Global News October 06, 2017

  1. BBC
  2. Global News October 06, 2017

“U.S. Payrolls Fall 33,000 on Storms; Jobless Rate at 4.2%.”

The number of workers on U.S. payrolls declined last month for the first time since 2010, reflecting major disruptions from hurricanes Harvey and Irma, Labor Department figures showed Friday. The jobless rate fell to a new 16-year-low while wage gains accelerated.
The hurricanes had a “net effect” of reducing nonfarm payrolls in September, while there was “no discernible effect” on the national unemployment rate, the Labor Department said in a special note Friday. Data-collection rates “generally were within normal ranges” for both surveys that produce the figures.
The numbers reflect Harvey’s impact on Texas in late August, and Irma’s fallout in Florida in September. Data on the labor market and the rest of the economy may be volatile for several months as the weather effects wash out and rebuilding picks up. Puerto Rico, which was hit by Hurricane Maria last month, isn’t included in payrolls.
The agency’s survey of establishments, which produces the payrolls figure, counts as employed a person who worked at least one hour in the pay period that includes the 12th of the month. Bad weather hurts the payrolls tally if employees got no compensation for that entire pay period.
With the U.S. near full employment, Federal Reserve policy makers have been watching for signs of an acceleration in paychecks that may push inflation closer to their goal. The central bank last month forecast it will raise interest rates once more by year-end, with investors and analysts expecting the move in December.


“In meeting with military, Trump talks of ‘calm before the storm’.”

After discussing Iran and North Korea with U.S. military leaders on Thursday, President Donald Trump posed for a photo with them before dinner and declared the moment “the calm before the storm.”
“In North Korea, our goal is denuclearization,” he said. “We cannot allow this dictatorship to threaten our nation or our allies with unimaginable loss of life. We will do what we must do to prevent that from happening. And it will be done, if necessary, believe me.”
During his speech to the United Nations General Assembly last month, Trump said the United States would “totally destroy” North Korea if needed to defend itself or U.S. allies.
Trump has filled top posts within his administration with military generals, including his chief of staff, retired General John Kelly, and national security adviser, Lieutenant General H.R. McMaster. McMaster, who normally dresses in civilian clothes at the White House, wore his uniform for the meeting.


BBC News
“Spain eases firms’ exit from Catalonia.”

The Spanish cabinet has issued a decree making it easier for companies to relocate their legal headquarters away from Catalonia. Such a decision will now not need the prior approval of shareholders.
One of the region’s biggest lenders, Caixabank, is considering the change in the light of the political crisis there. Another major Catalan bank – Sabadell – decided on Thursday to shift its legal domicile elsewhere in Spain.
The economy ministry said the decree was in response to demand from companies «in the face of difficulties that have arisen for the normal running of their activities in part of the national territory».
The International Monetary Fund’s (IMF) country head in Spain, Andrea Schaechter, has said tensions in Catalonia could affect confidence and investment decisions. However, the IMF has kept its growth forecast for Spain this year unchanged at 3.1%.
The European Union has said it will not recognize an independent Catalonia, which would mean the region would not be subject to EU rules nor protection. Italian asset manager Banca Mediolanum followed Sabadell’s move, saying it would shift the legal base of its Spanish unit to Valencia from Barcelona.
The Catalan business lobby Cercle d’Economia has said it is extremely concerned by the prospect of Catalonia declaring independence and has called for leaders from both sides to hold talks. Spain’s constitutional court has suspended next Monday’s session of the Catalan parliament, in a bid to pre-empt a possible push for independence.


“SEC’s corporate filing system vulnerable to denial of service attacks – memo.”

The U.S. Securities and Exchange Commission (SEC), Wall Street’s top regulator, has discovered a vulnerability in its corporate filing database that could cause the system to collapse, according to an internal document seen by Reuters.
The SEC’s September 22 memo reveals that its EDGAR database, containing financial reports from U.S. public companies and mutual funds, could be at risk of “denial of service” attacks, a type of cyber intrusion that floods a network, overwhelming it and forcing it to close.
The discovery came when the SEC was testing EDGAR’s ability to absorb monthly and annual financial filings that will be required under new rules adopted last year for the $18 trillion mutual fund industry.
The rules adopted last year requiring asset managers to file monthly and annual reports about their portfolio holdings were designed to protect them in the event of a market crisis by showing the SEC and investors that they have enough liquidity to cover a rush of redemptions.
The memo shows that even an unintentional error by a company, and not just hackers with malicious intentions, could bring the system down. Even the submission of a large “invalid” form could overwhelm the system’s memory.
During a Congressional hearing on Wednesday, SEC Chairman Jay Clayton testified that the agency was considering whether to delay the rules in light of the cyber concerns. He did not, however, mention anything about the denial of service attack vulnerability.