The week in business: bright career development

what’s up? (July 31 to August 6)

A working day surprise

Analysts had forecast an increase of 250,000 jobs in July. And according to the report of the Department of Labor, this number more than doubled – 528,000 – was shocking. They were added last month. The slowing growth rate has brought total employment back to pre-pandemic levels, a remarkable feat given other recent signs of a slowing economy, including falling gross domestic product and a more stable housing market. Of course, this latest jobs report raises more questions than it answers about the state of the US economy: What is the reason for employers’ confidence in hiring if so many fear a recession? If the economy looks more depressed, why is the job market so strong? These are stark contrasts that Federal Reserve officials must weigh as they consider which path to take.

More Crypto Shock Waves

Business app Robinhood announced on Tuesday that it was laying off 23 percent of its employees, citing the fall in the cryptocurrency market, which has been exacerbated by inflation and its economic outlook. As investors conspire to scoop up shares of struggling companies like GameStop and AMC, finally, lawsuits, a Securities and Exchange Commission report and a Robinhood congressional hearing are dealing with last year’s disappointing “meme stock” collapse. He became a key player in the business. But also dangerous for the company is its exposure to the crypto market, which analysts say has led many companies, such as cryptocurrency exchange Coinbase, to over-hire and then lay off workers during boom times. The CEO of Robinhood, Vlad Tenev, said that the company made the wrong decision regarding the economy and its business activities. “I’ve stepped in as CEO and taken responsibility for the direction of our great HR work – that’s on me,” he wrote in a blog post.

Elon Musk counters

In the first wide-ranging response to Elon Musk’s lawsuit against Twitter, he accused the social media company of fraud, reiterating arguments that it hid real spam and bot identifiers on its platform. In a legal filing made public on Thursday, Mr. Musk’s lawyers said those accounts accounted for nearly 10 percent, while Twitter’s was less than 5 percent. The lawyers also accused Twitter of hiding the number of users who saw the ads. Twitter continues to say the figures are accurate. The two sides are set to settle their dispute in a Delaware court in October, when a judge will rule on whether Mr. Musk’s claim that Twitter withheld information about spam accounts on the site is legal or still has to complete the $44 billion deal. .

What’s next? (August 7-13)

Disney’s biggest subscriber goal

The Walt Disney Co.’s bold subscriber ambitions could confirm its quarterly earnings report on Wednesday. The company beat analyst estimates for its streaming platform Disney+ this year, saying it added 11.8 million subscribers in February and then another 7.9 million in May for a total of 138 million. But it has an aggressive goal of reaching 230 to 260 million Disney+ subscribers globally by 2024, and analysts said that guidance could be lowered on Wednesday. Instead, they predict Disney will want to focus on making the streaming site profitable. Those aren’t the only challenges facing Disney: Its stock price has plummeted this year, the company fired its top TV content executive, and while its theme parks in the United States have rebounded, they’ve struggled with invasion bans in China.

Recent inflation

This week’s consumer price index may send a somewhat confusing message. Analysts expect inflation to decline year-over-year and month-over-month, but “core” inflation — a measure that includes variable gas and food costs — will rise faster each year. The recent sharp decline in gas prices may be responsible for the slowdown in core inflation. Still, policymakers are concerned about how much and how fast overall price gains will slow. Officials at the Federal Reserve are planning another big rate hike in September, but will watch for signs of moderation throughout the economy as they determine the pace of the increase. At the White House, President Biden is pushing the Inflation Reduction Act as a cost-cutting tool for the administration, although it is uncertain how effective the legislation will be in that role.

A possible salvation for travel chaos

In April, a New York Times transportation reporter asked: “Air travel is back. Can the industry continue? ” The answer seems imminent: No. To address this year’s increase in delays and cancellations — especially during peak travel holiday weekends this summer — the Department of Transportation has introduced legislation that would provide additional assistance to travelers experiencing significant disruptions. including major changes to their travel plans, flight schedule, route or seat. Airlines that have received government pandemic relief are required to issue full refunds to passengers who change their travel plans for reasons related to Covid. If implemented, it won’t be in time for their trip to Italy in August — the agency has opened a 90-day public comment period and will make a decision after that.

what else?

Stephen King testified in a Justice Department antitrust case to prevent Penguin Random House from buying Simon & Schuster. Walmart is laying off 200 corporate employees. OPEC Plus has approved a modest increase in oil production.