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When the world talks of India's success story, UPI, India's very own digital payments platforms, takes the position of pride. It has not only made making transactions quick and efficient but is also an example of India's growing fintech prowess. Even as UPI continues with its spectacular journey in India, where it hit a record 9 billion transactions in may, the digital payment platform is spreading its wings abroad.

India's UPI's growing global footprint

Inflation in the US has reached a&nbsp;two-year low, indicating positive momentum in the fight against rising prices. The latest data from the Labor Department on Wednesday also revealed that underlying consumer prices experienced their slowest monthly growth since August 2021.

The Consumer Price Index (CPI) recorded a 3 percent increase in the year leading up to June. This represents the weakest year-on-year increase since March 2021, following a 4.0 percent increase in May. Although this decline in&nbsp;inflation&nbsp;is a positive development, it is important to note that it does not necessarily indicate the end of the battle against price pressures. Last year's peak, the highest seen in four decades, underscores the ongoing need to address and manage inflationary pressures.

This substantial decrease in underlying inflation sparked a rally in the stock and bond markets, with investors gaining confidence that the United States' central bank is nearing the conclusion of its rapid monetary policy tightening cycle, the quickest since the 1980s.

However, this deceleration in inflation may not be enough to dissuade the Federal Reserve from proceeding with another interest rate hike this month.

The Federal Reserve, expected to proceed with another interest rate increase later this month, confronts challenges as it navigates the complexities of the current economic landscape. Market reactions have been noteworthy, with short-term Treasury yields experiencing a significant decline while stocks rose.

While the recent decline in inflation rates is undoubtedly encouraging, it is crucial to acknowledge that inflation still remains well above the Federal Reserve's target of 2 percent, particularly given the tight labor market conditions.

Reuters cited Christopher Rupkey, the chief economist at FWDBONDS in New York, as saying&nbsp;that inflation is not completely eliminated, but the unprecedented impact of the pandemic on prices, caused by shortages and the shift towards stay-at-home purchases, has evidently subsided. As a result, the Federal Reserve now finds itself in a position of strength in its battle against inflation for the first time.

The final stage of curbing inflation is expected to pose significant challenges, particularly due to concerns regarding the comparison of the current consumer price index to the previous year's index. This previous period witnessed a notable increase in energy prices driven by geopolitical events, which could artificially mask the extent of the current slowdown.

Inflation in the US has reached a two-year low, indicating positive momentum in the fight against rising prices. The latest data from the Labor Department on Wednesday also revealed that underlying consumer prices experienced their slowest monthly growth since August 2021.

Inflation in the US has reached a two-year low, indicating positive momentum in the fight against rising prices. The latest data from the Labor Department on Wednesday also revealed that underlying consumer prices experienced their slowest monthly growth since August 2021. The Consumer Price Index (CPI) recorded a 3 percent increase in the year leading up to June. This represents the weakest year-on-year increase since March 2021, following a 4.0 percent increase in May. Although this decline in inflation is a positive development, it is important to note that it does not necessarily indicate the end of the battle against price pressures. Last year's peak, the highest seen in four decades, underscores the ongoing need to address and manage inflationary pressures. This substantial decrease in underlying inflation sparked a rally in the stock and bond markets, with investors gaining confidence that the United States' central bank is nearing the conclusion of its rapid monetary policy tightening cycle, the quickest since the 1980s. However, this deceleration in inflation may not be enough to dissuade the Federal Reserve from proceeding with another interest rate hike this month. The Federal Reserve, expected to proceed with another interest rate increase later this month, confronts challenges as it navigates the complexities of the current economic landscape. Market reactions have been noteworthy, with short-term Treasury yields experiencing a significant decline while stocks rose. While the recent decline in inflation rates is undoubtedly encouraging, it is crucial to acknowledge that inflation still remains well above the Federal Reserve's target of 2 percent, particularly given the tight labor market conditions. Reuters cited Christopher Rupkey, the chief economist at FWDBONDS in New York, as saying that inflation is not completely eliminated, but the unprecedented impact of the pandemic on prices, caused by shortages and the shift towards stay-at-home purchases, has evidently subsided. As a result, the Federal Reserve now finds itself in a position of strength in its battle against inflation for the first time. The final stage of curbing inflation is expected to pose significant challenges, particularly due to concerns regarding the comparison of the current consumer price index to the previous year's index. This previous period witnessed a notable increase in energy prices driven by geopolitical events, which could artificially mask the extent of the current slowdown.

United States: June inflation at 3%, lowest rate in two years

The US inflation rate has taken a significant dip, hitting a more than two-year low. This development could potentially mark a turning point in the cost-of-living emergency, and have implications for the federal reserve's monetary tightening strategies. The latest data reveals that consumer-price inflation for the previous month stands at just 3%, which is a significant drop from the highest level seen last year in four decades.

US inflation rate hits 2-year low

Food prices, constituting almost half of the inflation index, have climbed steeply, contributing to the overall increase. Alongside this, clothing and footwear prices have seen a substantial jump, further exacerbating the situation. With housing costs also on the rise, the inflationary pressure is mounting.

India’s retail inflation hits 4.81% | World Business Watch

The global public debt has risen to record levels. A UN report states that global debt rose to 92 trillion dollars in 2022. Domestic and external debt worldwide has increased more than five times in the last two decades. The pace has outstripped economic growth too, as the gross domestic product has only tripled since 2002.

Global debt hits record high

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From Tesla to Xai: Elon Musk's AI-volution continues | World Business Watch

A recently-published United Nations report reveals that global public debt has reached an unprecedented milestone of $92 trillion. Governments around the world resorted to borrowing loans to tackle catastrophic events like the COVID-19 pandemic, which devastated numerous families, overwhelmed the global healthcare system, and severely disrupted the international economy.&nbsp;

Additionally, the report highlights a concerning trend of domestic and external debt growing more than fivefold in the past two decades, outpacing economic growth. In contrast, global GDP has only tripled since 2002. This raises doubts&nbsp;about the sustainability of such borrowing practices and their potential long-term impacts on the global economy.

Over 30 percent of global public debt is attributed to developing countries, with China, India, and Brazil accounting for 70 percent&nbsp;of that share. Among the developing nations, fifty-nine of them possess debt-to-GDP ratios exceeding 60 percent,&nbsp;indicating worrisome levels of debt.

UN Secretary-General Antonio Guterres has expressed&nbsp;concern about the impact on people, despite current market conditions appearing unaffected. Some of the world's poorest nations are faced with a difficult choice between servicing their debts or meeting the needs of their citizens.

Moreover, the UN reports&nbsp;that the international financial architecture has made access to credit for developing nations inadequate and costly. The fact that net interest debt payments exceeds 10 percent&nbsp;of revenues in 50 emerging economies&nbsp;provides evidence of this.

The UN is recommending that multilateral lenders, such as the IMF, enhance the accessibility of financing for countries facing debt distress. Additionally, the organization advocates for the establishment of a global debt workout mechanism. However, specific details regarding the workings of such a mechanism have not yet been disclosed.

A recently-published United Nations report reveals that global public debt has reached an unprecedented milestone of $92 trillion. Governments around the world resorted to borrowing loans to tackle catastrophic events like the COVID-19 pandemic, which devastated numerous families, overwhelmed the global healthcare system, and severely disrupted the international economy.

A recently-published United Nations report reveals that global public debt has reached an unprecedented milestone of $92 trillion. Governments around the world resorted to borrowing loans to tackle catastrophic events like the COVID-19 pandemic, which devastated numerous families, overwhelmed the global healthcare system, and severely disrupted the international economy. Additionally, the report highlights a concerning trend of domestic and external debt growing more than fivefold in the past two decades, outpacing economic growth. In contrast, global GDP has only tripled since 2002. This raises doubts about the sustainability of such borrowing practices and their potential long-term impacts on the global economy. Over 30 percent of global public debt is attributed to developing countries, with China, India, and Brazil accounting for 70 percent of that share. Among the developing nations, fifty-nine of them possess debt-to-GDP ratios exceeding 60 percent, indicating worrisome levels of debt. UN Secretary-General Antonio Guterres has expressed concern about the impact on people, despite current market conditions appearing unaffected. Some of the world's poorest nations are faced with a difficult choice between servicing their debts or meeting the needs of their citizens. Moreover, the UN reports that the international financial architecture has made access to credit for developing nations inadequate and costly. The fact that net interest debt payments exceeds 10 percent of revenues in 50 emerging economies provides evidence of this. The UN is recommending that multilateral lenders, such as the IMF, enhance the accessibility of financing for countries facing debt distress. Additionally, the organization advocates for the establishment of a global debt workout mechanism. However, specific details regarding the workings of such a mechanism have not yet been disclosed.

Global public debt soars to record-high of $92 trillion, UN report reveals

Russians scrambled to banks after Wagner mercenary group's chief Yevgeny Prigozhin launched an offensive against Moscow's military leadership last month. A total of 100 billion rubles (approximately $1.1 billion) were withdrawn from the banks during the three-day period between June 23-June 25 when Wagner forces were moving towards Moscow.&nbsp;

Russia's Central Bank's monthly monetary policy report released earlier this week said that 100 billion rubles were taken out in the June 23-25 period, The Moscow Times reported.

Also read |&nbsp;<a href="https://www.wionews.com/world/wagner-rebellion-when-putins-former-chef-served-a-dish-of-treason-ten-points-608452">Wagner rebellion: When Putin’s former favourite chef served a dish of ‘treason’ | 10 points</a>

On June 25, 2023, the armed uprising by Russia's Wagner mercenary group ended as dramatically as it began after a Belarus-brokered peace deal simmered down the clash between the mercenary group and the Russian state.&nbsp;

According to the Russian business news outlet RBC, the cash withdrawal during the Wagner's mutiny hours "was the most noticeable surge in demand for cash" since September 2021, when Moscow began mobilising its forces around Ukraine before its imminent offensive in February 2023.&nbsp;

<h2>Wagner mutiny and war in Ukraine: How much money was withdrawn in June?</h2>

Russia's Central Bank's figures cited by the Newsweek reported that 500 billion rubles (about $5.5 billion) were withdrawn from the Russian banks during the entire month of June. A fifth of these withdrawals reportedly took place during the June 23-25 weekend.&nbsp;

<h2>Wagner's support with Putin: Kremlin</h2>

Last month, shortly after the Wagner chief Yevgeny Prigozhin was seen leaving the city of Rostov-on-Don, he reportedly met Vladimir Putin.

Prigozhin was among 35 Wagner commanders invited to the meeting in Moscow, the Kremlin said. According to the spokesman, Prigozhin told Putin that Wagner unconditionally supported him.

Also watch |&nbsp;Top Russian general knew about Wagner rebellion plan: Report

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Despite a dramatic resolution to the Wagner-Russian state clash, the events of June 24-June 26 weekend have been described as the most serious challenge yet to Russian President Vladimir Putin's authority in and beyond Moscow's corridors of power.

It remains unclear if Prigozhin is still in Russia or not.&nbsp;

As part of the peace deal announced on June 26, Prigozhin was supposed to go to Belarus, and the fighters who rebelled with him were granted amnesty for their "service at the front."&nbsp;

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Russians scrambled to banks after Wagner mercenary group's chief Yevgeny Prigozhin launched an offensive against Moscow's military leadership last month. A total of 100 billion rubles (approximately $1.

Russians scrambled to banks after Wagner mercenary group's chief Yevgeny Prigozhin launched an offensive against Moscow's military leadership last month. A total of 100 billion rubles (approximately $1.1 billion) were withdrawn from the banks during the three-day period between June 23-June 25 when Wagner forces were moving towards Moscow. Russia's Central Bank's monthly monetary policy report released earlier this week said that 100 billion rubles were taken out in the June 23-25 period, The Moscow Times reported. Also read | Wagner rebellion: When Putin’s former favourite chef served a dish of ‘treason’ | 10 points On June 25, 2023, the armed uprising by Russia's Wagner mercenary group ended as dramatically as it began after a Belarus-brokered peace deal simmered down the clash between the mercenary group and the Russian state. According to the Russian business news outlet RBC, the cash withdrawal during the Wagner's mutiny hours "was the most noticeable surge in demand for cash" since September 2021, when Moscow began mobilising its forces around Ukraine before its imminent offensive in February 2023. Wagner mutiny and war in Ukraine: How much money was withdrawn in June? Russia's Central Bank's figures cited by the Newsweek reported that 500 billion rubles (about $5.5 billion) were withdrawn from the Russian banks during the entire month of June. A fifth of these withdrawals reportedly took place during the June 23-25 weekend. Wagner's support with Putin: Kremlin Last month, shortly after the Wagner chief Yevgeny Prigozhin was seen leaving the city of Rostov-on-Don, he reportedly met Vladimir Putin. Prigozhin was among 35 Wagner commanders invited to the meeting in Moscow, the Kremlin said. According to the spokesman, Prigozhin told Putin that Wagner unconditionally supported him. Also watch | Top Russian general knew about Wagner rebellion plan: Report × Despite a dramatic resolution to the Wagner-Russian state clash, the events of June 24-June 26 weekend have been described as the most serious challenge yet to Russian President Vladimir Putin's authority in and beyond Moscow's corridors of power. It remains unclear if Prigozhin is still in Russia or not. As part of the peace deal announced on June 26, Prigozhin was supposed to go to Belarus, and the fighters who rebelled with him were granted amnesty for their "service at the front." WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Russians scrambled to withdraw hundred billion rubles during Wagner's mutiny

The board of directors at Walt Disney has decided to extend the contract of CEO Robert Iger by two years, signaling their confidence in his leadership as the company faces long-term challenges in its film and television businesses.&nbsp;The decision aims to ensure continuity of leadership during Disney's ongoing transformation, the board said in a statement.&nbsp;

Iger retired in 2021 but returned as CEO in November 2022, committing to a two-year term to revitalise the business and find a more permanent replacement after the departure of Bob Chapek, Iger's chosen successor.&nbsp;

<h2>Challenges in entertainment and media industry</h2>

Iger's extended tenure comes at a time when the entertainment and media industry is undergoing significant transitions.&nbsp;

Also Read | <a href="https://www.wionews.com/world/alarming-warning-from-who-bird-flu-poses-increased-risk-of-adapting-to-humans-614852">Alarming warning from WHO: Bird flu poses increased risk of adapting to humans</a>

The streaming video business, once hailed as the future of media, continues to generate losses. Additionally, weak box office performances of high-profile titles have posed challenges to Iger's efforts to rejuvenate the company.

Furthermore, the television business is grappling with long-term declines in audience numbers, a trend that appears to be irreversible.&nbsp;

Also Read | <a href="https://www.wionews.com/world/india-backs-pakistans-resolution-at-un-condemning-quran-burning-protests-614841">India backs Pakistan’s resolution at UN condemning Quran burning protests</a>

To mitigate costs, Disney announced in February its plans to cut 7,000 jobs as part of a major overhaul aimed at saving $5.5 billion.

<h2>Terms of Iger's contract&nbsp;</h2>

Under the terms of his contract extension, Iger has the opportunity to receive an annual incentive bonus of five times his base salary. In his previous contract, he was estimated to earn $27 million per year in total compensation.

Watch | Kenya on the boil as protests erupt against tax hikes

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Following the announcement, Disney's shares saw a slight increase in after-hours trading.&nbsp;

In a statement, Iger said, "There is more to accomplish before this transformative work is complete." He also mentioned that the board is actively conducting interviews with both internal and external CEO candidates.

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The board of directors at Walt Disney has decided to extend the contract of CEO Robert Iger by two years, signaling their confidence in his leadership as the company faces long-term challenges in its film and television businesses.

The board of directors at Walt Disney has decided to extend the contract of CEO Robert Iger by two years, signaling their confidence in his leadership as the company faces long-term challenges in its film and television businesses. The decision aims to ensure continuity of leadership during Disney's ongoing transformation, the board said in a statement. Iger retired in 2021 but returned as CEO in November 2022, committing to a two-year term to revitalise the business and find a more permanent replacement after the departure of Bob Chapek, Iger's chosen successor. Challenges in entertainment and media industry Iger's extended tenure comes at a time when the entertainment and media industry is undergoing significant transitions. Also Read | Alarming warning from WHO: Bird flu poses increased risk of adapting to humans The streaming video business, once hailed as the future of media, continues to generate losses. Additionally, weak box office performances of high-profile titles have posed challenges to Iger's efforts to rejuvenate the company. Furthermore, the television business is grappling with long-term declines in audience numbers, a trend that appears to be irreversible. Also Read | India backs Pakistan’s resolution at UN condemning Quran burning protests To mitigate costs, Disney announced in February its plans to cut 7,000 jobs as part of a major overhaul aimed at saving $5.5 billion. Terms of Iger's contract Under the terms of his contract extension, Iger has the opportunity to receive an annual incentive bonus of five times his base salary. In his previous contract, he was estimated to earn $27 million per year in total compensation. Watch | Kenya on the boil as protests erupt against tax hikes × Following the announcement, Disney's shares saw a slight increase in after-hours trading. In a statement, Iger said, "There is more to accomplish before this transformative work is complete." He also mentioned that the board is actively conducting interviews with both internal and external CEO candidates. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. ×

Disney extends CEO Robert Iger's contract by two years amid business challenges

Finance Minister Ishaq Dar announced on Tuesday that Saudi Arabia provided a boost of support to Pakistan's struggling economy. Saudi Arabia has provided $2 billion in financial assistance to Pakistan, which comes at a crucial time as the International Monetary Fund's board is expected to approve a much-needed $3 billion bailout.

Minister Dar disclosed that the funds have been successfully deposited into Pakistan's central bank, resulting in a bolstering of the country's foreign exchange reserves. This financial assistance from Saudi Arabia comes at a critical juncture when Pakistan's reserves were inadequate to cover a month's worth of restricted imports.

Saudi Arabia had committed to providing the funds back in April but waited until the assurance of an IMF rescue package, given Pakistan's ongoing debt and economic crises, before depositing the funds with the State Bank of Pakistan.

In the closing days of June, Pakistan, facing the imminent risk of a sovereign debt default, secured a crucial $3 billion IMF rescue package. However, the loan still awaits approval from the IMF board, which is scheduled to convene on Wednesday. The IMF will gradually distribute the remaining funds under the nine-month agreement, with Pakistan receiving an initial disbursement of approximately $1.1 billion.

The agreement with the IMF is expected to pave the way for additional financial support through bilateral and multilateral channels, in addition to the assistance provided by Saudi Arabia. Finance Minister Dar expressed his optimism, stating that Pakistan's foreign exchange reserves are anticipated to reach $15 billion by the end of this month.

Pakistan is grappling with economic issues.

Pakistan's economy, valued at $350 billion, is currently facing severe challenges, as it grapples with a staggering inflation rate of 38%. Over the past year, the government has implemented stringent measures to prevent default, as the country contends with a rapidly depreciating currency and a mounting external deficit.

During the current fiscal year, Pakistan's industrial sectors, which are vital for the country's economy, have witnessed a decline of around 3%. This decline has raised substantial concerns in a nation with a population of 230 million, where more than 2 million individuals enter the labor market each year. As a result, this setback in growth and employment opportunities has led to an increase in migration, posing a significant obstacle for Pakistan to overcome.

Reuters cited Hafeez Pasha, a renowned economist and former finance minister of Pakistan, who provided an estimate of the country's unemployment rate as "11–12 percent, conservatively." It is worth noting that official unemployment figures have not been released for over two years, leaving a gap in the current understanding of the employment situation in Pakistan.

Pakistan's fiscal deficit for fiscal year 2024 is expected to amount to 6.5% of the country's GDP. In preparation for the IMF meeting, Pakistan has revised its budget and implemented new measures aimed at reducing the deficit. However, specific figures regarding the extent of the deficit reduction were not provided by the finance minister.

Pakistan's improving credit rating

On Monday, Fitch Ratings upgraded Pakistan's long-term foreign currency issuer default rating from CCC- to CCC, providing a sense of relief to investors in the country's stocks and bonds. This improvement in the rating serves as a positive sign for Pakistan, which has been grappling with its most severe economic crisis.

Following Pakistan's agreement with the IMF, the country's bonds have experienced a significant surge in value. According to Tradeweb statistics, the sovereign dollar bonds witnessed a remarkable increase of up to 1.8 cents on Tuesday, following the disclosure of Saudi assistance. Shorter-dated bonds demonstrated the most substantial gains, with the 2024 issue rising to 77.75 cents on the dollar, marking an increase of over 30 cents from its late-June lows. This upward trend reflects growing investor confidence and optimism in Pakistan's financial outlook.

The recent upgrade in the country's rating reflects Pakistan's improved external liquidity and funding conditions, attributed to the staff level agreement reached with the International Monetary Fund (IMF). However, it also highlights the cautionary note that the budget deficit still remains significant. This development signifies a positive step for Pakistan's economic stability, while acknowledging the need for continued efforts to address the budget deficit.

Finance Minister Ishaq Dar announced on Tuesday that Saudi Arabia provided a boost of support to Pakistan's struggling economy. Saudi Arabia has provided $2 billion in financial assistance to Pakistan, which comes at a crucial time as the International Monetary Fund's board is expected to approve a much-needed $3 billion bailout.

Finance Minister Ishaq Dar announced on Tuesday that Saudi Arabia provided a boost of support to Pakistan's struggling economy. Saudi Arabia has provided $2 billion in financial assistance to Pakistan, which comes at a crucial time as the International Monetary Fund's board is expected to approve a much-needed $3 billion bailout. Minister Dar disclosed that the funds have been successfully deposited into Pakistan's central bank, resulting in a bolstering of the country's foreign exchange reserves. This financial assistance from Saudi Arabia comes at a critical juncture when Pakistan's reserves were inadequate to cover a month's worth of restricted imports. Saudi Arabia had committed to providing the funds back in April but waited until the assurance of an IMF rescue package, given Pakistan's ongoing debt and economic crises, before depositing the funds with the State Bank of Pakistan. In the closing days of June, Pakistan, facing the imminent risk of a sovereign debt default, secured a crucial $3 billion IMF rescue package. However, the loan still awaits approval from the IMF board, which is scheduled to convene on Wednesday. The IMF will gradually distribute the remaining funds under the nine-month agreement, with Pakistan receiving an initial disbursement of approximately $1.1 billion. The agreement with the IMF is expected to pave the way for additional financial support through bilateral and multilateral channels, in addition to the assistance provided by Saudi Arabia. Finance Minister Dar expressed his optimism, stating that Pakistan's foreign exchange reserves are anticipated to reach $15 billion by the end of this month. Pakistan is grappling with economic issues. Pakistan's economy, valued at $350 billion, is currently facing severe challenges, as it grapples with a staggering inflation rate of 38%. Over the past year, the government has implemented stringent measures to prevent default, as the country contends with a rapidly depreciating currency and a mounting external deficit. During the current fiscal year, Pakistan's industrial sectors, which are vital for the country's economy, have witnessed a decline of around 3%. This decline has raised substantial concerns in a nation with a population of 230 million, where more than 2 million individuals enter the labor market each year. As a result, this setback in growth and employment opportunities has led to an increase in migration, posing a significant obstacle for Pakistan to overcome. Reuters cited Hafeez Pasha, a renowned economist and former finance minister of Pakistan, who provided an estimate of the country's unemployment rate as "11–12 percent, conservatively." It is worth noting that official unemployment figures have not been released for over two years, leaving a gap in the current understanding of the employment situation in Pakistan. Pakistan's fiscal deficit for fiscal year 2024 is expected to amount to 6.5% of the country's GDP. In preparation for the IMF meeting, Pakistan has revised its budget and implemented new measures aimed at reducing the deficit. However, specific figures regarding the extent of the deficit reduction were not provided by the finance minister. Pakistan's improving credit rating On Monday, Fitch Ratings upgraded Pakistan's long-term foreign currency issuer default rating from CCC- to CCC, providing a sense of relief to investors in the country's stocks and bonds. This improvement in the rating serves as a positive sign for Pakistan, which has been grappling with its most severe economic crisis. Following Pakistan's agreement with the IMF, the country's bonds have experienced a significant surge in value. According to Tradeweb statistics, the sovereign dollar bonds witnessed a remarkable increase of up to 1.8 cents on Tuesday, following the disclosure of Saudi assistance. Shorter-dated bonds demonstrated the most substantial gains, with the 2024 issue rising to 77.75 cents on the dollar, marking an increase of over 30 cents from its late-June lows. This upward trend reflects growing investor confidence and optimism in Pakistan's financial outlook. The recent upgrade in the country's rating reflects Pakistan's improved external liquidity and funding conditions, attributed to the staff level agreement reached with the International Monetary Fund (IMF). However, it also highlights the cautionary note that the budget deficit still remains significant. This development signifies a positive step for Pakistan's economic stability, while acknowledging the need for continued efforts to address the budget deficit.

Saudi Arabia provides $2 billion support to Pakistan's weak economy

US billionaire Elon Musk and Twitter have been slapped with a $500 million lawsuit over alleged non-payment of severance packages to ex-employees. The lawsuit was filed by law firm Sanford Heisler Sharp on Wednesday in US District Court for the Northern District of California on behalf of employees who were fired from Twitter post Musk's takeover.

The lawsuit seeks damages worth $500 million as well as directions for Twitter to “abide by all terms of the severance plan by paying all terminated employees what they are owed.”

<h2>Twitter’s severance plan gone for a toss</h2>

It is alleged that prior to Elon Musk's takeover of Twitter, the company had a severance plan in place for its employees, which was protected under the Employee Retirement Income Security Act of 1974 (ERISA). According to the complaint, both Musk and Twitter assured employees that the benefits provided by the severance plan would continue even after the acquisition.&nbsp;

However, the lawsuit claims that Twitter and Musk have failed to uphold their promise and have not paid the expected benefits to the terminated employees.

Watch:&nbsp;Are Elon Musk's Starlink satellites leaking radiation?

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“Musk initially represented to employees that under his leadership Twitter would continue to abide by the severance plan,” Sanford Heisler Sharp’s firm administrative partner in Washington, Kate Mueting, said in a statement. “He apparently made these promises knowing that they were necessary to prevent mass resignations that would have threatened the viability of the merger and the vitality of Twitter itself.”

<h2>Twitter’s legal challenges</h2>

This is not the first time Twitter has faced legal challenges regarding its mass layoffs. In May, a class-action lawsuit accusing Twitter of gender-based layoffs was dismissed by a federal judge due to a lack of specific details in the complaint.&nbsp;

<a href="https://www.wionews.com/technology/elon-musk-launches-long-teased-chatgpt-rival-xai-614844">Also read:&nbsp;Elon Musk launches AI firm ‘xAI’, likely to come up with ChatGPT rival</a>

Another lawsuit alleging discrimination against employees with disabilities was also dismissed around the same time. According to labour attorney Shannon Liss-Riordan, who represented the plaintiffs in these cases, her firm currently has 11 class-action cases pending against Twitter, along with approximately 2,000 arbitrations.

<h2>How many people Twitter fired after Musk's takeover?</h2>

Since Elon Musk took control of Twitter in October 2022, significant changes have occurred within the company. The executive leadership was replaced, and the board was dismantled.&nbsp;

Subsequently, Twitter conducted four rounds of widespread employee layoffs, resulting in a reduction of approximately 80 per cent in its workforce, from an estimated 7,800 employees to around 1,500.

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US billionaire Elon Musk and Twitter have been slapped with a $500 million lawsuit over alleged non-payment of severance packages to ex-employees. The lawsuit was filed by law firm Sanford Heisler Sharp on Wednesday in US District Court for the Northern District of California on behalf of employees who were fired from Twitter post Musk's takeover.

US billionaire Elon Musk and Twitter have been slapped with a $500 million lawsuit over alleged non-payment of severance packages to ex-employees. The lawsuit was filed by law firm Sanford Heisler Sharp on Wednesday in US District Court for the Northern District of California on behalf of employees who were fired from Twitter post Musk's takeover. The lawsuit seeks damages worth $500 million as well as directions for Twitter to “abide by all terms of the severance plan by paying all terminated employees what they are owed.” Twitter’s severance plan gone for a toss It is alleged that prior to Elon Musk's takeover of Twitter, the company had a severance plan in place for its employees, which was protected under the Employee Retirement Income Security Act of 1974 (ERISA). According to the complaint, both Musk and Twitter assured employees that the benefits provided by the severance plan would continue even after the acquisition. However, the lawsuit claims that Twitter and Musk have failed to uphold their promise and have not paid the expected benefits to the terminated employees. Watch: Are Elon Musk's Starlink satellites leaking radiation? × “Musk initially represented to employees that under his leadership Twitter would continue to abide by the severance plan,” Sanford Heisler Sharp’s firm administrative partner in Washington, Kate Mueting, said in a statement. “He apparently made these promises knowing that they were necessary to prevent mass resignations that would have threatened the viability of the merger and the vitality of Twitter itself.” Twitter’s legal challenges This is not the first time Twitter has faced legal challenges regarding its mass layoffs. In May, a class-action lawsuit accusing Twitter of gender-based layoffs was dismissed by a federal judge due to a lack of specific details in the complaint. Also read: Elon Musk launches AI firm ‘xAI’, likely to come up with ChatGPT rival Another lawsuit alleging discrimination against employees with disabilities was also dismissed around the same time. According to labour attorney Shannon Liss-Riordan, who represented the plaintiffs in these cases, her firm currently has 11 class-action cases pending against Twitter, along with approximately 2,000 arbitrations. How many people Twitter fired after Musk's takeover? Since Elon Musk took control of Twitter in October 2022, significant changes have occurred within the company. The executive leadership was replaced, and the board was dismantled. Subsequently, Twitter conducted four rounds of widespread employee layoffs, resulting in a reduction of approximately 80 per cent in its workforce, from an estimated 7,800 employees to around 1,500. WATCH WION LIVE HERE ×

Musk and Twitter face $500mn lawsuit over non-payment of severance packages

Wipro, a leading technology services and consulting firm, announced on Wednesday the launch of WIPRO ai360, a comprehensive AI-first innovation ecosystem that builds on Wipro's decade-long strategic investment in artificial intelligence with the goal of integrating AI into every platform, every tool, and every solution used internally and offered to clients.

Along with the introduction of Wipro ai360, the business announced a $1 billion commitment over the next three years to expanding AI capabilities.

Chief Executive Officer and Managing Director Thierry Delaporte while discussing the development, stated that ‘‘artificial Intelligence is a fast-moving field. Especially with the emergence of generative AI, we expect a fundamental shift ahead for all industries. New business models, new ways of working, and new challenges, too. This is exactly why Wipro’s ai360 ecosystem places responsible AI operations at the heart of all our AI work. It’s meant to empower our talent pool and be ubiquitous across all our operations and processes, as well as our solutioning for clients. We are ready for the AI-driven future".

Wipro ai360 will bring together 30,000 Wipro specialists in data analytics and AI with Wipro's technology and consulting ecosystem across four global business lines, with responsible AI at its center. Wipro's new global business line model will enable unprecedented levels of delivery agility, speed, and depth.

Furthermore, Wipro's innovation center Lab45, a visionary space for incubating solutions for customers that will transform the future, will be a key component of the&nbsp;Wipro ai360 ecosystem, providing customers with the people, training, scalability, research, and co-innovation capabilities required to speed AI adoption.

The company’s $1 billion investment will help further advance AI data and analytics capability through research and development (R&amp;D) to induce better operation and assist customers in adapting to change and unlocking new value through AI.

Wipro is all set to accelerate investment in cutting-edge startups through Wipro Ventures. In addition, the business will develop a GenAI Seed Accelerator program, which will give training to select GenAI-focused companies in order for them to become enterprise-ready.

To meet these objectives, the business will train all 250,000 workers about AI foundations and responsible AI usage over the next 12 months, and will continue to provide more personalized, continuing training for employees in AI-specialized areas.

Wipro, a leading technology services and consulting firm, announced on Wednesday the launch of WIPRO ai360, a comprehensive AI-first innovation ecosystem that builds on Wipro's decade-long strategic investment in artificial intelligence with the goal of integrating AI into every platform, every tool, and every solution used internally and offered to clients.

Wipro, a leading technology services and consulting firm, announced on Wednesday the launch of WIPRO ai360, a comprehensive AI-first innovation ecosystem that builds on Wipro's decade-long strategic investment in artificial intelligence with the goal of integrating AI into every platform, every tool, and every solution used internally and offered to clients. Along with the introduction of Wipro ai360, the business announced a $1 billion commitment over the next three years to expanding AI capabilities. Chief Executive Officer and Managing Director Thierry Delaporte while discussing the development, stated that ‘‘artificial Intelligence is a fast-moving field. Especially with the emergence of generative AI, we expect a fundamental shift ahead for all industries. New business models, new ways of working, and new challenges, too. This is exactly why Wipro’s ai360 ecosystem places responsible AI operations at the heart of all our AI work. It’s meant to empower our talent pool and be ubiquitous across all our operations and processes, as well as our solutioning for clients. We are ready for the AI-driven future". Wipro ai360 will bring together 30,000 Wipro specialists in data analytics and AI with Wipro's technology and consulting ecosystem across four global business lines, with responsible AI at its center. Wipro's new global business line model will enable unprecedented levels of delivery agility, speed, and depth. Furthermore, Wipro's innovation center Lab45, a visionary space for incubating solutions for customers that will transform the future, will be a key component of the Wipro ai360 ecosystem, providing customers with the people, training, scalability, research, and co-innovation capabilities required to speed AI adoption. The company’s $1 billion investment will help further advance AI data and analytics capability through research and development (R&D) to induce better operation and assist customers in adapting to change and unlocking new value through AI. Wipro is all set to accelerate investment in cutting-edge startups through Wipro Ventures. In addition, the business will develop a GenAI Seed Accelerator program, which will give training to select GenAI-focused companies in order for them to become enterprise-ready. To meet these objectives, the business will train all 250,000 workers about AI foundations and responsible AI usage over the next 12 months, and will continue to provide more personalized, continuing training for employees in AI-specialized areas.

Wipro to invest $1billion in AI over next three years 

Tesla is in talks with the Indian government to set up a car factory in the country, The Times of India has reported. The factory will reportedly have a capacity of as many as 500,000 electric vehicles. The report added that the prices of the vehicles will start from 2 million rupees ($24,400.66).

The report cited government sources to say that the Elon Musk-led company is also planning to using India as an export base. This fits in the company's plans to ship cars to Indo-Pacific countries.

Reuters said Tesla did not respond to its request for comment.

The reported discussions with the Indian government mark a shift in strategy for the US electric car maker.

Talks between Tesla and the Indian government stalled because Indian government refused to agree to Tesla's request to &nbsp;lower import taxes on cars. This tax can be as much as 100 per cent.

India was keen for Tesla to manufacture vehicles locally, but the company said it wanted to export its cars first to test the strength of demand.

In renewed efforts to enter the domestic market with a change of stance, Tesla held discussions in May with officials about incentives being offered by the government for car and battery manufacturing, Reuters reported.

Last month, Indian Prime Minister Narendra Modi met Elon Musk. The PM pushed the carmaker to make a &nbsp;"significant investment" in the country.

There is strong potential in India for a sustainable energy future including that for solar power along with stationery battery packs and electric vehicles, Musk said after meeting Modi. He added that he hopes to bring SpaceX Starlink satellites internet service to the country as well.

<h2>Musk in news</h2>

Musk is currently in the news for launch of his long-teased artificial intelligence startup xAI. The launch was announced on Wednesday (July 12). A team of engineers was unveiled. The team has engineers from the same tech firm Musk hopes to challenge in his bid to build an alternative to ChatGPT.

The startup will be led by Musk. He is already the CEO of electric car maker Tesla, CEO of rocket launch company SpaceX and owner of Twitter.

Interestingly, Musk has said on several occasions that the development of AI should be paused and that regulation of the sector was need of the hour. Musk has repeatedly voiced concerns about AI's potential for "civilizational destruction."

In a Twitter Spaces event on Wednesday, Musk sought to explain his plan of developing safer AI. Rather than explicitly programming morality into its AI, xAI will seek to create a "maximally curious" AI, he said.

(With inputs from agencies)

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Tesla is in talks with the Indian government to set up a car factory in the country, The Times of India has reported. The factory will reportedly have a capacity of as many as 500,000 electric vehicles.

Tesla is in talks with the Indian government to set up a car factory in the country, The Times of India has reported. The factory will reportedly have a capacity of as many as 500,000 electric vehicles. The report added that the prices of the vehicles will start from 2 million rupees ($24,400.66). The report cited government sources to say that the Elon Musk-led company is also planning to using India as an export base. This fits in the company's plans to ship cars to Indo-Pacific countries. Reuters said Tesla did not respond to its request for comment. The reported discussions with the Indian government mark a shift in strategy for the US electric car maker. Talks between Tesla and the Indian government stalled because Indian government refused to agree to Tesla's request to lower import taxes on cars. This tax can be as much as 100 per cent. India was keen for Tesla to manufacture vehicles locally, but the company said it wanted to export its cars first to test the strength of demand. In renewed efforts to enter the domestic market with a change of stance, Tesla held discussions in May with officials about incentives being offered by the government for car and battery manufacturing, Reuters reported. Last month, Indian Prime Minister Narendra Modi met Elon Musk. The PM pushed the carmaker to make a "significant investment" in the country. There is strong potential in India for a sustainable energy future including that for solar power along with stationery battery packs and electric vehicles, Musk said after meeting Modi. He added that he hopes to bring SpaceX Starlink satellites internet service to the country as well. Musk in news Musk is currently in the news for launch of his long-teased artificial intelligence startup xAI. The launch was announced on Wednesday (July 12). A team of engineers was unveiled. The team has engineers from the same tech firm Musk hopes to challenge in his bid to build an alternative to ChatGPT. The startup will be led by Musk. He is already the CEO of electric car maker Tesla, CEO of rocket launch company SpaceX and owner of Twitter. Interestingly, Musk has said on several occasions that the development of AI should be paused and that regulation of the sector was need of the hour. Musk has repeatedly voiced concerns about AI's potential for "civilizational destruction." In a Twitter Spaces event on Wednesday, Musk sought to explain his plan of developing safer AI. Rather than explicitly programming morality into its AI, xAI will seek to create a "maximally curious" AI, he said. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Tesla in huddle with India for a big-capacity car factory: Report

Chinese technology giant Huawei is reportedly strategising a return to the 5G smartphone market later this year, signaling a resurgence after its consumer electronics business suffered due to a U.S. ban on equipment sales. According to undisclosed sources from three third-party technology research firms specializing in China's smartphone sector cited by Reuters, Huawei is expected to procure 5G chips domestically, leveraging its own advancements in semiconductor design tools along with the chipmaking capabilities of Semiconductor Manufacturing International Co (SMIC). Although Huawei declined to comment on the matter, the potential return to the 5G phone market could mark a significant victory for the company that faced severe setbacks in recent years.

Challenges and Recovery

Huawei's consumer business revenue peaked in 2020 at 483 billion yuan ($67 billion) but plummeted by nearly 50 per cent in the following year. The company, once a major contender alongside Apple and Samsung for the title of the world's largest handset maker, faced a series of U.S. restrictions starting in 2019, severely limiting its access to essential chipmaking tools for its advanced smartphone models. The U.S. and European governments had labeled Huawei a security risk, a claim the company vehemently denies. Consequently, Huawei has been selling limited batches of 5G models using stockpiled chips while primarily relying on last-generation 4G handsets for sales. As a result, its global rankings significantly dropped, but it managed to capture a 10 per cent market share in China in the first quarter of this year.

5G Revival Projections

Research firms familiar with Huawei's operations anticipate adopting SMIC's N+1 manufacturing process for 5G chip production. However, due to an estimated yield rate of usable chips below 50 per cent, initial 5G shipments are expected to be limited to around 2 million to 4 million units. Another research firm projects shipments of up to 10 million units without providing further details. In comparison, Huawei shipped 240.6 million smartphones worldwide in its peak year of 2019. These projections suggest a gradual recovery in Huawei's smartphone business, especially considering the company's raised 2023 mobile shipment target to 40 million units.

Revamped 5G Smartphone Lineup

Should Huawei reenter the 5G smartphone market, it is anticipated that flagship models such as the P60 will receive 5G upgrades, with potential new launches expected in early 2024. However, the U.S. restrictions have disconnected Huawei from Google's Android operating system and the accompanying bundle of developer services, significantly limiting the appeal of Huawei handsets outside of China.

Advancements in Chip Design Tools

In March, Huawei announced significant breakthroughs in electronic design automation (EDA) tools for chips manufactured at and above 14 nanometers (nm) technology. This development enables Huawei to leverage its own EDA software with SMIC's N+1 manufacturing process, potentially producing chips at the equivalent of 7 nm, commonly used in 5G phones. While U.S. restrictions prevented SMIC from acquiring an advanced chipmaking tool critical for 7 nm chip production, there are indications that SMIC has managed to produce 7 nm chips by optimizing existing DUV machines obtained from Dutch firm ASML.

(With Inputs from Reuters)

Chinese technology giant Huawei is reportedly strategising a return to the 5G smartphone market later this year, signaling a resurgence after its consumer electronics business suffered due to a U.

Chinese technology giant Huawei is reportedly strategising a return to the 5G smartphone market later this year, signaling a resurgence after its consumer electronics business suffered due to a U.S. ban on equipment sales. According to undisclosed sources from three third-party technology research firms specializing in China's smartphone sector cited by Reuters, Huawei is expected to procure 5G chips domestically, leveraging its own advancements in semiconductor design tools along with the chipmaking capabilities of Semiconductor Manufacturing International Co (SMIC). Although Huawei declined to comment on the matter, the potential return to the 5G phone market could mark a significant victory for the company that faced severe setbacks in recent years. Challenges and Recovery Huawei's consumer business revenue peaked in 2020 at 483 billion yuan ($67 billion) but plummeted by nearly 50 per cent in the following year. The company, once a major contender alongside Apple and Samsung for the title of the world's largest handset maker, faced a series of U.S. restrictions starting in 2019, severely limiting its access to essential chipmaking tools for its advanced smartphone models. The U.S. and European governments had labeled Huawei a security risk, a claim the company vehemently denies. Consequently, Huawei has been selling limited batches of 5G models using stockpiled chips while primarily relying on last-generation 4G handsets for sales. As a result, its global rankings significantly dropped, but it managed to capture a 10 per cent market share in China in the first quarter of this year. 5G Revival Projections Research firms familiar with Huawei's operations anticipate adopting SMIC's N+1 manufacturing process for 5G chip production. However, due to an estimated yield rate of usable chips below 50 per cent, initial 5G shipments are expected to be limited to around 2 million to 4 million units. Another research firm projects shipments of up to 10 million units without providing further details. In comparison, Huawei shipped 240.6 million smartphones worldwide in its peak year of 2019. These projections suggest a gradual recovery in Huawei's smartphone business, especially considering the company's raised 2023 mobile shipment target to 40 million units. Revamped 5G Smartphone Lineup Should Huawei reenter the 5G smartphone market, it is anticipated that flagship models such as the P60 will receive 5G upgrades, with potential new launches expected in early 2024. However, the U.S. restrictions have disconnected Huawei from Google's Android operating system and the accompanying bundle of developer services, significantly limiting the appeal of Huawei handsets outside of China. Advancements in Chip Design Tools In March, Huawei announced significant breakthroughs in electronic design automation (EDA) tools for chips manufactured at and above 14 nanometers (nm) technology. This development enables Huawei to leverage its own EDA software with SMIC's N+1 manufacturing process, potentially producing chips at the equivalent of 7 nm, commonly used in 5G phones. While U.S. restrictions prevented SMIC from acquiring an advanced chipmaking tool critical for 7 nm chip production, there are indications that SMIC has managed to produce 7 nm chips by optimizing existing DUV machines obtained from Dutch firm ASML. (With Inputs from Reuters)

Huawei's 5G smartphone comeback: The phoenix rises from US ban ashes

Tata Group, a prominent Indian conglomerate, is reportedly nearing an agreement to acquire a factory in Karnataka, India, owned by Wistron Corp., an Apple supplier. This move could potentially make Tata Group the first Indian company to manufacture iPhones. According to sources cited by Bloomberg, the acquisition could be finalized as early as August and is estimated to be valued at over $600 million. The factory, currently employing over 10,000 workers, is responsible for assembling Apple's iPhone 14.

While Wistron plans to exit the business, Tata Group has ambitious plans to ship approximately $1.8 billion worth of iPhones from this facility. Initially, Wistron aimed to achieve similar production levels to gain financial incentives from the Indian government.

Companies seek alternative production locations

This development occurs as several U.S. tech companies explore diversifying their hardware manufacturing beyond China. The ongoing trade tensions between the United States and China, coupled with restrictions imposed on tech companies by both countries, have prompted firms to seek alternative production locations. Additionally, China's strict COVID-19 lockdowns, part of its zero-COVID policy, have significantly impacted Apple suppliers, leading to disruptions in the supply chain. In October 2022, for instance, workers from Apple's largest iPhone assembly factory in Zhengzhou reportedly escaped due to a lockdown.

Apple, Tata Group, or Wistron have issued no official statements regarding the acquisition. Nevertheless, the Indian government has recently introduced various programs to encourage local manufacturing. Simultaneously, Apple has been actively seeking to diversify its iPhone production beyond China, exploring opportunities in other South Asian countries. Other major Apple suppliers, such as Foxconn Group and Pegatron Corporation, have also expanded their production capabilities in response to this shift.

Big boost for 'Make in India' initiative

The potential production of iPhones by an Indian company holds the potential to inspire other global firms to consider manufacturing in India as a means to reduce their reliance on China. India's rising stature as a manufacturing hub could offer strategic advantages and contribute to a more diversified supply chain.

A previous report by TrendForce indicated that the upcoming iPhone 15 and iPhone 15 Plus models might also be manufactured in India by the Tata Group. However, it suggested that Tata Group would receive smaller orders for these models. This implies that India could be among the first countries to receive shipments of the new iPhone series, expected to launch in September this year.

(With Inputs from Agencies)

Tata Group, a prominent Indian conglomerate, is reportedly nearing an agreement to acquire a factory in Karnataka, India, owned by Wistron Corp., an Apple supplier.

Tata Group, a prominent Indian conglomerate, is reportedly nearing an agreement to acquire a factory in Karnataka, India, owned by Wistron Corp., an Apple supplier. This move could potentially make Tata Group the first Indian company to manufacture iPhones. According to sources cited by Bloomberg, the acquisition could be finalized as early as August and is estimated to be valued at over $600 million. The factory, currently employing over 10,000 workers, is responsible for assembling Apple's iPhone 14. While Wistron plans to exit the business, Tata Group has ambitious plans to ship approximately $1.8 billion worth of iPhones from this facility. Initially, Wistron aimed to achieve similar production levels to gain financial incentives from the Indian government. Companies seek alternative production locations This development occurs as several U.S. tech companies explore diversifying their hardware manufacturing beyond China. The ongoing trade tensions between the United States and China, coupled with restrictions imposed on tech companies by both countries, have prompted firms to seek alternative production locations. Additionally, China's strict COVID-19 lockdowns, part of its zero-COVID policy, have significantly impacted Apple suppliers, leading to disruptions in the supply chain. In October 2022, for instance, workers from Apple's largest iPhone assembly factory in Zhengzhou reportedly escaped due to a lockdown. Apple, Tata Group, or Wistron have issued no official statements regarding the acquisition. Nevertheless, the Indian government has recently introduced various programs to encourage local manufacturing. Simultaneously, Apple has been actively seeking to diversify its iPhone production beyond China, exploring opportunities in other South Asian countries. Other major Apple suppliers, such as Foxconn Group and Pegatron Corporation, have also expanded their production capabilities in response to this shift. Big boost for 'Make in India' initiative The potential production of iPhones by an Indian company holds the potential to inspire other global firms to consider manufacturing in India as a means to reduce their reliance on China. India's rising stature as a manufacturing hub could offer strategic advantages and contribute to a more diversified supply chain. A previous report by TrendForce indicated that the upcoming iPhone 15 and iPhone 15 Plus models might also be manufactured in India by the Tata Group. However, it suggested that Tata Group would receive smaller orders for these models. This implies that India could be among the first countries to receive shipments of the new iPhone series, expected to launch in September this year. (With Inputs from Agencies)

Tata Group's big 'Apple' bite: Indian giant closes in on iPhone manufacturing deal

Bank of America (BAC.N) on Tuesday agreed to pay $250 million in fines and compensation to settle claims the bank systematically double-charged customers fees, withheld promised credit card perks, and opened accounts without customer authorization.

Bank of America agreed to pay $100 million in restitution to harmed consumers and another $150 million in civil penalties after the Consumer Financial Protection Bureau (CFPB) and Office of the Comptroller of the Currency (OCC) said the bank violated a number of laws beginning in 2012.

Bank of America reaped hundreds of millions of dollars by charging multiple fees to customers who did not have enough funds in their accounts from February 2018 until February 2022, the CFPB said in a statement. Consumers could not reasonably expect or understand they would be hit with $35 fees each time the bank declined to pay a single transaction, regulators said.

In a statement, Bank of America said it voluntarily eliminated or reduced a range of fees last year.

The CFPB has launched a crackdown on a range of so-called "junk fees," including overdraft and non-sufficient fund fees, it says lenders unfairly charge customers for banking services.

"These practices are illegal and undermine customer trust. The CFPB will be putting an end to these practices across the banking system," CFPB director Rohit Chopra said in a statement.

Also Read | <a href="https://www.wionews.com/world/trial-opens-over-new-zealands-2019-white-island-volcanic-eruption-incident-that-killed-22-614451">Trial opens over New Zealand's 2019 White Island volcanic eruption incident that killed 22</a>

Under sales pressure or seeking rewards, Bank of America employees illegally applied for and enrolled consumers, without their knowledge, in credit card accounts from at least 2012, the CFPB said. The accounts represented a "small percentage" of new accounts at the bank, regulators said.

The bank, based in Charlotte, North Carolina, also failed to make good on cash rewards and bonus points promised to tens of thousands of credit card customers, according to the CFPB.

In addition to paying penalties of $90 million to the CFPB and $60 million to the OCC, the bank agreed to update regulators on its compliance progress in a year.

Also Read | <a href="https://www.wionews.com/world/thailands-outgoing-prime-minister-prayut-chan-o-cha-announces-retirement-from-politics-614430">Thailand's outgoing prime minister Prayut Chan-o-Cha announces retirement from politics</a>

"We voluntarily reduced overdraft fees and eliminated all non-sufficient fund fees in the first half of 2022. As a result of these industry leading changes, revenue from these fees has dropped more than 90 percent," Bank of America said in a statement.

Democratic Senator Sherrod Brown described the case as an example of U.S. banks padding their profits with Americans' money.

"This is just the latest in a long line of illustrations of why we can’t trust Wall Street to do the right thing,” he said.

Watch | Why US military deals are not enough to wean India off Russian arms yet

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Separately, Bank of America's financial advisory arm Merrill Lynch, Pierce, Fenner &amp; Smith agreed to pay $12 million in penalties to the U.S. Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority for failing to file hundreds of suspicious activity reports to regulators from January 2009 to November 2019.

Merrill discovered the issue in 2019, according to the SEC's order.

"Following an internal review, we reported this matter to regulators and have enhanced our process and training regarding these filings," the bank said in a statement on the matter.

Bank of America shares were up 1.1% by 2:02 p.m. ET (1802 GMT), recovering losses seen in early trading.

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&nbsp;

Bank of America (BAC.N) on Tuesday agreed to pay $250 million in fines and compensation to settle claims the bank systematically double-charged customers fees, withheld promised credit card perks, and opened accounts without customer authorization.

Bank of America (BAC.N) on Tuesday agreed to pay $250 million in fines and compensation to settle claims the bank systematically double-charged customers fees, withheld promised credit card perks, and opened accounts without customer authorization. Bank of America agreed to pay $100 million in restitution to harmed consumers and another $150 million in civil penalties after the Consumer Financial Protection Bureau (CFPB) and Office of the Comptroller of the Currency (OCC) said the bank violated a number of laws beginning in 2012. Bank of America reaped hundreds of millions of dollars by charging multiple fees to customers who did not have enough funds in their accounts from February 2018 until February 2022, the CFPB said in a statement. Consumers could not reasonably expect or understand they would be hit with $35 fees each time the bank declined to pay a single transaction, regulators said. In a statement, Bank of America said it voluntarily eliminated or reduced a range of fees last year. The CFPB has launched a crackdown on a range of so-called "junk fees," including overdraft and non-sufficient fund fees, it says lenders unfairly charge customers for banking services. "These practices are illegal and undermine customer trust. The CFPB will be putting an end to these practices across the banking system," CFPB director Rohit Chopra said in a statement. Also Read | Trial opens over New Zealand's 2019 White Island volcanic eruption incident that killed 22 Under sales pressure or seeking rewards, Bank of America employees illegally applied for and enrolled consumers, without their knowledge, in credit card accounts from at least 2012, the CFPB said. The accounts represented a "small percentage" of new accounts at the bank, regulators said. The bank, based in Charlotte, North Carolina, also failed to make good on cash rewards and bonus points promised to tens of thousands of credit card customers, according to the CFPB. In addition to paying penalties of $90 million to the CFPB and $60 million to the OCC, the bank agreed to update regulators on its compliance progress in a year. Also Read | Thailand's outgoing prime minister Prayut Chan-o-Cha announces retirement from politics "We voluntarily reduced overdraft fees and eliminated all non-sufficient fund fees in the first half of 2022. As a result of these industry leading changes, revenue from these fees has dropped more than 90 percent," Bank of America said in a statement. Democratic Senator Sherrod Brown described the case as an example of U.S. banks padding their profits with Americans' money. "This is just the latest in a long line of illustrations of why we can’t trust Wall Street to do the right thing,” he said. Watch | Why US military deals are not enough to wean India off Russian arms yet × Separately, Bank of America's financial advisory arm Merrill Lynch, Pierce, Fenner & Smith agreed to pay $12 million in penalties to the U.S. Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority for failing to file hundreds of suspicious activity reports to regulators from January 2009 to November 2019. Merrill discovered the issue in 2019, according to the SEC's order. "Following an internal review, we reported this matter to regulators and have enhanced our process and training regarding these filings," the bank said in a statement on the matter. Bank of America shares were up 1.1% by 2:02 p.m. ET (1802 GMT), recovering losses seen in early trading. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. ×

Bank of America to pay over $250mn over junk fees, other issues

Tesla may have funded a project to build its CEO Elon Musk a glass house in Austin, Texas said The Wall Street Journal in a report on Tuesday (July 11). The journal has said that inside Tesla, this project was known as "Project 42". The report has now reportedly kicked off an internal investigation in the electric car-making company. It is being probed whether millions of dollars of company funds were simply spent for a new house for its CEO.

Musk boasts of himself being a 'couch-surfer', a term used for travellers and backpackers who sleep on the couches of friends or willing hosts in order to save money normally spent on expensive hotel rooms. Given this self-declaration, Musk may find himself in an uncomfortable situation if the internal company probe reveals that he prefers a lavish lifestyle.

The news report in the journal describes variety of plans or renderings for Musk's glass home.

A concept reportedly shows a 'twisted hexagon' shaped structure on a waterfront land with Tesla's factory in the background.

Some other renderings show an expansive glass box which the journal says is reminiscent of Apple store on Manhattan fifth avenue. This rendering reportedly shows residential area which includes bedrooms, bathrooms and a kitchen.

Another design showed a 'waterfall feature' in landscaping and a pick-up truck which WSJ said resembled Tesla's forthcoming cybertruck.

<h2>Glass worth millions of dollars</h2>

The report has also revealed that a company order for millions of dollars of worth specialised glass raised some concerns within Tesla as the purpose of the order was not immediately clear.&nbsp;

The probe that has now been launched is focussing on determining whether company resources were misused and if Elon Musk himself was involved in this.&nbsp;

Tesla's factory in Austin, Texas is of great importance to Musk's expanding empire in the Lone Star State. The company calls the factory Giga Texas.

WSJ reported that as Tesla employees worked on the 'Project 42, the company was in the process of getting its new assembly plant in Texas up and running. This was surely an endeavor that took a lot of capital. At this factory, Tesla builds it Model Y crossover. The factory officially opened in 2022.

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Tesla may have funded a project to build its CEO Elon Musk a glass house in Austin, Texas said The Wall Street Journal in a report on Tuesday (July 11). The journal has said that inside Tesla, this project was known as "Project 42".

Tesla may have funded a project to build its CEO Elon Musk a glass house in Austin, Texas said The Wall Street Journal in a report on Tuesday (July 11). The journal has said that inside Tesla, this project was known as "Project 42". The report has now reportedly kicked off an internal investigation in the electric car-making company. It is being probed whether millions of dollars of company funds were simply spent for a new house for its CEO. Musk boasts of himself being a 'couch-surfer', a term used for travellers and backpackers who sleep on the couches of friends or willing hosts in order to save money normally spent on expensive hotel rooms. Given this self-declaration, Musk may find himself in an uncomfortable situation if the internal company probe reveals that he prefers a lavish lifestyle. The news report in the journal describes variety of plans or renderings for Musk's glass home. A concept reportedly shows a 'twisted hexagon' shaped structure on a waterfront land with Tesla's factory in the background. Some other renderings show an expansive glass box which the journal says is reminiscent of Apple store on Manhattan fifth avenue. This rendering reportedly shows residential area which includes bedrooms, bathrooms and a kitchen. Another design showed a 'waterfall feature' in landscaping and a pick-up truck which WSJ said resembled Tesla's forthcoming cybertruck. Glass worth millions of dollars The report has also revealed that a company order for millions of dollars of worth specialised glass raised some concerns within Tesla as the purpose of the order was not immediately clear. The probe that has now been launched is focussing on determining whether company resources were misused and if Elon Musk himself was involved in this. Tesla's factory in Austin, Texas is of great importance to Musk's expanding empire in the Lone Star State. The company calls the factory Giga Texas. WSJ reported that as Tesla employees worked on the 'Project 42, the company was in the process of getting its new assembly plant in Texas up and running. This was surely an endeavor that took a lot of capital. At this factory, Tesla builds it Model Y crossover. The factory officially opened in 2022. You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Glass house for Elon Musk? Tesla launches internal probe: Report

The corporate ethics watchdog of Canada on Tuesday (July 11) launched separate investigations into Nike Canada and Dynasty Gold to probe allegations that the two companies used or benefitted from forced labour in their operations in China.

The corporate ethics watchdog of Canada on Tuesday (July 11) launched separate investigations into Nike Canada and Dynasty Gold to probe allegations that the two companies used or benefitted from forced labour in their operations in China. According to a report by the news agency Reuters on Wednesday, the investigations were launched after an initial assessment of complaints about the overseas operations of 13 Canadian companies filed by a coalition of civil society organisations in June last year. A statement from the Canadian Ombudsperson for Responsible Enterprise (CORE) said that Nike Canada and Dynasty Gold were alleged to have had supply chains or operations in China identified as using or benefitting from the use of Uyghur forced labour. The statement said complaints against the other 11 companies were being assessed and the reports were expected in the coming weeks. Ombudsperson Sheri Meyerhoffer said in the statement that he has not pre-judged the outcome of the investigations. "We will await the results and we will publish final reports with my recommendations," Meyerhoffer said, adding the watchdog was very concerned about how these companies had chosen to respond to the allegations. The complaints against Nike, Dynasty Gold The report said that the initial assessment of Nike Canada showed supply relationships with Chinese companies identified as using or benefiting from the use of Uyghur forced labour. Nike maintained that it no longer had any ties with these companies and provided the watchdog information on its due diligence practices. In March, an activist shareholder called on the footwear and sporting equipment giant to offer more transparency on the working conditions of its supply chain. On the other hand, the complaint against Dynasty Gold is that it benefited from the use of Uyghur forced labour at a mine in China in which the company holds a majority interest. Last year, the company said it did not have operational control over the mine and the allegations arose after it left the region. And speaking to Reuters on Wednesday, Dynasty Gold said that the allegations were unfounded. A first-of-its-kind probe CORE, which was launched in 2017, monitors and investigates human rights abuses mainly by Canadian garment, mining oil and gas companies that operate overseas. The agency has no legal powers to prosecute. If companies are found guilty, CORE said it could refer findings to a parliamentary committee for further action. On Tuesday, the Chinese embassy in Ottawa reiterated that Beijing has repeatedly denied the use of forced labour against Uyghurs and that the rights of workers of all ethnic groups in Xinjiang were duly protected. This is the first such investigation by CORE since it launched its complaint mechanism in 2021. The report said that no other agencies in Canada in the past launched investigations of this kind. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Canadian watchdog launches probes against Nike, Dynasty Gold for alleged use of forced labour in China

China's recent decision to regulate the exports&nbsp;related to gallium has led to a frenzy of hoarding specialty semiconductor wafers made from this metal. The surprise announcement is affecting Freiberger Compound Materials, the leading buyer of gallium, as the company heavily relies on Chinese suppliers to fulfill its gallium requirements for manufacturing wafers used in mobile phone radio signal amplifiers and optical electronics.

Due to China's unexpected announcement to control the export of gallium and germanium products starting August 1, Freiberger Compound Materials finds itself in the midst of turmoil. As a major consumer, the company accounts for 10 percent of global gallium output.

In the market for gallium arsenide wafers for smartphone power amplifiers, Freiberger competes against smaller Chinese manufacturers and the Japanese firm Sumitomo Electric, with yearly sales of $77–$88 million and a market share of 65 percent.&nbsp;

Reuters cited, Michael Harz, the CEO of Freiberger Compound Materials, expressed concern over the current situation in the industry, stating that it has caused significant unease among their clients. As a result, there has been a noticeable increase in orders placed to raise inventory levels. He further added that currently the company has several months' worth of gallium in stock because it has long anticipated some form of trade crisis and has little else it can do to react.&nbsp;

What is Gallium and its importance?

Gallium finds widespread application in various industries, including the production of LEDs and compact mobile phone adapters. Gallium is&nbsp;&nbsp;present in trace levels in bauxite and zinc ores, and gallium metal is created during the bauxite processing step in the production of aluminum. According to the European business organisation Critical Raw Materials Alliance (CRMA), China produces over 80% of the world's raw materials.

Gallium is naturally found in small amounts within bauxite and zinc ores, and it is during the bauxite processing phase in aluminum production that gallium metal is derived. The Critical Raw Materials Alliance (CRMA), a European business organization, highlights that China holds a significant global dominance in the production of raw materials, specifically accounting for over 80 percent of the world's output.&nbsp;

The material holds significant importance for Electric Vehicles (EVs) due to its exceptional power-handling capabilities without generating excessive heat, playing a crucial role in regulating the flow of electricity to and from the EV's battery pack.

 
China to impose dominance through export control

Some mineral experts predict that China's decision to impose controls on gallium and germanium can potentially disrupt the supply chain for automakers. This comes at a time when the auto industry is recovering from the global semiconductor shortage caused by the pandemic, which had previously forced automakers to halt production of certain models.

Over the past ten years, Chinese gallium businesses have eliminated the majority of competitors from the market by undercutting them on price, making the automakers worry about their reliance on a metal that has been seen as a game changer for electric vehicles.

According to CEO Harz, his Chinese suppliers are cooperating with the authorities to obtain the necessary export permits, although there is no verified information available at the moment. However, they anticipate that supplies will cease on August 1 when the export restrictions come into effect and resume approximately a month later once license requests are approved. Additionally, Harz rejects the notion that China will disrupt gallium trade in the coming years, as it will have a detrimental impact on its own electronics industry, as cited by Reuters.

China's recent decision to regulate the exports related to gallium has led to a frenzy of hoarding specialty semiconductor wafers made from this metal. The surprise announcement is affecting Freiberger Compound Materials, the leading buyer of gallium, as the company heavily relies on Chinese suppliers to fulfill its gallium requirements for manufacturing wafers used in mobile phone radio signal amplifiers and optical electronics.

China's recent decision to regulate the exports related to gallium has led to a frenzy of hoarding specialty semiconductor wafers made from this metal. The surprise announcement is affecting Freiberger Compound Materials, the leading buyer of gallium, as the company heavily relies on Chinese suppliers to fulfill its gallium requirements for manufacturing wafers used in mobile phone radio signal amplifiers and optical electronics. Due to China's unexpected announcement to control the export of gallium and germanium products starting August 1, Freiberger Compound Materials finds itself in the midst of turmoil. As a major consumer, the company accounts for 10 percent of global gallium output. In the market for gallium arsenide wafers for smartphone power amplifiers, Freiberger competes against smaller Chinese manufacturers and the Japanese firm Sumitomo Electric, with yearly sales of $77–$88 million and a market share of 65 percent. Reuters cited, Michael Harz, the CEO of Freiberger Compound Materials, expressed concern over the current situation in the industry, stating that it has caused significant unease among their clients. As a result, there has been a noticeable increase in orders placed to raise inventory levels. He further added that currently the company has several months' worth of gallium in stock because it has long anticipated some form of trade crisis and has little else it can do to react. What is Gallium and its importance? Gallium finds widespread application in various industries, including the production of LEDs and compact mobile phone adapters. Gallium is present in trace levels in bauxite and zinc ores, and gallium metal is created during the bauxite processing step in the production of aluminum. According to the European business organisation Critical Raw Materials Alliance (CRMA), China produces over 80% of the world's raw materials. Gallium is naturally found in small amounts within bauxite and zinc ores, and it is during the bauxite processing phase in aluminum production that gallium metal is derived. The Critical Raw Materials Alliance (CRMA), a European business organization, highlights that China holds a significant global dominance in the production of raw materials, specifically accounting for over 80 percent of the world's output. The material holds significant importance for Electric Vehicles (EVs) due to its exceptional power-handling capabilities without generating excessive heat, playing a crucial role in regulating the flow of electricity to and from the EV's battery pack. China to impose dominance through export control Some mineral experts predict that China's decision to impose controls on gallium and germanium can potentially disrupt the supply chain for automakers. This comes at a time when the auto industry is recovering from the global semiconductor shortage caused by the pandemic, which had previously forced automakers to halt production of certain models. Over the past ten years, Chinese gallium businesses have eliminated the majority of competitors from the market by undercutting them on price, making the automakers worry about their reliance on a metal that has been seen as a game changer for electric vehicles. According to CEO Harz, his Chinese suppliers are cooperating with the authorities to obtain the necessary export permits, although there is no verified information available at the moment. However, they anticipate that supplies will cease on August 1 when the export restrictions come into effect and resume approximately a month later once license requests are approved. Additionally, Harz rejects the notion that China will disrupt gallium trade in the coming years, as it will have a detrimental impact on its own electronics industry, as cited by Reuters.

China’s control over exports poses a threat to the world’s biggest buyer of gallium

The Organisation for Economic Co-operation and Development (OECD) said in a report that the raging Artificial Intelligence (AI) revolution could lead to job losses in skilled professions such as law, medicine, finance, and more.&nbsp;

OECD said in its 2023 Employment Outlook that skilled jobs are at the highest risk from AI-driven automation. The jobs represented about 27 per cent of employment across its 38 member countries, including the United Kingdom, Japan, Germany, the United States, Australia, and Canada.&nbsp;

It said in the report that it was "clear that the potential for [AI-driven jobs] substitution remains significant, raising fears of decreasing wages and job losses" and also said that for the time being AI was changing jobs rather than replacing them.&nbsp;

"Occupations in finance, medicine and legal activities which often require many years of education, and whose core functions rely on accumulated experience to reach decisions, may suddenly find themselves at risk of automation from AI," OECD added.&nbsp;

It went on to say that highly skilled jobs, such as those in law, culture, science, engineering, and commerce, were the ones most vulnerable to automation.&nbsp;

The organisation said that "these rapid developments, combined with the falling costs of producing and adopting these new technologies, suggest that OECD economies may be on the cusp of an AI revolution which could fundamentally change the workplace".&nbsp;

The body also said that there's an "urgent need to act" on AI. It said: "Urgent action is required to make sure AI is used responsibly and in a trustworthy way in the workplace."&nbsp;

OECD is an intergovernmental organisation with 38 Member countries and was founded in 1961 to stimulate economic progress and world trade.&nbsp;

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The Organisation for Economic Co-operation and Development (OECD) said in a report that the raging Artificial Intelligence (AI) revolution could lead to job losses in skilled professions such as law, medicine, finance, and more.

The Organisation for Economic Co-operation and Development (OECD) said in a report that the raging Artificial Intelligence (AI) revolution could lead to job losses in skilled professions such as law, medicine, finance, and more. OECD said in its 2023 Employment Outlook that skilled jobs are at the highest risk from AI-driven automation. The jobs represented about 27 per cent of employment across its 38 member countries, including the United Kingdom, Japan, Germany, the United States, Australia, and Canada. It said in the report that it was "clear that the potential for [AI-driven jobs] substitution remains significant, raising fears of decreasing wages and job losses" and also said that for the time being AI was changing jobs rather than replacing them. "Occupations in finance, medicine and legal activities which often require many years of education, and whose core functions rely on accumulated experience to reach decisions, may suddenly find themselves at risk of automation from AI," OECD added. It went on to say that highly skilled jobs, such as those in law, culture, science, engineering, and commerce, were the ones most vulnerable to automation. The organisation said that "these rapid developments, combined with the falling costs of producing and adopting these new technologies, suggest that OECD economies may be on the cusp of an AI revolution which could fundamentally change the workplace". The body also said that there's an "urgent need to act" on AI. It said: "Urgent action is required to make sure AI is used responsibly and in a trustworthy way in the workplace." OECD is an intergovernmental organisation with 38 Member countries and was founded in 1961 to stimulate economic progress and world trade. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

AI-powered automation puts skilled jobs like those in finance, law at highest risk: OECD

In the wake of the tax scandal, it was revealed by PwC Australia that former chief executive Tom Seymour was the highest-paid partner at the firm, as he took home $4.6 million in 2021-22, local media outlets reported. &nbsp;

During the enquiry, it was also revealed that the firm received dozens of misconduct complaints against partners during the past five years.&nbsp;

Not just PwC, reports have said that dozens of partners and staff at Australia's biggest consulting firms have been fired because of conduct breaches including integrity failures, dishonesty, bullying and sexual harassment over the past two years.&nbsp;

The resignations were revealed to a Senate probe into the activities of government consulting firms, which was led by PwC's misuse of classified tax policy information.&nbsp;

Australian Greens senator Barbara Pocock asked PwC about the issue. The firm replied that it had received 88 internal complaints about staff conduct last financial year, with 38 substantiated.&nbsp;

It said that the majority of these were classed as "code of conduct breaches" or bullying. According to the reports, eleven people were sacked and others were warned of facing pay cuts.&nbsp;

As quoted, KPMG's Senate submission said, "We will continue to empower our people to speak up about any unethical or inappropriate behaviour in the workplace, especially to their leaders. For that reason, we view any increase in reporting in the immediate term as a sign of progress."&nbsp;

The Senate was told that eight partners at EY Australia have been sacked in the past two years for failing to meet the company's values.&nbsp;

It is mentioned that the reasons for sacking included sexual harassment, bullying, dishonesty and "not acting with integrity in relation to a workplace investigation".&nbsp;

Meanwhile, Deloitte said that there were 121 incidents of misbehaviour in the previous fiscal year, 13 of which involved partners, four of whom were fired.&nbsp;

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In the wake of the tax scandal, it was revealed by PwC Australia that former chief executive Tom Seymour was the highest-paid partner at the firm, as he took home $4.

In the wake of the tax scandal, it was revealed by PwC Australia that former chief executive Tom Seymour was the highest-paid partner at the firm, as he took home $4.6 million in 2021-22, local media outlets reported. During the enquiry, it was also revealed that the firm received dozens of misconduct complaints against partners during the past five years. Not just PwC, reports have said that dozens of partners and staff at Australia's biggest consulting firms have been fired because of conduct breaches including integrity failures, dishonesty, bullying and sexual harassment over the past two years. The resignations were revealed to a Senate probe into the activities of government consulting firms, which was led by PwC's misuse of classified tax policy information. Australian Greens senator Barbara Pocock asked PwC about the issue. The firm replied that it had received 88 internal complaints about staff conduct last financial year, with 38 substantiated. It said that the majority of these were classed as "code of conduct breaches" or bullying. According to the reports, eleven people were sacked and others were warned of facing pay cuts. As quoted, KPMG's Senate submission said, "We will continue to empower our people to speak up about any unethical or inappropriate behaviour in the workplace, especially to their leaders. For that reason, we view any increase in reporting in the immediate term as a sign of progress." The Senate was told that eight partners at EY Australia have been sacked in the past two years for failing to meet the company's values. It is mentioned that the reasons for sacking included sexual harassment, bullying, dishonesty and "not acting with integrity in relation to a workplace investigation". Meanwhile, Deloitte said that there were 121 incidents of misbehaviour in the previous fiscal year, 13 of which involved partners, four of whom were fired. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Australian big consultancy firms fired dozens of staff and partners because of misconduct

China's state planner on Wednesday released a statement praising Tencent and Alibaba for their contributions to the technology sector. This marks a significant shift in the government's stance towards the industry following a three-year crackdown.

<h2>What China's state planner said</h2>

According to China's National Development and Reform Commission (NDRC), Tencent and Alibaba have become key players in areas of tech innovation that China is prioritising, such as semiconductors and autonomous driving.

The commission highlighted specific examples, including Tencent's investments in cloud computing and Meituan's investments in semiconductors. Alibaba's efforts in digitising agriculture were also mentioned.

Also read | <a href="https://www.wionews.com/business-economy/chinas-control-over-exports-poses-a-threat-to-the-worlds-biggest-buyer-of-gallium-614522">China’s control over exports poses a threat to the world’s biggest buyer of gallium</a>

These comments from the NDRC come after authorities indicated last week that the crackdown on the technology sector, which began in late 2020, has come to an end. As per AFP, the campaign's end was marked by fines that were imposed on Ant Group and Tencent.

<h2>How the praise impacted the tech companies</h2>

Following the announcement, Tencent's shares rose by 1.8 per cent and Alibaba's shares jumped by 1.86&nbsp; per cent in the Hong Kong market, outperforming the benchmark Hang Seng Index, which saw a 1.15 per cent gain.

This shift in tone from Beijing as per AFP reflects a broader effort to support the private sector and stimulate China's economy in the aftermath of the COVID-19 pandemic. The NDRC has also been engaging with other private firms, including Baidu, in recent weeks.

Also read | <a href="https://www.wionews.com/world/hong-kong-expands-ban-on-japanese-sea-products-over-fukushima-water-release-614474">Hong Kong to expand ban on Japanese sea products over Fukushima nuke plant water release</a>

Chinese President Xi Jinping has emphasised the importance of focusing on "hard" technologies like semiconductors and artificial intelligence, urging the country to reduce its reliance on Western technology. This also aligns with China's goal of achieving technological breakthroughs and maintaining its competitiveness in the global tech industry.

<h2>China's crackdown on technology sector</h2>

As per AFP, the crackdown had significantly impacted the market value of China's top technology firms. Billions of dollars were wiped off the market value of the companies, which were punished for violations that ranged from failing to protect customer privacy to monopolistic behaviour.

Mint reports that the regulatory crackdown on Beijing's tech firms gained momentum after Alibaba affiliate Ant Group's $37 billion initial public offering (IPO) was shelved in November 2020, which also marked the beginning of a broader crackdown on mainland China's rapidly expanding and influential tech companies.

Data from Refinitiv shows that over two years, the crackdown cost China's major tech companies over $1 trillion in value. This staggering figure is equivalent to Netherland's economy.

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China's state planner on Wednesday released a statement praising Tencent and Alibaba for their contributions to the technology sector. This marks a significant shift in the government's stance towards the industry following a three-year crackdown.

China's state planner on Wednesday released a statement praising Tencent and Alibaba for their contributions to the technology sector. This marks a significant shift in the government's stance towards the industry following a three-year crackdown. What China's state planner said According to China's National Development and Reform Commission (NDRC), Tencent and Alibaba have become key players in areas of tech innovation that China is prioritising, such as semiconductors and autonomous driving. The commission highlighted specific examples, including Tencent's investments in cloud computing and Meituan's investments in semiconductors. Alibaba's efforts in digitising agriculture were also mentioned. Also read | China’s control over exports poses a threat to the world’s biggest buyer of gallium These comments from the NDRC come after authorities indicated last week that the crackdown on the technology sector, which began in late 2020, has come to an end. As per AFP, the campaign's end was marked by fines that were imposed on Ant Group and Tencent. How the praise impacted the tech companies Following the announcement, Tencent's shares rose by 1.8 per cent and Alibaba's shares jumped by 1.86 per cent in the Hong Kong market, outperforming the benchmark Hang Seng Index, which saw a 1.15 per cent gain. This shift in tone from Beijing as per AFP reflects a broader effort to support the private sector and stimulate China's economy in the aftermath of the COVID-19 pandemic. The NDRC has also been engaging with other private firms, including Baidu, in recent weeks. Also read | Hong Kong to expand ban on Japanese sea products over Fukushima nuke plant water release Chinese President Xi Jinping has emphasised the importance of focusing on "hard" technologies like semiconductors and artificial intelligence, urging the country to reduce its reliance on Western technology. This also aligns with China's goal of achieving technological breakthroughs and maintaining its competitiveness in the global tech industry. China's crackdown on technology sector As per AFP, the crackdown had significantly impacted the market value of China's top technology firms. Billions of dollars were wiped off the market value of the companies, which were punished for violations that ranged from failing to protect customer privacy to monopolistic behaviour. Mint reports that the regulatory crackdown on Beijing's tech firms gained momentum after Alibaba affiliate Ant Group's $37 billion initial public offering (IPO) was shelved in November 2020, which also marked the beginning of a broader crackdown on mainland China's rapidly expanding and influential tech companies. Data from Refinitiv shows that over two years, the crackdown cost China's major tech companies over $1 trillion in value. This staggering figure is equivalent to Netherland's economy. WATCH WION LIVE HERE

Tencent and Alibaba's shares rise as China's state planner acknowledges their contributions to tech innovation

Dunzo, a hyperlocal quick commerce company grappling with financial difficulties, implemented a salary cap of US$914&nbsp;for employees in June, according to sources familiar with the matter who spoke to Moneycontrol.&nbsp;

This meant that regardless of their actual salary package, no one would receive more than the fixed amount. The move aimed to ensure that employees earning less than the capped amount would receive their salaries in full.

However, earlier this week, it was reported that Dunzo had deferred June salaries for approximately 500 employees, representing around 50 per cent of its workforce. Co-founder and CEO Kabeer Biswas and the top management assured employees that the salary caps were only applicable for June and that all dues would be cleared by July 20.

<h2>Impact on senior employees and lack of prior intimation</h2>

Senior employees at Dunzo were reportedly most affected by the salary deferrals. Approximately 60-65 per cent of the workforce received their full salaries, while 35-40 per cent received only a partial payment of US$914&nbsp;for June.

An employee, speaking anonymously, revealed that the information about salary caps and deferrals was provided on the day salaries were due, without any prior notice or communication.

Also read |&nbsp;<a href="https://www.wionews.com/technology/ai-over-human-staff-indian-ceo-replaces-90-workforce-with-bot-internet-outraged-614666">AI replaces human workers: Indian CEO replaces 90% support staff with chatbot, internet outraged</a>

<h2>Cash crunch despite recent funding</h2>

Despite Dunzo raising $75 million in April this year, the company continues to face significant cash burn. While the company made efforts&nbsp;to ensure timely payment of salaries, a business need requiring immediate attention may have necessitated the last-minute communication with employees.

Also watch |&nbsp;Gravitas: The impact of Silicon Valley layoffs on Indian Techies

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These recent developments raise concerns about possible layoffs and voluntary exits at Dunzo. The company has already undergone two rounds of layoffs this year, resulting in the termination of approximately 380 employees.

<h2>Cost-cutting measures&nbsp;</h2>

Dunzo has been implementing various cost-cutting measures to drive profitability.

These include shifting to a marketplace model for sourcing products, shutting down a significant portion of its dark stores, and exiting unprofitable markets.

Additionally, the company has increased delivery fees, introduced delivery delays, and imposed convenience fees on users to enhance revenue per order.

Industry experts, including Swiggy's food delivery CEO, Rohit Kapoor, predict consolidation in the quick-commerce space, reported Moneycontrol.&nbsp;

With only 3-4 significant players expected to survive, Dunzo, alongside Swiggy's Instamart, Zepto, Blinkit by Zomato, and Tata-operated BigBasket, currently operates&nbsp;in this space.

Dunzo, founded in 2015, has raised close to $500 million since its inception, with major investments from Reliance, Google, Lightrock, Lightbox, Blume Ventures, and others. Reliance holds the largest stake in the company at 25.8 per cent, followed by Google with approximately 19 per cent ownership, according to Tracxn.

&nbsp;

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Dunzo, a hyperlocal quick commerce company grappling with financial difficulties, implemented a salary cap of US$914 for employees in June, according to sources familiar with the matter who spoke to Moneycontrol.

Dunzo, a hyperlocal quick commerce company grappling with financial difficulties, implemented a salary cap of US$914 for employees in June, according to sources familiar with the matter who spoke to Moneycontrol. This meant that regardless of their actual salary package, no one would receive more than the fixed amount. The move aimed to ensure that employees earning less than the capped amount would receive their salaries in full. However, earlier this week, it was reported that Dunzo had deferred June salaries for approximately 500 employees, representing around 50 per cent of its workforce. Co-founder and CEO Kabeer Biswas and the top management assured employees that the salary caps were only applicable for June and that all dues would be cleared by July 20. Impact on senior employees and lack of prior intimation Senior employees at Dunzo were reportedly most affected by the salary deferrals. Approximately 60-65 per cent of the workforce received their full salaries, while 35-40 per cent received only a partial payment of US$914 for June. An employee, speaking anonymously, revealed that the information about salary caps and deferrals was provided on the day salaries were due, without any prior notice or communication. Also read | AI replaces human workers: Indian CEO replaces 90% support staff with chatbot, internet outraged Cash crunch despite recent funding Despite Dunzo raising $75 million in April this year, the company continues to face significant cash burn. While the company made efforts to ensure timely payment of salaries, a business need requiring immediate attention may have necessitated the last-minute communication with employees. Also watch | Gravitas: The impact of Silicon Valley layoffs on Indian Techies These recent developments raise concerns about possible layoffs and voluntary exits at Dunzo. The company has already undergone two rounds of layoffs this year, resulting in the termination of approximately 380 employees. Cost-cutting measures Dunzo has been implementing various cost-cutting measures to drive profitability. These include shifting to a marketplace model for sourcing products, shutting down a significant portion of its dark stores, and exiting unprofitable markets. Additionally, the company has increased delivery fees, introduced delivery delays, and imposed convenience fees on users to enhance revenue per order. Industry experts, including Swiggy's food delivery CEO, Rohit Kapoor, predict consolidation in the quick-commerce space, reported Moneycontrol. With only 3-4 significant players expected to survive, Dunzo, alongside Swiggy's Instamart, Zepto, Blinkit by Zomato, and Tata-operated BigBasket, currently operates in this space. Dunzo, founded in 2015, has raised close to $500 million since its inception, with major investments from Reliance, Google, Lightrock, Lightbox, Blume Ventures, and others. Reliance holds the largest stake in the company at 25.8 per cent, followed by Google with approximately 19 per cent ownership, according to Tracxn. WATCH WION LIVE HERE:

Financial crisis hits hard: Indian firm enforces salary cap of US$914 amid cash crunch

China's global ambitions have soared since the start of the 21st Century, decades after the country embarked on a remarkable journey to transform its closed economy into an export-driven economic powerhouse. Much of China's global ambitions hinge on its grand policy -- the Belt and Road Initiative (BRI). This policy, formulated in 2013, is an amalgamation of infrastructure projects covering Asia, Europe and Africa.

But considering BRI as just another global infrastructure plan will be like missing the forest for the trees. It involves President Xi Jinping's grand plans to reclaim China's past glory and shift the centre of geopolitical power from Europe to Beijing. Nevertheless, as lofty as it may seem, BRI has left a debt trap of $1 trillion for 150 – mostly developing – countries.

China's BRI-induced debt trap has brought countries to the brink of bankruptcy – anyone remembers Sri Lanka, Pakistan and Kenya? All these countries owed a substantial part of their debt to Beijing.

However, ongoing domestic development will likely be a speed-breaker to China's global ambitions.

China's domestic debt problem

Years of infrastructure-driven growth helped China connect every part of its expansive geography, create clusters of urban industrial centres and accelerate economic growth that was only paralleled by the US in the late 1800s and early 20th Century. But that itself is proving to be China's undoing.

According to economists at Goldman Sachs, China's local government debt could be over $23 trillion. That's about seven times the size of India's Gross Domestic Product.

For the uninitiated, local governments play a huge role in China's economic planning. They include the provincial, county and municipal administrations, which fund most local infrastructure projects.

While China has been on a decentralisation spree for many decades, 2015 was a watershed year for local governments. That year, the Chinese government amended the Budget Law to allow local governments to raise funds from the open market by selling bonds. While the amended law now gives the local government more power to finance projects, the various qualifying conditions have made it a not-so-popular funding source.

To circumvent the limitations of municipal bonds, local governments in China stuck around with the age-old Special Local Government Finance Vehicles (LGFVs) model. These organisations have been opened across the world's second-largest economy to finance major infrastructure projects.

The debts incurred by LGFVs are considered "hidden" as the local governments do not report them. Since LGFV debts are off the accounting books, local governments have time and again misused them to finance unsustainable projects. This has resulted in a ballooning debt crisis.

The reports of shanty towns or ghost towns with numerous unfinished highways, housing projects, and tourist attractions that the world keeps hearing are prime examples of local governments failing to sustain infrastructure projects due to high indebtedness.

For several years, local governments had it easy as the Chinese realty market boomed and local governments were able to generate revenue. But once the realty sector began weakening – remember realty giant Evergrande and its $300 billion debt? – in 2021, the repercussions have been unprecedented.

The true size of China's debt mountain can only be calculated when one adds the total local government debt with the realty and household debts — there is a significant overlap between the three.

Factor this: China's total debt is now more than the average in developed countries. It's much higher than the US, frequently grabbing headlines for its high indebtedness.

According to market analysts, China's debt is 282 per cent of its annual economic output, which is way higher than the developed world's average of 256 per cent. The ratio is 257 per cent for the US, China's arch-rival.

Impact on China's 'debt trap diplomacy

Given China's opaque statistical practices, the mystery around the exact debt figure is likely to be solved. Whatever the real debt figure, the repercussion can already be felt in China's predatory debt practices.

A New York Times report suggests that total lending to other countries is a mere six per cent of China's annual economic output. However, the ticking debt time bomb at home is making China's financial institutions not accept losses on their foreign lending, especially those made to low-income countries.

The first signs of China's unwillingness to ease debt repayment conditions for poor conditions could be seen in 2022. This was a year after the realty sector showed its first signs of weakness, and the country, entered an extended period of Covid lockdown.

A recent Reuters report shows that Beijing – the world's largest bilateral creditor – forgave $19 billion in 2021, but that figure dropped to $9 billion in 2022 and $1.7 billion by April 2023. This massive drop hints at China's fears that going slow on debt repayments will help the indebted nations but can backfire on its economy.

But China's growing international stature under Xi allows the country to stay on being a top global lender. It does not help China's cause that it is locked in an ongoing geopolitical tussle with the United States.

It is tough being in China's position right now. It must keep its position as a top lender to compete with the West. But Beijing will need to renegotiate loans to mollify debtors, as it has done with a few countries like Zambia.

However, this will also mean China is losing out on timely debt repayments.

China's global ambitions have soared since the start of the 21st Century, decades after the country embarked on a remarkable journey to transform its closed economy into an export-driven economic powerhouse.

China's global ambitions have soared since the start of the 21st Century, decades after the country embarked on a remarkable journey to transform its closed economy into an export-driven economic powerhouse. Much of China's global ambitions hinge on its grand policy -- the Belt and Road Initiative (BRI). This policy, formulated in 2013, is an amalgamation of infrastructure projects covering Asia, Europe and Africa. But considering BRI as just another global infrastructure plan will be like missing the forest for the trees. It involves President Xi Jinping's grand plans to reclaim China's past glory and shift the centre of geopolitical power from Europe to Beijing. Nevertheless, as lofty as it may seem, BRI has left a debt trap of $1 trillion for 150 – mostly developing – countries. China's BRI-induced debt trap has brought countries to the brink of bankruptcy – anyone remembers Sri Lanka, Pakistan and Kenya? All these countries owed a substantial part of their debt to Beijing. However, ongoing domestic development will likely be a speed-breaker to China's global ambitions. China's domestic debt problem Years of infrastructure-driven growth helped China connect every part of its expansive geography, create clusters of urban industrial centres and accelerate economic growth that was only paralleled by the US in the late 1800s and early 20th Century. But that itself is proving to be China's undoing. According to economists at Goldman Sachs, China's local government debt could be over $23 trillion. That's about seven times the size of India's Gross Domestic Product. For the uninitiated, local governments play a huge role in China's economic planning. They include the provincial, county and municipal administrations, which fund most local infrastructure projects. While China has been on a decentralisation spree for many decades, 2015 was a watershed year for local governments. That year, the Chinese government amended the Budget Law to allow local governments to raise funds from the open market by selling bonds. While the amended law now gives the local government more power to finance projects, the various qualifying conditions have made it a not-so-popular funding source. To circumvent the limitations of municipal bonds, local governments in China stuck around with the age-old Special Local Government Finance Vehicles (LGFVs) model. These organisations have been opened across the world's second-largest economy to finance major infrastructure projects. The debts incurred by LGFVs are considered "hidden" as the local governments do not report them. Since LGFV debts are off the accounting books, local governments have time and again misused them to finance unsustainable projects. This has resulted in a ballooning debt crisis. The reports of shanty towns or ghost towns with numerous unfinished highways, housing projects, and tourist attractions that the world keeps hearing are prime examples of local governments failing to sustain infrastructure projects due to high indebtedness. For several years, local governments had it easy as the Chinese realty market boomed and local governments were able to generate revenue. But once the realty sector began weakening – remember realty giant Evergrande and its $300 billion debt? – in 2021, the repercussions have been unprecedented. The true size of China's debt mountain can only be calculated when one adds the total local government debt with the realty and household debts — there is a significant overlap between the three. Factor this: China's total debt is now more than the average in developed countries. It's much higher than the US, frequently grabbing headlines for its high indebtedness. According to market analysts, China's debt is 282 per cent of its annual economic output, which is way higher than the developed world's average of 256 per cent. The ratio is 257 per cent for the US, China's arch-rival. Impact on China's 'debt trap diplomacy Given China's opaque statistical practices, the mystery around the exact debt figure is likely to be solved. Whatever the real debt figure, the repercussion can already be felt in China's predatory debt practices. A New York Times report suggests that total lending to other countries is a mere six per cent of China's annual economic output. However, the ticking debt time bomb at home is making China's financial institutions not accept losses on their foreign lending, especially those made to low-income countries. The first signs of China's unwillingness to ease debt repayment conditions for poor conditions could be seen in 2022. This was a year after the realty sector showed its first signs of weakness, and the country, entered an extended period of Covid lockdown. A recent Reuters report shows that Beijing – the world's largest bilateral creditor – forgave $19 billion in 2021, but that figure dropped to $9 billion in 2022 and $1.7 billion by April 2023. This massive drop hints at China's fears that going slow on debt repayments will help the indebted nations but can backfire on its economy. But China's growing international stature under Xi allows the country to stay on being a top global lender. It does not help China's cause that it is locked in an ongoing geopolitical tussle with the United States. It is tough being in China's position right now. It must keep its position as a top lender to compete with the West. But Beijing will need to renegotiate loans to mollify debtors, as it has done with a few countries like Zambia. However, this will also mean China is losing out on timely debt repayments.

$23 trillion-plus & counting: Will China's surging local government debt crisis affect its global ambitions?

An encouraging update from the PC industry the latest data from analysis reveals that the global PC market is showing signs of a much-needed recovery. This comes after consecutive quarters of a downward trend in PC shipments.

Revival on the horizon as PC markets make a comeback

The Indian tax regulatory body, the Goods and Service Tax (GST) Council, on Tuesday, made some major revisions to the tax structure after the conclusion of its 50th meeting.

While the government decided to trim the GST rate on some items, other sectors, such as the online game industry, received a major shock after it was decided to levy 28 per cent GST.

In a major decision during the meeting, GST on satellite launch services provided by private operators has been exempted.

Besides, the government decided to exempt cancer-related drugs, medicines for rare diseases, and food products for special medical purposes from the GST tax bracket.

<h2>GST trimmed on four items</h2>

The council also approved a GST rate reduction on four items. These are:

<ul>
	<li>Uncooked, unfried, and extruded snack palettes to a GST rate of 5 per cent from 18 per cent.</li>
	<li>Fish soluble paste to see 5 per cent GST rate from earlier 18 per cent.</li>
	<li>LD slag to be at par with blast furnace slag. It has been reduced from 18 per cent to 5 per cent.</li>
</ul>

<h2>GST cut on foods served in cinema halls</h2>

Furthermore, the council, headed by Union Finance Minister Nirmala Sitharaman, trimmed the GST rate on foods served in cinema halls from earlier 18 per cent to 5 per cent.

“It has been decided to clarify that the supply of food and beverages in cinema halls is taxable as restaurant service as long as (a) they are supplied by way of or as part of a service and (b) supplied independently of the cinema exhibition service,” it said.

“Where the sale of cinema tickets and supply of food and beverages are clubbed together, and such bundled supply satisfies the test of composite supply, the entire supply will attract GST at the rate applicable to service of exhibition of cinema, the principal supply.”

<h2>Change in definition of SUV</h2>

The finance minister also announced a change in the definition of SUV for levying cess.

Presently, the definition for levy of cess includes four parameters — should be popularly known as SUV, should be of length of 4 metres or above,&nbsp;engine capacity of 1,500 cc and above, and unladen&nbsp;ground clearance of minimum 170 mm.

Now, she said, the SUV definition will include only the length (4 meters and above), engine capacity (1,500 cc and more), and ground clearance (unladen&nbsp;clearance of 170 mm and more).

<h2>Online gaming</h2>

Speaking on the decision to charge GST on online gaming, Sitharaman said that the panel decided to levy a 28 per cent GST on the face value or payments made for playing online games, bets in casinos and racing.

The tax rate was decided based on the recommendation of a group of ministers that looked at taxing casinos, horse racing and online gaming, she said.

The issue before the GoM (group of ministers) was whether to impose a 28 per cent GST on the face value of bets, gross gaming revenue, or just on platform fees.

Sitharaman said the tax will be levied on the entire value.

WATCH WION LIVE HERE

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The Indian tax regulatory body, the Goods and Service Tax (GST) Council, on Tuesday, made some major revisions to the tax structure after the conclusion of its 50th meeting.

The Indian tax regulatory body, the Goods and Service Tax (GST) Council, on Tuesday, made some major revisions to the tax structure after the conclusion of its 50th meeting. While the government decided to trim the GST rate on some items, other sectors, such as the online game industry, received a major shock after it was decided to levy 28 per cent GST. In a major decision during the meeting, GST on satellite launch services provided by private operators has been exempted. Besides, the government decided to exempt cancer-related drugs, medicines for rare diseases, and food products for special medical purposes from the GST tax bracket. GST trimmed on four items The council also approved a GST rate reduction on four items. These are: Uncooked, unfried, and extruded snack palettes to a GST rate of 5 per cent from 18 per cent. Fish soluble paste to see 5 per cent GST rate from earlier 18 per cent. LD slag to be at par with blast furnace slag. It has been reduced from 18 per cent to 5 per cent. GST cut on foods served in cinema halls Furthermore, the council, headed by Union Finance Minister Nirmala Sitharaman, trimmed the GST rate on foods served in cinema halls from earlier 18 per cent to 5 per cent. “It has been decided to clarify that the supply of food and beverages in cinema halls is taxable as restaurant service as long as (a) they are supplied by way of or as part of a service and (b) supplied independently of the cinema exhibition service,” it said. “Where the sale of cinema tickets and supply of food and beverages are clubbed together, and such bundled supply satisfies the test of composite supply, the entire supply will attract GST at the rate applicable to service of exhibition of cinema, the principal supply.” Change in definition of SUV The finance minister also announced a change in the definition of SUV for levying cess. Presently, the definition for levy of cess includes four parameters — should be popularly known as SUV, should be of length of 4 metres or above, engine capacity of 1,500 cc and above, and unladen ground clearance of minimum 170 mm. Now, she said, the SUV definition will include only the length (4 meters and above), engine capacity (1,500 cc and more), and ground clearance (unladen clearance of 170 mm and more). Online gaming Speaking on the decision to charge GST on online gaming, Sitharaman said that the panel decided to levy a 28 per cent GST on the face value or payments made for playing online games, bets in casinos and racing. The tax rate was decided based on the recommendation of a group of ministers that looked at taxing casinos, horse racing and online gaming, she said. The issue before the GoM (group of ministers) was whether to impose a 28 per cent GST on the face value of bets, gross gaming revenue, or just on platform fees. Sitharaman said the tax will be levied on the entire value. WATCH WION LIVE HERE

India: GST Council slashes tax on major items, hikes rate to 28% on online gaming