Global Markets: U.S. unemployment numbers rise

By MarketsFarm

WINNIPEG, June 26 (MarketsFarm News) – The following is a glance at the news moving markets in Canada and globally.

– U.S. consumer spending in the first quarter of 2019 was weaker than previously reported, growing at just 0.9 per cent. According to a recent report from the U.S. Department of Commerce, the rate was the slowest in a year, missing the estimate of 1.3 per cent. However, economic growth in the first quarter remained at 3.1 per cent.

– Air Canada has announced it will buy Transat AT Inc. for C$520 million, subject to shareholder approval and regulations. Air Canada will preserve separate Transat and Air Transat brands, according to a report from the Canadian Press. Transat turned down a competing bid from Group Mach Inc.

– The number of Americans filing for unemployment rose by more than expected to the highest level in seven weeks, a possible indication of strain on the labour market. Jobless claims rose by 10,000 to 227,000 for week ended June 22, according to a recent report from the U.S. Department of Labor. The four-week average increased to 221,250, which is the highest in over a month.

– Ford announced it is cutting 12,000 jobs in Europe in order to increase profitability, responding to shifting consumer preferences and investing in electric cars. Ford is reducing its total number of plants in the region, and reorganizing the business into three divisions: commercial vehicles, passenger cars, and imports. Ford of Europe said the jobs would be eliminated “mostly by voluntary separation programs through the end of 2020,” according to the Associated Press.

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