Tag Archives: United States

U.S. labor market regaining footing as weekly jobless claims fall sharply

By Lucia Mutikani

WASHINGTON (Reuters) – The number of Americans filing new claims for jobless benefits dropped by the most in three months last week, suggesting the labor market recovery was regaining momentum after a recent slowdown, as the wave of COVID-19 infections began to subside.

The weekly unemployment claims report from the Labor Department on Thursday, the most timely data on the economy’s health, also showed the number of people on state unemployment rolls plunging to an 18-month low in late September.

Improving labor market conditions bode well for the government’s closely watched employment report for September and also provide ammunition for the Federal Reserve, which signaled last month it could begin reducing is monthly bond buying as soon as November.

“The labor market is back on track after a few weeks of rising claims threw a question mark into the markets’ understanding of just how solid the economic outlook really is,” said Christopher Rupkey, chief economist at FWDBONDS in New York. “The Fed has the evidence it needs to start paring back its emergency stimulus purchases when it meets next month.”

Initial claims for state unemployment benefits decreased 38,000 to a seasonally adjusted 326,000 for the week ended Oct. 2. That was the biggest drop since late June. Economists polled by Reuters had forecast 348,000 claims for the latest week.

Unadjusted claims, which economists say offer a better read of the labor market, tumbled 41,431 to 258,909 last week. California led the drop in claims last week. There were also decreases in Michigan, Ohio, Washington DC and Missouri. They offset notable increases in Pennsylvania and Virginia.

Claims had increased for three straight weeks as California moved people to another program following the expiration of federal government-funded aid on Sept. 6, to allow the recipients to collect one additional week of benefits.

There had also been increases in filings related to the idling of assembly plants in some states by automakers as they managed their supply of semiconductors amid a global shortage.

A resurgence in COVID-19 infections, driven by the Delta variant, also disrupted activity in the high-contact services sector. That suggested some moderation in labor market conditions in the prior weeks, which was confirmed by a separate report on Thursday from global outplacement firm Challenger, Gray & Christmas showing job cuts announced by U.S.-based employers increased 14% to 17,895 in September.

Still, layoffs were down 85% compared to September 2020.

In the third quarter, employers announced 52,560 job cuts, the fewest since the second quarter of 1997 and down 23% from the July-September period.

Stocks on Wall Street were trading higher. The dollar dipped against a basket of currencies. U.S. Treasury prices fell.

SUPPLY WOES

Layoffs last month were led by companies in the healthcare/products sector, with 2,673 announced cuts. Since the Pfizer vaccine received full-FDA approval, many healthcare facilities have implemented vaccine mandates, which have led to the firing of non-compliant workers.

Ongoing strains in the supply chain saw industrial goods manufacturers laying off 2,328 workers in September, while warehousing businesses reported 1,936 job cuts. There were 1,679 job cuts in the services sector.

But the rise in layoffs was dwarfed by an explosion in planned hiring, in part as retailers gear up for the holiday season. The Challenger report showed companies announced plans to hire 939,790 workers compared to only 94,004 in August.

With companies eager to hire, more people are coming off the state unemployment rolls. The claims report showed the number of people continuing to receive benefits after an initial week of aid tumbled 97,000 to 2.714 million in the week ended Sept. 25. That was the lowest level since mid-March 2020.

The total number of people collecting unemployment checks under all programs dropped to 4.172 million during the week ended Sept. 18 from 5.027 million in the prior week. That reflected the end of extended benefits last month, which economists hope will increase the labor pool.

The pandemic forced some people to drop out of work to become caregivers. Others are reluctant to return for fear of contracting the coronavirus, while some have either retired or are seeking career changes. That has left employers desperate to fill a record 10.9 million job openings as of the end of July.

The worker shortages have impacted job growth, though there is optimism that hiring picked up in September. According to a Reuters survey of economists, nonfarm payrolls likely increased by 500,000 jobs last month.

Estimates range from as high as 700,000 jobs to as low as 250,000, reflecting the mixed labor market indicators in September. A survey from the Conference Board last week showed consumers’ views of current labor market conditions softened.

While the Institute for Supply Management’s measure of manufacturing employment rebounded last month after contracting in August, its measure of services industry employment slipped.

The economy created 235,000 jobs in August, the fewest in seven months. The unemployment rate is forecast dipping to 5.1% in September from 5.2% in August.

“Going forward, the combination of easing labor supply constraints, strong labor demand and an improving COVID outlook should spur further labor market progress,” said Lydia Boussour, lead U.S. economist at Oxford Economics in New York.

(Reporting By Lucia Mutikani; Editing by Chizu Nomiyama and Andrea Ricci)

Mexico seeks reciprocity from U.S. on security, minister says before talks

MEXICO CITY (Reuters) – Mexico will work during high-level security talks this week to ensure “reciprocity” from the United States on matters such as arms trafficking and extraditions, Foreign Minister Marcelo Ebrard said on Tuesday.

U.S. Secretary of State Antony Blinken, Secretary of Homeland Security Alejandro Mayorkas and Attorney General Merrick Garland will be among the delegation of top U.S. officials due to hold meetings in Mexico City on Friday.

Reiterating that it was time to “leave behind” the so-called Merida Initiative, a U.S.-Mexican scheme providing funds for military expenditure, Ebrard said Mexico was ushering in a new “symmetrical and respectful” phase in security cooperation.

Ebrard said Mexico had 10 priorities essentially aimed at reducing violence, and wanted to ensure that there was “reciprocity in controlling arms trafficking, reciprocity in legal assistance, reciprocity in extraditions, and so on”.

President Andres Manuel Lopez Obrador has promoted a non-confrontational approach to combating chronic gang violence in Mexico, arguing that economic development is the most effective way of reducing the appeal of organized crime.

(Reporting by Dave Graham; Editing by Emelia Sithole-Matarise)

U.S. envoy Sullivan to meet China’s top diplomat Yang amid Taiwan tensions

BEIJING (Reuters) -U.S. President Joe Biden’s national security adviser will hold talks with China’s top diplomat in Switzerland on Tuesday and Wednesday, the South China Morning Post said, at a time of rising tension over several issues including Taiwan.

“They aim to rebuild communication channels and implement consensus reached between presidents Xi Jinping and Joe Biden,” the newspaper reported on Tuesday, citing an official familiar with the arrangements for the meeting between Jake Sullivan and Yang Jiechi.

Both the White House and the Chinese foreign ministry did not immediately respond to a Reuters request for comment.

Ties between China and the United States deteriorated sharply under former U.S. President Donald Trump, and the Biden administration has maintained pressure on China on a range of issues from Hong Kong and the Xinjiang region to the origins of COVID-19.

China has also been angered by increased U.S. support for Taiwan, believing the United States is colluding with forces there seeking the island’s formal independence, a red line for Beijing.

“Our commitment to Taiwan is rock solid and contributes to the maintenance of peace and stability across the Taiwan Strait and within the region,” White House spokeswoman Jen Psaki told reporters on Monday.

“We have been clear privately and publicly about our concern about the PRC’s (People’s Republic of China) pressure and coercion toward Taiwan, and we will continue to watch the situation very closely,” she said.

Trade tensions are also at the top of the U.S.-China agenda, with U.S. Trade Representative Katherine Tai traveling to Paris Monday to participate in Organization for Economic Co-operation and Development meetings later this week.

On Monday, the USTR unveiled the results of a months-long “top-to-bottom” review of China trade policy, pledging to hold “frank” talks with Beijing about its failure to keep promises made in Trump’s trade deal and end harmful industrial policies.

The Global Times, a tabloid published by the ruling Communist Party’s official People’s Daily, said in a commentary China was willing to build mutually beneficial trade with the United States but would not make concessions on principle and was not afraid of a drawn-out contest.

“The China-U.S. trade war has lasted for more than three-and-a-half years. Instead of being weakened, China’s economy has taken a step forward in comparison with the scale of the U.S.,” it said.

The meetings this week will be yet another round of in-person talks between officials from the two powers since Biden took office, with little in the way of concrete progress in the earlier sessions.

In late July, Deputy Secretary of State Wendy Sherman, the second-ranking U.S. diplomat, held face-to-face meetings with Xie Feng, a Chinese vice foreign minister, in the Chinese port city of Tianjin.

No specific outcomes were agreed and the prospect of a meeting between Biden and Xi was not discussed, senior U.S. administration officials said at the time.

In March, during high-level talks in Alaska, Chinese officials including Yang Jiechi railed against the state of U.S. democracy, while U.S. officials accused the Chinese delegation of grandstanding.

(Reporting by Ryan Woo in Beijing and Aakriti Bhalla in Bengaluru and Steve Holland in Washington; Editing by Kim Coghill, Robert Birsel, Heather Timmons and Steve Orlofsky)

U.S. consumer spending rises, but inflation eroding households purchasing power

By Lucia Mutikani

WASHINGTON(Reuters) – U.S. consumer spending surged in August, but outlays adjusted for inflation were weaker than initially thought in the prior month, reinforcing expectations that economic growth slowed in the third quarter as COVID-19 infections flared up.

The report from the Commerce Department on Friday, which showed inflation remaining hot in August, raised the risk of consumer spending stalling in the third quarter, even if consumption accelerates further in September. Inflation-adjusted, or the so-called real consumer spending is what goes into the calculation of gross domestic product.

“Third quarter consumer spending is on track for only a scant gain,” said Tim Quinlan, a senior economist at Wells Fargo in Charlotte, North Carolina. “If COVID cases keep falling and sentiment turns positive, there is scope for a more solid finish to this tumultuous year.”

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rebounded 0.8% in August. Data for July was revised down to show spending dipping 0.1% instead of gaining 0.3% as previously reported.

Consumption was boosted by a 1.2% rise in purchases of goods, reflecting increases in spending on food and household supplies as well as recreational items, which offset a drop in motor vehicle outlays. A global shortage of semiconductors is undercutting the production of automobiles, hurting sales.

Goods spending fell 2.1% in July. Spending on services rose 0.6% in August, supported by housing, utilities and health care. Services, which account for the bulk of consumer spending, increased 1.1% in July. Spending is shifting back to services from goods, but the resurgence in coronavirus cases over summer, driven by the Delta variant, crimped demand for air travel and hotel accommodation as well as sales at restaurants and bars.

Economists polled by Reuters had forecast consumer spending increasing 0.6% in August.

Inflation maintained its upward trend in August, though price pressures have probably peaked. The personal consumption expenditures (PCE) price index, excluding the volatile food and energy components, climbed 0.3% after increasing by the same margin in July. In the 12 months through August, the so-called core PCE price index increased 3.6%, matching July’s gain.

The core PCE price index is the Federal Reserve’s preferred inflation measure for its flexible 2% target. The Fed last week upgraded its core PCE inflation projection for this year to 3.7% from 3.0% back in June. The central bank signaled interest rate hikes may follow more quickly than expected.

Fed Chair Jerome Powell, who has maintained that high inflation is transitory, told lawmakers on Thursday that he anticipated some relief in the months ahead.

Still, inflation could remain high for a while. A survey from the Institute for Supply Management on Friday showed manufacturers experienced longer delays getting raw materials delivered to factories and paid higher prices for inputs in September.

Stocks on Wall Street were mostly higher. The dollar fell against a basket of currencies. U.S. Treasury prices were mixed.

SLOWING GROWTH

High inflation is cutting into spending. Real consumer spending rose 0.4% in August. That followed a downwardly revised 0.5% drop in July, which was previously reported as a 0.1% dip. With the August and July data in hand, economists predicted that growth in consumer spending would probably brake to around a 1% annualized rate in the third quarter.

Consumer spending grew at a robust 12.0% annualized rate in the April-June quarter, accounting for much of the economy’s 6.7% growth pace. The level of GDP is now above its peak in the fourth quarter of 2019. In the wake of the consumer spending data, JPMorgan economists lowered their third-quarter GDP estimate to a 4.0% rate from a 5.0% pace.

Overall, the economy remains supported by record corporate profits. Households accumulated at least $2.5 trillion in excess savings during the pandemic. Coronavirus infections are trending down, which is already leading to a rise in demand for travel and other high-contact services. Businesses need to replenish depleted inventories, which will keep factories humming.

A third report on Friday from the University of Michigan showed consumer sentiment ticked higher for the first time in three months in September. But a survey from the Conference Board this week showed consumer confidence dropping to a seven-month low in September.

Though personal income gained only 0.2% in August after rising 1.1% in July as an increase in Child Tax Credit payments from the government was offset by decreases in unemployment insurance checks related to the pandemic, wages are rising as companies compete for scarce workers. Wages rose 0.5% in August, which should help to keep spending supported.

But inflation is eroding consumers’ purchasing power, with income at the disposal of households edging up 0.1% after increasing 1.1% in July. The saving rate fell to a still-high 9.4% from 10.1% in July.

“Households still have plenty left in the tank given rising employment and wages, soaring net worth and massive excess savings,” said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto. “However, rising prices are eating into spending power, compounding the ongoing lack of supply.”

(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)

U.S. Transportation Department says 3,700 employees furloughed

WASHINGTON (Reuters) – The U.S. Transportation Department said Friday that 3,700 employees had been temporarily furloughed after Congress failed to reauthorize surface transportation programs before a deadline that expired early Friday.

A department spokesperson said the agency is “taking every step we can to mitigate the impacts of this temporary lapse in authorization.” Safety critical employees are exempt from the furloughs. Aides said U.S. lawmakers are considering a 30-day surface transportation extension as negotiations continue over a pair of infrastructure and spending bills.

(Reporting by David Shepardson)

Biden administration urges halt to strict Texas abortion law

By Sarah N. Lynch and Jan Wolfe

(Reuters) -President Joe Biden’s administration on Friday urged a judge to block a near-total ban on abortion imposed by Texas – the strictest such law in the nation – in a key moment in the ferocious legal fight over abortion access in the United States.

The U.S. Supreme Court on Sept. 1 allowed the Republican-backed law to take effect even as litigation over its legality continues in lower courts. The U.S. Justice Department eight days later sued in federal court to try to invalidate it.

During a hearing in the Texas capital of Austin, Justice Department lawyers asked U.S. District Judge Robert Pitman to block the law temporarily, saying the state’s Republican legislature and governor enacted it in an open defiance of the Constitution.

“There is no doubt under binding constitutional precedents that a state may not ban abortions at six weeks,” said Brian Netter, the lead Justice Department attorney on the case.

“Texas knew this but, it wanted a 6-week ban anyway. So this state resorted to an unprecedented scheme of vigilante justice.”

The Texas law bans abortions starting at six weeks of pregnancy, a point when many women may not realize they are pregnant. About 85% to 90% of abortions are performed after six weeks. Texas makes no exception for cases of rape and incest.

It also lets ordinary citizens enforce the ban, rewarding them at least $10,000 if they successfully sue anyone who helped provide an abortion after fetal cardiac activity is detected.

Will Thompson, an attorney in the Texas Attorney General’s Office, countered the Justice Department’s arguments, saying there were plenty of opportunities for people in Texas to challenge the law on their own, and claiming the Department’s arguments were filled with “hyperbole and inflammatory rhetoric.”

“This is not some kind of vigilante scheme, as opposing counsel suggests,” said Thompson. “This is a scheme that uses lawful process of justice in Texas.”

Pitman, who was appointed by Democratic former President Barack Obama in 2014, at one point seemed skeptical of Thompson’s arguments, telling him Texas seems to have “gone to great lengths” to make its abortion ban difficult to challenge in court.

The judge said: “My obvious question to you is: If the state is so confident in the constitutionality of the limitations on woman’s access to abortion, then why did it go to such great lengths to create this private cause of action rather than do it directly?”

Thompson responded that laws providing for enforcement are not as unusual as the Justice Department has claimed.

In the 1973 Roe v. Wade ruling that legalized abortion nationwide, the Supreme Court recognized a woman’s constitutional right to terminate a pregnancy.

The high court in December is due to hear arguments over the legality of a Mississippi abortion law in a case in which officials from that state are asking the justices to overturn Roe vs. Wade.

The Mississippi and Texas laws are among a series of Republican-backed measures passed by various states restricting abortion.

Since the Texas law went into effect, the four Whole Woman’s Health abortion clinics across the state have reported that patient visits have plummeted and some staff have quit.

In addition to infringing on women’s constitutional rights to seek an abortion, the Justice Department argued that the law also impedes the federal government’s own ability to offer abortion-related services.

In an effort to counter those claims, attorneys for the state on Friday played clips from depositions of various senior U.S. government officials.

In one clip, lawyers interrogated Alix McLearen, a senior official at the Bureau of Prisons who, in response to questions, testified that there were currently no pregnant inmates being held at certain detention facilities in Texas.

In another clip, Laurie Bodenheimer of the Office of Personnel Management was asked whether any insurance carriers had raised concerns about the impact or effect of the Texas law.

“To my knowledge no carrier has raised concerns about SB8,” she said.

The Justice Department’s Netter told the judge that Texas had cherry-picked some of the sound bites in the videos and edited out the portions in which Department attorneys had objected during the depositions.

Netter noted, for instance, that Texas conveniently omitted a portion of McLearen’s testimony in which she said the prisons bureau has pregnant inmates incarcerated currently at FMC Carswell, which he noted is “the only secure medical facility for women” in the entire country.

“It is irreparable injury for there to be a violation of the Supremacy Clause,” Netter said, referring to the Constitutional principle that establishes that federal laws have supremacy over state laws.

More than 600 marches are planned around the United States on Saturday to protest the Texas law.

In Washington, D.C., protesters will march to the U.S. Supreme Court to decry the court’s 5-4 decision in September that denied a request from abortion and women’s health providers to enjoin enforcement of the ban.

(Reporting by Jan Wolfe and Sarah N. Lynch in Washington; Editing by Will Dunham, Alistair Bell and Dan Grebler)

Turkey’s Russian air defense systems and U.S. response

(Reuters) – Turkish President Tayyip Erdogan this week flagged potential further cooperation with Russia on defense industry projects including fighter jets and submarines even as the United States warned it could respond with more sanctions.

Turkey received the first deliveries of the S-400 surface-to-air systems in July 2019, prompting Washington to begin removing the NATO ally from its F-35 stealth fighter program over security concerns.

The following timeline presents the main developments in the program and Ankara’s relations with the United States.

Dec. 29, 2017 – Turkey and Russia sign an accord on deliveries of Russian S-400 surface-to-air missile batteries, reportedly worth around $2.5 billion.

June 19, 2018 – A U.S. Senate committee passes a spending bill that includes a provision to block Turkey’s purchase of Lockheed Martin F-35 fighter jets unless it drops the plan to buy the S-400s.

March 28, 2019 – U.S. Senators introduce a bipartisan bill to prohibit the transfer of F-35s to Turkey unless the U.S. administration certifies that Ankara will not take delivery of the S-400s.

June 7, 2019 – The United States decides to stop accepting any additional Turkish pilots to train on F-35 fighter jets.

July 17, 2019 – The United States says it was removing Turkey from the F-35 program; Ellen Lord, Undersecretary of Defense for acquisition and sustainment, says Turkey would no longer receive more than $9 billion in projected work.

July 25, 2019 – Russia completes the first shipment of its S-400 systems to Turkey, according to Turkish military officials.

Sept. 15, 2019 – Turkey’s defense ministry confirms delivery of a second battery of S-400s.

Nov. 12, 2020 – Turkey’s Defense Minister Hulusi Akar says Turkey is ready to discuss U.S. concerns about the technical compatibility of Russian S-400 defense systems and U.S.-made F-35 jets, renewing Ankara’s call for a joint working group with Washington on the issue.

March 24, 2021 – U.S. Secretary of State Antony Blinken, in a meeting with Turkish Foreign Minister Mevlut Cavusoglu, urges Ankara to drop the S-400 system. In the same meeting, Cavusoglu told his U.S. counterpart that its purchase was “a done deal.”

July 21, 2021 – U.S. President Joe Biden is committed to maintaining sanctions on Turkey under the Countering America’s Adversaries Through Sanctions Act (CAATSA) for buying Russian missile defenses and would impose further sanctions if Ankara bought further major arms systems from Moscow, according to a senior U.S. diplomat.

Aug. 23, 2021 – The Interfax new agency reports the head of Russia’s arms exporter as saying Russia and Turkey were close to signing a new contract to supply Ankara with more S-400s in the near future.

Sept. 26, 2021 – Turkish President Tayyip Erdogan says Turkey still intends to buy a second batch of missile defense systems from Russia.

Sept. 30, 2021 – Turkey is considering more joint defense industry programs with Russia including fighter jets and submarines, President Erdogan says after talks with President Vladimir Putin. Erdogan did not mention further S-400 purchases or U.S. sanctions, but said “Turkey would not back down.”

(Compiled by Oben Mumcuoglu and Berna Syuleymanoglu in Gdansk; Editing by Tomasz Janowski and Daren Butler)

U.S. consumer confidence hits seven-month low; goods trade deficit widens

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. consumer confidence fell to a seven-month low in September as a relentless rise in COVID-19 cases deepened concerns about the economy’s near-term prospects, fitting in with expectations for a slowdown in growth in the third quarter.

The survey from the Conference Board on Tuesday showed consumers less interested in buying a home and big-ticket items such as motor vehicles and major household appliances over the next six months. Consumers were also not as upbeat in their views of the labor market as in the prior month.

Economic activity has cooled in recent months as the boost from pandemic relief money faded and infections flared up, driven by the highly contagious variant of the coronavirus.

“But given that wave seems to be cresting, there’s hope confidence just hit its nadir,” said Robert Frick, corporate economist at Navy Federal Credit Union in Vienna, Virginia. “Assuming predictions of Delta dropping hold true, this setback may be a three-month trough during the recovery rally.”

The Conference Board said its consumer confidence index dropped to a reading of 109.3 this month from 115.2 in August. The third straight monthly decline pushed the index to the lowest level since February.

The measure, which places more emphasis on the labor market, has dropped 19.6 points from a peak of 128.9 in June. Economists polled by Reuters had forecast the index nudging up to 114.5.

“These back-to-back declines suggest consumers have grown more cautious and are likely to curtail spending going forward,” said Lynn Franco, senior director of economic indicators at the Conference Board in Washington.

Consumers’ inflation expectations over the next 12 months slipped to 6.5% from 6.7% last month. The Federal Reserve last week projected its key inflation measure at 3.7% this year. That was up from the 3.0% median the U.S. central bank projected back in June. The U.S. central bank has a flexible 2% inflation target.

The Conference Board’s so-called labor market differential, derived from data on respondents’ views on whether jobs are plentiful or hard to get, fell to a reading of 42.5 this month from 44.4 in August.

This measure closely correlates to the unemployment rate in the Labor Department’s closely watched employment report. September’s employment report is due to be released next Friday.

Stocks on Wall Street were trading lower. The dollar rose against a basket of currencies. U.S. Treasury prices fell.

HOUSE PRICES SURGE

Fewer households intended to buy long-lasting manufactured goods such as motor vehicles and household appliances like washing machines and clothes dryers this month. That supports expectations for a sharp slowdown in consumer spending this quarter, which will ultimately restrain economic growth.

Gross domestic product growth estimates for the third quarter are mostly below a 5% annualized rate. The economy grew at a 6.6% pace in the second quarter.

Expectations for slower GDP growth were reinforced by a separate report from the Commerce Department on Tuesday showing the goods trade deficit rose 0.9% to $87.6 billion in August as businesses imported more products to replenish inventories. Trade has subtracted from GDP growth for four straight quarters.

Imports of goods climbed 0.8% to $236.6 billion, lifted by consumer goods and industrial supplies. But imports of food, capital goods and motor vehicles fell. Motor vehicle imports were likely weighed down by a global shortage of semiconductors, which is impacting production.

Rising imports offset a 0.7% gain in goods exports to $149.0 billion, supported by industrial supplies and consumer goods. But the nation reported a decline in exports of capital goods, motor vehicles and food products. Exports are increasing as global economies continue to recover from the pandemic.

Some of the increase in imports ended up in warehouses at wholesalers and retailers. Wholesale inventories accelerated 1.2% last month after gaining 0.6% in July. Stocks at retailers edged up 0.1% after increasing 0.4% in July. Retail inventories were held back by a 1.5% tumble in stocks of motor vehicle. The drop, which followed a 0.2% gain in July, reflected shortages related to the scarcity of microchips.

Retail inventories excluding autos, which go into the calculation of GDP, rose 0.6% after advancing 0.5% in the prior month. Business inventories were sharply drawn down in the first half of the year. Last month’s increase should soften the hit to GDP growth from the widening goods trade deficit.

News on the housing market was discouraging, with the Conference Board survey showing less enthusiasm among consumers for home purchases over the next six months amid higher house prices, which are pushing homeownership out of the reach of many.

A third report on Tuesday showed the S&P CoreLogic Case-Shiller national home price index surged a record 19.7% in July from a year ago after accelerating 18.7% in June.

Sustained house price inflation was corroborated by a fourth report from the Federal Housing Finance Agency (FHFA) showing house prices soared a record 19.2% in the 12 months through July. That followed an 18.9% jump in June.

(Reporting By Lucia Mutikani; Editing by Andrea Ricci)

U.S. grants licenses for more aid flow to Afghanistan despite sanctions

By Daphne Psaledakis

UNITED NATIONS (Reuters) – The United States on Friday further paved the way for aid to flow to Afghanistan despite U.S. sanctions on the Taliban, who seized control of the country last month, issuing general licenses amid concern that Washington’s punitive measures could compound an unfolding humanitarian crisis.

The U.S. Treasury Department said it issued two general licenses, one allowing the U.S. government, NGOs and certain international organizations, including the United Nations, to engage in transactions with the Taliban or Haqqani Network – both under sanctions – that are necessary to provide humanitarian assistance.

The second license authorizes certain transactions related to the export and re-export of food, medicine and medical devices.

“Treasury is committed to facilitating the flow of humanitarian assistance to the people of Afghanistan and other activities that support their basic human needs,” Andrea Gacki, director of the U.S. Treasury’s Office of Foreign Assets Control, said in the statement.

She added that Washington will continue to work with financial institutions, NGOs and international organizations to ease the flow of agricultural goods, medicine and other resources while upholding sanctions on the Taliban, Haqqani Network and others.

The United Nations said that at the start of the year more than 18 million people – about half of Afghanistan’s population – require aid amid the second drought in four years.

U.N. Secretary-General Antonio Guterres said last week that Afghanistan is on “the verge of a dramatic humanitarian disaster” and has decided to engage the Taliban in order to help the country’s people.

U.S. President Joe Biden’s administration has said it is committed to allowing humanitarian work in Afghanistan to continue despite Washington listing the Taliban as a Specially Designated Global Terrorist group.

The sanctions freeze any U.S. assets of the Islamist militant group and bar Americans from dealing with them, including the contribution of funds, goods or services.

Reuters reported last month that Washington issued a license authorizing the U.S. government and its partners to continue to facilitate humanitarian aid in Afghanistan.

Friday’s move expands on that specific license, allowing international organizations and NGOs to pay taxes, fees, import duties or permits, licenses or other necessary transactions for assistance to reach the people of Afghanistan.

A Taliban offensive as foreign forces withdrew from Afghanistan after a 20-year war culminated in the capture of the capital Kabul on Aug. 15, two decades after they were driven from power by a U.S.-led campaign in the wake of the Sept. 11 attacks on the United States.

(Reporting by Daphne Psaledakis; Editing by Mary Milliken and Grant McCool)

Abortion providers ask U.S. Supreme Court to intervene in challenge to Texas law

By Andrew Chung

(Reuters) -Abortion providers in Texas on Thursday asked the U.S. Supreme Court to intervene on an urgent basis in their challenge to a state law imposing a near-total ban on abortion.

The providers asked the justices to hear their case before lower courts have finished ruling on the dispute because of the “great harm the ban is causing.” The Supreme Court, which has a 6-3 conservative majority, this month refused to block the law, which bans abortion after six weeks of pregnancy.

The Texas law is unusual in that it gives private citizens the power to enforce it by enabling them to sue anyone who assists a woman in getting an abortion past the six-week cutoff. That feature has helped shield the law from being immediately blocked as it made it more difficult to directly sue the government.

In their petition to the Supreme Court, the abortion providers including Whole Woman’s Health and other advocacy groups said that the justices should decide if the state can “insulate” its law from federal court review by delegating its enforcement to the general public.

The Supreme Court rarely agrees to hear a case before lower courts have had a chance to weigh in with their own rulings. But in the court’s 5-4 decision on Sept. 1 to let the law stand for now, the dissenting justices, including conservative Chief Justice John Roberts, expressed skepticism about how the law is enforced.

Roberts said he would have blocked the law’s enforcement at that point “so that the courts may consider whether a state can avoid responsibility for its laws in such a manner.”

The providers said that the ban has eliminated the vast majority of abortions in the state given the threat of “ruinous liability,” causing Texans to have to travel hundreds of miles (km) to other states, causing backlogs there.

“Texans are in crisis,” they said in a legal filing.

Democratic President Joe Biden’s administration on Sept 9 sued Texas, seeking to block enforcement of the Republican-backed law, as his fellow Democrats fear the right to abortion established in 1973 may be at risk.

The Texas law is the latest Republican-backed measure passed at the state level restricting abortion.

The measure prohibits abortion at a point when many women do not even realize they are pregnant. Under the law, individual citizens can be awarded a minimum of $10,000 for bringing successful lawsuits against those who perform or help others obtain an abortion that violates the ban.

The providers said that they have been forced to comply with the law because defending against these lawsuits, even if they prevail, would amount to “costly, and potentially bankrupting, harassment.”

The Supreme Court already is set to consider a major abortion case on Dec. 1 in a dispute centering on Mississippi’s 15-week abortion ban in which that state has asked the justices to overturn the 1973 Roe v. Wade ruling that legalized abortion nationwide and ended an era when some states had banned the procedure. A ruling is due by the end of June 2022.

(Reporting by Andrew Chung in New York; Editig by Will Dunham)