Jobless claims go up while job growth slows. Tesla is opening a battery plant in Nevada, and JPMorgan Chase believes the recent bank hack came from Russia. Here is the news of the day for Sept. 4, 2014.
Job Growth Slows
Down from the 297,000 jobs created in June, the private sector job creation numbers for August were disappointing. According to ADP and Moody’s Analytics, employment growth created 204,000 positions in August, a bit below the 212,000 created in July and way below the almost 300,000 created in June. Economists polled by Reuters had expected jobs growth for August to be at 220,000 positions, so the actual numbers were well below expectations. Among the specific areas of job growth, manufacturing saw a gain of 23,000 jobs, the best that sector has reported since December of 2012. The service sector reported 164,000 new jobs, while professional services added 51,000.
Jobless Claims Up
The Labor Department Thursday reported that initial claims for state unemployment benefits rose 4,000 to 302,000 total for the week ending Aug. 30. The levels are considered to be consistent with the tightening labor market. A Labor Department spokesperson said there were no special factors influencing the new state level numbers. The four-week average of claims climbed 3,000 to 302,750. Meanwhile, the government is expected a Friday report on non-farm payrolls to show an increase of 225,000 last month, according to the Reuters economists.
Bloomberg Wants Back In
Former New York Mayor Michael R. Bloomberg is going to resume his role as leader of the Bloomberg media empire, according to reports. Last week Bloomberg told associates that Chief Executive Officer Daniel L. Doctoroff would leave the company at the end of the year and he will again take over the company he founded. Apparently, Bloomberg’s interest in philanthropic pursuits was not enough to keep him from wanting to return to head the financial data and media company. Bloomberg still owns 88 percent of the company. Bloomberg founded the company in 1981 but the company he returns to is much bigger than the one he left more than 10 years ago.
Tesla Plant Will Be In Nevada
After negotiating with California, New Mexico, Arizona and Texas, Tesla has decided to build its $5 billion lithium-ion battery plant in Nevada, according to sources who gave details to CNBC. The “gigafactory’’ details should be announced Thursday as Nevada Governor Brian Sandoval had a news conference scheduled for Thursday afternoon in Carson City to make a “major economic development announcement.” In July, the electric car maker announced that it had a partnership with Panasonic to build the new 35 GWh cell factory. The new facility could drop the cost of a Tesla Model 3 by almost $3,000.
JPMorgan Chase Hack Came From Russia
The cyberattack of banks, including JP Morgan Chase, had Russian ties, according to investigators looking into the attack. Bloomberg reports that investigators say the stolen data was sent to systems in a Russian city. JP Morgan’s investigators say they have discovered what they believe to be the assault’s point of origin, although the attackers used a wide network of servers to cover their tracks. Several U.S. financial companies were victims of the most recent attacks. A spokesman for Russian President Vladimir Putin disputes the accusation that there was Russian involvement in the attacks.
Talk to the Wrist
Intel Wednesday displayed its new wearable communication device, which comes in the form of a high-fashion bracelet. At least Intel hopes it is deemed high-fashion, as the wearable technology industry battles complaints that the wearable goods don’t look good. Intel partnered with fashion designer Opening Ceremony to design the smart bracelet called the MICA, which stands for “My Intelligent Communication Accessory.” The bracelet features a 1.6 inch curved touchscreen display. It will be sold in Barney’s Department stores in time for the upcoming holiday season, but Intel did not disclose the price. The bracelet accepts alerts and notifications like SMS messaging, and offers calendar reminders. It can also be charged wirelessly or via a USB cable.