Enjoy more audio and podcasts on iOS Where Android.
Joe Biden nominated Jérôme Powell for a second term as President of the Federal Reserve. Left-wing Democrats had sought to expel Mr. Powell from his post; Elizabeth Warren, a spirited senator, had described him as “a dangerous man” because of her past support for financial deregulation. Their preferred candidate for the top central bank post, Lael Brainard, has been promoted to vice president. This could produce differences of opinion on banking regulation and the Fed’s policies focused on climate change; Ms. Brainard wants more of both.
US prices were 5% higher in October than they were a year earlier, according to the personal consumption expenditure index, which the Fed uses to measure inflation. Excluding food and energy, prices rose 4.1%, more than double the Fed’s long-term inflation target of 2%. Both measurements were higher than they were in September; neither has been so high at any time over the past three decades.
that of New Zealand The central bank raised its key rate by a quarter of a percentage point to 0.75%. It was the second increase in as many months, with more forecasts to come amid a dynamic economy and booming real estate market.
Under pressure from soaring oil prices, the White House announced it would intervene in oil markets by releasing 50 million barrels of US strategic oil reserves in the hope that the additional supply will push prices down. In a coordinated effort Britain, India, Japan and South Korea are also releasing oil and China “could do more too.” Some have questioned whether the additional 50 million US barrels, equivalent to less than three days of US oil consumption, were enough.
KKR, a private equity firm, made an offer worth € 33 billion ($ 37 billion) for Telecom Italy, in what could be the biggest buyout ever in Europe. The former Italian telecommunications company is crippled by debt, hampering efforts to expand broadband in the country. If the council accepts a takeover, then the government will decide whether it is in the national interest and should be allowed to go ahead.
The Turkish lira dipped again against the dollar, euro and other currencies, before recovering somewhat. The latest currency run is the worst in decades, bringing its loss for the year so far to 40%. The rout escalated when Recep Tayyip Erdogan, Turkish President, defended interest rate cuts despite inflation hovering close to 20%. Mr Erdogan has pressured the nominally independent central bank to cut rates – it has pulled four percentage points off its key rate since September – even as monetary policy tightens around the world.
zooms the share price slid after its latest results marked another slowdown in sales. Revenue for the three months ending Oct. 31 increased 35% year-over-year, compared to 54% in the prior quarter and 367% in the same quarter last year. The company faces increased competition amid declining demand for video meetings as fewer employees work remotely.
The dangers of the over-promise
The share price of Payment started to recover after a disaster Initial Public Offering. Despite support from SoftBank, Ant Group and Alibaba in what was a much-anticipated IPO, shares of the Indian fintech firm fell 27% on the first day of trading in Mumbai as investors price the l ‘offer as too high. He fell 13% on the second day before gaining ground.
An Ohio federal jury found that CVS, Walgreens and Walmart were responsible for the spread of opioid pain relievers, which has caused tens of thousands of fatal overdoses in America. The verdict was the first time drugstore retailers have been held responsible for contributing to the opioid crisis and could open the floodgates to further litigation.
Samsung Electronics has chosen Taylor, a city in Texas bordering Austin, for the site of its new $ 17 billion chip factory. The state capital is attracting more and more tech jobs. Tesla is building its new billion dollar auto plant in Austin.
Ericsson agreed to pay $ 6.2 billion for Vonage, a cloud-based communications company that helped launch voice calling over the Internet at the turn of the century. This is the Swedish telecommunications equipment manufacturer’s biggest acquisition to date.
Uber has entered the growing provision industry cannabis (where legal) by launching a service in Ontario where customers can order the herb and pick it up at a dispensary within an hour. Orders are placed through the Uber Eats app, perfect for hungry smokers.
A sure sign of the effects of inflation, Dollar tree, one of the last US retail chains to sell items for $ 1, said it would increase most of its prices by 25%, to $ 1.25.
This article appeared in the The World This Week section of the print edition under the headline “Business”