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Economy

Economy

H&M to lay off 1,500 employees, applies worldwide but will not affect store employees, has closed 200 stores during the year

Quoth the Raven: Sam Bankman-Fried is still not in handcuffs despite everything pointing towards him committing fraud of 30 billion dollars, is being compared to Enron and Bernie Madoff, instead of being brought to justice now he will be questioned in congressional hearing in US in December, while The New York Times and The Washington Post write laudatory articles downplaying his responsibilities and Democrats and their friends in the media are clearly taking it easy on him despite their loathing of billionaires

Sam Bankman-Fried admits that the ethics were only a surface and feels guilty for those who are deceived by the stupid game of saying the right thing just to be liked that he says is played by woke westerners with whom he associates himself, regrets that he filed for bankruptcy for his crypto exchange FTX and says his goal is now to raise $8 billion within two weeks

Crypto exchange FTX's liquidity crisis and loss of confidence probably mean that the Democratic Party will miss out on further donations from founder Sam Bankman-Fried, 30, who was the party's second largest donor after Georg Soros, the company is threatened with bankruptcy, possible investigations by regulatory authorities and on Sunday, customers made withdrawals of USD 5 billion

Meta announces layoff of 11,000 employees, NBC News reviews posts that appear to be from recently fired employees including senior researcher Alex Leavitt, who uses the plural pronouns they/them and, according to LinkedIn, helped lead research on hate speech, misinformation and trust, who says that they might write a book after a trip abroad

India's central bank launches a pilot study of the e-rupee, allows nine banks to carry out interbank transactions with the digital currency, said to have the same value and legitimacy as a note or coin except that it does not take physical form, stresses that while the currency will be controlled by the central bank, it unlike cryptocurrencies which are decentralized and difficult to control

Croatia will adopt the euro on January 1, 2023, joined the EU nearly ten years ago, had an inflation rate of 13 percent in September compared to the euro zone's 10, the Croatian central bank's Ana Sabic says the currency provides resilience and claims that they now will have access to more favorable loan terms

Eurozone inflation reaches new record high of 10.7% in October, up from 9.9% in September, 41.9% increase in energy prices and 13.1% in food, alcohol and tobacco, Estonia worst hit with a 22.4% estimate and France least impacted with 7.1%

Egypt's central bank Governor Hassan Abdalla wants to break the peg against the US dollar, which has caused high interest rates, will let the Egyptian pound be valued against a basket of other currencies including gold, says the US is not a major trading partner and does not understand why people are so fixated on the dollar, the country's currency has lost 20 percent against the USD due to devaluation following capital flight as a result of the Ukraine war

Jan Nieuwenhuijs: European countries have been preparing for return to gold standard since the 70's by having an even distribution of gold reserves between them, in relation to GDP and to major economies outside, the US exerted pressure not to return, by threatening Germany to stand alone against the Soviet Union and instead the euro was created and they made sure to equalize the ownership in preparation and have continued to do so, the reset will happen when all major economies find themselves in an insurmountable crisis

The meat substitute company Beyond Meat cuts its workforce by 19%, 200 employees are to go, the turnover is 23% lower than last year and the stock is down 50% this year, that the product is still more expensive than meat, lentils and beans and that food prices are generally increasing can be reason for the loss of sales

Vacancy rate in San Francisco office market now 26%, higher than both during the 2008 financial crisis and the 2000 IT crash, was at 4% before the pandemic, the reason is believed to be work from home and business relocation from the city, which has problems with expensive living costs, homelessness and fentanyl addicts

British post office cash handling increases as bank offices close and living costs increase, government owned The Post Office says that cash is generally used to a lesser degree in August but handled record amounts this year, bank customers can today use post offices for basic banking services

Uncertainty around Credit Suisse finances has led to the price to insure against the bank failing to meet its debt has skyrocketed, the stock down 60% this year, in a staff memo CEO Ulrich Körner wrote the bank has a strong capital base and liquidity position

ECB chief Christine Lagarde says the bank will do what it has to do, which is to continue hiking interest rates in the next several meetings until the 2% target is met, says they have been surprised that the inflation during the post-pandemic economic recovery wasn't only transitory and that today's crisis has been more persistent and of a magnitude that nobody had expected, says the supply-driven European inflation is more complicated than the demand-driven US one as monetary policy in and of itself cannot reduce the price of gas nor stop the war

IMF criticizes the UK tax package containing the largest tax cuts in 50 years, warns that the proposal is likely to increase inequality and speed up the pace of price rises, asks the government to reevaluate especially the measures that benefit high income earners, former Brexit minister Lord Frost comments that the IMF has consistently advocated policies that have produced years of slow growth and weak productivity and adds that the only way forward for is lower taxes and spending restraint

Amazon is one of five companies selected by The European Central Bank to help develop a digital euro, the four others are CaixaBank, EPI, Worldline and Nexi

The 83-year old founder of the clothing company Patagonia, Yvon Chouinard, and his family gives away their ownership to a non-profit organization founded to ensure that all of the yearly profit are used to combat climate change and protect undeveloped land, the successful entrepreneur hopes this will influence a new form of capitalism that doesn't end up with a few rich people and a bunch of poor people

Argentina's central bank hikes the benchmark interest rate 550 basis points to 75% the day after inflation overshot forecasts to near 80% on an annual basis, the hike follows a 950 basis points-raise in August

Scania announces far-reaching measures to decarbonise its supply chain by 2030, aims for 100% green batteries, 100% green steel, 100% green aluminium and 100% green cast iron in its production, Head of Sustainability Andreas Follér says that the company once again leads the way in ambitious climate action in the same way they were the first in the industry to adopt science based carbon reduction targets

Inflation in the Netherlands hits record high of 12% in August, the former record since 1963 when the government's statistics agency CBS started compiling records was 11.1% set in January 1975

Snapchat to lay off 20% of its 6,400 employees, team developing ways to build mini games and apps as well as the AR hardware team and the social mapping team to see deep cuts

European Central Bank raises key interest rates 0.5 percentage points and says furter hikes are to be expected after consumer prices in the eurozone rose at an 8.6% annual pace in June, first raise in 11 years

Tesla sells 75% of its bitcoin after its second-quarter profit falls 32% compared to the first record quarter, Elon Musk says the sell-off is not to be taken as some verdict of bitcoin and that they have not sold any of their dogecoin

UK consumer price index rises 9.4% annually in June to 40-year high, up from 9.1% in May, motor fuels soaring 42.3% on the year which is the highest rate ever since the series' construction in 1989, Bank of England Governor Andrew Bailey says there will be no ifs or buts regarding the Bank's commitment to return to the 2% target and that the current situation emphatically does not mean that the regime has failed

EUR reaches parity with USD for the first time in 20 years, 1 EUR was worth 1.13 USD in February, signals the market's assumption that the European economy is heading for a deep recession

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