—— US Services Growth Cools; Brooklyn Waterfront Condos Open; Taiwan Hit by Worst Earthquake in 25 Years; AWS to Cut Hundreds of Jobs; US Adds More Private-Sector Jobs; China Vanke Extends Housing Sales Slump; Apple Explores Home Robotics
1. US Services Growth Cools
Expansion in the US services sector moderated in March for the second consecutive month, accompanied by a notable decline in input costs, reaching a four-year low.
The Institute for Supply Management reported that its composite gauge of services dipped by 1.2 points to 51.4. This decline was primarily driven by a significant drop in the supplier deliveries index, which hit a record low. Readings above 50 signify expansion, and the March figure fell below the expectations of most economists surveyed by Bloomberg, except for one.
The index measuring prices paid for materials and services also experienced a notable decrease, dropping by more than 5 points to 53.4. This marks its lowest level since March 2020, according to the report released on Wednesday.
The data on services prices might alleviate concerns regarding the Federal Reserve’s progress on inflation, suggesting that it is not at risk of stalling.
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2. Brooklyn Waterfront Condos Open
A surge in residential development in a Brooklyn neighborhood is drawing to a close as a condominium tower unveils its opening on one of the last available sites along the Williamsburg waterfront.
Sales commence Wednesday at One Domino Square, a 39-story tower situated just north of the Williamsburg Bridge. It stands as the sole condominium offering within the expansive 11-acre (4.5-hectare) complex that Two Trees Management has been meticulously constructing around the historic Domino Sugar refinery, which underwent conversion into offices.
The tower’s introduction marks the latest milestone in the evolution of this once industrial area, a transformation made feasible by a 2005 rezoning initiative that paved the way for the development of some of Brooklyn’s most upscale residential properties. Previous development endeavors in Williamsburg had been concentrated closer to the Bedford Avenue L train stop or further north along the East River.
According to data from the real estate data firm Marketproof, nearly 70% of the nearly 11,000 condominium units in Williamsburg were constructed after 2005.
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3. Taiwan Hit by Worst Earthquake in 25 Years
The most powerful earthquake to strike Taiwan in twenty-five years devastated dozens of buildings on the eastern side of the island, resulting in at least nine fatalities and causing disruptions in semiconductor production for some of the world’s leading chipmakers.
The earthquake occurred at 7:58 a.m. local time on Wednesday, registering a magnitude of 7.4, as reported by the US Geological Survey. The epicenter was located near the eastern city of Hualien. Tremors were felt as far as Japan and China.
According to Taiwan’s Central Emergency Operation Center, at least nine people lost their lives, 934 sustained injuries, and 56 individuals are still trapped. Over two dozen buildings collapsed as a result of the quake.
Taiwan holds a pivotal position in the global economy as the primary producer of the most advanced semiconductors worldwide.
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4. AWS to Cut Hundreds of Jobs
Amazon.com Inc.’s cloud division is undergoing significant layoffs, impacting sales and marketing personnel as well as the team responsible for developing technology for brick-and-mortar stores.
In a statement on Wednesday, an Amazon Web Services spokesperson acknowledged the layoffs, stating, “We’ve identified a few targeted areas of the organization we need to streamline in order to continue focusing our efforts on the key strategic areas that we believe will deliver maximum impact.” The spokesperson also mentioned that Amazon will attempt to find alternative roles for the affected employees.
The growth rate of AWS, which is the largest provider of rented computing power and data storage, experienced a notable slowdown last year as corporate clients reduced spending and postponed technology modernization initiatives.
These recent job cuts come approximately a year after AWS conducted its largest-ever round of layoffs, which was part of a broader cost-cutting initiative that saw Amazon eliminate 27,000 corporate positions following a surge in hiring during the pandemic.
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5. US Adds More Private-Sector Jobs
In March, the US private sector saw a robust increase of 184,000 jobs, marking the largest monthly gain since July. This uptick underscores the ongoing strength of the labor market, signaling positive momentum ahead of Friday’s official non-farm payrolls report.
March’s job gains exceeded the upwardly revised figure of 155,000 jobs in February and surpassed the 148,000 jobs forecasted by economists surveyed by Reuters.
Additionally, wage growth for job changers accelerated from 7.6 percent in February to 10 percent in March. This surge in wages could present challenges for policymakers aiming to address inflation concerns.
Nela Richardson, Chief Economist at ADP, commented on the situation, stating, “Inflation has been cooling, but our data shows pay is heating up in both goods and services.”
The rate of wage increases for individuals who retained their positions remained steady at 5.1 percent.
Source: Financial Times – US adds more private-sector jobs than expected, as pay gains for job changers accelerate
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6. China Vanke Extends Housing Sales Slump
China Vanke Co., once the largest listed developer in the country, faced another downturn last month, mirroring the struggles of other real estate firms grappling with declining home sales.
The company reported contracted sales of 24.5 billion yuan ($3.4 billion) for March in a filing on Wednesday. This figure reflects a steep 43% decline compared to the same period last year and follows a 53% year-on-year plunge recorded in the previous month.
Despite hopes for a recovery, China’s beleaguered property sector continues to show little signs of improvement. Private data indicates that March’s home sales sustained a sharp decline, and industry analysts do not anticipate a significant rebound this month. Property investment also experienced a substantial slump of 9% in the first two months of the year, surpassing expectations.
Vanke reported a significant 46% drop in net profit for 2023, marking the largest decline since its listing in 1991.
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7. Apple Explores Home Robotics
Apple Inc. is reportedly exploring opportunities in personal robotics, a sector that could potentially become one of the company’s next significant endeavors, according to individuals familiar with the matter.
Engineers at Apple have been investigating the development of a mobile robot capable of following users within their homes, as well as an advanced table-top home device that utilizes robotics to move a display around, according to these sources who requested anonymity as the project is still in its early stages and considered confidential.
While it remains uncertain whether these products will ultimately be brought to market, Apple faces mounting pressure to identify new revenue streams. Following the cancellation of an electric vehicle project in February, and with the expectation that a foray into mixed-reality goggles will take years to yield substantial profits, the company is actively seeking innovative avenues for growth.
Following the cancellation of an electric vehicle project in February, and with the expectation that a foray into mixed-reality goggles will take years to yield substantial profits, the company is actively seeking innovative avenues for growth.
Source: Bloomberg – Apple Explores Home Robotics as Potential ‘Next Big Thing’ After Car Fizzles
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The content of this article comes from various financial news media such as The Wall Street Journal, Financial Times, and Bloomberg.