Business | Edition 3 February 2024

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The Federal Reserve kept its prime interest rate at a range of 5.25% to 5.5%. This was the fourth time in a row that the central bank has kept rates. With inflation subdued, investors are impatient for a rate cut; the Fed has not given much information about when it plans to do so. He put out a more neutral view by saying he was “moving to a better balance” on jobs and inflation, but all but ruled out a rate cut in March. Stock markets plummeted.

The Bank of England also kept its prime rate steady, at 5.25%. The central bank said it needed more confirmation that inflation would fall again, and stay down, before cutting rates, although it removed language in its statement about the possibility of “further tension”.

Boeing it held back its usual forward guidance for the year when it revealed its quarterly earnings. The man of the plane 737 The Max 9 aircraft was grounded when a panel fell from the aircraft shortly after take off. The 737 Max 9s have begun flying again, although the Federal Aviation Administration has limited Boeing’s production of the aircraft.

Microsoft reported a huge jump in revenue, fueled largely by artificial intelligence, which it now uses “across all levels of our tech stack”, according to Satya Nadella, the chief her officer. The company celebrated the success of its Azure AI cloud service, which provides access to large and small language modules integrated with infrastructure, data and tools. But Microsoft’s share price fell, as investors worried about the rising costs of keeping up with it. AI improvements.

A “significantly larger” increase in spending on it AI at Alphabet also weighed on market sentiment after announcing its results, even though revenue grew more than expected at Google’s cloud services business.

Amazon withdrew his intended purchase iRobot, following protests from the European Union. IRobot makes the Roomba autonomous vacuum cleaner; the EU saying the deal would have allowed Amazon to outpace competition in the market. After Amazon’s announcement iRobot said it would lay off a third of its workforce, after sales fell 25% last year.

Shoes in the road

After becoming the world’s largest seller of electric vehicles, BYD he said they expect his profit last year to have increased by 86%. But he also warned of increasing competition from China’s rivals. At the same time Renault stopped his plan IPO from Amperehis EV apportionment, due to “current equity market conditions”; in other words, getting investor sentiment about growth in the EV business.

“It’s a real speed EV growth has slowed,” General Motors he said in his salary, but he took that into account EV sales are still rising, and should account for 10% of auto sales in America this year. China remains the weak spot in the carmaker’s forward-looking outlook; it sold 2.1m vehicles there in 2023, down from a peak of 4m in 2017.

Although he is a laggard EVs, Toyota it retained the crown as the world’s largest vehicle seller overall, reaching 11.2m in sales last year. Volkswagen parked in the number two spot again, selling 9.2m.

In a surprising change of strategy, Saudi Aramco, under the leadership of the Saudi government, has abandoned its goal of maximizing oil production and is sticking to current targets. Some industry observers wondered if this was a response to sluggish demand, but others said it was a response to excess capacity.

Photo: The Economist

The IMF he said now he expects it the world economy to grow 3.1% this year, up from the 2.9% it predicted last October. This is partly due to “greater than expected stability” in the American economy, which expanded at an annual rate of 3.3% in the last three months of 2023. But the revision was the largest increase in the fund to be Russian GDP, which he now believes will grow by 2.6%. Despite Western sanctions, Russia has been able to sell its oil elsewhere. Russian diesel exports to Brazil, for example, have increased significantly over the past year.

The the euro area economy zero growth recorded in the last quarter of 2023, avoiding recession (GDP having fallen 0.1% in the previous three months). The economy grew by just 0.5% for the whole year.

A judge in Hong Kong ruled that Eternal be put in a meltdown. Saddled with more than $300bn in liabilities, the developer is at the center of China’s property crisis. The decision concerns its Hong Kong-based holding company, part of a sprawling financial network. Enforcement of the order will be up to courts and officials in mainland China, where most of Evergrande’s assets are held.

Rich man, poor man

A judge in Delaware struck down the $55.8bn payout package awarded to Tesla Elon Musk in 2018, find that as the “superstar CEO”, he had “controlled the process” that led to the agreement. “Never incorporate your company in the state of Delaware,” Mr. Musk said back on X. He is going to ask Tesla shareholders to “immediately” move the company’s base of incorporation to Texas .

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