Market Beats | US Hiring Slows in August; California Faces Heightened Wildfire Risk; Citigroup Hands $80B Client Assets to BlackRock; Giorgio Armani Dies at 91; Washington Sues Trump Over National Guard Deployment; Goldman Sachs Invests Up to $1 Billion in T. Rowe Price; Bank of America Opens Private Equity Funds

—— US Hiring Slows in August; California Faces Heightened Wildfire Risk; Citigroup Hands $80B Client Assets to BlackRock; Giorgio Armani Dies at 91; Washington Sues Trump Over National Guard Deployment; Goldman Sachs Invests Up to $1 Billion in T. Rowe Price; Bank of America Opens Private Equity Funds

1. US Hiring Slows in August

US companies added fewer jobs than expected in August, signaling softer labor demand.

Private-sector payrolls rose by 54,000 last month, roughly half the pace of July’s gain, according to data from ADP Research released Thursday. Economists surveyed by Bloomberg had forecast a 68,000 increase. The figures align with other recent reports pointing to a cooling labor market, including fewer job openings and slower wage growth. “The year started with strong job growth, but that momentum has been whipsawed by uncertainty,” said Nela Richardson, ADP’s chief economist. Average payroll gains over the past six months were the weakest since the pandemic.

Attention now turns to the government’s August jobs report due Friday, which is expected to show a 75,000 payroll gain and slightly higher unemployment. That release follows a prior revision showing job growth had been substantially weaker in recent months than first reported.

Fed officials are closely watching labor data as they weigh policy changes. Markets continue to expect the central bank to cut interest rates by a quarter point at its September 16–17 meeting. Stock futures and Treasuries held gains after the ADP release.

______

2. California Faces Heightened Wildfire Risk

Away from the state’s coastline, California’s inland hillsides are blanketed with brown, dry grasses and brush. Nearly 40% of the state is now experiencing drought conditions, and with the Santa Ana and Diablo winds expected to strengthen in the coming weeks, any stray spark could rapidly spread across the parched landscape.

“The grass levels are very thick, and the brush is very dry — the state is like a haystack,” said David Acuna, spokesman and battalion chief for Cal Fire. California has already suffered tragedy this year, as the Eaton and Palisades fires in the Los Angeles area killed 31 people in January. Those were the second- and third-most destructive fires in the state’s history. As of the end of August, there have been 6,504 fires in 2025, burning 425,680 acres — more than last year, but below the five-year average of 772,489 acres. The most dangerous part of fire season likely lies ahead, as powerful seasonal winds approach.

The Santa Ana winds in Southern California and Diablo or Sundowner winds elsewhere usually begin in October and last into early winter. Driven by high-pressure systems over Nevada and Utah, they gain speed as they cross mountains and become drier and hotter as they descend.

Fuel is also abundant. Several consecutive wet winters spurred lush growth of natural and invasive plants, which have now dried out after the long summer, creating widespread tinder. “Any fire is going to grow exponentially,” Acuna warned.

Daniel Swain, a climate scientist at the University of California, noted that residents along the coast may be lulled into complacency by a mild summer. “It’s been relatively cool in San Francisco and LA,” he said, “but that hasn’t been the case in California’s mountains and foothills, where temperatures have been above average.”

______

3. Citigroup Hands $80B Client Assets to BlackRock

Citigroup Inc. is handing over about $80 billion of client assets to BlackRock Inc. as part of a new partnership that will shutter the bank’s last in-house asset management unit and further outsource its wealth offerings.

BlackRock, which already manages part of Citi’s $635 billion in client investments, will now oversee the remaining pool of assets previously run by Citi Investment Management. “We are not in a position to double this platform on our own. Working with BlackRock puts us in a much stronger position,” said Andy Sieg, head of Citi’s wealth business, in an interview at Bloomberg’s New York headquarters.

As part of the agreement, BlackRock will collect management fees while Citi retains advisory fees. Fewer than 100 staff, including portfolio managers led by Robert Jasminski, will move to BlackRock. Clients will be notified of the changes in the coming months, with the transition expected to wrap up by year-end.

The deal is part of CEO Jane Fraser’s multi-year push to streamline Citi’s wealth management operations and improve profitability. The bank is now prioritizing the mass affluent segment, seeking to capture a greater share of high-net-worth clients’ investments.

______

4. Giorgio Armani Dies at 91

Giorgio Armani, the legendary Italian designer and billionaire who built one of the world’s most iconic fashion houses, has died at 91.

He passed away Thursday at his home, according to his company, which said in a statement: “Indefatigable to the end, he worked until his final days, dedicating himself to the company, the collections, and the many ongoing and future projects.” Armani had missed the June runway shows while recovering from an undisclosed illness.

A former medical student, Armani founded his eponymous brand in 1975 and went on to build Milan-based Giorgio Armani SpA into a global cultural phenomenon. From his signature unstructured jackets to jeans, shirts, sunglasses, and shoes, his empire grew into one of the most recognizable names in luxury retail.

Armani also became a defining figure behind the “Made in Italy” movement, symbolizing craftsmanship and quality for global consumers.

______

5. Washington Sues Trump Over National Guard Deployment

Washington DC officials have filed a lawsuit against President Donald Trump over his deployment of thousands of National Guard troops in the capital, intensifying local resistance to federal control.

The suit, filed Thursday in federal court, argues that the mobilization of more than 2,200 troops since mid-August violates US laws prohibiting the military from engaging in domestic law enforcement — a situation DC leaders described as an “involuntary occupation.” It also claims Trump illegally called in Guard units from other states.

This marks the second lawsuit brought by DC Attorney General Brian Schwalb against Trump’s efforts to federalize policing in the city. It follows a ruling earlier this week by a federal judge that Trump unlawfully deployed National Guard and Marine units to Los Angeles, a decision now under appeal.

Trump has also said he is considering deployments to other cities such as Chicago, drawing sharp opposition from Democratic governors and local officials.

______

6. Goldman Sachs Invests Up to $1 Billion in T. Rowe Price

ConocoPhillips plans to reduce its global workforce by 20% to 25% — or about 2,600 to 3,250 employees — by the end of 2026, in a cost-cutting effort following a steep drop in global oil prices. Most of the job cuts will take place in 2025, and will include both full-time employees and contractors.

“We are always looking at how we can be more efficient with the resources we have. As part of this process, we have informed employees that a 20% to 25% reduction in our global workforce, which includes employees and contractors, is anticipated,” the company said.

The cuts aim to preserve profitability and shareholder returns amid a 12.5% decline in oil prices this year.

ConocoPhillips joins a wave of staff reductions across the oil and gas sector: Chevron announced in February that it would cut one-fifth of its workforce, while BP said last month it would slash at least 15% of its 40,000 office staff as part of ongoing cost-reduction efforts.

______

7. Bank of America Opens Private Equity Funds

Lenders to luxury fashion retailer Ssense are asking a Canadian court to approve a quick sale of the cash-strapped company, with first bids due in early October.

A group led by Bank of Montreal filed an application to the Quebec Superior Court, saying creditors had lost confidence in Ssense’s ability to oversee operations. Other lenders include Royal Bank of Canada, JPMorgan Chase, National Bank of Canada, and Bank of Nova Scotia, with total debt of about C$145 million ($105 million).

Creditors want the company placed under court supervision via Canada’s Companies’ Creditors Arrangement Act. They are pushing for a fast-track sale process, with potential buyers contacted next week and non-binding bids due by Oct. 6. They’ve also proposed selling inventory this month to raise cash.

Ssense, once a Montreal family-run success story valued at more than C$5 billion in 2021, is now threatened by debt and eroding trust.

______