Its The Economy, Stupid - Economic & Business News From Around The World

[Fwiffo]

Yahoo to lay off 20% of staff by year-end, beginning this week

The layoffs are part of a broader effort by the company to streamline operations in Yahoo’s advertising unit.

www.nbcnews.com

Plenty of restaurant and bar jobs based on the latest employment report.

 

[Fwiffo]

January inflation hits 6.4%, missing analysts' expectations for a faster slowdown

As January consumer price data is released, economists see the U.S. central bank sticking to its plan to keep raising interest rates for now.

www.nbcnews.com

Rates have to go up. Unemployment needs to hit 4.5%. Mortgages 10%. Up, up, up.

 

[Fwiffo]

Sandwich chain Subway explores sale of business

The company is facing rising costs and increasing competition from rival fast food companies.

www.bbc.com

Once the darling of franchises.

"Earlier this month, the company announced its second year in a row of record sales. Subway said same-store sales rose 9.2% last year, compared to 2021."

Run before it collapses.

 

[Grand Potentate]

Americans are drowning in credit card debt thanks to inflation and soaring interest rates

As Americans' credit card balances soared at the end of 2022, delinquencies started to creep up as well.

finance.yahoo.com

 

[Grand Potentate]

Millions of Americans nearing retirement age with no savings

According to U.S. Census Bureau data, 50% of women and 47% of men between the ages of 55 and 66 have no retirement savings.

www.cbsnews.com

 

[Fwiffo]

Millions of Americans nearing retirement age with no savings

According to U.S. Census Bureau data, 50% of women and 47% of men between the ages of 55 and 66 have no retirement savings.

www.cbsnews.com

Works better if people keep working and generating money for the social safety net (...that they aren't using).

 

[Grand Potentate]

 

[Fwiffo]

Regulators shut down Silicon Valley Bank in the second-largest U.S. bank failure ever

The FDIC took over the lender — the 16th largest U.S. bank and a tech industry favorite — after a run on deposits and concerns about a broader crisis that led investors to dump other bank stocks.

www.nbcnews.com

Great Recession all over again? It's another bank run.

 

[Fwiffo]

After SVB failure, regulators close crypto-friendly bank Signature Bank

Signature Bank is the second casualty of the ongoing banking crisis in the U.S. The New York-based financial institution stopped operating abruptly on Sunday — customers will be made whole. Regulators said that Signature Bank also caused a systemic risk and could threaten the U.S. banking...

news.yahoo.com

Fears Silicon Valley Bank collapse could hit First Republic Bank

First Republic Bank, the the 16th largest in the US, saw its shares plummet 50 percent on Friday. The concern was due to the collapse of similarly-positioned Silicon Valley Bank.

www.dailymail.co.uk

Just over the weekend...

Biden says 'the banking system is safe' after Silicon Valley Bank shutdown

The president addressed the federal efforts to prevent economic ripples.

www.nbcnews.com

Your money is safe. Stop withdrawing the money.

 

[Fwiffo]

Meta lay-offs: Facebook owner to cut 10,000 staff

In addition to the culling of 10,000 jobs, 5,000 vacancies at the company will be left unfilled.

www.bbc.com

"...software engineers who joined Meta in-person performed better than those who joined remotely - indicating that this would change as part of the company's 'year of efficiency'.

'Engineers earlier in their career perform better on average when they work in-person with teammates at least three days a week,'"

 

[Fwiffo]

First Republic Stock Crashes To All-Time Low: What To Know About The Latest Bank On The Brink

The San Francisco-based regional bank’s 30% nosedive Thursday sent First Republic stock to its lowest price in its 13-year history.

www.forbes.com

"First Republic shares cratered again Thursday as investors digested a report the struggling San Francisco-based regional bank is weighing a sale and received two credit downgrades, with mounting concerns First Republic could soon go the way of its failed peer Silicon Valley Bank."

Time to buy!

 

[Fwiffo]

Live updates: Credit Suisse deal, global stock market news

Switzerland's central bank said it was ready to provide financial support to Credit Suisse after shares in the country's second-biggest lender crashed as much as 30%. Follow for live updates.

www.cnn.com

I thought Ulrich Körner was supposed to come up with a 3 year turnaround plan.

 

[Fwiffo]

Moderate Senate Democrats join GOP in resisting new bank rules after SVB failure

Many of the 17 Democrats who voted to ease rules on certain banks in 2018 say they don't regret their votes and aren't ready to support a bill to impose tougher regulations.

www.nbcnews.com

Everything is fine. Move along. Keep depositing money.

 

[Fwiffo]

Amazon to lay off 9,000 more workers after earlier cuts

The cuts are on top of the previous layoffs that commenced last November and extended into January. That round affected more than 18,000 employees.

www.nbcnews.com

Round 2

 

[Fwiffo]

Banking Crisis Not Over as Deutsche and Europe Peers Plunge

'Where are large, inscrutable exposures? Where are the profitability challenges? Deutsche Bank and Commerzbank will be popular answers due to their troubles'

www.morningstar.ca

Do not worry. Credit Suisse was a one off. Signature bank was too focused on crypto. First Republic was an anomaly. Silicon Valley Bank was because of poor legislation and untrue rumours. Your deposits are safe. Keep stashing your money in banks. Stop withdrawing money.

 

[Fwiffo]

Silicon Valley Bank: Collapsed US lender bought by rival

The collapsed lender was seized by US regulators after a run on the bank.

www.bbc.com

The industry has saved itself.

 

[ter1413]

Lyft shakes up leadership amid tough battle with Uber

Co-founders Logan Green and John Zimmer are stepping back from management on April 17.

www.axios.com

 

[ter1413]

U.S. charges FTX's Bankman-Fried with paying $40 mln Chinese bribe

He's accused of paying the bribe to Chinese officials so they would unfreeze his hedge fund's accounts.

www.reuters.com

 

[Fwiffo]

U.S. charges FTX's Bankman-Fried with paying $40 mln Chinese bribe

He's accused of paying the bribe to Chinese officials so they would unfreeze his hedge fund's accounts.

www.reuters.com

USA - police for the world. Not sure if the Chinese really cared.

 

[Fwiffo]

UK-Asia trade deal to boost UK economy by 0.08%

The bloc includes nations such as Japan and Australia, but the UK's economy will only get a small boost.

www.bbc.com

Back on the road to being a great economic power.. 0.08% at a time.

 

[Fwiffo]

Tupperware shares plunge as it warns of possible collapse

The 77-year-old food storage business is facing a bleak future as it races to find new financing.

www.bbc.com

"Tupperware said that its shares were in danger of being delisted from the New York Stock Exchange because it had not yet filed its annual report. It also warned that it had to renegotiate its loans after already amending its loan agreements three times since August 2022. Tupperware said it was struggling with higher interest costs on its borrowings while it attempts to turn the business around.

The company said it 'currently forecasts that it may not have adequate liquidity in the near term', adding that it 'has therefore concluded that there is substantial doubt about its ability to continue as a going concern'.

In addition, Tupperware said that its financial results for 2021 and 2022 as well its interim figures in 2021 and the first three months of 2022 had been "misstated' due to how the firm accounted for taxes and leases.

Tupperware's share price dropped by nearly 50% on Monday. The company said it was working with financial advisers to secure more money and investment. It is also examining whether it can sell property and cut jobs."

Maybe they'll live broadcast the next executive and C-suite meet your shareholders meeting.

 

[Fwiffo]

Inflation cooled to 5% in March, but consumer pain is set to linger

Experts say that even as price growth slows, it won’t reverse outright, which is likely to be of little solace to consumers right now.

www.nbcnews.com

5%. Let's get a few more 25 basis point increases to get to 2%.

 

[Fwiffo]

EY cuts 3,000 jobs in US blaming 'overcapacity'

The decision comes days after the firm called off a radical restructuring.

www.bbc.com

"The Financial Times, which first reported the EY cuts, said they primarily affected the consulting side of the business."

Weeping for the losses of a parasite firm.

 

[Fwiffo]

China’s economy grew 4.5% in the first quarter, the fastest pace in a year

China’s growth has been under the spotlight as it reopens after ending most of its strict Covid restrictions that were in place for nearly three years.

www.nbcnews.com

“That is the kind of the rebound after the reopening [and] is at the core of why we have our above consensus forecast of 6% growth for the full year,"

 

[Fwiffo]

Bed Bath & Beyond files for bankruptcy

The struggling home goods retailer has been hobbled by declining sales and intense competition from online retailers in recent years.

www.nbcnews.com

Fire sales!

 

[Fwiffo]

£55bn withdrawn from Credit Suisse before rescue

The announcement gives an insight to the scale of the bank run that triggered the rescue of the Swiss lender.

www.bbc.com

"'These outflows have moderated but have not yet reversed as of April 24, 2023,' it added."

Bank run..

 

[Fwiffo]

First Republic Bank: More than $100bn of withdrawals this year

The US-based bank said its deposits fell by over 40% amid fears of a crisis in the financial sector.

www.bbc.com

"The US bank says its deposits fell by over 40% since the end of December."

Well now we know why people were queuing to get their money out.

 

[Fwiffo]

First Republic: Future of US bank in doubt as investors flee

Shares in First Republic fall nearly 30% after plunging to a record low a day earlier.

www.bbc.com

"The bank's shares, which were worth more than $120 at the start of the year, ended Tuesday trading at roughly $8."

Perhaps it might be prudent not to disclose you lost $100B and 40% of your deposits YTD.

 

[Fwiffo]

Furious Microsoft boss says confidence in UK 'severely shaken'

The decision marks the firm's "darkest day" in the UK, as it says the EU is a better place to start a business.

www.bbc.com

Why can't Microsoft have its monopoly?!

 

[Fwiffo]

First Republic: JP Morgan snaps up major US bank

First Republic was seized by regulators, making it the third major US bank to fail in recent months.

www.bbc.com

And the winner is...JP Morgan.

 

[Fwiffo]

Jenny Craig tells employees it will shut its doors

Employees received an email from the company last night indicating their jobs would be terminated by the end of the week or sooner for some.

www.nbcnews.com

Another company that decided to run itself to the ground...

 

[Fwiffo]

Federal Reserve raises interest rates to 16-year high as fight to tame inflation continues

The central bank faces signs of weakening economic growth even as inflation stays high and the labor market remains robust.

www.nbcnews.com

"'Rather than signaling a pause, the committee will want to preserve the option for further rate hikes,' the Citi economists write. 'In our base case the Fed will raise rates by 25bp [0.25%] this week and again in June and July.'"

Up and up and up.

 

[Fwiffo]

Job growth totals 253,000 in April, beating expectations even as the U.S. economy slows

Professional and business services led the job gains. That was followed by health care, leisure and hospitality, and social assistance.

www.nbcnews.com

Here comes another rate increase...

 

[Fwiffo]

US inflation below 5% for first time in two years

Prices rose 4.9% over the 12 months to April, the latest figures show.

www.bbc.com

2% here we come.

 

[Fwiffo]

Microsoft's Activision takeover approved by EU after UK veto

The proposed $69bn acquisition of Activision is splitting global regulators over competition concerns

www.bbc.com

"In order for the deal to go through Microsoft and Activision need approval from regulatory bodies in the UK, EU and the US."

If the US and EU approve, then what happens?

 

[Fwiffo]

Troubled regional lender PacWest sells $2.6 billion loans at discount

PacWest has lost three-quarters of its market value since the regional banking crisis started on March 8.

www.nbcnews.com

"PacWest sold 74 real estate construction loans that have an outstanding balance of $2.6 billion to property firm Kennedy-Wilson Holdings for $2.4 billion -- a $200 million discount, a regulatory filing showed on Monday."

No, it's not a fire sale. Your deposits are safe. Don't withdraw your money if you don't need it. The banking sector is strong.

 

[Fwiffo]

Chipmaker Nvidia hits $1 trillion market capitalization

It’s been a banner year for chipmakers, parts of the tech industry and the Nasdaq, driven in part by the AI frenzy and the possibility of slowing Federal Reserve rate hikes.

www.nbcnews.com

Thank you AI.

 

[Fwiffo]

The U.S. economy added 339,000 jobs in May, once again beating expectations

The unemployment rate was at 3.7% against the estimate of 3.5%, just above the lowest level since 1969.

www.nbcnews.com

Uh oh. Another rate hike coming...

 

[Fwiffo]

Bread to loo roll: How UK prices compare to five EU countries

UK shoppers are paying more for loo roll, butter and ketchup than some of our European neighbours, data suggests.

www.bbc.com

It looks like the highest prices are in Britain and France.

 

[Fwiffo]

US moves to block Microsoft's Activision takeover

Regulators have asked a judge to block the proposed deal, arguing it could harm competition levels.

www.bbc.com

EU - yes. UK - no. US - no. I think it's a no.