Business This Week | The Economist
the Federal Reserve left interest rates hanging in its last meeting, though there was a noticeable change in the background music. The central bank’s projections now suggest that rates will be raised twice in 2023, a change from previous forecasts that they would remain at record levels until the end of 2024. we the economy is recovering from the pandemic faster than previously thought.
The annual rate of change of the UK consumer price index jumped to 2.1% in May, from 1.5% in April. Inflationary pressures increase as economies resume operations. Inflation in America also rose again in May, to 5%, the highest value since August 2008.
With an inflation rate of 8%, from Brazil The central bank raised interest rates for the third time this year, raising its key rate to 4.25%.
One of the main drivers of inflation is rising energy costs. The price of Brent crude closed at $ 75 a barrel this week after OPEC and the International Energy Agency released bullish forecasts on request oil. the OUCH called OPEC “Turn on the taps” to adequately supply markets.
The European Union carried out the first operation to finance its New generation EU program, raising 20 billion euros ($ 24.2 billion) through the sale of a ten-year bond, the most EU raised in a single transaction. The bloc wants to draw 800 billion euros from the capital markets by the end of 2026 to finance the stimulus fund.
America and the EU reached a deal to end their 17-year subsidy dispute Boeing and Airbus. Spot tariffs will be suspended for five years while the two sides work out an agreement to limit subsidies and discuss other issues, such as financing the development of new aircraft.
Five bills have been introduced in the United States House of Representatives aimed at restricting the power of large tech companies by prohibiting, among other things, a dominant platform from promoting its products over others and by prohibiting the use of acquisitions to stifle competition. The most ambitious overhaul of antitrust law in decades would affect every business, but target Apple, Amazon, Facebook and Google. Bills face a long journey through Congress.
Big tech companies face a formidable enemy at the Federal Trade Commission, where Lina khan was appointed president. At just 32 years old, Ms. Khan is a professor at Columbia University Law School and has written extensively on antitrust law reform. She was an advisor to the congressional committee that wrote a report that formed the basis of bills in the House.
Satya Nadella assumed the role of chairman of Microsoft In addition to his role as general manager, this was the first time the two roles had been combined since Bill Gates was in charge.
Didi Chuxing has filed documents to list shares on the Nasdaq or the New York Stock Exchange. Expected next month, the Initial Public Offering of China’s largest rideshare company could raise $ 10 billion.
Emirates reported an annual loss of $ 5.5 billion for the year ending March 31. With international travel almost at a standstill due to the pandemic, the airline carried just 6.6 million passengers in the 12 months, down 88% from the previous year. The Dubai government will continue to support the company, which has laid off nearly a third of its workforce since the start of the crisis.
Britain concluded a free trade agreement with Australia, the first deal negotiated from scratch by the British government since Brexit. British farmers fear their market will be overwhelmed with cheaper produce from below. They will be protected by a cap on duty-free imports for 15 years.
Nagayama Osamu said he would consider stepping down as chairman of Toshiba, following the publication of a scathing independent report on the collaboration between management and the Japanese government, but only after fixing the company’s problems. The report laid bare the extent to which officials colluded to prevent a rebellion at last year’s shareholders’ meeting, which critics say proves the government is more interested in protecting the cronies. as the interests of investors.
French court fined IKEA 1 million euros ($ 1.2 million) for spying on his staff through a surveillance system between 2009 and 2012. The former head of risks at IKEA France reportedly once asked how a staff member could afford a new Bmw.
Get off the lounge chair
American bankers are in a hurry to back to office after a year of telecommuting. Morgan Stanley boss James Gorman told staff if they felt comfortable visiting a restaurant in New York, they should come back to the office as well. Goldman Sachs has taken the harshest approach, ordering all of its employees to return to their desks.
This article appeared in the The World This Week section of the print edition under the headline “Business This Week”