Buzz
Friday is here again and I'm excited to bring you a roundup of standout global economic news from the past week. Grab a cup of coffee and let's dive in!Jack Dorsey departs from Twitter
Jack Dorsey resigns as CEO of Twitter, the company he co-founded in 2006. Investors have long speculated that Dorsey has been torn between Twitter and Square (soon to be renamed Block), a payment company he will continue to lead. He was ousted from the CEO position in 2008 but returned to the role in 2015. Last year, a hedge fund sought to oust him after Dorsey expressed a desire to spend time in Africa. He once likened Twitter to a 'global consciousness.' Leading this global cognitive system is now Parag Agrawal, the former CTO of the company.
Meta requested to divest Giphy
The UK competition regulator seeks to unwind a merger involving Big Tech by directing Meta, the parent company of Facebook, to sell Giphy, a database of animated gif files that social media users attach to their posts. Both companies are American. The regulator concluded that Facebook's acquisition of Giphy last year could concentrate Facebook's market power in the UK and also limit Giphy's potential to expand its own advertising services.Nubank Prepares for IPO
Nubank has narrowed the price range for its upcoming IPO in New York. The Brazilian fintech company, the most valuable startup in Latin America, could still be valued at $42 billion, surpassing Brazil's largest banks by market capitalization. Meanwhile, Grab, a 'super app' offering various services and headquartered in Singapore, is gearing up to debut on the Nasdaq stock market by merging with a special purpose acquisition company.
Market Volatility Amid Omicron Concerns
The market is unsettled amidst the potential disruption of Omicron to economic recovery. Global stock markets plunged after South Africa announced the discovery of the latest covid-19 variant, and uncertainty persists. Oil prices also declined amid prospects of reduced demand. Brent crude dropped from $82 to $70 per barrel.Jerome Powell Sparks Market Fear
Jerome Powell, the Chair of the Federal Reserve, also sent shockwaves through the market when he stated it was time to drop the word 'transitory' from the Federal Reserve's statements on inflation. The chairman acknowledged heightened inflation risks and signaled he would support even faster monetary tightening measures.Inflation Rises in Europe
The average annual inflation rate for the eurozone has surged to 4.9% in November, the highest level since the common currency was created over 20 years ago, adding pressure on the European Central Bank to begin tapering its economic stimulus program. In Germany, inflation stands at 6%, the highest level seen since the country reunified three decades ago.
Australian Economy Bounces Back
The Australian economy grew by 3.9% in the second quarter compared to the same period last year, but declined by 1.9% compared to the previous quarter. Melbourne and Sydney ended their lockdowns only in October.Turmoil in Turkey
With the lira plummeting to new lows, prompting central bank interventions to support the currency, Turkey's finance minister has resigned and been replaced by an ally of the country's president, Recep Tayyip Erdogan. Erdogan believes his steadfast interest rate cuts have spurred an economic boom: GDP grew by 7.4% in the third quarter compared to the same period last year. However, the plunging lira and nearly 20% inflation have made household goods much more expensive, leading to recent street protests.
Tourist Arrivals on the Rise
The United Nations reports that international tourist arrivals increased by 58% from July to September compared to the same period last year, but still remain 64% below the levels seen in 2019. Tourist arrivals for the full year 2021 are projected to be 70-75% of 2019 levels, equivalent to 2020.Nissan's Ambition in Electric Vehicles
Nissan unveils an ambitious plan to invest in electric vehicles. The Japanese company will allocate ¥2 trillion ($17.7 billion) to produce new electric or hybrid models, aiming to electrify over 50% of the global market share by 2030. They will still offer internal combustion engine cars for sale.
