The United Auto Workers union is accusing General Motors of violating a national contract by using temporary workers instead of employing full-timers who were laid off from its factories and more in Thursday’s Markets In Brief.
The union filed a federal lawsuit in Cleveland alleging that GM has temporary workers at its pickup truck plant in Fort Wayne, Indiana. The lawsuit says GM has about 1,000 workers on layoff from several factories who should be working at the plant.
The UAW says its contract with GM requires it to hire the laid-off workers, including 690 at a small-car plant in Lordstown, Ohio, which is scheduled to close in March.
Messages were left Thursday seeking comment from the company.
In November, GM announced plans to shutter five factories this year as it adjusts to lower demand for cars.
MARKETS IN BRIEF
Survey: US Firms Added a Strong 271,000 Jobs in December
U.S. businesses added a robust 271,000 jobs in December.
Payroll processor ADP said Thursday that last month’s job gains marked a sharp upturn from November’s gain of 157,000. The gains, if backed up by government numbers due Friday, could be strong enough to reduce the unemployment rate.
ADP reported a solid 37,000 increase in construction jobs. But the services sector was particularly strong with gains of 66,000 in the professional and business sector, 61,000 in education and health care and 39,000 in leisure and hospitality.
Economists forecast that the Labor Department will report Friday that employers added 180,000 jobs, with the unemployment rate holding at a five-decade low of 3.7 percent.
US Average Mortgage Rates Fall; 30-Year at 4.51%
U.S. long-term mortgage rates fell this week, starting the year with an inducement to prospective homebuyers.
Mortgage buyer Freddie Mac says the average rate on the benchmark 30-year, fixed-rate mortgage declined to 4.51 percent from 4.55 percent last week. Despite recent declines, home borrowing rates remain far above last year’s levels. The key 30-year rate averaged 3.95 percent a year ago.
The average rate for 15-year fixed-rate loans edged down to 3.99 percent this week from to 4.01 percent last week.
US Factories Expanded at Slowest Pace in More Than 2 Years
American factories grew last month at the slowest pace in more than two years.
The Institute for Supply Management, an association of purchasing managers, says its manufacturing index dropped to 54.1 in December, down from 59.3 in November and lowest since November 2016. Anything above 50 signals growth, and American manufacturing has been on a 28-month winning streak.
Still, the December drop was bigger than economists had expected.
New orders, production and factory hiring all grew at a slower pace last month. Eleven of 18 manufacturing industries reported growth last month, led by textile mills and apparel makers.
Several respondents cited higher costs and uncertainty arising from President Donald Trump’s import taxes on steel, aluminum and hundreds of Chinese products.
Bristol-Myers Squibb Buying Celgene in $74B Deal
Bristol-Myers Squibb is buying Celgene in a cash-and-stock deal valued at about $74 billion.
Shareholders of Celgene Corp., based in Summit, New Jersey, will receive one share of the cancer drug maker, plus $50 in cash for each share they own. They’ll also receive one tradeable contingent value right for each Celgene share, allowing the holder to receive a payment when future regulatory milestones are hit.
The combined company will have nine products with more than $1 billion in annual sales and significant potential for growth in the core disease areas of oncology, immunology and inflammation and cardiovascular disease.
Shareholders of Bristol-Myers Squibb Co., based in New York City, would own about 69 percent of the company, with Celgene shareholders owning about 31 percent.
Turkey’s Inflation Eases to 20.3% in December
Official figures show that Turkey’s inflation rate eased for the second consecutive month in December, helped by tax cuts and discounted prices on consumer goods.
The Turkish Statistical Institute said Thursday that consumer prices in the year to December stood at 20.3 percent — 0.40 percent down from November.
Turkey’s inflation had hit a 15-year high rate of 25.2 percent in October, before easing to 21.6 percent in November.
Turkey’s national currency hit an all-time low in the summer over concerns about President Recep Tayyip Erdogan’s economic policies and a diplomatic and trade spat with the United States.
Improved relations with the U.S. and a major interest rate hike have helped shore up the Turkish lira in recent months.
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