Economy | Corax



200 Danish mechanics join the SAS pilots' strike, SAS says they will try and get their planes serviced in other countries but that it is clear that the strike will hurt them regarding the planes currently on the ground in need of regular maintenance

SAS announces that it has filed for Chapter 11 bankruptcy protection in the US after the pilot strike, says it has sufficient liquidity to meet near term business obligations but that the strike hurts its position, comments that it has reduced costs, met with potential investors and engaged actively with multiple stakeholders to improve its overall financial strength

Turkish inflation soars to 78.6% year-on-year according to official data, highest rate since January 1998, up from 73.5% in May, Economy Minister Nureddin Nebati promises the people and President Erdoğan that there will be a drop in inflation starting in December

Pakistan's Stock Exchange sinks by 4.8% in 22 minutes after Prime Minister Shehbaz Sharif announced a new 10% super tax on large-scale industries, the move aimed at tackling spiralling inflation and saving the country from going bankrupt, high net worth individuals also to be subject to what is referred to as a poverty alleviation tax

Kraken urges employees to quit if they don't agree with the company's libertarian values, offers four months' worth of wages to those affected, founder Jesse Powell makes announcement after time-consuming internal debates about gender and race initiated by woke activists

US inflation 8.6% year-on-year in May, highest increase since December 1981 and higher than the 8.3% Dow Jones estimate, real wages decline 0.6% from April and 3% on a 12-month basis, Joe Biden says he will push for further improvements to supply chains and continue efforts to bring down the budget deficit, the Biden administration has largely denied that the trillions of dollars directed toward Covid aid played a major role

CEO Elon Musk plans to cut 10% of Tesla staff and pause all hiring worldwide due to "super bad feeling" about the economy, according to email to executives seen by Reuters, Musk's economic woes echoes recent comments from executives including JPMorgan CEO Jamie Dimon and Goldman Sachs President John Waldron

73.5% year-on-year inflation in Turkey for May with 91.6% rise in food prices, highest in 23 years, analysts expect inflation trajectory to only worsen

Record high 8.1% yearly inflation in the eurozone during May, up from April’s record 7.4% and above the 7.8% expectations, energy costs up 39.2% and food, alcohol and tobacco prices up 7.5%

69.97% year-over-year inflation in Turkey in April according to official data, largest increase since 2002, President Erdoğan criticized for his economic policies of fighting inflation by lowering interest rates to lower borrowing costs, Erdoğan says inflation will begin to recede as of May and reach a more favorable direction at the end of the year

Turkey's inflation hits 20-year high of 54%, up from 49% in January, Erdoğan vows to lower inflation to single digits by keeping interest rates low

Akamai acquires platform provider pioneer Linode for USD 900 million, Akamai CEO and co-founder Dr. Tom Leighton says the company is excited o begin a new chapter by creating a unique cloud platform to build, run and secure applications from the cloud to the edge

Cameco plans to restart the McArthur River uranium mine and the Key Lake mill in Saskatchewan this year, estimates reaching 60% of capacity and producing 15 million pounds of uranium annually by 2024

Peter Thiel leaves the Meta board after nearly two decades, will reportedly focus more on his political causes including senate bids by his two republican proteges Blake Masters and JD Vance

Operating mines in the US generated USD 90.4 billion in mineral commodities in 2021, 12% increase year-over-year, according to US Geological Survey annual report

Dogecoin soars nearly 20 percent after Elon Musk tweets that Tesla will accept the cryptocurrency for the purchase of some undefined merchandise

Turkish lira down around 15% to USD during Tuesday after President Recep Tayyip Erdoğan defended his central bank's continued interest rate cuts amid 20% inflation, Erdoğan has fired three central bank chiefs in roughly two years over policy differences where the president insists that raising rates worsens inflation

Discount store Dollar Tree hikes its prices from USD 1 to USD 1.25 on the majority of its products, sold products at USD 1 for 35 years and was the last of the US major dollar store chains to actually be a dollar store, says the decision is unrelated to short-term inflation

U.S. inflation rate rises to 13-year high of 5.4%, higher food and shelter prices for make up half of the overall increase and energy costs rising 25% constitute the biggest individual category increase

Royal Dutch Shell is acquiring ubitricity the owner of the UK’s largest public electric vehicle charging network, for an undisclosed amount marking the oil giant's expansion into the fast-growing on-street EV charging market

Idaho legislators introduce House Bill 7 allowing state funds to be held in physical gold and silver to help secure state assets against the risks of inflation and financial turmoil, South Carolina and Wyoming are considering similar measures

Record sales of Christmas trees in Australia leads to tree farms closing earlier than planned, four-year production cycles cause difficulties balancing supply and demand when sales peak

Hertz pays 340 employees USD 16.2 million in retention bonuses before filing for Chapter 11 bankruptcy with USD 19 billion in debt, has furloughed or laid off half its work force, stock price down 97% since late February

Scandinavian airline SAS signs SEK 3.3 billion three-year revolving credit facility agreement where 90% is guaranteed by the Swedish and Danish states approved by the European Commission, the company says it will further its dialogue with the Norwegian government regarding NOK 1.7 billion state guaranteed funding and that it will seek additional governmental support to ensure its providing of critical Scandinavian airline infrastructure

Boeing pulls out of Embraer merger talks, saying the Brazilian plane maker has not met conditions needed to complete USD 4.2 billion civil aerospace tie-up deal

Japan decides on USD 930 cash handout for every citizen to lessen the economic Covid-19 blow, originally planned on giving 300,000 yen to qualified households that had lost income but changed that as the payments were seen as too complicated and too small

Bill Gates resigns from boards of Microsoft and Berkshire Hathaway, states intention to focus more on philantropic efforts, remains involved in Microsoft which he founded 45 years ago and where he remains a top shareholder with 1.36% of shares

Bank of England bid to thwart Covid-19 recession drives Euro Zone banks index .SX7E 1.5% higher by kindling hope of ECB following suit, precarious 6% gain dashed as U.S. stock market opens sharply lower, British minister of finance say he will do "whatever it takes" to protect the UK economy, BoE gives UK banks provisional leave to tap capital reserves

Federal Reserve takes flak from President Trump for not cranking out the stimulus necessary to thwart looming Coronavirus downturn, insists the US take a leaf out of Europe's playbook and set the "lowest rates in the world"

Scheming bureaucrats flock to G20 to hatch new strategy for mulcting Big Tech, issued communique projects proposed legislation will yield governments worldwide an additional $100 billion dollars in tax revenue, rules will prohibit tech companies from secreting revenue in tax-havens, taxes must be paid locally and not where subsidiaries are registered, "There is no time to wait for elections" intones German Finance Minister Olaf Scholz

Wuhan disease primary uncertainty for world economy according to IMF chief Kristalina Georgieva, companies including Apple has warned investors about reduced demand and supply chain interruptions, comparisons with SARS must take into account that China's share of world economy is now twice as large

General Motors clubs egress from Thai, New Zealand and Australian markets, GM scrambles to cut losses to recoup 200 million USD shortfall in all Australasian branches, board plans sale of Thai Rayong factory to Chinese Great Wall Motors by end of 2020, spokesman for Thailand's Ministry of Industry Krichanont Iyapunya says the "Detroit of Asia" will take sale in its stride since plant openings and closures are part and parcel of an "adaptive automobile industry", Australia's minister for Industry Karen Andrews grieves expected job losses

Security guards decrease risk of bank robberies but increase risk in nearby banks without guards, according to study of all Italian bank robberies in ten year period, researches suggest more guards beneficial in urban markets but less might be better in rural ones

Makers of psychedelic pharmaceuticals plans public offering, Mind Medicine Inc has developed analogue of ibogaine and is one of several companies investing in therapeutic potential of illegal substances including psilocybin, ketamine and MDMA

DNA-testing market doldrum prompts industry leader Ancestry to lay off 6% of workforce, market saturated by early adopters who ordered tests during 2018 boom, detailed genetic health reports and next-generation gene sequencing define new long-term strategy

137 countries agree to negotiate global system for digital services and for companies selling directly to end consumers, full deal planned for end of 2020, avoiding trade war claimed as reason

Swedish bank Swedbank's election committee proposes replacing half of the board members but re-electing former PM Göran Persson as chairman, the bank has lost a third of its market value over the past 15 months after a money laundering scandal

Goldman Sachs announces non-diverse companies looking to make an IPO will have to take their business elsewhere, companies will be required to have at least two either female or ethnically non-white board members to be considered, policy will not apply to Asian customers

European stock markets recover after worst recorded slump in four months, STOXX 600 index rebounds with 0.3% uptick

23andMe lays off 100 people after declining DNA-testing sales, CEO Anne Wojcicki says she's surprised by the market turn but says privacy could be a factor after a competing company shared DNA data with authorities in the Golden State Killer case

Department store Beales with 1,000 employees collapses into administration after failing to find a buyer or new investments, one of Britain’s oldest chain stores began trading in Bournemouth in 1881 and has 23 shops

Former Nissan boss Carlos Ghosn flees Japan where he faces trial over allegations of financial misconduct, claims he left for Lebanon to escape injustice, was released on bail in April under conditions barring him from travelling abroad and his legal team still has his passport

178-year-old holiday firm Thomas Cook collapses, over 150 000 British holidaymakers to be repatriated by the government who will also cover any extra accommodation cost, a total of 600 000 customers could be affected

Germany's GDP falls by 0.1% compared with previous quarter, takes annual growth rate down to 0.4%

Jyske Bank in Denmark offering customers 10-year mortgages at -0.5% interest rate, Nordea already offers 20-year mortgage with 0% interest, reflects the uncertainty in world economy and investors' fear of a crash in the near future which is why they rather take a small loss in the long run

US Department of the Treasury designates China as currency manipulator, Secretary Steven Mnuchin to engage with the International Monetary Fund to eliminate the unfair competitive advantage created by China’s latest actions

US Federal Reserve lowers interest rates by 0.25% to 2.00% and signals readiness for further cuts, first rate cut since 2008

Iran's government approves plan to remove four zeroes from currency and rename it "toman" to simplify transactions, current rial trades at around 42,000 to the USD officially and 120,000 on the street, parliament to give final approval

Boeing takes USD 4.9 billion hit to compensate its customers for 737 Max aircraft schedule disruptions and aircraft delivery delays, says it hopes aircraft will return to service in fourth quarter of 2019, FAA says it follows a process, rather than a prescribed timeline, still Boeing's share price rose 4%

Donald Trump orders investigation into France's planned tax targeting companies based abroad offering digital services in the country, US say the 3% tax based on revenue generated in the country is clearly protectionist and unfairly targets American companies, effects companies with revenue over EUR 750 million of which EUR 25 million generated in France

Democracies on track to lose global economic dominance, within five years autocratic countries will account for more than half of global income after learning to combine autocratic rule with market-friendly institutions, according to political scientists Roberto Stefan Foa and Yascha Mounk

Amazon, Microsoft, Google, Dell and HP plan moving production from China to other Asian countries, according to Nikkei Asian Review sources, follows US-China trade war with increased tariffs on Chinese imports to US

Adidas unable to trademark three parallel equidistant stripes of identical width according to ruling in the General Court of the EU, the company could only prove the symbol's distinctive character in five EU countries [pdf]

Cars with advanced driver-assistance systems which reduce risk of crashes does not reduce cost of car insurance, instead it often drives premiums up as repairs are more expensive, this could change in the future when insurers have collected more data

Families in Japan needs savings of JPY 20 million (USD 184,000) in addition to pension benefits to cover living expenses after retirement, government agency FSA report says, Finance Minister Taro Aso says he won't accept the report as it differs from LDP policy position and could cause trouble to party candidates in upcoming elections

AT&T to accept online payments in cryptocurrency using the BitPay service, not immediately clear which cryptocurrencies are accepted

Softbank reportedly planning IPO for its USD 100 billion investment fund, is also said to be mulling launching second fund of at least same size, aims to further increase investment in startups developing cutting-edge technologies

Investors Warren Buffett and Charlie Munger says partnership between Coca-Cola Opens and the legal cannabis industry would be a serious problem, as Coca-Cola has a wholesome image and cannabis doesn’t, the soft drink manuafacturer says it has no plans partnering with cannabis companies although its competitors explore drinks infused with cannabidiol

Amazon's automated tracking and termination process fired hundreds of employees at single facility between August of 2017 and September 2018 for failing to meet productivity quotas, leaked documents suggest, assuming a steady rate, Amazon fires 10 percent of its staff annually, solely for productivity reasons

Amazon in discussions with music rights holders regarding licensing deals for high-resolution streaming of their tracks, goal to secure enough music to launch new service by end of 2019 at a cost of USD 15 per month, similar services available at USD 20 per month

Private landlords in England will no longer be able to evict tenants after their fixed-term tenancy period ends, government says it wants to protect renters from unethical landlords and an organisation representing tenants calls it a vital first step to ending profiteering from housing

Alibaba owned online healthcare platform Xiang Hu Bao provides basic health plan where participants share each other's medical expenses, costs capped at USD 28 per month, covers 100 illnesses and has reached 50 million users since its launch in October, anyone with Alipay app credit score of 600 can join

Donald Trump calls on Federal Reserve to open monetary floodgates to turn world’s largest economy into "rocket ship", says they should drop interest rates and asks for quantitative easing

Jean-Claude Juncker says he is slightly worried about state of Italian economy, urges government to do more to boost growth, compromise deal from 2018 allows Italy to borrow more than initially envisaged, based on 2019 growth projection of one percent which now is overly optimistic, Juncker adds

Swedish Economic Crime Authority raids Swedbank's Stockholm headquarters, search in relation to ongoing investigation into whether the bank breached insider trading regulations, no individual yet served with a suspicion of a crime

McDonald’s will no longer lobby against minimum wage hikes, believes that all industries should be treated the same way, the company and its franchisees have an average starting wage exceeding USD 10 per hour, could boost House Democrats and their efforts to raise the minimum wage to USD 15 per hour

Uber confirms acquisition of Middle East ride-hailing service Careem for USD 3.1 billion, Dubai-based Careem claims more than 30 million users and 1 million drivers spread across 14 markets, following similar growth model as Uber, using underlying transport network infrastructure to expand into related services, including food and pharmaceutical deliveries

American Airlines extends Boeing 737 MAX flight cancellations through April 24, Boeing Co expected to disclose planned upgrade to its anti-stall system to the FAA in the near future

BMW and Mercedes-Benz lower their prices in China as government reduces VAT, tax in manufacturing sector set to drop from 16% to 13% and in transport sector from 10% to 9%, China's car market shrank 5.8% in 2018

American Federal Aviation Administration will not ground the Boeing 737 Max aircraft, says a review showed "no systemic performance issues" with the aircraft, Ted Cruz and Elizabeth Warren among politicians who believes it would be prudent for the US to temporarily ground the airliner

EU aviation authority suspends all flight operations of Boeing 737 Max 8 and 737 Max 9 in Europe, joining many other countries in response to two fatal aircraft accidents involving the 737 Max 8 in less than five months

US backs French push for minimum corporate tax rate for developed countries worldwide to avoid "chase to the bottom on taxation", does not agree with digital tax proposal as scope needs to be "broader than just digital" to minimize tax avoidance, according to US Treasury Secretary Steven Mnuchin

Warren Buffett still believes in long-term success due to "American tailwind" in letter to shareholders, predicts continued high stock prices in 2019 [pdf]

Russia's black market equal to 20% of 2018 GDP, value up from RUB 18.9 to 20.7 trillion equivalent to USD 316 billion, 15 million Russians works off the books according to the Rosfinmonitoring state financial watchdog

Payless ShoeSource plans to close all 2,300 stores when filing for bankruptcy, large effects on Montgomery County where the company employs hundreds at a Brookville distribution center, a string of bankruptcies have already claimed thousands of US retailers this year

Airbus cancels A380 superjumbo program and announces final delivery in 2021, key customer Emirates Airlines opted for order of smaller A350 and A330neo aircraft after fleet review, raises speculation of the end of 4-engine commercial aircraft in favor of lighter 2-engine long-haul aircraft

US central bankers debate whether it should confine its controversial tool of bond buying to purely emergency situations or if it should turn to that tool more regularly

Tesla terminated 150 of 230 people on product delivery team in January, the company has repeatedly missed forecasts for sales of its low-priced Model 3, former workers question the true customer demand for the product in North America even before a large tax credit expired at year’s end

Spotify acquires podcast producer and network Gimlet Media for USD 230 million and startup Anchor, which makes it easier to record and distribute podcasts, expects to spend up to USD 500 million total on acquisitions this year in strategy to move into the content creation business

Video game giant Electronic Arts reports disappointing sales on Battlefield franchise, shares fall 18% after the company reported 1 million fewer unit sales than forecast, executives blamed the game's lack of a battle-royale mode and single-player focus in a competitive environment marked by free-to-play cooperative models

Canadian crypto exchange QuadrigaCX loses access to USD 190 million of customer funds, founder Gerald Cotten died of Crohn's Disease in India in December 2018 and was the only team member with password access

World Gold Council reports 74% increase in YoY 2018 central bank gold purchases, 651.6 ton increase largest globally since 1971 and led by Russian "de-dollarization"

Report published by PlainSite claims Facebook has regularly been lying about company's user metrics, fake accounts could exceed 50% of its network resulting in customers’ advertisements not reaching real users

Union membership among American workers continues to shrink in all demographic groups, ongoing trend since the 1980s, total participation down to 10.5 percent, 6.4 percent in private-sector, education services, manufacturing and entertainment see reverse trend

EU fines Mastercard EUR 570 million for limiting competition by preventing retailers from looking for better card payment terms, amount reduced by 10 percent due to the company's cooperation

British Pound rises as parliament voted to reject Theresa May's Brexit deal, some investors see chances of a delay in Article 50, a second referendum or no Brexit at all, have all increased

University of Cambridge economic study shows gamblers predicted Brexit hour before financial markets, the results support the belief that "prediction markets" are better forecasters of future events than investor actions, suggests a valuable arbitrage opportunity exists between prediction market outcomes and financial markets

Elon Musk breaks ground on USD 5 billion "Gigafactory" near Shanghai, seeks to avoid tariffs on Chinese sales of Model 3 and Model Y vehicles

Iranian central bank renews plan to reduce currency denominations after 60% collapse in rial value, US sanctions and oil price fluctuations caused havoc in Iranian economy in 2018

Chinese central bank increases gold reserves 0.5% in 2018, total reserves now listed at 59.56 million ounces after 2-year purchasing hiatus

Russia considers doubling imports of Turkish tomatoes to 100,000 tons per year

Universal basic income suffers setbacks in 2018, programs in Finland and Ontario shuts down while experiment by tech incubator Y Combinator is delayed, high costs, potential to shrink the labor force and causing the poorest in society to lose out cited concerns

Apple begins assembling its top-end iPhones in India through the local unit of Taiwanese Foxconn in 2019, widening assembly beyond China is critical to Apple to mitigate the risks of the Sino-U.S. trade war, will boost Prime Minister Narendra Modi’s flagship drive to make India a manufacturing hub

Federal Reserve Bank announces 0.25% increase in benchmark interest rate to 2.5%, the move represents a continuation of the rate increase trend begun in December 2015

British fintech start-up Revolut has secured a European banking licence, enables them to launch current account and consumer lending operation across the continent next year, company valued over USD 2 billion and claims to be signing up 8,000 customers daily

US-China tariff dispute creates soybean middleman opportunity in Argentina, one of the world's largest soybean exporter is selling to China while importing US soybeans for its massive crushing industry

Frankfurt HQ of Germany's largest bank raided in money laundering investigation, Deutsch Bank has been under suspicion since 2016 revelations in "Panama Papers" leak

The Euro needs a budget according to Mario Draghi, envisions a system similar to the US, where federal spending can continue unimpeded also during times of local state-budget cuts, emphasizes that the system should be designed to not encourage frivolous behavior among member states

Carlos Goshn investigation widens, loss of 15 million USD from private investments transferred to Nissan

Bitcoin hits 13-month price low at USD 5,173.23, ethereum and XRP also joined BTC in an ongoing fall in price