The US labour market showed signs of a steady slowdown in October, with job openings increasing moderately and layoffs declining, according to the latest Job Openings and Labor Turnover Survey (JOLTS) report released by the Bureau of Labor Statistics on Tuesday. Job openings, a key indicator of labour demand, rose by 372,000 to 7.744 million at the end of October. However, the September figures were revised downward to 7.372 million from the initially reported 7.443 million. Economists polled by Reuters had anticipated 7.475 million vacancies. Labour Market Dynamics While job openings increased, hires dropped by 269,000 to 5.313 million, and layoffs fell by 169,000 to 1.633 million. These figures suggest a gradual cooling of the labour market rather than a sharp contraction. Hurricanes and strikes also impacted October’s labour market data. Rebuilding efforts in storm-affected regions and the resolution of strikes at Boeing and another aerospace company are expected to contribute to a ...
New World Development Co suspended trading of its shares in Hong Kong on Thursday following reports that CEO Adrian Cheng is poised to step down. The company announced that trading was halted pending the release of inside information. New World Department Store China Ltd, where Cheng serves as chairman, has also suspended trading.
The Cheng family-owned developer, which recently reported its first annual loss in two decades, is facing a leadership shakeup as current COO Ma Siu-Cheung is expected to replace Cheng as CEO, according to sources. New World is struggling with asset writedowns and rising debt levels, contributing to a projected loss of up to HK$20 billion (US$2.6 billion) for the financial year ending in June.
The company's debt burden has raised concerns among investors, particularly in the context of high borrowing costs and a sluggish property market. New World’s net debt to equity ratio was 82.7% last year, significantly higher than rivals like Henderson Land Development Co and Sun Hung Kai Properties Ltd.
Analysts predict that New World will need to sell more assets, potentially at lower prices, to avoid a liquidity crisis. Despite the turbulence, management changes are seen as potentially boosting investor confidence, with new leadership likely to focus on accelerating debt repayments.
Adrian Cheng, who became CEO in 2020, transformed the company into a more innovative brand but also oversaw the accumulation of heavy debt. His resignation would mark a significant moment in Hong Kong’s family-controlled property sector, as succession planning for the Cheng family conglomerate remains under scrutiny.
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