. Additionally, the coal industry mainly relied on the Port of Baltimore for export. Because of the collapse, they need to reroute shipments and handle other complications. The coal industry is only one of the many that have been affected by the bridge collapse. As the region grapples with the consequences of the bridge collapse, efforts have started towards rebuilding it however, it will require significant time, resources, and coordination. 

Link: https://www.washingtonpost.com/business/2024/03/27/baltimore-port-economy-disruption-bridge-collapse/