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The United States and China reached an agreement over the weekend to lower the tariff rates recently imposed on each other and suspend some additional tariffs for 90 days.
Data released by the U.S. Department of Labor on May 8 showed that initial jobless claims for the week ending May 3 fell to 228,000, down from 241,000 the previous week; continuing claims also dropped to 1.88 million. Despite the Trump administration imposing a 10% baseline tariff on most trading partners and a 145% tariff on Chinese goods since April 2, and warnings of economic risks from Federal Reserve Chair Powell and multiple institutions, employment data still showed market resilience. Powell stated that the labor market is near full employment, with the April unemployment rate at 4.2%, and emphasized that policy will be assessed based on overall labor data. A New York Fed survey showed that household expectations for the job market deteriorated in April, with the average probability of a rising unemployment rate hitting a new high since April 2020.
PwC laid off about 1,500 US employees this week, representing 2% of its total US workforce, affecting audit and tax lines. The company attributed the move to an attrition rate at a 'historic low' for several consecutive years and emphasized it is unrelated to AI. Previously, PwC had cut 1,800 positions in September, mainly impacting consulting, product, and technology teams.
At its May meeting, the Federal Reserve held the benchmark interest rate unchanged in the 4.25%-4.5% range and warned of rising inflation and unemployment risks, with heightened uncertainty in the economic outlook.
Vodafone Group announced that Chief Financial Officer Luca Mucic will leave by early 2026 at the latest to become CEO of German real estate group Vonovia. Vodafone has started the search for a successor, with Mucic having led the company's capital allocation adjustments and operational optimization during his tenure. Vonovia's supervisory board has unanimously approved the appointment, and its current CEO Rolf Buch will step down at the turn of 2025/2026.
Deloitte's latest survey shows that a shortage of finance and accounting talent is driving CFOs to play a larger role in recruitment. 34% of finance leaders say they have expanded their involvement in hiring, and 35% are supplementing their workforce through cross-departmental secondments and external staffing agencies. 79% of CFOs plan to use generative AI over the next two years to close skills gaps, but employees show resistance to new technology. Additionally, 44% of CFOs are concerned about increased workloads for existing staff, 42% worry about weakened institutional investor confidence, and 41% are concerned about declining board trust.
Chicago agricultural giant ADM stated in an earnings call that, affected by the current market environment, 2025 earnings are expected to be at the lower end of its previously provided adjusted earnings guidance of $4 to $4.75 per share. CFO Monish Patolawala said that due to tariff policy and macroeconomic uncertainty, the company will only provide full-year directional guidance and will no longer provide quarterly segment operating guidance. The company is addressing headwinds through cost cuts, inventory optimization, and enhanced collections, and reiterated its commitment to remediating internal controls over financial reporting.
The ESG regulatory environment is evolving rapidly, with varying requirements across U.S. states and continuously updating international standards, putting mounting pressure on CFOs and finance teams. Based on guest insights from Jack Reagan, Managing Director at UHY, this article proposes that internal audit should focus on three key questions: clarifying the existing ESG strategy and risk landscape, defining governance expectations and culture, and developing systematic risk mitigation strategies, in order to build rigorous internal audit capabilities and pave the way for long-term ESG reporting success.
Amazon Chief Financial Officer Brian Olsavsky said during the May 1 earnings call that the company is closely monitoring the macroeconomic environment, including the impact of tariffs, and is taking multiple measures to protect the customer experience and maintain low prices. Although first-quarter net sales rose 9% year-over-year to $155.7 billion, uncertainty stemming from the Trump administration's tariff policies has cast a shadow over the second-quarter outlook.
The latest data from the Institute for Supply Management (ISM) shows that U.S. services sector activity expanded for the 10th consecutive month in April, despite drags from tariff impacts and federal budget cuts. The ISM services index rose to 51.6%, up 0.8 percentage points from March, with the price index hitting its highest level since January 2023. Respondents cited more concrete pricing effects of tariffs rather than uncertainty. Meanwhile, Trump announced a 100% tariff on films shot overseas, drawing industry attention.