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1. European Central Bank makes fourth rate cut of 2024
The European Central Bank made its fourth — and final — interest rate cut of the year Thursday, moving its key rate down a quarter of a percentage point to 3%, CNBC reports.
The ECB also also lowered its inflation forecasts for both full-year 2024 — down to 2.4% from 2.5% — and 2025 — down to 2.1% from 2.2%.
"The disinflation process is well on track,” the central bank said in a statement.
2. LA approves minimum wage hike for tourism workers
The Los Angeles City Council voted in favor of an increase to the minimum wage for both hotel and airport workers Wednesday, the Los Angeles Times reports. The new regulations will increase wages for tourism workers to a floor of $30 an hour by the time the 2028 Summer Olympics start in the city.
“When we support low-wage workers, they can contribute to our economy and bolster the city,” Councilmember Ysabel Jurado said.
The newspaper reports the push for higher wages was championed by two unions: Unite Here Local 11 and United Service Workers West.
3. The growth of franchising in Australia
Australia is seeing a massive jump in hotel franchising, HNN contributor Tamara Thiessen reports, with Deloitte noting it's expected to become the "preferred operating model for most international brand affiliations."
“We have seen steady and tremendous growth in franchises over the past decade, particularly in regional hotels” outside Australia's major cities, said Adrian Williams, Accor’s chief operating officer of premium, midscale and economy for the Asia-Pacific region.
4. Approval for hotel in Central California sparks controversy
SFGate reports the approval of a new 250-room luxury hotel in Santa Barbara has sparked some anger in that Central California city, as local residents say the city should be prioritizing housing.
One council member who voted, Eric Friedman, said any housing in the popular neighborhood where it's located — the Funk Zone — would not live up to the city's housing needs.
“We’re under intense pressure under state mandates,” he said. “But everyone also knows that the mandates that are coming down from Sacramento aren’t giving us the kind of housing we want, which is affordable.”
5. Economists surprised by jump in US jobless claims
The latest data from the Labor Department saw seasonally adjusted unemployment claims increased by 17,000 to 242,000 for the week ending Dec. 7, and Reuters noted that came in higher than economists' projections of 220,000.
"Last's week jump in claims likely reflected volatility after the Thanksgiving holiday and likely does not mark an abrupt shift in labor market conditions," the news agency reports. "Claims are likely to remain volatile in the weeks ahead, which could make it difficult to get a clear read of the labor market. Through the volatility, the labor market is slowing."