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In Advance of Payroll Friday, ADP Payrolls Go Cold

This will be written off as a temporary setback, and only then will anyone care if it follows in Friday’s payroll report. Just when the FOMC was counting on corroboration among all labor market data for its taper/balance sheet runoff/rate hike justificati

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This will be written off as a temporary setback, and only then will anyone care if it follows in Friday’s payroll report. Just when the FOMC was counting on corroboration among all labor market data for its taper/balance sheet runoff/rate hike justification, this morning ADP threw a whole sack of wrenches in those plans.

In the wake of the sack, analysts across Wall Street have already been busy further downgrading their expectations for the headline BLS coming up.

The private payroll processor ADP said that total private employment in the US economy fell sharply during January 2022. Thinking ahead to how the pandemic would create a negative impact, analysts had predicted this number would come in around +200,000. That would have been considerably less than the final few months of last year.

Instead, to begin this year employment may have declined by a bit more than 300,000 private jobs. This is the first drop since December 2020 and the steepest, by far, going back to the 2020 recession itself.


Is it really omicron?

That’s how the weakness will be characterized, assuming it isn’t completely forgotten by Friday depending on how the BLS surveys get chopped up (I still wonder, as I said yesterday with the colder JOLTS, if it won’t be a blowout). Assuming they come in weaker than already figured by analysts (yesterday the “consensus” was for the same as December, not good, and today the majority opinion has moved substantially lower still), then the latest pandemic variant (and the diseases’ obvious seasonality) will be all over the explanations.

After all, ADP’s resident Economist outright stated the pandemic was the reason:

“The labor market recovery took a step back at the start of 2022 due to the effect of the Omicron variant and its significant, though likely temporary, impact to job growth,” said Nela Richardson, chief economist, ADP.

The company’s underlying figures might at first seem consistent with this interpretation of them. Half the presumed job losses hit the leisure and hospitality industry, the ever-holding target of government pandemic strictures.

But those weren’t nearly as strict or widespread during January 2022 as they had been back at the height of the delta wave, or back in December 2020. So far as interruptive interference goes, delta’s were far and away more disruptive. Yet, ADP’s employment data shows only a slowdown last July and August, nothing at all like -300k. Even December 2020’s (unemployment cliff) change was “just” -75k (whereas the BLS’s Establishment Survey was itself -306k the same month).

Leisure and hospitality businesses, across all business sizes, weren’t laying off workers because of renewed lockdowns. And if they were experiencing a drop off in business as fewer people (in Northern states) traveled or sought vacation, given the purported labor shortage as well as how those same businesses are uniquely accustomed to the temporary effects of these pandemic waves, why didn’t they hold on to their employees and just wait out omicron (less disruptive than delta) given how hard, most claim, it is to find help?

But this same general pattern was repeated across most industries. One-fifth of the monthly job losses were thought to have been in trade, transportation, and utilities – though unclear (they don’t release that level of detail) how much might have been just trade given the disappointment at the end of the pushed-forward Christmas shopping season.




Manufacturer’s, for example, apparently cut 21,000 payrolls (total employment across all goods producing industries declined by 27,000) last month. This was the first decline since last February and also the steepest going back to April 2020. Why would omicron have been so much more disruptive to manufacturing (or trade) than delta or the serious weakness (pre-Helicopter #2) back in December 2020?

Several explanations are possible, beginning with vaccine policies and/or mandates. Another is that the economy really did soften though maybe a bit too much the last half of last year (inventory, too). Perhaps a combination of the two.

The latter would better explain why the low in ADP for January 2022 was so much lower than August or the prior December; omicron had some negative effect, but that does not account for the entire depth, or maybe even as much of it.

The pandemic alone just cannot explain why a “likely temporary” disruption showing up during a purportedly epic labor shortage would lead to such widespread, “significant” declines to general private employment. It will be interesting how the BLS sees it on Friday.

Either way, it’s another frigid dose of employment data for the FOMC almost completely depending upon an overheating labor situation.

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Ancient technology turns plant-based cheese into ‘something we want to eat’

Credit: Photo: Department of Food Science To produce plant-based cheeses that feel and taste like dairy cheese, scientists have their sights set on fermentation….

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Credit: Photo: Department of Food Science

To produce plant-based cheeses that feel and taste like dairy cheese, scientists have their sights set on fermentation. In a new research result, University of Copenhagen scientists demonstrate the potential of fermentation for producing climate-friendly cheeses that people want to eat. 

Nearly thirty kilos of cheese are eaten by the average dairy-loving Dane every year. But increasing pressure on Earth’s resources and climate change call for our food system to turn in a more plant-based direction. As a result, scientists are looking into how to transform protein-rich plants like peas and beans into a new generation of non-dairy cheeses that possess the similar sensory properties as the dairy-based ones that humans have enjoyed for thousands of years.

Several plant-based cheeses are already on the market. The challenge is that plant proteins behave differently than milk proteins when trying to make cheese from them. To meet this challenge, producers add starch or coconut oil to harden plant cheeses, as well as an array of flavourants to make them taste like cheese.

But it turns out that this can be done with the help of nature’s smallest creatures. In a new research result from the University of Copenhagen’s Department of Food Science, researcher Carmen Masiá has succeeded in developing plant-based cheeses made from yellow pea protein with a firm texture and improved aroma profile. She was able to do so by using the same natural fermentation process with bacteria that we have used with cheeses made from milk for thousands of years.

“Fermentation is an incredibly powerful tool to develop flavour and texture in plant-based cheeses. In this study, we show that bacteria can serve to develop firmness in non-dairy cheese in a very short period of time while reducing the bean-like aroma of yellow pea protein, which is used as the main and only protein source,” explains Carmen Masiá. 

Fresh cheese after eight hours

The result builds upon a research result from last year by the same researcher, who found that yellow pea protein constituted a good “protein base” for making fermented plant-based cheese. In the new result, the researcher examined twenty four bacterial combinations made from bacterial cultures supplied by the biotech company Chr. Hansen, where Carmen Masiá is completing her Industrial PhD.

“The whole point of this study has been to combine the commercially-available bacterial cultures that are suitable for the fermentation of a plant-based raw material, and test them in a pea protein matrix to develop both taste and texture that would be suitable for a cheese-like product. And, even if some bacterial combinations performed better than others, all of them actually provided firm gels and reduced beaniness in the samples” says the researcher.

To study the behavior of the bacterial combinations, the scientist inoculated them in a protein base made of yellow pea protein. After only eight hours of incubation, the result was a firm “cheese-like gel” reminiscent of a fresh soft white cheese.

“All bacterial blends produced firm gels, which means that one can get a fermentation-induced gel without necessarily adding starch or coconut oil to the base. From an aroma perspective, we had two goals: To reduce the compounds that characterize the beaniness of yellow peas, and to produce compounds that are normally found in dairy cheese. Here we saw that some bacteria were better at producing certain volatile compounds than others, but that they all worked great to reduce beaniness – which is a very positive outcome. Furthermore, all blends acquired dairy aroma notes to different degrees” explains Carmen Masiá.

Taste and feeling is everything

The researcher points out there is still a way to go to before achieving this plant-based cheese, but that research is on the right track. According to her, tailored bacterial compositions and cultures must be developed in order to achieve the optimal cheese-like characteristics. Furthermore, the plant-based cheese might need to mature over time so that it develops flavor and character, just as dairy-based cheeses do.

Finally, the new generation of fermented plant-based cheeses must be judged by consumers, so that the flavour is perfected. All in all, this is to make plant-based cheeses so delicious that people seek them out and purchase them.

“The most challenging thing for now is that, while there are a lot of people who would like to eat plant-based cheese, they aren’t satisfied with how it tastes and feels in the mouth. In the end, this means that no matter how sustainable, nutritious, etc. a food product is, people aren’t interested in buying it if it doesn’t provide a good experience when consumed,” says Carmen Masiá, who adds:

“One needs to remember that dairy cheese production has been studied over many years, so it’s not something that we can just mimic overnight with totally different raw materials. Nevertheless, there are many scientists and companies out there doing great progress in the field; I hope that we will get closer to making non-dairy cheeses that taste good over the next few years. We are getting there.”

The study was conducted in collaboration between the Department of Food Science and microbial ingredients supplier Chr. Hansen, a bioscience company that produces ingredients for the food and pharmaceutical industries, among other things. 

What is fermentation:

Fermentation is an ancient technique which originated in China. Today, it is used to make beer, wine, cheese, pharmaceuticals and much more. Fermented foods are preserved by initiating a fermentation process in which natural lactic acid bacteria and enzymes are formed. This is done as microorganisms convert sugars in the selected food into lactic acid, acetic acid and carbon dioxide. This makes food acidic and prevents the growth of putrefactive and pathogenic bacteria.

The first textual evidence of cabbage fermentation is found in China’s oldest collection of poems, Shi Jing (Book of the Odes), which dates back to approximately 600 BC.

About the study:

  • The researchers tested twenty four different bacterial compositions on a protein base made from yellow pea protein.
  • The study shows that all of the bacterial compositions produce a firm cheese-like gel, reduced the beaniness, and produced dairy-related volatile compounds.
  • The study was conducted in collaboration between the Department of Food Science and microbial ingredients supplier Chr. Hansen, a bioscience company that manufactures microbial ingredients for the food and pharmaceutical industries.
  • The study has been published in the scientific journal Future Foods
  • The research is funded by Innovation Fund Denmark (grant 0153-00058B)

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BGI Genomics breaks new ground in Saudi Arabian precision medicine

The Saudi Society of Medical Genetics Annual Conference 2023 was held in Riyadh, Saudi Arabia, on September 29-30, 2023. As the most authoritative academic…

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The Saudi Society of Medical Genetics Annual Conference 2023 was held in Riyadh, Saudi Arabia, on September 29-30, 2023. As the most authoritative academic conference on precision medicine in the Kingdom, this conference attracted global experts worldwide.

Credit: BGI Genomics

The Saudi Society of Medical Genetics Annual Conference 2023 was held in Riyadh, Saudi Arabia, on September 29-30, 2023. As the most authoritative academic conference on precision medicine in the Kingdom, this conference attracted global experts worldwide.

One of the highlights of the conference was the presentation entitled “Spatial-temporal sequencing and some large-scale application of precision medicine technologies,” delivered by Dr. Louis (Renyuan) Luo, VP of BGI Genomics West Asia, at the invitation of the Saudi Society of Medical Genetics.

Dr. Luo’s presentation discussed the importance of spatiotemporal sequencing technology in the field of precision medicine and its potential large-scale applications, introduced the company’s case studies, such as the world’s first multi-center project of newborn genetic screening, large-scale regional noninvasive prenatal testing (NIPT) coverage and extensive early screening project of colorectal cancer at Wuhan, Hubei province, China.

Besides sharing BGI Genomics research achievements and innovative applications in enhancing medical outcomes, Dr. Luo highlighted Genalive, BGI Genomics joint venture laboratory in the Kingdom of Saudi Arabia. This is the result of a localized strategic partnership aiming to provide cutting-edge precision medicine services, promote development and contribute to improving the country’s healthcare system.

The success of Dr. Luo’s presentation paves the way for deepening future localized collaboration and innovation in Saudi Arabia. BGI Genomics will continue to support the realization of Saudi Vision 2030 through active participation in global cooperation and exchanges in the field of precision medicine to enhance patients’ health outcomes.

About BGI Genomics:

BGI Genomics, headquartered in Shenzhen, China, is the world’s leading integrated solutions provider of precision medicine. Our services cover more than 100 countries and regions, involving more than 2,300 medical institutions. In July 2017, as a subsidiary of BGI Group, BGI Genomics (300676.SZ) was officially listed on the Shenzhen Stock Exchange.


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Bitcoin mining restricted to legal entities in Uzbekistan: Official

Cryptocurrency mining in Uzbekistan can only be carried out by legal entities with the use of solar power, the local crypto watchdog has reiterated.

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Cryptocurrency mining in Uzbekistan can only be carried out by legal entities with the use of solar power, the local crypto watchdog has reiterated.

Cryptocurrency mining in Uzbekistan is overcoming major changes as the country’s major crypto market supervisor has approved a framework for licensing crypto mining operations.

Uzbekistan’s National Agency for Perspective Projects (NAPP) issued a decree on licensing cryptocurrency mining operations, limiting such activities exclusively to legal entities.

Apart from banning individual miners’ operations, the NAPP has also required firms to only use solar power to mine cryptocurrencies like Bitcoin (BTC). However, miners can still use the unified power system of Uzbekistan in certain cases stipulated by the legislation. The document doesn’t mention what cases are meant.

Among other requirements, Uzbekistan’s cryptocurrency watchdog demanded companies set up a dedicated room for installing mining equipment and only mine crypto by the registered address. The rules also require crypto mining firms to provide timely and full payment or mining fees established by regulators.

Additionally, the NAPP has banned miners from mining “anonymous” cryptocurrencies, or those referred to as working based on anonymity and hiding transactions. The authority was referring to privacy-focused cryptocurrencies like Monero (XMR), which allow users to obfuscate network transactions.

Related: Kazakh crypto miners plead with president to cut energy prices

“All mining operations and services are only possible after obtaining a permitting document and license in the prescribed manner,” the NAPP wrote, adding:

“The agency also asks all citizens to act within the framework of the law and refrain from attempting to organize activities in the field of circulation of crypto-assets without obtaining the appropriate license.”

It's unclear whether the NAPP’s latest crypto-mining document is a final decree establishing a framework for mining in Uzbekistan. The local government has issued multiple similar documents in recent years, repeatedly prohibiting individual miners from operating in Uzbekistan. One such decree was signed by Uzbekistan’s President Shavkat Mirziyoyev in April 2022, reiterating that local people are not allowed to pay with crypto or to mine digital currencies.

The NAPP did not immediately respond to Cointelegraph’s request for comment.

Magazine: Web3 Gamer: Minecraft bans Bitcoin P2E, iPhone 15 & crypto gaming, Formula E

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