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


"Gasoline prices rose 10.6% compared to July and fuel oil prices jumped 9.1%, according to the federal government. That drove up transportation costs. Both commodities cost less than they did a year ago, however."

Better roll out some of those fuel subsidies.
 

"For example, many in the eastern bloc are still suffering from inflation rates running into double digits.

At the same time, members such as Belgium and Spain are seeing the pace of price growth running at levels nearer 1%."

Wait till it extends into Turkey and Ukraine.
 

"But on Monday, it said it had found that using the new material didn't reduce carbon emissions. Lego said it remains 'fully committed' to making bricks from sustainable materials."

Just like those eco-bags...
 

"Among the most active earlier this week: Lockheed Martin, which makes the F-35 Lightning II fighter jets used by the Israel military, as well as Sikorsky and Black Hawk helicopters; Northrup Grumman which makes submarines and combat vehicles; Raytheon, General Dynamics and Boeing. Together, shares of these and similar companies in the sector rose by an average of 6.5 per cent. Northrop Grumman led the pack, surging more than 11 per cent."

6.5 percent in one week...
 

"All that debt made it harder for Rite Aid to invest in its stores or to expand and branch out into new businesses the way its rivals did. CVS now has more than 1,000 clinics in its stores, and it bought a pharmacy benefits manager and a health insurer over the years. Walgreens and CVS both expanded into some types of primary care, as well.

But Saunders said all three have neglected their stores as they have prioritized the health care parts of their businesses over the retail parts.

'They are not good retailers. None of them,' he said. 'They just haven't really evolved and changed with the times at all.'"

Sounds more like a death sentence.
 
LinkedIn lays off 668 people, about 3% of global workforce

20,000 global workforce for what is really a glorified job board.

Totally.

63bebfd44575803644ee2ddb_LinkedIn%20Revenue.jpg
 

"The economy expanded at an annual rate of 4.9% in the July to September period, according to the government's first estimate.
Analysts expected that the economy would grow by 4.5% in the third quarter of this year. But a strong jobs market meant that consumers were able to ask for bigger pay packets and keep spending on concerts, movies or holidays over the summer.

Consumer spending, which accounts for more than two-thirds of economic activity in the US, was the main driver behind the rise. The latest figure is a big spike from the 2.1% growth seen in the three months to July."

Another rate increase is coming.
 

"As announced earlier this month, the company recorded a $5.6 billion one-time charge to account for the U.S. government returning millions of doses of its antiviral treatment Paxlovid, as well as inventory of its vaccine Comirnaty.

A drop in the use of vaccines and products as the pandemic receded has fuelled a 40% drop in Pfizer’s shares this year and could remain a drag going forward, analysts have said. The stock fell about 2% in early trading."

What happens when you're a one trick pony.
 

"But the company kept operating, as executives sold off ancillary businesses, cut jobs and cancelled or modified hundreds of leases, trying to stem the firm's losses before it ran out of money. WeWork finally listed on the New York Stock Exchange in 2021 with a much lower valuation. The Japanese conglomerate SoftBank has pumped tens of billions of dollars into WeWork as it continued to lose money."

I'm going to say opening a space this year on the Wall Street equivalent of Canada was mental when all other offices are struggling with vacancy rates and filling their leased space with white collar workers.
 

"Prices for most items haven't come down over that time, but the slower increases have been a relief to some consumers. Wages have been rising faster than inflation lately, which makes it easier for people to afford goods and services."

We don't need a halt in increases. We need deflation...or more money to spend on more expensive goods and services.
 

That's weird. The first time I came across self checkout was living in London years ago (at the same time I also discovered chip cards).
 

"The withdrawal of profits does not necessarily indicate that companies are unhappy with China, but rather that their investments here have matured."

Meanwhile if a Chinese person tries to transfer money out of the country........
 

"'We are unable to work for or with people that lack competence, judgement and care for our mission and employees. We, the undersigned, may choose to resign from OpenAI and join the newly announced Microsoft subsidiary run by Sam Altman and Greg Brockman.'

As of late Monday morning, more than 700 names appeared on the letter, though NBC News has not confirmed all had chosen to sign it. Many of them had published identical posts on X reading 'OpenAI is nothing without its people.'

OpenAI currently has about 770 employees, the spokesperson said."

So 70 people understand that the board doesn't answer to the employees..
 
CEO of world’s largest cryptocurrency exchange pleads guilty to money laundering violations

"Binance, the world’s largest crypto exchange, admitted to engaging in anti-money laundering, unlicensed money transmitting and sanctions violations.

US officials described this as the biggest-ever corporate resolution that includes criminal charges for an executive.

Following a years-long investigation, authorities allege Binance allowed bad actors to freely transact on the platform, enabling everything from child sex abuse and narcotics to terrorist financing for ISIS, Al Qaeda and Hamas’s Al-Qassam Brigades."

We decided to let these exchanges....really crypto is a commodity....start up without the usual sanctions screening, anti-money laundering, etc. measures that are applied on proper financial institutions?
 

"Adamant not to label him a 'sell-out', as some critics have done over the years, Mr Lonzi does say that Mr Mandela compromised too much during negotiations with the white-minority government.

The white-minority population has retained most of the wealth they acquired during apartheid.

Mr Lonzi says because of this he feels the economy is heavily weighed against Gen Z, especially black people."

If only Mandela did it like that other 90 something year old guy did in Rhodesia....
 

"Mr Caputo said the exchange rate would be cut to 800 pesos to the US dollar, from roughly 391 pesos."

Stop hording your useless money.

"Mr Milei has already cut nine government ministries, which Mr Caputo said would reduce 34% of public sector jobs.

Speaking about the cuts to government spending for infrastructure projects, Mr Caputo said: 'The reality is that there is no money to pay for more public works that, as all Argentines know, often end up in the pockets of politicians or businessmen on duty' "

Especially if your money disappeared by 50% overnight.
 

"Mr Caputo said the exchange rate would be cut to 800 pesos to the US dollar, from roughly 391 pesos."

Stop hording your useless money.

"Mr Milei has already cut nine government ministries, which Mr Caputo said would reduce 34% of public sector jobs.

Speaking about the cuts to government spending for infrastructure projects, Mr Caputo said: 'The reality is that there is no money to pay for more public works that, as all Argentines know, often end up in the pockets of politicians or businessmen on duty' "

Especially if your money disappeared by 50% overnight.

Argentina's currency management requires an advanced degree in rocket science to be understood, unfortunately.
Basically, you have the "official", which is fixed, and the parallel, black market rate ("blue dollar").
The official rate was at ~300 with the previous government, and was pushed up to ~400 right before Dec 10th. Now the new government pushed it to 800.
However, the "blue" rate has been north of 1000 for a while. So the hike is not a surprise really. The official rate is catching up to what the real economy is already pricing in terms of devaluation of the peso. sad but true.
 

"Chief executive Josh Silverman told staff the cuts were needed as sales had been 'essentially flat' for two years."

People aren't locked in their homes ordering online stuff to be shipped to them anymore?!
 
Argentina's currency management requires an advanced degree in rocket science to be understood, unfortunately.
Basically, you have the "official", which is fixed, and the parallel, black market rate ("blue dollar").
The official rate was at ~300 with the previous government, and was pushed up to ~400 right before Dec 10th. Now the new government pushed it to 800.
However, the "blue" rate has been north of 1000 for a while. So the hike is not a surprise really. The official rate is catching up to what the real economy is already pricing in terms of devaluation of the peso. sad but true.

I remember in the first company I worked at they had operations in Argentina and the executive in charge of international operations told us in the London office that one day he woke up and half his Argentina business disappeared due to currency issues.

They eventually divested.
 

I guess they won't be fixing the broken autonomous driving vehicles they created.
 

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