Category: Economics and Finance

Shopyfy lays off 10 percent of its workforceE
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July 27, 2022

E-Commerce Giant Shopify Will Lay Off 10% Of Its Workforce!

According to a WSJ report, the Ottawa-based NYSE-listed e-commerce provider Shopify is laying off roughly 1,000 workers, or 10% of its global workforce. Tobi Lütke, the company’s founder and CEO, informed staff in a memo that the layoffs are necessary as consumers resume old shopping habits and pull back on the online orders that fueled the company’s recent growth. Shopify has warned that it expects revenue growth to slow this year.
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Evergrande Group CEO and CFO resigned over loan schemeC
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July 23, 2022

Chinese Troubles! China Evergrande CEO and CFO Resigned Over Suspicious Loan Scheme!

China Evergrande, the embattled Chinese real estate developer, announced that its CEO Xia Haijun and its CFO Pan Darong had resigned. The company struggled to manage its crushing $300 billion debt and defaulted in December. China Evergrande said it had asked its CEO, CFO, and another executive to resign over their involvement in a loan scheme to funnel $2 billion into Evergrande’s coffers via subsidiaries and third parties.
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Elon Musk allegedly selling SpaceX shares to finance Twitter dealA
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July 23, 2022

Amid The Elon Musk Court Battle Twitter Reports Declining Revenues And Net Loss!

Twitter reported a surprising decline in revenue that the social-media company blamed on advertising weakness and uncertainty related to its pending $44 billion acquisition by Elon Musk. The company's revenue fell to $1.18 billion from $1.19 billion a year ago and was below the average analyst estimate of $1.32 billion. It was Twitter’s biggest revenue miss ever. Despite the disappointing numbers, Twitter shares rose around 1% to close at $39.94 Friday.
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UK inflation hits 9.4 percent and keeps growingI
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July 20, 2022

Inflation Outlook Remains Grim – the UK Hits 9.4%, a New 40-Year High And Keeps Going!

The U.K.’s Office for National Statistics said consumer prices were 9.4% higher in June than a year earlier, the highest rate of inflation since 1982 and a pickup from 9.1% in May. Rising petrol and diesel prices for motorists and dearer food pushed Britain’s annual inflation rate, which stood at 2.5% in June 2021 and has now risen for nine months in a row. The Bank of England expects it to peak at above 11%, setting the UK at the top of the inflation rate race.
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Elon Musk versus Twitter explained on FinTelegramT
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July 20, 2022

Twitter vs Elon Musk Trial Scheduled for October!

Twitter won the first legal battle against Elon Musk on Tuesday. Chancellor Kathaleen St. Jude McCormick, the chief judge of the Delaware Chancery Court, ordered a five-day trial in October over whether the billionaire is forced to complete his $44 billion acquisition. Musk had agreed to buy Twitter in April but terminated the deal in early July. Consequently, Twitter sued Musk and sought to expedite the case by requesting a trial in September, which Musk had countered by asking for a trial in February.
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Singapore MAS reports 7.4 billion lossS
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July 19, 2022

Singapore Regulator Posted A Net Loss Of $7.4 Billion!

The Monetary Authority of Singapore (MAS) announced a net loss of $7.4 billion for the financial year ended March 31, 2022. It was the first loss in nine years due to lower investment gains, a large negative foreign exchange translation effect, and higher interest expenses. As a result of the loss, MAS did not contribute to Singapore's consolidated fund, out of which government expenditure is made, for the financial year. It contributed $1.07 billion in fiscal 2021 and $2.17 billion in 2020.
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Strong dollar and the new US dominanceN
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July 19, 2022

New U.S. Dominance – Strong Dollar Is A Heavy Burden On World Economy!

The value of the U.S. dollar is the strongest in decades, devaluing currencies worldwide and unsettling the outlook for the global economy as it upends everything from the cost of a vacation abroad to the profitability of multinational companies. The dollar is one side of about 90% of all forex transactions, accounting for $6 trillion in daily activity. Analysts estimate that more than half the rise in the dollar this year could be explained by the Fed’s comparatively aggressive interest rate policy.
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JPMorgan issues Q2 reportJ
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July 15, 2022

JPMorgan Chase Sees Economic Hurricane But Not Necessarily A Recession!

The banks' reporting season has begun in the US and the experts hope to obtain indications of the development of the economy. The Q2 profits at JPMorgan Chase, the largest US bank, fell 28% from a year earlier, but the institution's experts are seeing few signs of a recession. While customers are still spending and businesses are still borrowing, investment-banking revenue fell sharply. The JPMorgan report suggests that more uncertainties than normal would drag down big corporate activity such as mergers and acquisitions.
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US inflation hit new record with 9.1 per centU
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July 14, 2022

US Inflation With 9.1% Worse Than Forecasted!

Experts had forecast U.S. inflation of 8.8% for June 2022. In fact, however, the figure was significantly higher, thanks to higher gasoline prices. U.S. consumer inflation accelerated to 9.1% in June, the highest number in more than four decades, adding pressure on the Federal Reserve to act more aggressively to raise the interest rates. The consumer-price index’s advance for the 12 months ended in June was the fastest pace since November 1981.
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US inflation hits new levelsR
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July 13, 2022

Record-Setting Inflation And Pretty Serious Recession Fears!

U.S. inflation is estimated to have reached a new four-decade high in June, but there are signs of moderating price pressures. According to WSJ, the U.S. consumer-price index is expected to have increased 8.8% in June from the same month a year ago. That would be higher than May’s annual rate of 8.6%. However, fears of an economic slowdown have led to a decline in commodity prices in recent weeks, including oil, copper, wheat, and corn, after those prices rose sharply following the Russian invasion of Ukraine.
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US Fed raises interest ratesN
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June 16, 2022

No Soft Landing! U.S. Fed Raises Rates by 0.75 Percentage Point In Largest Increase Since 1994!

The U.S. Fed announced the largest interest-rate increase since 1994 and signaled it would continue lifting rates this year to fight inflation that is running at a 40-year high. Fed Chair Jerome Powell indicates that the economy may go into recession without a soft landing. Officials agreed to a 0.75-percentage-point rate rise, which will increase the Fed’s benchmark federal-funds rate to a range between 1.5% and 1.75%. It is expected that the Fed may raise rates to at least 3% this year.
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