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Offshore wind faces more financial turmoil in 2024

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Offshore wind faces more financial turmoil in 2024

The offshore wind industry is hoping for a new boost in 2024 to combat the broken contracts, canceled wind farms and unmet targets that have characterized its last 18 months.

While experts say the nascent industry is rebounding after being hammered by inflationary costs and an immature supply chain following the pandemic, the enormous scale of building a new renewable sector in the U.S. from scratch still presents significant challenges. that could paralyze a key platform of President Joe Biden’s climate agenda.

“There is an adjustment going on in the industry that I read very clearly as we are trying to build an industry that we have no supply chain for,” said Eric Hines, an engineering professor at Tufts University who studies the offshore wind industry. “Our demand has outpaced not just the U.S. supply chain, but the global supply chain as well.”

The hurdles are coming to a head as Biden faces a difficult election year and aims to prove his climate bona fides to voters on the left, some of whom have criticized the administration for failing to deliver on 2020 campaign promises such as ending new oil drilling on public lands.

The Interior Department has 10 months to fulfill other White House offshore wind promises before Election Day, including pledges to approve 16 wind farms by 2025 and conduct lease sales in areas such as the Gulf of Maine.

But optimism for the industry is growing as inflation eases and interest rates trend lower. Additionally, states have increased enthusiasm as they seek contracts for a staggering 14 gigawatts of offshore wind power, despite harsh economic realities that have driven up prices for wind farm construction.

“I think the headlines are different for 2024,” said Theodore Paradise, an energy lawyer at K&L Gates. “We have better contracts, better deadlines and a better sense of the supply chain.”

With the administration and industry poised to make decisions in the coming months that will drive the future of the industry, here are three issues to watch with offshore wind in 2024:

How close will Interior get to Biden’s offshore wind goals?

If the Bureau of Ocean Energy Management (BOEM) wants to meet the White House’s mandates for offshore wind, it will need to pick up its pace in the coming months.

Biden wants environmental reviews of 16 offshore wind projects completed by the end of his first term, according to a 2021 executive order. That represents about 19 GW of offshore wind.

To date, BOEM has completed six reviews of proposed wind farms, a process that poses a major hurdle to building a project in U.S. waters. They include Vineyard Wind of Massachusetts, Rhode Island and Revolution Wind of Connecticut, Ocean Wind of New Jersey, Empire Wind 1 and 2 of New York, South Fork Wind of New York and the Coastal Virginia Offshore Wind project.

However, one of these approvals is debatable. Ocean Wind Developer Ørsted canceled the project in October due to economic headwinds.

Empire Wind 2, which was approved by BOEM in November, also flagged serious concerns about its viability due to inflation and supply chain issues. Developers BP and Equinor on Wednesday canceled the Empire Wind 2 contract with New York, although its developers stressed that the project is still active and they are seeking a better contract for its power.

Given the pace of approvals, many analysts say Biden’s goal of reaching 30 GW of offshore wind by the end of the decade is out of reach. Wood Mackenzie, a research and consultancy company, predicts around 15 GW installed by 2030.

Evaluating multiple massive offshore wind projects at high speed is a new role for BOEM. The agency has nearly a decade of experience advancing the industry by conducting lease sales, conducting research and analyzing the environmental impacts of proposed projects. But the first full approval of the project only occurred in 2021 with Vineyard Wind. Now it is expected to complete several projects at the same time.

“There’s a difference between advancing a lease area or a project and what they have now: scaling the entire operation,” said Catherine Bowes, senior director of strategy and advocacy at offshore wind group Turn Forward.

“I’m optimistic that they will be successful, but it’s certainly not out of the woods,” she said.

BOEM did not comment on this story prior to publication.

To facilitate an offshore wind boom, BOEM staffing has grown significantly since the Biden administration took office. He hired dozens of new employees and Congress granted his requests for millions more in funding for the Office of Renewable Energy Programs, which manages offshore wind energy.

The agency is working this year on the possibility of holding new lease sales in the Gulf of Maine and two other areas of the U.S.: the Oregon coast and the mid-Atlantic. Two of the three sales face unique difficulties locally, and all three require extensive planning by the Department of the Interior.

In Maine, lobster fishermen have mounted opposition to offshore wind energy development, and in Oregon, pro-renewable state leaders such as Senator Ron Wyden, a Democrat, sometimes expressed concerns about offshore wind energy moving forward without sufficient study of its impacts on the Pacific environment.

Will economic pressure ease?

The ripple effects of offshore wind’s financial woes in 2023 continue this year – at least so far.

A day after BP and Equinor announced on Wednesday that they would cancel the Empire Wind 2 contract in New York, Seatrium – the construction company contracted to build the $250 million Empire Wind 2 substation – said its agreement was also cancelled.

The company blamed “significant macroeconomic conditions” affecting the Empire Wind project.

Additionally, the manufacturer contracted to build Empire Wind 2’s turbine foundations, Sif, announced last week that its contract has been cancelled.

But analysts say the outlook for offshore wind may already be improving.

“We have likely reached a peak in interest rates, and with inflation slowing, this should, in theory, alleviate project financing stress,” said Stephen Maldonado, research analyst for North American wind energy at Wood Mackenzie.

Maldonado noted that states are also increasingly including inflation protections in their offshore wind contract offerings, which addresses “one of the killers of recent project cancellations.”

Hines and Tufts said offshore wind will likely be more expensive for a while, a natural result of the sudden increase in demand compared to the limited supply chain for U.S. offshore wind construction.

“I think in 2024 there are a lot of people who are anxiously waiting, and maybe even anxiously waiting, what will the prices be?” Hines said. “That will happen this year. And we won’t know how this will play out until it does.”

New York, Massachusetts and New Jersey are among the states seeking new offshore wind projects and placing protective measures in their contracts, such as allowing inflation adjustments to contracted prices, to mitigate financial uncertainty.

“We are confident in the future of the offshore wind industry in Massachusetts,” said Lauren Diggin, spokeswoman for the Massachusetts Department of Energy Resources.

Diggin said the Vineyard Wind project off the coast of Martha’s Vineyard, which sent its first power to the grid last week, “shows that it can be done, and our request lays the groundwork to get more projects up and running.”

Additionally, Massachusetts, Connecticut and Rhode Island last year announced a tristate procurement process that will be selected in 2024. The deal is an incredible shift in thinking for cross-state offshore wind development, said Paradise, the attorney.

Regional planning has long been seen as the next phase in the maturation of the U.S. offshore wind industry because it can reduce the cost of construction projects and their connection to the grid, boosting regional transmission planning and grid upgrades.

Can the supply chain grow?

The U.S. offshore wind supply chain reached a turning point in 2023: There were not enough companies ready to build offshore wind farms, prices were high, and projects competed for limited supplies.

Ørsted’s Ocean Wind projects in New Jersey have been canceled — the only projects canceled entirely in the U.S. due to economic conditions so far — in part due to a lack of ships available to install offshore turbines, according to company executives. A delay in obtaining a ship meant redoing existing construction contracts at much higher costs, the company said in November.

“It’s a little contradictory,” Hines said, adding, “If you want a supply chain, you have to demonstrate that there is enough industry and demand to support that supply chain. But if we create demand, and now we have deadlines, and we can’t meet those deadlines because we don’t have a supply chain, then that means local demand was created without an adequate investment base behind it.”

A National Renewable Energy Laboratory study that Hines contributed to in 2023 found that achieving 30 GW of offshore wind by 2030 requires US$22 billion in investment in the supply chain. This would represent a boom in shipbuilding, blade-making plans, foundation construction and cable installations. But the country is nowhere near that level of public and private investment, experts say.

There are only two facilities in the U.S. that build the key components for offshore wind — the Nexans cable facility in South Carolina and a monopile factory in Paulsboro, New Jersey — said Sam Salustro, vice president of strategic communications at Oceantic. Network.

“We have a lot on paper. Those are the only two that, frankly, still have open ground,” he said.

At a dead end, the offshore wind industry’s challenging year has also undermined investment in the supply chain, hampering its growth when it’s needed most, Salustro noted.

The U.S. is at a disadvantage in the supply chain business security that offshore wind requires compared to other markets globally, he said. While the 2023 economic challenges witnessed in the US have also been felt in more mature global markets, Salustro said Europe’s maturity as a promoter of offshore wind energy means it will likely have weathered the recession better.

More than ever, the US is playing catch-up at a critical period in the construction of the offshore wind industry. In 2024, the largest offshore wind project approved to date, Dominion Energy’s Coastal Virginia Offshore Wind project, is beginning construction.

“We have always been concerned about the need to build out the U.S. supply chain as much as possible,” Salustro said. “It is doubly imperative that we make the most of this period of time to get the investments, the production on the ground, the shipbuilding on the ground, to build the ports we need.”

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Modiv Industrial to release Q2 2024 financial results on August 6

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Business Wire

RENO, Nev., August 1, 2024–(BUSINESS THREAD)–Modiv Industrial, Inc. (“Modiv” or the “Company”) (NYSE:MDV), the only public REIT focused exclusively on the acquisition of industrial real estate properties, today announced that it will release second quarter 2024 financial results for the quarter ended June 30, 2024 before the market opens on Tuesday, August 6, 2024. Management will host a conference call the same day at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time) to discuss the results.

Live conference call: 1-877-407-0789 or 1-201-689-8562 at 7:30 a.m. Pacific Time Tuesday, August 6.

Internet broadcast: To listen to the webcast, live or archived, use this link https://callme.viavid.com/viavid/?callme=true&passcode=13740174&h=true&info=company&r=true&B=6 or visit the investor relations page of the Modiv website at www.modiv.com.

About Modiv Industrial

Modiv Industrial, Inc. is an internally managed REIT focused on single-tenant net-leased industrial manufacturing real estate. The company actively acquires critical industrial manufacturing properties with long-term leases to tenants that fuel the national economy and strengthen the nation’s supply chains. For more information, visit: www.modiv.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240731628803/en/

Contacts

Investor Inquiries:
management@modiv.com

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Volta Finance Limited – Director/PDMR Shareholding

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Volta Finance Limited - Director/PDMR Shareholding

Volta Finance Limited

Volta Finance Limited

Volta Finance Limited (VTA/VTAS)

Notification of transactions by directors, persons exercising managerial functions
responsibilities and people closely associated with them

NOT FOR DISCLOSURE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN THE UNITED STATES

*****
Guernsey, 1 August 2024

Pursuant to announcements made on 5 April 2019 and 26 June 2020 relating to changes to the payment of directors’ fees, Volta Finance Limited (the “Company” or “Volta”) purchased 3,380 no par value ordinary shares of the Company (“Ordinary Shares”) at an average price of €5.2 per share.

Each director receives 30% of his or her director’s fee for any year in the form of shares, which he or she is required to hold for a period of not less than one year from the respective date of issue.

The shares will be issued to the Directors, who for the purposes of Regulation (EU) No 596/2014 on Market Abuse (“March“) are “people who exercise managerial responsibilities” (a “PDMR“).

  • Dagmar Kershaw, Chairman and MDMR for purposes of MAR, has acquired an additional 1,040 Common Shares in the Company. Following the settlement of this transaction, Ms. Kershaw will have an interest in 12,838 Common Shares, representing 0.03% of the Company’s issued shares;

  • Stephen Le Page, a Director and a PDMR for MAR purposes, has acquired an additional 728 Ordinary Shares in the Company. Following the settlement of this transaction, Mr. Le Page will have an interest in 50,562 Ordinary Shares, representing 0.14% of the issued shares of the Company;

  • Yedau Ogoundele, Director and a PDMR for the purposes of MAR has acquired an additional 728 Ordinary Shares in the Company. Following the settlement of this transaction, Ms. Ogoundele will have an interest in 6,862 Ordinary Shares, representing 0.02% of the issued shares of the Company; and

  • Joanne Peacegood, Director and PDMR for MAR purposes has acquired an additional 884 Ordinary Shares in the Company. Following the settlement of this transaction, Ms. Peacegood will have an interest in 3,505 Ordinary Shares, representing 0.01% of the issued shares of the Company;

The notifications below, made in accordance with the requirements of the MAR, provide further details in relation to the above transactions:

a) Dagmar Kershaw
PRESIDENT AND DIRECTOR

b) Stephen LePage
DIRECTOR

c) Yedau Ogoundele
DIRECTOR

e) Joanne Pazgood
DIRECTOR

a. Position/status

Director

b. Initial Notification/Amendment

Initial notification

  • Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor

a name

Volta Finance Limited

b. LAW

2138004N6QDNAZ2V3W80

a. Description of the financial instrument, type of instrument

Ordinary actions

b. Identification code

GG00B1GHHH78

c. Nature of the transaction

Acquisition and Allocation of Common Shares in Relation to Partial Payment of Directors’ Fees for the Quarter Ended July 31, 2024

d. Price(s)

€5.2 per share

e. Volume(s)

Total: 3380

f. Transaction date

August 1, 2024

g. Location of transaction

At the Market – London

The)
Dagmar Kershaw
President and Director

B)
Steve LePage
Director

w)
Yedau Ogoundele Director

It is)
Joanne Pazgood
Director

Aggregate Volume:
1,040

Price:
€5.2 per share

Aggregate Volume:
728

Price:
€5.2 per share

Aggregate Volume:
728

Price:
€5.2 per share

Aggregate Volume:
884

Price:
€5.2 per share

CONTACTS

For the investment manager
AXA Investment Managers Paris
Francois Touati
francois.touati@axa-im.com
+33 (0) 1 44 45 80 22

Olivier Pons
Olivier.pons@axa-im.com
+33 (0) 1 44 45 87 30

Company Secretary and Administrator
BNP Paribas SA, Guernsey branch
guernsey.bp2s.volta.cosec@bnpparibas.com
+44 (0) 1481 750 853

Corporate Broker
Cavendish Securities plc
Andre Worn Out
Daniel Balabanoff
+44 (0) 20 7397 8900

*****
ABOUT VOLTA FINANCE LIMITED

Volta Finance Limited is incorporated in Guernsey under the Companies (Guernsey) Law, 2008 (as amended) and listed on Euronext Amsterdam and the Main Market of the London Stock Exchange for listed securities. Volta’s home member state for the purposes of the EU Transparency Directive is the Netherlands. As such, Volta is subject to the regulation and supervision of the AFM, which is the regulator of the financial markets in the Netherlands.

Volta’s investment objectives are to preserve its capital throughout the credit cycle and to provide a stable income stream to its shareholders through dividends that it expects to distribute quarterly. The company currently seeks to achieve its investment objectives by seeking exposure predominantly to CLOs and similar asset classes. A more diversified investment strategy in structured finance assets may be pursued opportunistically. The company has appointed AXA Investment Managers Paris, an investment management firm with a division specializing in structured credit, to manage the investment portfolio of all of its assets.

*****

ABOUT AXA INVESTMENT MANAGERS
AXA Investment Managers (AXA IM) is a multi-specialist asset management firm within the AXA Group, a global leader in financial protection and wealth management. AXA IM is one of the largest European-based asset managers with 2,700 professionals and €844 billion in assets under management at the end of December 2023.

*****

This press release is issued by AXA Investment Managers Paris (“AXA IM”) in its capacity as alternative investment fund manager (within the meaning of Directive 2011/61/EU, the “AIFM Directive”) of Volta Finance Limited (“Volta Finance”), the portfolio of which is managed by AXA IM.

This press release is for information only and does not constitute an invitation or inducement to purchase shares of Volta Finance. Its circulation may be prohibited in certain jurisdictions and no recipient may circulate copies of this document in violation of such limitations or restrictions. This document is not an offer to sell the securities referred to herein in the United States or to persons who are “U.S. persons” for purposes of Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or otherwise in circumstances where such an offering would be restricted by applicable law. Such securities may not be sold in the United States absent registration or an exemption from registration under the Securities Act. Volta Finance does not intend to register any part of the offering of such securities in the United States or to conduct a public offering of such securities in the United States.

*****

This communication is being distributed to, and is directed only at, (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high net worth companies and other persons to whom it may lawfully be communicated falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”). The securities referred to herein are available only to, and any invitation, offer or agreement to subscribe for, purchase or otherwise acquire such securities will be made only to, relevant persons. Any person who is not a relevant person should not act on or rely on this document or any of its contents. Past performance should not be relied upon as a guide to future performance.

*****
This press release contains statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “believes”, “anticipates”, “expects”, “intends”, “is/are expected”, “may”, “will” or “should”. They include statements about the level of the dividend, the current market environment and its impact on the long-term return on Volta Finance’s investments. By their nature, forward-looking statements involve risks and uncertainties and readers are cautioned that such forward-looking statements are not guarantees of future performance. Actual results, portfolio composition and performance of Volta Finance may differ materially from the impression created by the forward-looking statements. AXA IM undertakes no obligation to publicly update or revise forward-looking statements.

Any target information is based on certain assumptions as to future events that may not materialize. Due to the uncertainty surrounding these future events, targets are not intended to be and should not be considered to be profits or earnings or any other type of forecast. There can be no assurance that any of these targets will be achieved. Furthermore, no assurance can be given that the investment objective will be achieved.

Figures provided which relate to past months or years and past performance cannot be considered as a guide to future performance or construed as a reliable indicator as to future performance. Throughout this review, the citation of specific trades or strategies is intended to illustrate some of Volta Finance’s investment methodologies and philosophies as implemented by AXA IM. The historical success or AXA IM’s belief in the future success of any such trade or strategy is not indicative of, and has no bearing on, future results.

The valuation of financial assets may vary significantly from the prices that AXA IM could obtain if it sought to liquidate the positions on Volta Finance’s behalf due to market conditions and the general economic environment. Such valuations do not constitute a fairness or similar opinion and should not be relied upon as such.

Publisher: AXA INVESTMENT MANAGERS PARIS, a company incorporated under the laws of France, with registered office at Tour Majunga, 6, Place de la Pyramide – 92800 Puteaux. AXA IMP is authorized by Autorité des Marchés Financiers under registration number GP92008 as an alternative investment fund manager within the meaning of the AIFM Directive.

*****

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Apple to report third-quarter earnings as Wall Street eyes China sales

Digital Finance News Staff

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Apple to report third-quarter earnings as Wall Street eyes China sales

Litter (AAPL) is set to report its fiscal third-quarter earnings after the market closes on Thursday, and unlike the rest of its tech peers, the main story won’t be about the rise of AI.

Instead, analysts and investors will be keeping a close eye on iPhone sales in China and whether Apple has managed to stem the tide of users switching to domestic rivals including Huawei.

For the quarter, analysts expect Apple to report earnings per share (EPS) of $1.35 on revenue of $84.4 billion, according to estimates compiled by Bloomberg. Apple saw EPS of $1.26 on revenue of $81.7 billion in the same period last year.

Apple shares are up about 18.6% year to date despite a rocky start to the year, thanks in part to the impact of the company’s Worldwide Developer Conference (WWDC) in May, where showed off its Apple Intelligence software.

But the big question on investors’ minds is whether iPhone sales have risen or fallen in China. Apple has struggled with slowing phone sales in the region, with the company noting an 8% decline in sales in the second quarter as local rivals including Huawei and Xiaomi gain market share.

CUPERTINO, CALIFORNIA - JUNE 10: Apple CEO Tim Cook delivers remarks at the start of the Apple Worldwide Developers Conference (WWDC) on June 10, 2024 in Cupertino, California. Apple will announce plans to incorporate artificial intelligence (AI) into Apple software and hardware. (Photo by Justin Sullivan/Getty Images)

Apple CEO Tim Cook delivers remarks at the start of the Apple Worldwide Developers Conference (WWDC). (Photo by Justin Sullivan/Getty Images) (Justin Sullivan via Getty Images)

And while some analysts, such as JPMorgan’s Samik Chatterjee, believe sales in Greater China, which includes mainland China, Hong Kong, Singapore and Taiwan, rose in the third quarter, others, including David Vogt of UBS Global Research, say sales likely fell about 6%.

Analysts surveyed by Bloomberg say Apple will report revenue of $15.2 billion in Greater China, down 3.1% from the same quarter last year, when Apple reported revenue of $15.7 billion in China. Overall iPhone sales are expected to reach $38.9 billion, down 1.8% year over year from the $39.6 billion Apple saw in the third quarter of 2023.

But Apple is expected to make up for those declines in other areas, including Services and iPad sales. Services revenue is expected to reach $23.9 billion in the quarter, up from $21.2 billion in the third quarter of 2023, while iPad sales are expected to reach $6.6 billion, up from the $5.7 billion the segment brought in in the same period last year. Those iPad sales projections come after Apple launched its latest iPad models this year, including a new iPad Pro lineup powered by the company’s M4 chip.

Mac revenue is also expected to grow modestly in the quarter, versus a 7.3% decline last year. Sales of wearables, which include the Apple Watch and AirPods, however, are expected to decline 5.9% year over year.

In addition to Apple’s revenue numbers, analysts and investors will be listening closely for any commentary on the company’s software launches. Apple Intelligence beta for developers earlier this week.

The story continues

The software, which is powered by Apple’s generative AI technology, is expected to arrive on iPhones, iPads and Macs later this fall, though according to Bloomberg’s Marc GurmanIt won’t arrive alongside the new iPhone in September. Instead, it’s expected to arrive on Apple devices sometime in October.

Analysts are divided on the potential impact of Apple Intelligence on iPhone sales next year, with some saying the software will kick off a new iPhone sales supercycle and others offering more pessimistic expectations about the technology’s effect on Apple’s profits.

It’s important to note that Apple Intelligence is only compatible with the iPhone 15 Pro and newer phones, ensuring that all users desperate to get their hands on the tech will have to upgrade to a newer, more powerful phone as soon as it is available.

Either way, if Apple wants to make Apple Intelligence a success, it will need to ensure it has the features that will make customers excited to take advantage of the offering.

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Number of Americans filing for unemployment benefits hits highest level in a year

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Number of Americans filing for unemployment benefits hits highest level in a year

The number of Americans filing for unemployment benefits hit its highest level in a year last week, even as the job market remains surprisingly healthy in an era of high interest rates.

Jobless claims for the week ending July 27 rose 14,000 to 249,000 from 235,000 the previous week, the Labor Department said Thursday. It’s the highest number since the first week of August last year and the 10th straight week that claims have been above 220,000. Before that period, claims had remained below that level in all but three weeks this year.

Weekly jobless claims are widely considered representative of layoffs, and while they have been slightly higher in recent months, they remain at historically healthy levels.

Strong consumer demand and a resilient labor market helped avert a recession that many economists predicted during the Federal Reserve’s prolonged wave of rate hikes that began in March 2022.

As inflation continues to declinethe Fed’s goal of a soft landing — reducing inflation without causing a recession and mass layoffs — appears to be within reach.

On Wednesday, the Fed left your reference rate aloneBut officials have strongly suggested a cut could come in September if the data stays on its recent trajectory. And recent labor market data suggests some weakening.

The unemployment rate rose to 4.1% in June, despite the fact that American employers added 206,000 jobs. U.S. job openings also fell slightly last month. Add that to the rise in layoffs, and the Fed could be poised to cut interest rates next month, as most analysts expect.

The four-week average of claims, which smooths out some of the weekly ups and downs, rose by 2,500 to 238,000.

The total number of Americans receiving unemployment benefits in the week of July 20 jumped by 33,000 to 1.88 million. The four-week average for continuing claims rose to 1,857,000, the highest since December 2021.

Continuing claims have been rising in recent months, suggesting that some Americans receiving unemployment benefits are finding it harder to get jobs.

There have been job cuts across a range of sectors this year, from agricultural manufacturing Deerefor media such as CNNIt is in another place.

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