In a move intensifying the ongoing tech dispute between the United States and China, China's cyberspace regulator, the Cyberspace Administration of China (CAC), on Sunday, announced a ban on products made by U.S. memory chipmaker Micron Technology Inc. The decision follows the conclusion of a network security review conducted by the CAC, which found serious security risks associated with Micron's products. While the details of these risks remain undisclosed, Reuters reports that the ban encompasses key infrastructure operators in sectors such as telecoms, transport, and finance, according to China's broad definition of critical information infrastructure.

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In its statement, the CAC emphasized the potential impact of Micron's products on China's critical information infrastructure supply chain and national security. Upon receiving the CAC's notice, Micron expressed its willingness to engage in further discussions with Chinese authorities.

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Industry analysts from Jefferies anticipate a limited impact on Micron as the company's major customers in China primarily consist of consumer electronics firms rather than infrastructure suppliers. They note that Micron's revenue in China is not heavily reliant on telcos and government sectors, indicating a potentially minimal overall impact on the company's operations.

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Micron Ban and the G7 Connection

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Micron, known for manufacturing dynamic random-access memory (DRAM) and NAND flash memory chips, competes with major players such as South Korea's Samsung Electronics Co Ltd, SK Hynix Inc, and Japan's Kioxia, a unit of Toshiba Corp. The timing of China's announcement during the Group of Seven (G7) summit in Japan has raised eyebrows, with experts suggesting a potential retaliatory motive against a major U.S. chipmaker. Christopher Miller, a professor at Tufts University and author of 'Chip War: The Fight For The World's Most Critical Technology,' asserts that the timing is not coincidental, highlighting the geopolitical implications surrounding the G7 summit.

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During the G7 summit, U.S. President Joe Biden stated that G7 nations had agreed to "de-risk and diversify" their relationship with China. The leaders also announced the establishment of an initiative to counter economic coercion. Analysts view this ban on Micron as an early test of the G7's efforts and their commitment to addressing the escalating tensions between the two global powers.

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China had initially announced its review of Micron's products in late March, and at the time, Micron stated its cooperation and confirmed that its business operations in China remained normal. In response to the U.S.-China dispute, the U.S. government has imposed export controls on chipmaking technology to China and taken steps to prevent Micron's rival, Yangtze Memory Technologies, from purchasing certain American components.

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Micron currently derives approximately 10 percent of its revenue from China. However, whether the ban will affect the company's sales to Non-Chinese customers within the country remains unclear. Last year, Micron generated $5.2 billion in revenue from China and Hong Kong, accounting for about 16 percent of its total revenue, according to Jefferies.

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Analysts point out that a significant portion of Micron's products flowing into China are purchased by Non-Chinese firms for use in products manufactured in the country. China's September 2021 implementation of rules aimed at protecting critical information infrastructure has compelled operators to comply with stricter requirements, particularly in areas such as data security.&nbsp;

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Inputs from Reuters)

In a move intensifying the ongoing tech dispute between the United States and China, China's cyberspace regulator, the Cyberspace Administration of China (CAC), on Sunday, announced a ban on products made by U.

In a move intensifying the ongoing tech dispute between the United States and China, China's cyberspace regulator, the Cyberspace Administration of China (CAC), on Sunday, announced a ban on products made by U.S. memory chipmaker Micron Technology Inc. The decision follows the conclusion of a network security review conducted by the CAC, which found serious security risks associated with Micron's products. While the details of these risks remain undisclosed, Reuters reports that the ban encompasses key infrastructure operators in sectors such as telecoms, transport, and finance, according to China's broad definition of critical information infrastructure. In its statement, the CAC emphasized the potential impact of Micron's products on China's critical information infrastructure supply chain and national security. Upon receiving the CAC's notice, Micron expressed its willingness to engage in further discussions with Chinese authorities. Industry analysts from Jefferies anticipate a limited impact on Micron as the company's major customers in China primarily consist of consumer electronics firms rather than infrastructure suppliers. They note that Micron's revenue in China is not heavily reliant on telcos and government sectors, indicating a potentially minimal overall impact on the company's operations. Micron Ban and the G7 Connection Micron, known for manufacturing dynamic random-access memory (DRAM) and NAND flash memory chips, competes with major players such as South Korea's Samsung Electronics Co Ltd, SK Hynix Inc, and Japan's Kioxia, a unit of Toshiba Corp. The timing of China's announcement during the Group of Seven (G7) summit in Japan has raised eyebrows, with experts suggesting a potential retaliatory motive against a major U.S. chipmaker. Christopher Miller, a professor at Tufts University and author of 'Chip War: The Fight For The World's Most Critical Technology,' asserts that the timing is not coincidental, highlighting the geopolitical implications surrounding the G7 summit. During the G7 summit, U.S. President Joe Biden stated that G7 nations had agreed to "de-risk and diversify" their relationship with China. The leaders also announced the establishment of an initiative to counter economic coercion. Analysts view this ban on Micron as an early test of the G7's efforts and their commitment to addressing the escalating tensions between the two global powers. China had initially announced its review of Micron's products in late March, and at the time, Micron stated its cooperation and confirmed that its business operations in China remained normal. In response to the U.S.-China dispute, the U.S. government has imposed export controls on chipmaking technology to China and taken steps to prevent Micron's rival, Yangtze Memory Technologies, from purchasing certain American components. Micron currently derives approximately 10 percent of its revenue from China. However, whether the ban will affect the company's sales to Non-Chinese customers within the country remains unclear. Last year, Micron generated $5.2 billion in revenue from China and Hong Kong, accounting for about 16 percent of its total revenue, according to Jefferies. Analysts point out that a significant portion of Micron's products flowing into China are purchased by Non-Chinese firms for use in products manufactured in the country. China's September 2021 implementation of rules aimed at protecting critical information infrastructure has compelled operators to comply with stricter requirements, particularly in areas such as data security. Inputs from Reuters)

Chip Clash Escalates: China Bans Micron's Products Citing Network Security Flaws

Samsung, the global technology giant, is bracing for its worst profit in 14 years as the prices for memory chips, its main business, continue to plummet and demand remains weak.&nbsp;

Earlier this month, the South Korean company projected an operating profit of 600 billion Korean won ($449 million) for the first quarter (January to March), its lowest since the first quarter of 2009.

According to data from the International Data Corporation (IDC), PC shipments witnessed a steep 29 percent year-on-year decline in the first quarter, reflecting the downturn in the consumer electronics market. This downturn has led to a drop in the prices of memory chips over the past few months, exacerbated by high inventories and lackluster demand.

"The memory market is currently going through one of the worst slumps in decades, with slowdowns in consumer electronics and traditional server markets, despite the growth in the electric vehicle (EV) segment," noted CrispIdea in a recent research note quoted by CNBC.

As the COVID-19 pandemic peaked, demand for consumer electronics surged as people stayed home and relied on technology for work and entertainment. Electronics companies, including Samsung, stocked up on memory chips to meet the increased demand.&nbsp;

However, the situation has changed drastically now, as buyers are cutting back on purchases due to inflation and broader macroeconomic concerns, resulting in a glut of memory chips in the market.

Analysts at Mirae Asset Securities estimate that Samsung's chip division could incur a loss of 4.4 trillion Korean won in the first quarter alone.&nbsp;

In response to the challenging market conditions, Samsung announced a cut in production of its memory chips to a "meaningful level" this month, reversing its earlier stance of maintaining output levels. This move follows the footsteps of rivals SK Hynix and Micron, who had also reduced production to address the weakening demand.

Samsung, which has been a key player in the global technology industry for years, is facing formidable challenges in the memory chip market due to the rapidly changing economic landscape.

The company's ability to navigate through these difficult times and adapt to the evolving market dynamics will be closely watched by investors and industry experts alike as it seeks to regain its profitability and market share in the highly competitive industry.

Samsung, the global technology giant, is bracing for its worst profit in 14 years as the prices for memory chips, its main business, continue to plummet and demand remains weak.

Samsung, the global technology giant, is bracing for its worst profit in 14 years as the prices for memory chips, its main business, continue to plummet and demand remains weak. Earlier this month, the South Korean company projected an operating profit of 600 billion Korean won ($449 million) for the first quarter (January to March), its lowest since the first quarter of 2009. According to data from the International Data Corporation (IDC), PC shipments witnessed a steep 29 percent year-on-year decline in the first quarter, reflecting the downturn in the consumer electronics market. This downturn has led to a drop in the prices of memory chips over the past few months, exacerbated by high inventories and lackluster demand. "The memory market is currently going through one of the worst slumps in decades, with slowdowns in consumer electronics and traditional server markets, despite the growth in the electric vehicle (EV) segment," noted CrispIdea in a recent research note quoted by CNBC. As the COVID-19 pandemic peaked, demand for consumer electronics surged as people stayed home and relied on technology for work and entertainment. Electronics companies, including Samsung, stocked up on memory chips to meet the increased demand. However, the situation has changed drastically now, as buyers are cutting back on purchases due to inflation and broader macroeconomic concerns, resulting in a glut of memory chips in the market. Analysts at Mirae Asset Securities estimate that Samsung's chip division could incur a loss of 4.4 trillion Korean won in the first quarter alone. In response to the challenging market conditions, Samsung announced a cut in production of its memory chips to a "meaningful level" this month, reversing its earlier stance of maintaining output levels. This move follows the footsteps of rivals SK Hynix and Micron, who had also reduced production to address the weakening demand. Samsung, which has been a key player in the global technology industry for years, is facing formidable challenges in the memory chip market due to the rapidly changing economic landscape. The company's ability to navigate through these difficult times and adapt to the evolving market dynamics will be closely watched by investors and industry experts alike as it seeks to regain its profitability and market share in the highly competitive industry.

Samsung's profits plunge as memory chip prices slump, demand wanes

LVMH, the Paris-listed owner of luxury brands such as Louis Vuitton and Dior, has become the first European company to reach a market value of $500 billion.

Its shares rose 0.3 per cent on Monday to €903.70, resulting in a market capitalisation of €454 billion, equivalent to $500.3 billion at the exchange rate of 1.1019 euros to the dollar.

LVMH is now the only European company among the top 10 companies in the world by market value, a list dominated by US tech giants such as Apple. The French luxury giant occupies the 10th spot, surpassing Visa and closely trailing Tesla.&nbsp;

The milestone also means that the controlling stake held by founder Bernard Arnault and his family has now reached $212 billion, making the 74-year-old French billionaire the world's wealthiest man, ahead of Tesla CEO Elon Musk.

Rise Of LVMH And The China Connection

In many ways, the ongoing rise of LVHM can be attributed to robust consumer spending in China after the Xi Jinping government scrapped its strict "zero-Covid" policy in December 2022.

The improving economic outlook in China and a stronger euro has benefited LVMH immensely. The company reported a 17 percent increase in revenue in its first-quarter results, largely driven by a rebounding Chinese luxury market. Analysts at Bernstein noted that LVMH is capitalising on sustained demand growth in Europe and America while reaping the benefits of a rapid recovery in Chinese consumer spending.&nbsp;

Despite rising inflation, geopolitical uncertainties, and cost of living pressures, the top players in the luxury sector, including LVMH, have been resilient. Some even reported increased margins due to price increases on luxury goods such as leather goods and bags. According to a Financial Times report, the accumulation of savings and increased luxury buying during the pandemic-induced lockdown boosted the industry.

LVMH's growth has outpaced its competition, with the company&nbsp;now almost twice the size&nbsp;of L'Oréal, the world's largest cosmetics company, and more than double the size of Hermès.

In January, Louis Vuitton, LVMH's flagship brand, became the first luxury brand in the world to achieve over 20 billion euros&nbsp;in annual revenues.&nbsp;

Recently, Delphine Arnault, the founder's daughter, was appointed as Dior's chief executive. This move came amid speculations&nbsp;on who might succeed Arnault at the helm of the luxury conglomerate.

LVMH, the Paris-listed owner of luxury brands such as Louis Vuitton and Dior, has become the first European company to reach a market value of $500 billion. Its shares rose 0.

LVMH, the Paris-listed owner of luxury brands such as Louis Vuitton and Dior, has become the first European company to reach a market value of $500 billion. Its shares rose 0.3 per cent on Monday to €903.70, resulting in a market capitalisation of €454 billion, equivalent to $500.3 billion at the exchange rate of 1.1019 euros to the dollar. LVMH is now the only European company among the top 10 companies in the world by market value, a list dominated by US tech giants such as Apple. The French luxury giant occupies the 10th spot, surpassing Visa and closely trailing Tesla. The milestone also means that the controlling stake held by founder Bernard Arnault and his family has now reached $212 billion, making the 74-year-old French billionaire the world's wealthiest man, ahead of Tesla CEO Elon Musk. Rise Of LVMH And The China Connection In many ways, the ongoing rise of LVHM can be attributed to robust consumer spending in China after the Xi Jinping government scrapped its strict "zero-Covid" policy in December 2022. The improving economic outlook in China and a stronger euro has benefited LVMH immensely. The company reported a 17 percent increase in revenue in its first-quarter results, largely driven by a rebounding Chinese luxury market. Analysts at Bernstein noted that LVMH is capitalising on sustained demand growth in Europe and America while reaping the benefits of a rapid recovery in Chinese consumer spending. Despite rising inflation, geopolitical uncertainties, and cost of living pressures, the top players in the luxury sector, including LVMH, have been resilient. Some even reported increased margins due to price increases on luxury goods such as leather goods and bags. According to a Financial Times report, the accumulation of savings and increased luxury buying during the pandemic-induced lockdown boosted the industry. LVMH's growth has outpaced its competition, with the company now almost twice the size of L'Oréal, the world's largest cosmetics company, and more than double the size of Hermès. In January, Louis Vuitton, LVMH's flagship brand, became the first luxury brand in the world to achieve over 20 billion euros in annual revenues. Recently, Delphine Arnault, the founder's daughter, was appointed as Dior's chief executive. This move came amid speculations on who might succeed Arnault at the helm of the luxury conglomerate.

Buoyed by Chinese spending, French luxury giant LVMH now most valuable European company

The shares of Electric Vehicle giant Tesla&nbsp;has been on a downward spiral in April, dragging the company's market valuation below $500 billion. Media reports said on Wednesday that investors are fretting over the company's price-cutting strategy and the consequent hit on its profit margins.

Tesla shares fell 3.5 percent to $155.03 in New York, marking its lowest level since January 25. If the loss continues, the company's market valuation will drop by more than $70 billion in five trading sessions since reporting poor earnings. The stock is down more than 25 percent in April alone.

The first-quarter results reported by Tesla on Thursday missed analysts' expectations on almost every metric, with profit margins plunging due to the company's aggressive price-cut strategy. Tesla CEO Elon Musk has indicated that the company will continue to lower prices to lure potential buyers of its vehicles, despite the challenges to demand.

Price cuts vs demand

According to Bernstein analyst Toni Sacconaghi, Tesla's demand appears to be limited despite a significant drop in prices. Wall Street analysts have already reduced their price targets in response to the news, citing the risks to Tesla's premium valuation amid a sharp erosion of profit margins. Supporters point to the company's good margins as a rationale for the stock's greater multiple than other automakers.

Tesla's shares have experienced considerable volatility for the last few months, starting with a 65 percent drop at the end of 2022, which pushed its valuation to around $340 billion in January. The stock rebounded rapidly for two months, increasing the company's market capitalization to over $670 billion. However, the first-quarter delivery numbers indicated that price cuts were not boosting demand as much as expected. The full results reported last week made that point even more evident.

Despite this, some analysts believe the selloff is a temporary blip caused by broader macroeconomic pressures. Cathie Wood, CEO of Ark Investment Management, recently told CNBC that her 2027 price target for the stock is $2,000. Piper Sandler analyst Alexander Potter remarked that "once the dust settles, Tesla should bounce back".&nbsp;

Amid declining valuation and profit margins, it will be interesting to see Elon's next move.

The shares of Electric Vehicle giant Tesla has been on a downward spiral in April, dragging the company's market valuation below $500 billion. Media reports said on Wednesday that investors are fretting over the company's price-cutting strategy and the consequent hit on its profit margins.

The shares of Electric Vehicle giant Tesla has been on a downward spiral in April, dragging the company's market valuation below $500 billion. Media reports said on Wednesday that investors are fretting over the company's price-cutting strategy and the consequent hit on its profit margins. Tesla shares fell 3.5 percent to $155.03 in New York, marking its lowest level since January 25. If the loss continues, the company's market valuation will drop by more than $70 billion in five trading sessions since reporting poor earnings. The stock is down more than 25 percent in April alone. The first-quarter results reported by Tesla on Thursday missed analysts' expectations on almost every metric, with profit margins plunging due to the company's aggressive price-cut strategy. Tesla CEO Elon Musk has indicated that the company will continue to lower prices to lure potential buyers of its vehicles, despite the challenges to demand. Price cuts vs demand According to Bernstein analyst Toni Sacconaghi, Tesla's demand appears to be limited despite a significant drop in prices. Wall Street analysts have already reduced their price targets in response to the news, citing the risks to Tesla's premium valuation amid a sharp erosion of profit margins. Supporters point to the company's good margins as a rationale for the stock's greater multiple than other automakers. Tesla's shares have experienced considerable volatility for the last few months, starting with a 65 percent drop at the end of 2022, which pushed its valuation to around $340 billion in January. The stock rebounded rapidly for two months, increasing the company's market capitalization to over $670 billion. However, the first-quarter delivery numbers indicated that price cuts were not boosting demand as much as expected. The full results reported last week made that point even more evident. Despite this, some analysts believe the selloff is a temporary blip caused by broader macroeconomic pressures. Cathie Wood, CEO of Ark Investment Management, recently told CNBC that her 2027 price target for the stock is $2,000. Piper Sandler analyst Alexander Potter remarked that "once the dust settles, Tesla should bounce back". Amid declining valuation and profit margins, it will be interesting to see Elon's next move.

Tesla’s valuation drops below $500 Billion on profit margin fears

China has widened the scope of its&nbsp;counter-espionage law, which critics worry may create additional legal risks or confusion among global corporations.

According to CNN, the change broadens the definition of espionage to encompass any "document or data related to national security" without defining these categories explicitly.

The amendment passed by China's top legislative body on Wednesday comes as Chinese President Xi Jinping places a greater focus on national security. Since coming to&nbsp;power in power, Xi has supervised several new steps to combat perceived dangers within and outside China and efforts to regulate the flow of information outside the nation, particularly after the Covid outbreak.

Yasuhiro Matsuda, an international relations professor at the University of Tokyo, told CNN that the revised&nbsp;counter-espionage law could heighten risks for foreigners and businesses trying to understand China better.&nbsp;

Foreign Concerns and China's Counter

Many analysts believe that&nbsp;legitimate data on the Chinese economy might all fall under the purview of the amended law. They also&nbsp;argue that&nbsp;the tighter&nbsp;anti-espionage law will further&nbsp;frighten international corporations working in China.

The new counter-espionage law comes only months after China eased pandemic-era border restrictions after three years of self-imposed Covid isolation — measures that had kept most international entrepreneurs and researchers at bay.

However, Global Times, the English-language mouthpiece of the Communist Party of China, commented that the updated anti-spying law will&nbsp;have no effect on Western businesses and the&nbsp;continuously improving business environment in China.

It urged the companies not to buy into the 'distorted facts' that China's anti-espionage law will undermine the business environment, as they will "only miss opportunities and hand over development opportunities to competitors".&nbsp;

Despite the Chinese mouthpiece's argument, Western businesses are on the edge — and for good reason.&nbsp;

US consultancy Bain &amp; Company said on Thursday that some members of the staff at its Shanghai office have been questioned by the local police. This incident comes just a&nbsp;month after&nbsp;the Beijing office of Mintz Group, an American corporate due diligence firm, was closed and five members of its staff were detained.&nbsp;

China has widened the scope of its counter-espionage law, which critics worry may create additional legal risks or confusion among global corporations. According to CNN, the change broadens the definition of espionage to encompass any "document or data related to national security" without defining these categories explicitly.

China has widened the scope of its counter-espionage law, which critics worry may create additional legal risks or confusion among global corporations. According to CNN, the change broadens the definition of espionage to encompass any "document or data related to national security" without defining these categories explicitly. The amendment passed by China's top legislative body on Wednesday comes as Chinese President Xi Jinping places a greater focus on national security. Since coming to power in power, Xi has supervised several new steps to combat perceived dangers within and outside China and efforts to regulate the flow of information outside the nation, particularly after the Covid outbreak. Yasuhiro Matsuda, an international relations professor at the University of Tokyo, told CNN that the revised counter-espionage law could heighten risks for foreigners and businesses trying to understand China better. Foreign Concerns and China's Counter Many analysts believe that legitimate data on the Chinese economy might all fall under the purview of the amended law. They also argue that the tighter anti-espionage law will further frighten international corporations working in China. The new counter-espionage law comes only months after China eased pandemic-era border restrictions after three years of self-imposed Covid isolation — measures that had kept most international entrepreneurs and researchers at bay. However, Global Times, the English-language mouthpiece of the Communist Party of China, commented that the updated anti-spying law will have no effect on Western businesses and the continuously improving business environment in China. It urged the companies not to buy into the 'distorted facts' that China's anti-espionage law will undermine the business environment, as they will "only miss opportunities and hand over development opportunities to competitors". Despite the Chinese mouthpiece's argument, Western businesses are on the edge — and for good reason. US consultancy Bain & Company said on Thursday that some members of the staff at its Shanghai office have been questioned by the local police. This incident comes just a month after the Beijing office of Mintz Group, an American corporate due diligence firm, was closed and five members of its staff were detained.

China broadening counter-espionage law spooks foreign businesses

A new report by the World Bank has revealed that commodity prices are set to decline&nbsp;in 2023.

The World Bank's&nbsp;Commodity Markets Outlook report&nbsp;expects commodity prices to decrease by 21 percent this year, the steepest drop since the pandemic, before stabilising in 2024.

Nevertheless, the bank warns that consumers will continue feeling the pinch, as prices for all main commodity groups are substantially higher than pre-pandemic levels.

The research highlights the effects of rising food costs, which are at their second-highest level in real terms since the 1973-75 grain shortages. This, in turn, contributes to increased food insecurity, which has severe consequences for impoverished communities in many developing nations.

Energy prices fell by 20 percent in the first three months of 2023 compared to the final three months of 2022, owing to decline in oil and natural gas prices. The report&nbsp;anticipates that much of the recent decline will be maintained for the rest of the year, with prices perhaps rising in 2024.

Metal prices, on the other hand, are up nearly 10 percent in 2023, but that is due to a drop in pricing near the close of last year when a strong dollar and concerns about Chinese demand weighed on prices. Prices of non-energy commodities are expected to fall 10 percent&nbsp;this year. Another 3 percent&nbsp;fall in non-energy commodities can be expected in 2024 due to weak global demand, the report adds.&nbsp;

Dangers Ahead

In its forecast, the World Bank did mention certain dangers.&nbsp;

If supply remains below target, Russia and the Organisation of Petroleum Exporting Countries (OPEC) may provide less oil than projected. Further, tighter finance conditions may limit oil and coal companies' capacity to grow supplies elsewhere. Tighter controls on fossil fuels are also expected to deter investment in the sector.

Chinese demand is&nbsp;unknown, though the bank suggests&nbsp;that an economic rebound could be led by property rather than services, which would be suitable for commodities such as aluminium and copper.&nbsp;

In Europe, concerns regarding gas stocks next winter and uncertainties about the Black Sea Grain Initiative will remain. Moreover, fears of erratic weather may hike costs in the continent. Tighter credit conditions and geopolitical tensions are some other risks that could impact the global commodity markets in 2023, notes the report.&nbsp;

A new report by the World Bank has revealed that commodity prices are set to decline in 2023. The World Bank's Commodity Markets Outlook report expects commodity prices to decrease by 21 percent this year, the steepest drop since the pandemic, before stabilising in 2024.

A new report by the World Bank has revealed that commodity prices are set to decline in 2023. The World Bank's Commodity Markets Outlook report expects commodity prices to decrease by 21 percent this year, the steepest drop since the pandemic, before stabilising in 2024. Nevertheless, the bank warns that consumers will continue feeling the pinch, as prices for all main commodity groups are substantially higher than pre-pandemic levels. The research highlights the effects of rising food costs, which are at their second-highest level in real terms since the 1973-75 grain shortages. This, in turn, contributes to increased food insecurity, which has severe consequences for impoverished communities in many developing nations. Energy prices fell by 20 percent in the first three months of 2023 compared to the final three months of 2022, owing to decline in oil and natural gas prices. The report anticipates that much of the recent decline will be maintained for the rest of the year, with prices perhaps rising in 2024. Metal prices, on the other hand, are up nearly 10 percent in 2023, but that is due to a drop in pricing near the close of last year when a strong dollar and concerns about Chinese demand weighed on prices. Prices of non-energy commodities are expected to fall 10 percent this year. Another 3 percent fall in non-energy commodities can be expected in 2024 due to weak global demand, the report adds. Dangers Ahead In its forecast, the World Bank did mention certain dangers. If supply remains below target, Russia and the Organisation of Petroleum Exporting Countries (OPEC) may provide less oil than projected. Further, tighter finance conditions may limit oil and coal companies' capacity to grow supplies elsewhere. Tighter controls on fossil fuels are also expected to deter investment in the sector. Chinese demand is unknown, though the bank suggests that an economic rebound could be led by property rather than services, which would be suitable for commodities such as aluminium and copper. In Europe, concerns regarding gas stocks next winter and uncertainties about the Black Sea Grain Initiative will remain. Moreover, fears of erratic weather may hike costs in the continent. Tighter credit conditions and geopolitical tensions are some other risks that could impact the global commodity markets in 2023, notes the report.

Commodity prices set to plunge in 2023, but relief for consumers remains elusive: World Bank report

Canada's largest strike by federal workers is nearing&nbsp;its third week, causing a backlog in immigration services and leaving thousands of people in limbo.&nbsp;

The strike, which began on April 19, has affected everyone from migrant workers to sponsored relatives, from foreign students to refugee claimants whose hearings have been cancelled.&nbsp;

Reuters reports&nbsp;that while wages are a primary sticking point for the 155,000 federal public servants on strike, the union is also demanding remote work be included in its collective agreement. Other important sticking points during the negotiations include who determines remote work regulations, contracts, and seniority during layoffs.

Since 2021, the union and government have been negotiating a new contract. The union claims its members need assistance with rising living costs, while the government claims it wants an agreement that is fair to both the union and taxpayers.

Both sides agree that members should be paid more but disagree on how much. The government has declared officially that it will not grant a rise of more than 9 percent over three years, whereas the union seeks a greater rise.

Strike threatens to hamper growth

The delay caused by the strike is putting pressure on&nbsp;an already backlogged immigration system trying to catch up with pandemic delays.

Canada has raised its immigration target to a record 500,000 additional permanent residents per year by 2025 to support sectors with labour shortages, ranging from healthcare to construction. However, some would-be newcomers continue to wait&nbsp;abroad, while others have been left wondering whether their permits will expire.&nbsp;

The strike comes at a time when Canada's reduced birth rate makes immigration a major engine of economic growth, and a malfunctioning immigration system might impede efforts to attract smart immigrants.

Tens of thousands of files have not been processed as a result of the strike, according to Immigration, Refugees, and Citizenship Minister Sean Fraser. And the longer the strike continues, the more serious the consequences will be.&nbsp;

Reuters quotes Frazer as saying: "We’re going to continue to work to identify priority areas where people lives may be in danger to ensure we can still maintain those essential functions."&nbsp;

As of February 1 2022, Canada had a logjam of more than 1.8 million immigration petitions, according to data from its immigration department. This included&nbsp;519,030 petitions for permanent residence, 848,598 applications for temporary residency and 448,000 applicants for Canadian citizenship.

However, immigration department officials whose jobs have been disrupted by the strike were unable to provide specifics on the strike's effects on immigration services.&nbsp;

With no end in sight to the strike, the question that many are asking -&nbsp;how long is the wait for migrating to Canada?

(With agency inputs)&nbsp;

Canada's largest strike by federal workers is nearing its third week, causing a backlog in immigration services and leaving thousands of people in limbo. The strike, which began on April 19, has affected everyone from migrant workers to sponsored relatives, from foreign students to refugee claimants whose hearings have been cancelled.

Canada's largest strike by federal workers is nearing its third week, causing a backlog in immigration services and leaving thousands of people in limbo. The strike, which began on April 19, has affected everyone from migrant workers to sponsored relatives, from foreign students to refugee claimants whose hearings have been cancelled. Reuters reports that while wages are a primary sticking point for the 155,000 federal public servants on strike, the union is also demanding remote work be included in its collective agreement. Other important sticking points during the negotiations include who determines remote work regulations, contracts, and seniority during layoffs. Since 2021, the union and government have been negotiating a new contract. The union claims its members need assistance with rising living costs, while the government claims it wants an agreement that is fair to both the union and taxpayers. Both sides agree that members should be paid more but disagree on how much. The government has declared officially that it will not grant a rise of more than 9 percent over three years, whereas the union seeks a greater rise. Strike threatens to hamper growth The delay caused by the strike is putting pressure on an already backlogged immigration system trying to catch up with pandemic delays. Canada has raised its immigration target to a record 500,000 additional permanent residents per year by 2025 to support sectors with labour shortages, ranging from healthcare to construction. However, some would-be newcomers continue to wait abroad, while others have been left wondering whether their permits will expire. The strike comes at a time when Canada's reduced birth rate makes immigration a major engine of economic growth, and a malfunctioning immigration system might impede efforts to attract smart immigrants. Tens of thousands of files have not been processed as a result of the strike, according to Immigration, Refugees, and Citizenship Minister Sean Fraser. And the longer the strike continues, the more serious the consequences will be. Reuters quotes Frazer as saying: "We’re going to continue to work to identify priority areas where people lives may be in danger to ensure we can still maintain those essential functions." As of February 1 2022, Canada had a logjam of more than 1.8 million immigration petitions, according to data from its immigration department. This included 519,030 petitions for permanent residence, 848,598 applications for temporary residency and 448,000 applicants for Canadian citizenship. However, immigration department officials whose jobs have been disrupted by the strike were unable to provide specifics on the strike's effects on immigration services. With no end in sight to the strike, the question that many are asking - how long is the wait for migrating to Canada? (With agency inputs)

Canada: Immigration in limbo as federal strike nears third week

Hold onto your sandwiches, folks, because the world's largest fast-food chain Subway is up for sale, and private equity firms are vying for a piece of the pie. The company has been seeking a buyer since February and hopes to fetch a price tag of more than $10 billion, according to Reuters.

But the current environment for leveraged buyouts has been challenging due to rising interest rates and concerns about an economic slowdown. This has made it difficult for buyout firms to secure financing for their deals.

To overcome this, Subway's financial adviser, JPMorgan Chase &amp; Co, has put together a $5 billion debt financing package that it hopes will entice potential buyers. The package includes a mix of loans and bonds, equivalent to 6.75 times Subway's 12-month earnings before interest, taxes, depreciation, and amortization (EBITDA).

However, this kind of financing may only be a temporary solution, say reports. A potential buyer of Subway would be better off financing the acquisition over time through a whole business securitization (WBS), which necessitates store-by-store due diligence by rating agencies, which might take up to a year.

More than ten private equity firms, including TPG Inc, Bain Capital, Advent International Corp, TDR Capital, Roark Capital, and Goldman Sachs Group Inc's buyout arm, have placed second-round bids for Subway.&nbsp;

The company is now narrowing the pool of potential bidders and will quickly allow them to collaborate before submitting final bids.

Subway has been undergoing a major revamp of its operations, including a menu overhaul and marketing campaign, to deal with outdated decor and declining profits for franchisees.&nbsp;

This turnaround plan has helped sales grow, and the chain reported a 12.1 percent increase in global comparable sales in the first quarter of this year.

Founders Fred DeLuca and Peter Buck started Subway in 1965 with a single restaurant called "Pete's Super Submarines" in Bridgeport, Connecticut. Since then, the chain has grown to nearly 37,000 locations globally. But it has been facing growing competition from rivals such as Firehouse Subs, Jimmy John's, Jersey Mike's Subs, and Potbelly Corp.

Now, only time will tell, but one thing is for sure: this sale is going to be a meaty one.

Hold onto your sandwiches, folks, because the world's largest fast-food chain Subway is up for sale, and private equity firms are vying for a piece of the pie. The company has been seeking a buyer since February and hopes to fetch a price tag of more than $10 billion, according to Reuters.

Hold onto your sandwiches, folks, because the world's largest fast-food chain Subway is up for sale, and private equity firms are vying for a piece of the pie. The company has been seeking a buyer since February and hopes to fetch a price tag of more than $10 billion, according to Reuters. But the current environment for leveraged buyouts has been challenging due to rising interest rates and concerns about an economic slowdown. This has made it difficult for buyout firms to secure financing for their deals. To overcome this, Subway's financial adviser, JPMorgan Chase & Co, has put together a $5 billion debt financing package that it hopes will entice potential buyers. The package includes a mix of loans and bonds, equivalent to 6.75 times Subway's 12-month earnings before interest, taxes, depreciation, and amortization (EBITDA). However, this kind of financing may only be a temporary solution, say reports. A potential buyer of Subway would be better off financing the acquisition over time through a whole business securitization (WBS), which necessitates store-by-store due diligence by rating agencies, which might take up to a year. More than ten private equity firms, including TPG Inc, Bain Capital, Advent International Corp, TDR Capital, Roark Capital, and Goldman Sachs Group Inc's buyout arm, have placed second-round bids for Subway. The company is now narrowing the pool of potential bidders and will quickly allow them to collaborate before submitting final bids. Subway has been undergoing a major revamp of its operations, including a menu overhaul and marketing campaign, to deal with outdated decor and declining profits for franchisees. This turnaround plan has helped sales grow, and the chain reported a 12.1 percent increase in global comparable sales in the first quarter of this year. Founders Fred DeLuca and Peter Buck started Subway in 1965 with a single restaurant called "Pete's Super Submarines" in Bridgeport, Connecticut. Since then, the chain has grown to nearly 37,000 locations globally. But it has been facing growing competition from rivals such as Firehouse Subs, Jimmy John's, Jersey Mike's Subs, and Potbelly Corp. Now, only time will tell, but one thing is for sure: this sale is going to be a meaty one.

US food chain Subway on sale: Who wants a $10 billion sandwich?

Vice Media, the brash digital media disruptor that once charmed media giants like Disney and Fox into investing, is reportedly on the brink of filing for bankruptcy.&nbsp;

While the company is still looking for a potential buyer to avoid bankruptcy, the chances of a successful sale are dwindling, the New York Times reported.&nbsp;

Vice, which began as a punk magazine in the Canadian city of Montreal over two decades ago, slowly evolved into a global media organisation with a film studio, an ad agency, and even an HBO show.

However, the company consistently failed to earn a profit, losing money and laying off employees left and right. In fact, Vice's value today is a tiny fraction of what it was worth in 2017 - $5.7 billion, after a funding round from private equity firm TPG.

If Vice does file for bankruptcy, Fortress Investment Group, the company's largest debtholder, could end up controlling the company. The good news is that Vice will continue operating normally and hold a 45-day auction to sell the company.

Fortress is the most likely to acquire it, so the company's fate appears to be in good hands.Unlike Vice's other investors, which have included Disney and Fox, Fortress holds the senior debt, which implies it is paid first in the case of a sale. Disney has already written down its investments and is not receiving a return.

Vice has already lost a lot of its luster, and the closure of its Vice World News division last week was just another blow to its already shaky foundation.&nbsp;

Employees who saw the division's aggressive coverage, especially when its co-founder, Shane Smith, would report from dangerous locations like North Korea, were left reeling.

The bankruptcy of Vice Media will be a tragic end to the story of the new-media interloper that once sought to overthrow traditional media outlets.&nbsp;

In the meantime, Vice continues to evaluate its options, with its board and stakeholders focused on finding the best path forward.&nbsp;

Vice Media, the brash digital media disruptor that once charmed media giants like Disney and Fox into investing, is reportedly on the brink of filing for bankruptcy.

Vice Media, the brash digital media disruptor that once charmed media giants like Disney and Fox into investing, is reportedly on the brink of filing for bankruptcy. While the company is still looking for a potential buyer to avoid bankruptcy, the chances of a successful sale are dwindling, the New York Times reported. Vice, which began as a punk magazine in the Canadian city of Montreal over two decades ago, slowly evolved into a global media organisation with a film studio, an ad agency, and even an HBO show. However, the company consistently failed to earn a profit, losing money and laying off employees left and right. In fact, Vice's value today is a tiny fraction of what it was worth in 2017 - $5.7 billion, after a funding round from private equity firm TPG. If Vice does file for bankruptcy, Fortress Investment Group, the company's largest debtholder, could end up controlling the company. The good news is that Vice will continue operating normally and hold a 45-day auction to sell the company. Fortress is the most likely to acquire it, so the company's fate appears to be in good hands.Unlike Vice's other investors, which have included Disney and Fox, Fortress holds the senior debt, which implies it is paid first in the case of a sale. Disney has already written down its investments and is not receiving a return. Vice has already lost a lot of its luster, and the closure of its Vice World News division last week was just another blow to its already shaky foundation. Employees who saw the division's aggressive coverage, especially when its co-founder, Shane Smith, would report from dangerous locations like North Korea, were left reeling. The bankruptcy of Vice Media will be a tragic end to the story of the new-media interloper that once sought to overthrow traditional media outlets. In the meantime, Vice continues to evaluate its options, with its board and stakeholders focused on finding the best path forward.

From disruptor to disrupted: Vice Media prepares for bankruptcy

The Reserve Bank of Zimbabwe will soon issue a gold-backed digital currency that will function as the country's legal tender. The move is part of a government strategy to keep the local currency from depreciating further against the US dollar.

According to the state-run outlet, The Sunday Mail, the initiative will allow small amounts of Zimbabwean dollars to be swapped for the digital gold token, allowing more Zimbabweans to hedge against currency volatility. According to Reserve Bank of Zimbabwe Governor John Mangudya, the objective is to "leave no one and no place behind." Last year, the government also issued gold coins in an attempt to absorb surplus liquidity and stabilise the local currency.

Mangudya said the current exchange rate volatility can be&nbsp;attributed&nbsp;to market anticipation of higher foreign currency supply when the tobacco auction season began in March. Zimbabwe has shipped 54.9 kilos&nbsp;of tobacco for $307 million since the auction season began. It shipped 57 million kilos&nbsp;for $295.5 million over the same period last year.

According to Bloomberg, Zimbabwe's currency is valued at 1,001 ZWL for $1, but it is frequently exchanged for 1,750 ZWL on the streets of Harare, the country's capital. Annual consumer price inflation in the country fell to one year low of 87.6 percent&nbsp;in March from 92 percent&nbsp;in February.

ZIMBABWE'S ECONOMIC HISTORY AND DIGITAL CURRENCIES

Zimbabwe has suffered huge economic issues in the past, including one of history's most severe examples of hyperinflation. In the late 2000s, hyperinflation reached astronomical proportions, with prices doubling every few hours, causing the local currency to collapse.

In 2009, the government adopted the US dollar as its primary form of currency in order to stabilise the economy. This, however, was not an effective long-term solution because it hampered the government's capacity to control its monetary policy. In an attempt to revitalise the economy, Zimbabwe reintroduced its own currency, the Zimbabwe dollar, in 2019. However, the re-introduction has been plagued by rapid price hikes and volatile exchange rates, causing substantial issues for the local population.

The introduction of a gold-backed digital currency is seen as a potential solution to address these challenges. By leveraging the stability of gold as a backing asset, digital currency aims to provide a more stable form of currency for Zimbabweans to store value and protect against currency volatility.

As a result of economic issues, crypto usage has increased in several African countries. The Middle East and North Africa are the fastest-growing regions for crypto adoption, primarily to cross-border remittances, with over $566 billion in crypto transactions between July 2021 and June 2022, up 48 percent&nbsp;from the previous year, according to Chainalysis.

The Reserve Bank of Zimbabwe will soon issue a gold-backed digital currency that will function as the country's legal tender. The move is part of a government strategy to keep the local currency from depreciating further against the US dollar.

The Reserve Bank of Zimbabwe will soon issue a gold-backed digital currency that will function as the country's legal tender. The move is part of a government strategy to keep the local currency from depreciating further against the US dollar. According to the state-run outlet, The Sunday Mail, the initiative will allow small amounts of Zimbabwean dollars to be swapped for the digital gold token, allowing more Zimbabweans to hedge against currency volatility. According to Reserve Bank of Zimbabwe Governor John Mangudya, the objective is to "leave no one and no place behind." Last year, the government also issued gold coins in an attempt to absorb surplus liquidity and stabilise the local currency. Mangudya said the current exchange rate volatility can be attributed to market anticipation of higher foreign currency supply when the tobacco auction season began in March. Zimbabwe has shipped 54.9 kilos of tobacco for $307 million since the auction season began. It shipped 57 million kilos for $295.5 million over the same period last year. According to Bloomberg, Zimbabwe's currency is valued at 1,001 ZWL for $1, but it is frequently exchanged for 1,750 ZWL on the streets of Harare, the country's capital. Annual consumer price inflation in the country fell to one year low of 87.6 percent in March from 92 percent in February. ZIMBABWE'S ECONOMIC HISTORY AND DIGITAL CURRENCIES Zimbabwe has suffered huge economic issues in the past, including one of history's most severe examples of hyperinflation. In the late 2000s, hyperinflation reached astronomical proportions, with prices doubling every few hours, causing the local currency to collapse. In 2009, the government adopted the US dollar as its primary form of currency in order to stabilise the economy. This, however, was not an effective long-term solution because it hampered the government's capacity to control its monetary policy. In an attempt to revitalise the economy, Zimbabwe reintroduced its own currency, the Zimbabwe dollar, in 2019. However, the re-introduction has been plagued by rapid price hikes and volatile exchange rates, causing substantial issues for the local population. The introduction of a gold-backed digital currency is seen as a potential solution to address these challenges. By leveraging the stability of gold as a backing asset, digital currency aims to provide a more stable form of currency for Zimbabweans to store value and protect against currency volatility. As a result of economic issues, crypto usage has increased in several African countries. The Middle East and North Africa are the fastest-growing regions for crypto adoption, primarily to cross-border remittances, with over $566 billion in crypto transactions between July 2021 and June 2022, up 48 percent from the previous year, according to Chainalysis.

Gold-backed digital tokens: Zimbabwe’s bid to revive its local currency

At least nine members of the US Congress sold banking stocks before and during the banking turmoil in March, sparking suspicions of possible insider trading, The Financial Times has&nbsp;reported.&nbsp;

According to Quiver Quantitative's analysis of public declarations of stock sales, Josh Gottheimer, a Democrat from New Jersey and member of the financial services committee, disclosed selling his shares in Silicon Valley Bank (SVB) on March 9. This transaction was valued between $1,000 and $15,000 and took place&nbsp;a day before the bank collapsed, sending U.S. banking stocks plummeting.

Gottheimer, the Financial Times noted, reportedly sold his shares&nbsp;in Charles Schwab Corp. on March 6 and March 14 for a similar amount. Gottheimer also sold his shares&nbsp;in Seacoast Banking, a troubled Florida bank, on March 29. The share price of Seacoast Banking has fallen by&nbsp;10 percent&nbsp;since the transaction.

According to Quiver Quantitative's analysis, the New Jersey Democrat was one of the most active stock dealers in the House of Representatives in 2022, with over 380 transactions.&nbsp;The Congressman's&nbsp;representatives, however, stated that his financial decisions were made at the discretion of a third-party financial consultant.

Gottheimer was just one of the several Congress lawmakers&nbsp;who sold their banking stocks last month when the industry was in upheaval.

Daniel Goldman, a House Democrat representing a New York district, sold a Schwab position worth between $15,000 and $50,000 on March 6. On March 15, he sold his shares in San Francisco-based First Republic Bank. Since then, First Republic shares have dropped by more than half.&nbsp;

Conflict of interest?

The allegations of stock sales by US&nbsp;lawmakers have raised concerns about potential conflicts of interest, as lawmakers may&nbsp;access&nbsp;non-public information that could impact stock prices. Insider trading, which involves using non-public information to gain an unfair advantage in stock trading, is illegal and unethical.

Public advocacy groups worry that enabling government officials to own or trade stocks could create a conflict of interest with their official obligations, even if they are legally compelled to declare them.

"It exemplifies why public trust in the elected officials is so low," Danielle Caputo, legal counsel for ethics at the Campaign Legal Centre, a campaign watchdog organisation, told Financial Times.

At least nine members of the US Congress sold banking stocks before and during the banking turmoil in March, sparking suspicions of possible insider trading, The Financial Times has reported.

At least nine members of the US Congress sold banking stocks before and during the banking turmoil in March, sparking suspicions of possible insider trading, The Financial Times has reported. According to Quiver Quantitative's analysis of public declarations of stock sales, Josh Gottheimer, a Democrat from New Jersey and member of the financial services committee, disclosed selling his shares in Silicon Valley Bank (SVB) on March 9. This transaction was valued between $1,000 and $15,000 and took place a day before the bank collapsed, sending U.S. banking stocks plummeting. Gottheimer, the Financial Times noted, reportedly sold his shares in Charles Schwab Corp. on March 6 and March 14 for a similar amount. Gottheimer also sold his shares in Seacoast Banking, a troubled Florida bank, on March 29. The share price of Seacoast Banking has fallen by 10 percent since the transaction. According to Quiver Quantitative's analysis, the New Jersey Democrat was one of the most active stock dealers in the House of Representatives in 2022, with over 380 transactions. The Congressman's representatives, however, stated that his financial decisions were made at the discretion of a third-party financial consultant. Gottheimer was just one of the several Congress lawmakers who sold their banking stocks last month when the industry was in upheaval. Daniel Goldman, a House Democrat representing a New York district, sold a Schwab position worth between $15,000 and $50,000 on March 6. On March 15, he sold his shares in San Francisco-based First Republic Bank. Since then, First Republic shares have dropped by more than half. Conflict of interest? The allegations of stock sales by US lawmakers have raised concerns about potential conflicts of interest, as lawmakers may access non-public information that could impact stock prices. Insider trading, which involves using non-public information to gain an unfair advantage in stock trading, is illegal and unethical. Public advocacy groups worry that enabling government officials to own or trade stocks could create a conflict of interest with their official obligations, even if they are legally compelled to declare them. "It exemplifies why public trust in the elected officials is so low," Danielle Caputo, legal counsel for ethics at the Campaign Legal Centre, a campaign watchdog organisation, told Financial Times.

At least 9 US lawmakers sold banking stocks prior to market turmoil: Report

Credit Suisse, one of the leading banks in Switzerland, faced a significant "bank run" ahead of its collapse in March 2023, a Reuters report indicated on Monday.&nbsp;

The Swiss bank announced that it experienced a significant outflow of assets totaling 61 billion Swiss francs ($68 billion) in the first three months of 2023,&nbsp;with the bank's wealth management division being the hardest hit.&nbsp;

A bank run takes place&nbsp;when a large number of customers of a bank withdraw their deposits at the same time over fears about the bank's solvency.

Depositors began withdrawing their funds from the scandal-plagued Credit Suisse after it became entangled in the market upheaval caused by the failures of US lenders Silicon Valley Bank and Signature Bank.

As a result, Swiss authorities scrambled to create a rescue package in which UBS agreed to buy Credit Suisse for 3 billion Swiss francs in equity and accept up to 5 billion Swiss francs in damages. It also included state financial guarantees worth 200 billion francs.

A Tricky Position

Despite&nbsp;a major bank run, the Swiss banking giant also reported&nbsp;a net profit of 12.8 billion Swiss francs ($14 billion)&nbsp;for the first quarter ending March 2023. This was a notable increase compared to the significant loss incurred in the same period last year. The bank attributed the positive net profit mainly to the emergency takeover deal that wiped out high-risk debtors.

The significant asset outflows along with a&nbsp;rise in net profit&nbsp;was met with mixed reactions in the market. While the increase in net profit was viewed positively, the persistent outflows of assets raised concerns about the bank's ability to overcome its challenges.&nbsp;

Meanwhile, Credit Suisse's ability to generate revenue appeared to be impaired. London-based KBW analyst Thomas Hallett told&nbsp;Reuters that the "rescue deal could well remain a drag on UBS operating results unless a deeper restructuring plan is announced."

Credit Suisse also cancelled the planned $175 million acquisition of Michael Klein's investment banking business, which it had planned to spin alongside its own investment banking division.

According to RBC Capital Markets analysts,&nbsp;the results show&nbsp;the difficult work ahead for UBS in acquiring&nbsp;its rival.&nbsp;UBS is yet to announce how many Credit Suisse jobs will be cut. Following the takeover, UBS executives stated that the deal will result in $8 billion in cost savings by 2027, $6 billion of which will come from reducing the number of full-time employees.

Credit Suisse, one of the leading banks in Switzerland, faced a significant "bank run" ahead of its collapse in March 2023, a Reuters report indicated on Monday.

Credit Suisse, one of the leading banks in Switzerland, faced a significant "bank run" ahead of its collapse in March 2023, a Reuters report indicated on Monday. The Swiss bank announced that it experienced a significant outflow of assets totaling 61 billion Swiss francs ($68 billion) in the first three months of 2023, with the bank's wealth management division being the hardest hit. A bank run takes place when a large number of customers of a bank withdraw their deposits at the same time over fears about the bank's solvency. Depositors began withdrawing their funds from the scandal-plagued Credit Suisse after it became entangled in the market upheaval caused by the failures of US lenders Silicon Valley Bank and Signature Bank. As a result, Swiss authorities scrambled to create a rescue package in which UBS agreed to buy Credit Suisse for 3 billion Swiss francs in equity and accept up to 5 billion Swiss francs in damages. It also included state financial guarantees worth 200 billion francs. A Tricky Position Despite a major bank run, the Swiss banking giant also reported a net profit of 12.8 billion Swiss francs ($14 billion) for the first quarter ending March 2023. This was a notable increase compared to the significant loss incurred in the same period last year. The bank attributed the positive net profit mainly to the emergency takeover deal that wiped out high-risk debtors. The significant asset outflows along with a rise in net profit was met with mixed reactions in the market. While the increase in net profit was viewed positively, the persistent outflows of assets raised concerns about the bank's ability to overcome its challenges. Meanwhile, Credit Suisse's ability to generate revenue appeared to be impaired. London-based KBW analyst Thomas Hallett told Reuters that the "rescue deal could well remain a drag on UBS operating results unless a deeper restructuring plan is announced." Credit Suisse also cancelled the planned $175 million acquisition of Michael Klein's investment banking business, which it had planned to spin alongside its own investment banking division. According to RBC Capital Markets analysts, the results show the difficult work ahead for UBS in acquiring its rival. UBS is yet to announce how many Credit Suisse jobs will be cut. Following the takeover, UBS executives stated that the deal will result in $8 billion in cost savings by 2027, $6 billion of which will come from reducing the number of full-time employees.

Credit Suisse faced 'bank run', depositors withdrew $68 billion ahead of UBS takeover

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Zee News Rajasthan

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Hardik Bhardwaj

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