Business

Newspaper: US Prosecutors Investigate Bankruptcy of Silicon Valley Bank
Business, News, US

Newspaper: US Prosecutors Investigate Bankruptcy of Silicon Valley Bank

US prosecutors have launched an investigation into the bankrupt Silicon Valley Bank. The US regulator for stock exchange trading, the Securities and Exchange Commission, is also investigating the California bank that was taken over by US authorities last Friday. The Wall Street Journal reports this based on insiders. According to the business newspaper, the investigation is still in an exploratory phase, and it is far from a foregone conclusion that there will be formal accusations against SVB or its directors. Public prosecutors and the regulator often start an investigation when financial services companies run into problems. The investigation at SVB would focus on, among others, directors who sold shares a few days before the bank collapsed.
ECB can Raise Interest Rates Less Strongly Due to Unrest SVB
Business, Europe, News

ECB can Raise Interest Rates Less Strongly Due to Unrest SVB

The collapse of US bank Silicon Valley Bank (SVB) reduces the likelihood of a European Central Bank (ECB) pledge of a major rate hike later this week, economists say. The ECB's policymakers will meet on Thursday and decide how much to raise interest rates. At the last two meetings, interest rates rose by 0.5 percentage points. Economists initially expected that interest rates would be raised again with such a giant step, but that may now be less strong. Economists also think the US central bank will not raise interest rates by 50 basis points next week. Some market experts even speculate that the Federal Reserve (Fed) will refrain from raising interest rates altogether. "Smaller interest rate steps by the Fed are now more likely," said Van Lanschot Kempen on Monday. Last week,...
The European Commission Raids Fragrance Industry for Cartel Investigation
Business, Europe, News

The European Commission Raids Fragrance Industry for Cartel Investigation

On Tuesday, the European Commission raided companies and an organization in the fragrance industry for possible violations of cartel rules. Brussels said the "unannounced inspections" took place in several European Union member states. The committee has also sent formal requests for information to various companies active in fragrances. According to a statement, there may be cooperation in the supply of fragrances and ingredients for fragrances used in consumer products such as personal care and household goods. However, the committee says it is concerned that competition rules have been violated. The committee mentioned no names. Nor was it stated in which Member States the inspections took place. However, Brussels is cooperating in the investigation with the American, Britis...
Chinese President Xi Promises to Increase Production Capacity
Business, China, News

Chinese President Xi Promises to Increase Production Capacity

Chinese President Xi Jinping has promised to increase his country's production capacity and make it less dependent on foreign markets. The Chinese People's Daily reports this. Xi declared at the annual meeting of the People's Congress on Sunday that China should be able to take care of itself. "I have always said that there are two main themes for China: securing our food and building a strong manufacturing sector. As a large country with 1.4 billion inhabitants, we must rely on ourselves. We cannot depend on international markets to save us." China's technological ambitions are being held back by a series of trade restrictions by the United States and other Western allies. As a result, Beijing is seeking to build a self-sufficient industry and make sectors considered essential t...
Record Number of UK Businesses Started by Women by 2022
Business, News, UK

Record Number of UK Businesses Started by Women by 2022

A record number of UK businesses were started by women last year. Research by the Scottish bank and insurance company NatWest Group shows that 151,600 companies were added last year with an all-female board. This is one in five newly established companies in the UK. The number of UK businesses founded by women in a year has more than doubled since 2018. That year, over 56,000 businesses were started by women. By 2021, some 145,000 new businesses in the UK will be founded by women. The largest increase was seen among girls and women aged 16 to 25. NatWest CEO Alison Rose told the Financial Times that female entrepreneurs want to capitalize on the tough economic times and go their own way.
Fired from GitHub and GitLab
Business, News, Technology

Fired from GitHub and GitLab

Both GitHub and competitor GitLab are putting people on the street. GitHub even wants to do without offices in the future. GitLab wants to cut 7 percent of its workforce. The company does not give an exact figure, but according to CNBC, it concerns about 130 people. Techcrunch puts it at 114 people, based on stock exchange documents that speak of 1,630 employees in total. At the same time, GitHub, now a Microsoft subsidiary, also comes with plans for dismissal. Here ten percent of the people have to leave in the course of this year. Again, no exact number is mentioned, but Microsoft blogger Paul Thurrott speaks of a total workforce of three thousand people, which translates to 300 redundancies. GitHub currently has offices in San Francisco and Amsterdam, which will close in du...
Apple Falls on Lower Wall Street on Unrest in China
Business, China, News, US

Apple Falls on Lower Wall Street on Unrest in China

The American technology group Apple was under pressure on the stock exchanges in New York on Monday. The company relies heavily on China to produce its devices, and investors are concerned about the social unrest arising in that country over the strict corona measures. In major Chinese cities, people took to the streets to protest President Xi Jinping's zero-covid policy. Apple lost 1.4 percent. According to the Bloomberg news agency, the unrest at Apple's largest iPhone production site in China may result in a production slump of 6 million devices. However, a lot depends on how quickly Foxconn, the Taiwanese company that operates the factory, can get people back on the assembly line after the violent protests against the corona measures. Electric car manufacturer Tesla, which ha...
The European Commission Wants to Intervene in the Event of High Gas Prices
Business, Europe, News

The European Commission Wants to Intervene in the Event of High Gas Prices

The European Commission is proposing to EU countries to introduce a “correction mechanism” for gas prices to temporarily apply a maximum price during periods of “exceptionally high prices” on the European gas market. The ceiling for the European wholesale price should be predefined concerning the cost of liquefied gas (LNG) on the world market and adjusted monthly. The correction mechanism is activated if the gas price on the leading Amsterdam gas market exceeds the maximum and is automatically deactivated as soon as possible, the committee writes in a plan submitted to the EU ambassadors. She argues that the temporary mechanism should prevent suppliers from selling their gas elsewhere, which would jeopardize supplies in the EU. EU leaders have asked the executive board of the...
OPEC Sees More Uncertainties in Oil Market
Business, News

OPEC Sees More Uncertainties in Oil Market

Oil cartel OPEC sees increasing uncertainty in the global oil market and is again adjusting its forecast for oil demand downwards. The organization points to, among other things, high inflation, corona restrictions in China, recession concerns and interest rate hikes by central banks, which could affect oil demand. Oil demand is now expected to increase by 2.55 million barrels per day this year. That is 100,000 less per day than previously thought. It is the fifth time since April that OPEC has lowered its forecast for oil demand for this year. Expectations for next year were also lowered. "The global economy entered a period of significant uncertainty and increasing challenges in the fourth quarter of 2022," OPEC said in its monthly report. As a result, the oil cartel is work...
Eurozone Economy is Still Growing, But at a Slower Pace
Business, Europe, News

Eurozone Economy is Still Growing, But at a Slower Pace

The economy in the eurozone continued to grow in the third quarter, reports the European statistical office Eurostat. However, growth is less strong than in the second quarter, when the economy was still progressing strongly due to the reopening of the economy after the corona restrictions. Meanwhile, high inflation and interest rate hikes to limit this depreciation also affect economic growth. The eurozone economy was 2.1 percent larger in the third quarter than a year earlier. Across the European Union, the economy had grown 2.4 percent. However, in both areas, growth compared to the second quarter was 0.2 percent. Portugal had the strongest annual growth at 4.9 percent of the countries that already provided data. The economy in Latvia has already contracted. Major economies...