Today's Scoop:

Hey friends, here’s what you need to know today…

1. There are still a ton of available jobs.

2. Hundreds of thousands of workers are still on strike for better pay.

3. Borrowing money is more expensive than it’s been in 16 years.

S&P 500: 4,229.45
1Mo: -6% | 1Yr: +12% | 5Yr: +47%

The market sank lower today following new data about the jobs market. There are still a lot of unfilled positions, worrying investors that policymakers may need to restrict business activity further or risk higher inflation.

There are still plenty of available jobs. The Bureau of Labor Statistics reported a surge in job openings in August to 9.61 million, surprising economists. While many industries kept hiring, three-quarters of the increase came from a hiring burst in the professional and business services sector. Job openings had been trending lower for months but remain well above the pre-pandemic levels of around 7 million. There are still more than 1.5 job openings for every unemployed worker, so policymakers have been trying to slow business activity to get things back into balance and reduce inflation.

Hundreds of thousands nationwide have been on strike, demanding better pay and working conditions. Over 25,000 autoworkers have stopped working across General Motors, Ford, and Stellantis assembly lines. The autoworker union is prepared to ramp up to 150,000 on strike as contract negotiations continue. Roughly 60,000 hospitality workers have authorized a strike in Las Vegas. Over 75,000 healthcare workers may strike at Kaiser Permanente hospitals and medical centers across five states tomorrow. The 160,000-strong actors’ union is still on strike in Hollywood, though the writers union finally reached a deal after 150 days. That’s not even all of them.

It keeps getting more expensive to borrow. The 10-year US Treasury Bond rate, the most prominent benchmark for borrowing costs, reached 4.8% today, the highest rate in over 16 years. That’s the rate the US government pays to borrow money for ten years. Since the US government is considered a risk-free borrower, everyone else’s borrowing costs are higher than that. These higher rates have complicated government budgeting decisions since it’s not as cheap to borrow when Congress goes over budget. It’s also making mortgages extremely unaffordable.

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• Philip Morris steps up lobbying for its new tobacco product

• Clorox gets back online after damaging cyber attack

• Tesla misses its targets for sales and the cybertruck release

• Rivian ramps up production

• Walgreens dumps its third executive in leadership shakeup

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How does lobbying work?

Corporations hire lobbyists to advocate for government policies that work to their benefit. Lobbying is the act of influencing government decisions, typically through direct interactions with policymakers.

Lobbyists, often former government officials or experts in policy and communication, engage with legislators, regulators, and other policymakers. They provide information, suggest legislative language, and sometimes offer financial support for campaigns (within legal limits). Lobbyists might even draft legislation for government officials, saving them the work and ensuring bills favor their client’s goals.

In the US, lobbying activities are regulated by laws, requiring transparency. Lobbyists must register and report their activities, including spending. So there is some transparency, but there are easy ways to cloud the information.

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