Here are five things you need to know this morning:
U.S. port workers strike a deal: The three-day shutdown of ports up and down the U.S. eastern seaboard and Gulf Coast is over after union leadership and representatives from the ports have hammered out the framework for a new six-year deal. While many issues were on the table, compensation for the 47,000 longshoremen was a major sticking point, and on that front, the workers got an offer of a 62 per cent wage increase over the course of six years, according to Bloomberg. The union has agreed to suspend the strike until at least January while the two sides negotiate other outstanding issues. Estimates put the financial toll of the strike at between US$3 and $5 billion per day.
U.S. job numbers blow past expectations: We got fresh numbers on the U.S. job market this morning, and they blew past expectations. The American economy added more than 254,000 new positions last month, well ahead of the 150,000 estimated. The jobless rate fell to 4.1 per cent. The strong data is a sign that despite whatever problems remain on the economic outlook, employers are still confident enough to hire and expand. The beat also reduces the odds that the Fed will decide to go with a larger 50-point rate cut at its next policy meeting, and instead go with a slow and steady 25-point easing.
Oil is poised for its best week since 2022: Escalating tensions in the Middle East have pushed the price of oil up this week, and if gains hold through the end of the day crude could have its strongest one-week performance in two years. Oil prices have gained 9.4 per cent since Monday, as Iran’s attacks on Israeli targets ramp up speculation that Israel will try to disable Iranian oil assets in retribution. That nine per cent gain is the biggest rally since the 11.3 per cent increase clocked in October two years ago.
7-Eleven owner seeks asset sales: The owner of 7-Eleven is trying to find a buyer for its Ito-Yokado stores and supermarkets as it ramps up its attempt to rebuff a takeover offer from Canada’s Couche-Tard. Seven & i Holdings Co. has approached private equity funds and other buyers to gauge their interest in buying its supermarket business, Bloomberg reports. Earlier this week the company also put its banking arm on the block in a similar move to narrow its focus on its core convenience store assets. It’s still far from clear how all of this will end, but one thing seems certain: the Japanese company is pulling out all the stops to boosts its value and focus on its core business.
EV maker Rivian cuts production forecast: Shares in electric vehicle maker Rivian are one to watch today as the company cut its full-year production forecast. Demand for the company’s high-end vehicles seems to be holding steady, but problems on the supply side are holding things back. The company is dealing with a shortage of a specific component that first became an issue last quarter and seems to be getting worse, not better. The company now says it expects to make about 49,000 vehicles this year, down from 57,000. The company delivered 10,018 vehicles during the period, its lowest total in a year and a half. The shares are down almost 10 per cent in premarket trading.