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Job openings fell again in April, hitting lowest level since February 2021 in a sign of labor market weakening

Job openings in April slipped to 8.06 million, down by nearly 300,000 from March and the lowest since February 2021. While job openings slid, hires moved slightly higher as did separations and quits.

Job openings fell more than forecast in April, signaling a potential weakening in the labor market that could provide the Federal Reserve more impetus to start lowering interest rates.

The Labor Department’s Job Openings and Labor Turnover Survey showed that the level of employment vacancies slipped to 8.06 million for the month, down by nearly 300,000 from March and nearly 19% lower than a year ago.

Moreover, the total marked the lowest since February 2021. The ratio of job openings to available workers edged down from 1.2 to 1, after being around 2 to 1 when openings peaked above 12 million in March 2022.

Fed officials watch the JOLTS report closely for signs of labor market slack as they look for direction on monetary policy. Policymakers have held benchmark interest rates at 23-year highs as they wait for more convincing evidence that inflation is progressing back to the central bank’s 2% goal. Market pricing is pointing towards an initial rate cut coming in September.

While job openings slid, hires moved slightly higher as did separations and quits, a sign of worker confidence in the ability to move to other positions.

By industry, information technology saw the biggest percentage drop in openings, down 1.3% for the month. Two industries that had been big job gainers, health care and leisure and hospitality, saw notable drops in openings, down 0.8% and 0.6%, respectively.

The report, from the Bureau of Labor Statistics, kicks off a big week of labor-related data.

On Wednesday, ADP will release its May estimate for private payrolls, with the Dow Jones estimate at 175,000 for May, down from 192,000 in April. Weekly jobless claims data will be reported on Thursday. Then on Friday, the BLS will release its pivotal May nonfarm payrolls report, which is expected to show growth of 190,000, after 175,000 the month before.

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Premier Miton shutters sustainable European fund after three years

The fund officially closed on 29 May after its assets under management had dwindled significantly, according to a spokesperson for Premier Miton. “We keep our fund range under constant review, to ensure our funds remain relevant and are positioned to deliver good value for investors,” the spokesperson said. “We took the decision to close the Premier Miton European Sustainable Leaders fund given its small size.” Premier Miton pre-tax profits plunge 75% despite AUM boost from acquisitions The fund was run by Carlos Moreno, Thomas Brown and Russell Champion, who will continue to ov…

TEMIT unveils enhanced buyback and tender offer to boost share demand

The measures include enhanced share buybacks, a five-year dividend commitment, a conditional tender offer and a phased cut to its management fees. TEMIT’s board has decided to repurchase up to 10% of the trust’s current net assets for up to £200m over the next 12 to 24 months, if its current discount to net asset value persists, as well as continue the programme at a “sustainable rate” thereafter. Templeton Emerging Markets appoints chair as Paul Manduca steps down Over the last five years, the trust has bought back 143.2 million shares for £218.2m. According to data from the As…

Franklin Templeton steps up wealth strategy with double hire for alternatives solutions team

Szemere, who previously led business development for alternatives, EMEA at Franklin Templeton, has been appointed as head of alternatives, EMEA, wealth management. He will lead a team focused on the distribution of private market solutions to the EMEA wealth channel, as well as strengthening the firm’s strategic partnerships. Prior to joining Franklin Templeton in July 2019, Szemere worked as a portfolio manager for alternatives at Columbia Threadneedle for over a decade before leading the liquid alternatives and strategic relations team for EMEA. Franklin Templeton rebrands Metaverse…

Charles Schwab brings US fractional share trading to UK investors

The Texas-based investment broker’s ‘Schwab Stock Slices’ will allow investors to own a part of a share of a listed S&P 500 company for as little as $5, even if the full share costs more. US labour market continues to show resilience with 303,000 jobs added in March Charles Schwab, which currently has 35.4 million active brokerage accounts, said the fractional trading will help to alleviate the barrier to entry associated with owning shares of large-cap stocks by making investing in them “more accessible”. It added that fractional shares “are rising in popularity among retail …

Corten Capital closes second fund at €680m 

London-based private equity firm Corten Capital has held the final close of Corten Capital II at €680m. The fund will focus on investments in business software, services and data companies across Europe and North America. 

Corten Capital I, the firm’s predecessor fund, is now substantially invested and will continue to build its portfolio companies Matrix42and Ekco, according to a press statement, which have seen significant growth and value creation since the firm invested in them in 2021 and 2022 respectively.

Carey Olsen Guernsey and Alter Domus, who also advised on the 2020 launch of Corten Capital I, advised Corten Capital on the fund structuring and launch.

JC Flowers & Co sells First Bank Romania

JC Flowers & Co, the New York-based private equity firm founded by former Goldman Sachs partner James Christopher Flowers and focusing on the financial services industry, has sold First Bank (Romania) to Italian banking group Intesa Sanpaolo. 

Terms of the transaction have not been disclosed.

JC Flowers acquired Piraeus Bank Romania from Greece’s Piraeus Bank in 2018, which was later renamed to First Bank. In 2019, First Bank acquired Bank Leumi.

First Bank and Intesa Sanpaolo Bank Romania will have total assets of approximately €3.2bn, serving more than 140,000 customers and employing over 1,500 people, according to a press statement.

Dr Ilinca Rosetti, an operating partner at JC Flowers, said that the firm had transformed First Bank’s operations through technology investments, the shedding of non-core assets and team improvements, describing the sale as creating a “top 10 bank in Romania”.

Clifford Chance Badea and Société Générale advised JC Flowers on the transaction.

The SBA is unveiling new credit lines of up to $5 million to fund small businesses

The U.S. Small Business Administration plans to unveil new government-backed credit lines of up to $5 million for small businesses, SBA Administrator Isabel Casillas Guzman told CNBC. The SBA is launching a working capital pilot program in the coming months that is designed to be more attractive to both lenders and borrowers than the agency’s existing products, Guzman said in a phone interview. The SBA’s new working capital lines will have an annual fee and interest rates based on the prime rate plus 3% to 6.5%, which would be roughly 12% to 15% today, according to the agency. Ira L. Black – Corbis | Corbis News | Getty Images

The U.S. Small Business Administration plans to unveil new government-backed credit lines of up to $5 million for small businesses, SBA Administrator Isabel Casillas Guzman told CNBC.

The SBA is launching a working capital pilot program in the coming months that is designed to be more attractive to both lenders and borrowers than the agency’s existing products, Guzman said in a phone interview.

“An ongoing challenge for small businesses who are trying to go after that contract, perhaps to help us rebuild infrastructure … or a manufacturing facility that’s trying to expand its orders, is being able to have working capital to deliver against that,” Guzman said.

The project is part of the SBA’s efforts to broaden its flagship lending program for American small businesses. Through its 7(a) loan program, the SBA provides guaranties to lenders to encourage them to extend loans to small business owners.

The program backed more than 57,000 loans worth $27.5 billion last year, a 7% increase from 2022; most of those loans were for less than $350,000.

Isabel Guzman, administrator of the U.S. Small Business Administration (SBA) nominee for U.S. President Joe Biden, is sworn in during a Senate Small Business and Entrepreneurship Committee confirmation hearing in Washington, D.C., on Wednesday, Feb. 3, 2021. Bill Leary | Bloomberg | Getty Images

But the SBA’s efforts to provide revolving lines of credit have had “less uptake” from lenders and business owners than the agency had hoped, Guzman said.

The agency’s SBA Express loan, for instance, offers credit lines of up to $500,000, but with a 50% guaranty, which made it less appealing to lenders, she

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American Discovery Capital closes second fund at $190m 

Lower middle market-focused private equity firm American Discovery Capital has held the final close of American Discovery Fund II at $190m in total capital commitments. 

ADC’s latest fund closed at more than three times its predecessor, American Discovery Fund I, which closed in 2019 and invested $60m across six portfolio companies and 17 add-on acquisitions.

ADF II received commitments from existing and new investors including wealth managers, family offices and high net worth individuals, over 17% of which came from ADC’s partners and employees.

According to a press statement, ADF II will continue to target companies in the business services and software sectors. ADF II has already closed three investments and is actively seeking new investment opportunities.

Kirkland & Ellis advised ADC.