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After growing for three months, China's manufacturing activity fell unexpectedly in April. That is bad news for a country that is trying to bounce back from just 3% growth last year.

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The US banking regulators made an announcement Monday morning of closing the crisis-hit San Francisco-based bank First Republic&nbsp;and selling off the lender's majority deposits of $93.5bn to JPMorgan Chase along with most of the assets, reported Financial Times.&nbsp;With this JPMorgan Chase will acquire most of First Republic,&nbsp;the third American bank to fail since March.&nbsp;

Federal Deposit Insurance Corporation (FDIC)&nbsp;was able to reach a loss-sharing agreement with JPMorgan over the unrealized losses in its loan portfolio resulting from the most recent increase in interest rates. Jumbo mortgage loans given by the bank at comparatively low-interest rates to entice and retain wealthy clients had seen a dramatic decline in value.

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All depositors, including those who have more than the $250,000 insurance cap, will be able to access their money when the bank opens today morning thanks to the agreement. The FDIC predicted that its insurance fund would suffer losses of around $13 billion, as per reports.&nbsp;

The American banking crisis started after the failure of Silicon Valley Bank and Signature Bank earlier.&nbsp;First Republic clients panicked and withdrew almost $100 billion in deposits in a few days of the SVB catastrophe.&nbsp;&nbsp;

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Since then, the stock has lost around 97% of its value. The largest banks in the country, including JPMorgan and PNC, attempted to support the First Republic bank with a $30 billion deposit, but it was insufficient.

According to The Wall Street Journal, First Republic contemplated a sale or an outside capital infusion and recruited investment bankers to advise on its alternatives.

On Monday, First Republic presented a dreadful quarterly profits report that included fresh information on the severity of the harm caused by the deposit run.

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The bank claimed that costly loans from the Federal Reserve and Federal Home Loan Bank were used to plug the hole left by fleeing depositors. That left the lender facing a future scenario in which it might have to pay more in liabilities than it would have made in assets.

Several large banks, including JPMorgan Chase &amp; Co. and PNC Financial Services Group Inc., were reportedly interested to bid for purchasing First Republic Bank.

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The US banking regulators made an announcement Monday morning of closing the crisis-hit San Francisco-based bank First Republic and selling off the lender's majority deposits of $93.

The US banking regulators made an announcement Monday morning of closing the crisis-hit San Francisco-based bank First Republic and selling off the lender's majority deposits of $93.5bn to JPMorgan Chase along with most of the assets, reported Financial Times. With this JPMorgan Chase will acquire most of First Republic, the third American bank to fail since March. Federal Deposit Insurance Corporation (FDIC) was able to reach a loss-sharing agreement with JPMorgan over the unrealized losses in its loan portfolio resulting from the most recent increase in interest rates. Jumbo mortgage loans given by the bank at comparatively low-interest rates to entice and retain wealthy clients had seen a dramatic decline in value. Also Read | At least 18 dead, dozens injured as tourist bus in Mexico plunges into ravine All depositors, including those who have more than the $250,000 insurance cap, will be able to access their money when the bank opens today morning thanks to the agreement. The FDIC predicted that its insurance fund would suffer losses of around $13 billion, as per reports. The American banking crisis started after the failure of Silicon Valley Bank and Signature Bank earlier. First Republic clients panicked and withdrew almost $100 billion in deposits in a few days of the SVB catastrophe. Also Read | Suspected ISIS chief, codename Abu Hussein al-Qurashi, killed in Syria: Turkey president Since then, the stock has lost around 97% of its value. The largest banks in the country, including JPMorgan and PNC, attempted to support the First Republic bank with a $30 billion deposit, but it was insufficient. According to The Wall Street Journal, First Republic contemplated a sale or an outside capital infusion and recruited investment bankers to advise on its alternatives. On Monday, First Republic presented a dreadful quarterly profits report that included fresh information on the severity of the harm caused by the deposit run. Watch | Experts predict AI to be the forefront of 2024 US election campaign × The bank claimed that costly loans from the Federal Reserve and Federal Home Loan Bank were used to plug the hole left by fleeing depositors. That left the lender facing a future scenario in which it might have to pay more in liabilities than it would have made in assets. Several large banks, including JPMorgan Chase & Co. and PNC Financial Services Group Inc., were reportedly interested to bid for purchasing First Republic Bank. 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.

JPMorgan to acquire San Francisco-based bank First Republic as US regulators announce deal

Data from China's statistic bureau shows that, in April, the nation's factory activity witnessed a decline. This as&nbsp;per news agency AP, signals the challenges policymakers face in their efforts to sustain the country's economic recovery.

The official survey undertaken by the government's statistic bureau and an official industry group was published on Sunday. It showed that China's monthly purchasing managers' index declined to 49.2 from 51.9 in March. On the 100-point scale, numbers below 50 indicate that activity is contracting.

In addition, as per the National Bureau of Statistics and the China Federation of Logistics &amp; Purchasing, measures of production, new orders and even employment dropped in April.

However, the index for production remained above 50, which, as per the authorities, signals that there was still an expansion.

According to China's National Bureau of Statistics, the country's manufacturing purchasing managers' index (PMI) fell to 51.1 in April from 51.9 in March.&nbsp;

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Zhao Qinghe, China's National Bureau of Statistics' senior statistician, said that this decline in the manufacturing purchasing managers' index was due to inadequate market demand and a relatively high base figure recorded in the first quarter when recovery was fast. This suggests that the economic recovery in China may be slowing down.

In the first quarter, after the Chinese government's abrupt end to coronavirus control regulations, the nation's economic growth accelerated. In spite of that, authorities had warned that in the coming months, amid an uncertain global economic outlook, China will face import and export pressures. They also cautioned that the nation may face inadequate domestic market demands.

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Data shows that the non-manufacturing&nbsp;commercial activity index decreased to 56.4 from 58.2 in March, while the composite PMI dropped to 54.4 from 57.0.&nbsp;

These figures suggest a slowing down of China's economic recovery.&nbsp;

Earlier this year, the Chinese government set a conservative economic growth target of "around 5 per cent" for this year. This target will only be met if GDP grows faster in the months ahead. To achieve this, the government plans to implement various policies to stabilise growth, stimulate domestic demand, and support the development of emerging industries.

(With inputs from agencies) 
&nbsp;

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Data from China's statistic bureau shows that, in April, the nation's factory activity witnessed a decline. This as per news agency AP, signals the challenges policymakers face in their efforts to sustain the country's economic recovery.

Data from China's statistic bureau shows that, in April, the nation's factory activity witnessed a decline. This as per news agency AP, signals the challenges policymakers face in their efforts to sustain the country's economic recovery. The official survey undertaken by the government's statistic bureau and an official industry group was published on Sunday. It showed that China's monthly purchasing managers' index declined to 49.2 from 51.9 in March. On the 100-point scale, numbers below 50 indicate that activity is contracting. In addition, as per the National Bureau of Statistics and the China Federation of Logistics & Purchasing, measures of production, new orders and even employment dropped in April. However, the index for production remained above 50, which, as per the authorities, signals that there was still an expansion. According to China's National Bureau of Statistics, the country's manufacturing purchasing managers' index (PMI) fell to 51.1 in April from 51.9 in March. Also read | Commodity prices set to plunge in 2023, but relief for consumers remains elusive: World Bank report Zhao Qinghe, China's National Bureau of Statistics' senior statistician, said that this decline in the manufacturing purchasing managers' index was due to inadequate market demand and a relatively high base figure recorded in the first quarter when recovery was fast. This suggests that the economic recovery in China may be slowing down. In the first quarter, after the Chinese government's abrupt end to coronavirus control regulations, the nation's economic growth accelerated. In spite of that, authorities had warned that in the coming months, amid an uncertain global economic outlook, China will face import and export pressures. They also cautioned that the nation may face inadequate domestic market demands. Also read | Intel posts biggest quarterly loss as PC sales drop, chip wars intensify Data shows that the non-manufacturing commercial activity index decreased to 56.4 from 58.2 in March, while the composite PMI dropped to 54.4 from 57.0. These figures suggest a slowing down of China's economic recovery. Earlier this year, the Chinese government set a conservative economic growth target of "around 5 per cent" for this year. This target will only be met if GDP grows faster in the months ahead. To achieve this, the government plans to implement various policies to stabilise growth, stimulate domestic demand, and support the development of emerging industries. (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.

China manufacturing dips in April, latest figures suggest a slowing down of economic recovery

The San Francisco-based First Republic Bank became the new entrant to the banking crisis plaguing the US economy after it was placed under the receivership of the US Federal Deposit Insurance Corporation (FDIC).

It has become the third financial institution to collapse after Silicon Valley Bank and Signature Bank in the last two months.

According to Wall Street Journal, FDIC is all set to take over the First Republic over this weekend and in the process, the lender would be put under the hammer for impending bidding.

It comes after First Republic’s stocks plunged 54 per cent and the trading was halted multiple times for volatility on Friday amid reports that FDIC to rescue the lender. At the end of the day, the bank's stock closed 43 per cent lower and hit a record low of $2.99 apiece.

Earlier this week, shares of First Republic tanked nearly 50 per cent after its customers pulled more than $100 billion from their accounts amid last month's banking panic. The bank's shares have lost 97 per cent of their value so far this year.

Any hopes to rescue the bank fizzled out after Reuters, quoting sources, revealed that the US banking regulator determined that First Republic's situation had worsened to a point where immediate action was necessary.

The FDIC's anticipated intervention indicates the regulator's growing concern over the stability of the bank and its ability to meet its financial obligations.

What went wrong?

The fall of Silicon Valley Bank and Signature Bank last month started to take a toll on First Republic’s stocks, which started plummeting.

The First Republic, just like the other two lenders, had a high number of uninsured deposits, as concerns mounted over the possibility of clients taking out their money.

About two-thirds of First Republic’s deposits were uninsured, which was far less than the 94 per cent uninsured that Silicon Valley Bank had, but First Republic also had an unusually large 111 per cent loan-to-deposit ratio at the end of last year, according to S&amp;P Global — meaning it loaned out more money than it has in deposits.

Last month, it had more than $70 billion in liquidity apart from additional funds it could raise from the Federal Reserve’s Bank Term Funding Program. But this did not instil any faith in investors and they continued to dump the stock.

First Republic was later downgraded by rating agencies Fitch and S&amp;P, citing risks to its funding and liquidity. They placed it on a negative watch, reflecting low confidence in the bank’s financial strength. This affected stocks further.

According to the S&amp;P 500 report, the bank was the worst performer since the beginning of the year, after the investors sold off most of their shares. However on April 24, the bank in its statement said that it was exploring strategic options following its disclosure that it lost around $100 billion in deposits. But this didn’t stop investors from dumping its stocks.

Why concerns over uninsured deposits?

The Federal Deposit Insurance Corporation (FDIC), the US government body guarantees to protect the money of the depositor if the financial institution they parked their money in, collapses.

However, there’s a catch. The FDIC can insure up to $250,000 of deposits that anyone has kept at a federally protected bank. Anything beyond that is not guaranteed to be protected.

SVB had a large uninsured deposit base. As the bank started losing money, it tried to raise cash. This is when its depositors, mostly business customers, who had more than $250,000 stashed in the bank, left and turned to other lenders.

Who will buy the bank?

Last month, several large banks had injected $30 billion into the First Republic in combined deposits that included Bank of America Corp, Citigroup Inc., JPMorgan and Wells Fargo &amp; Co.

However, First Republic struggled to find support from larger banks or private equity firms on its proposed move to create a so called "bad bank" or sell assets such as securities and mortgage book.

According to reports, banks were earlier reluctant to invest money to rescue the troubled lender, but now have shown interest to buy it out if it is auctioned.

Several large banks, including JPMorgan Chase &amp; Co. and PNC Financial Services Group Inc., are reportedly interested to bid for purchasing First Republic Bank.

Bloomberg reported that JPMorgan and PNC had been given a Sunday deadline by the FDIC to submit final bids for the ailing bank.

Earlier on Friday, a Reuters report said that the government is brokering a rescue deal for the First Republic, which pushed its shares up as much as 6.6 per cent earlier in the session.&nbsp;

A CNBC report said the FDIC, the Treasury Department and the Federal Reserve are among government bodies that have started to orchestrate meetings with financial companies about a lifeline for the bank.&nbsp;

(With inputs from agencies)

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The San Francisco-based First Republic Bank became the new entrant to the banking crisis plaguing the US economy after it was placed under the receivership of the US Federal Deposit Insurance Corporation (FDIC).

The San Francisco-based First Republic Bank became the new entrant to the banking crisis plaguing the US economy after it was placed under the receivership of the US Federal Deposit Insurance Corporation (FDIC). It has become the third financial institution to collapse after Silicon Valley Bank and Signature Bank in the last two months. According to Wall Street Journal, FDIC is all set to take over the First Republic over this weekend and in the process, the lender would be put under the hammer for impending bidding. It comes after First Republic’s stocks plunged 54 per cent and the trading was halted multiple times for volatility on Friday amid reports that FDIC to rescue the lender. At the end of the day, the bank's stock closed 43 per cent lower and hit a record low of $2.99 apiece. Earlier this week, shares of First Republic tanked nearly 50 per cent after its customers pulled more than $100 billion from their accounts amid last month's banking panic. The bank's shares have lost 97 per cent of their value so far this year. Any hopes to rescue the bank fizzled out after Reuters, quoting sources, revealed that the US banking regulator determined that First Republic's situation had worsened to a point where immediate action was necessary. The FDIC's anticipated intervention indicates the regulator's growing concern over the stability of the bank and its ability to meet its financial obligations. What went wrong? The fall of Silicon Valley Bank and Signature Bank last month started to take a toll on First Republic’s stocks, which started plummeting. The First Republic, just like the other two lenders, had a high number of uninsured deposits, as concerns mounted over the possibility of clients taking out their money. About two-thirds of First Republic’s deposits were uninsured, which was far less than the 94 per cent uninsured that Silicon Valley Bank had, but First Republic also had an unusually large 111 per cent loan-to-deposit ratio at the end of last year, according to S&P Global — meaning it loaned out more money than it has in deposits. Last month, it had more than $70 billion in liquidity apart from additional funds it could raise from the Federal Reserve’s Bank Term Funding Program. But this did not instil any faith in investors and they continued to dump the stock. First Republic was later downgraded by rating agencies Fitch and S&P, citing risks to its funding and liquidity. They placed it on a negative watch, reflecting low confidence in the bank’s financial strength. This affected stocks further. According to the S&P 500 report, the bank was the worst performer since the beginning of the year, after the investors sold off most of their shares. However on April 24, the bank in its statement said that it was exploring strategic options following its disclosure that it lost around $100 billion in deposits. But this didn’t stop investors from dumping its stocks. Why concerns over uninsured deposits? The Federal Deposit Insurance Corporation (FDIC), the US government body guarantees to protect the money of the depositor if the financial institution they parked their money in, collapses. However, there’s a catch. The FDIC can insure up to $250,000 of deposits that anyone has kept at a federally protected bank. Anything beyond that is not guaranteed to be protected. SVB had a large uninsured deposit base. As the bank started losing money, it tried to raise cash. This is when its depositors, mostly business customers, who had more than $250,000 stashed in the bank, left and turned to other lenders. Who will buy the bank? Last month, several large banks had injected $30 billion into the First Republic in combined deposits that included Bank of America Corp, Citigroup Inc., JPMorgan and Wells Fargo & Co. However, First Republic struggled to find support from larger banks or private equity firms on its proposed move to create a so called "bad bank" or sell assets such as securities and mortgage book. According to reports, banks were earlier reluctant to invest money to rescue the troubled lender, but now have shown interest to buy it out if it is auctioned. Several large banks, including JPMorgan Chase & Co. and PNC Financial Services Group Inc., are reportedly interested to bid for purchasing First Republic Bank. Bloomberg reported that JPMorgan and PNC had been given a Sunday deadline by the FDIC to submit final bids for the ailing bank. Earlier on Friday, a Reuters report said that the government is brokering a rescue deal for the First Republic, which pushed its shares up as much as 6.6 per cent earlier in the session. A CNBC report said the FDIC, the Treasury Department and the Federal Reserve are among government bodies that have started to orchestrate meetings with financial companies about a lifeline for the bank. (With inputs from agencies) WATCH WION LIVE HERE

Explained: What's happening at First Republic? The cascading fall of another US bank

In its Q1 earnings call on Thursday, Amazon made no mention of India, a notable departure for the e-commerce behemoth which has consistently emphasised the South Asian market's rapid growth and positive outlook.

This comes after Amazon's closure of several services including food delivery and wholesale distribution in the nation. The absence of India from the Q1 2023 quarterly earnings and investor call is the first since early 2014. Many analysts are now wondering if the American giant is reducing operations in the nation amid global restructuring.

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Over the past 10 years, Amazon has invested over $7 billion in its operations in India and fiercely competes with Flipkart, which is backed by Walmart. According to a Sanford C. Bernstein assessment, Amazon is behind Flipkart and finding it difficult to gain traction in smaller Indian cities and villages.

Walmart, a competitor on a worldwide scale, is investing significantly more money in India . It has spent nearly $2.5 billion in the nation this year.&nbsp;

An earnings call is a conference call between a company's management team and investors and analysts to discuss the company's financial results for a particular period, such as a quarter or a year.

During an earnings call, the company's executives typically provide an overview of the company's financial performance, including revenue, earnings per share, and other key metrics. They may also discuss the company's strategic direction, new product developments, and other business updates.

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Investors and analysts can ask questions during the call to gain a better understanding of the company's financial performance and prospects for growth. Earnings calls are an important tool for investors and analysts to stay informed about a company's financial performance and make informed investment decisions.

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After Thursday's call, Amazon in a press release said its net sales have increased 9 per cent&nbsp;to $127.4 billion in the first quarter, compared with $116.4 billion in the first quarter of 2022.

Excluding the $2.4 billion unfavourable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 11 per cent&nbsp;compared with the first quarter of 2022. 
 
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In its Q1 earnings call on Thursday, Amazon made no mention of India, a notable departure for the e-commerce behemoth which has consistently emphasised the South Asian market's rapid growth and positive outlook.

In its Q1 earnings call on Thursday, Amazon made no mention of India, a notable departure for the e-commerce behemoth which has consistently emphasised the South Asian market's rapid growth and positive outlook. This comes after Amazon's closure of several services including food delivery and wholesale distribution in the nation. The absence of India from the Q1 2023 quarterly earnings and investor call is the first since early 2014. Many analysts are now wondering if the American giant is reducing operations in the nation amid global restructuring. Also Read | Over 210 migrant bodies recovered on Tunisian coast in less than two weeks Over the past 10 years, Amazon has invested over $7 billion in its operations in India and fiercely competes with Flipkart, which is backed by Walmart. According to a Sanford C. Bernstein assessment, Amazon is behind Flipkart and finding it difficult to gain traction in smaller Indian cities and villages. Walmart, a competitor on a worldwide scale, is investing significantly more money in India . It has spent nearly $2.5 billion in the nation this year. An earnings call is a conference call between a company's management team and investors and analysts to discuss the company's financial results for a particular period, such as a quarter or a year. During an earnings call, the company's executives typically provide an overview of the company's financial performance, including revenue, earnings per share, and other key metrics. They may also discuss the company's strategic direction, new product developments, and other business updates. Also Read | 'We thought we could die': Former House speaker Nancy Pelosi on visiting Ukraine last year Investors and analysts can ask questions during the call to gain a better understanding of the company's financial performance and prospects for growth. Earnings calls are an important tool for investors and analysts to stay informed about a company's financial performance and make informed investment decisions. Watch | Pope Francis on a three-day visit to Hungary, meets Ukrainian refugees × After Thursday's call, Amazon in a press release said its net sales have increased 9 per cent to $127.4 billion in the first quarter, compared with $116.4 billion in the first quarter of 2022. Excluding the $2.4 billion unfavourable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 11 per cent compared with the first quarter of 2022. 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.

In a first since 2014, Amazon omits India business from earnings call

The Federal Reserve failed to “take forceful enough action” before the collapse of the Silicon Valley Bank last month, said the United States central bank, on Friday (April 28). However, it also criticised leadership at Silicon Valley Bank (SVB) for “a textbook case of mismanagement,” in its latest report.&nbsp;

The report also noted the extremely poor bank management, weakened regulations and lax government supervision for the failure of the collapse of the US lender. The collapse had&nbsp;also triggered an ongoing banking crisis for mid-sized US banks as the panic it set off also reportedly led to the failure of another major lender, Signature Bank, two days later.&nbsp;

Furthermore, the report also includes the release of internal reports and Fed communications which is rare and typically confidential but the Fed chose to release these reports to show how the bank was managed up to its failure.

Where did the Fed go wrong?

In its report, the Fed issued a detailed and scathing assessment of what led to the collapse of SVB, the US’ 16th largest bank. The report was authored by Vice Chair for Supervision Michael Barr and staff said, “Federal Reserve supervisors failed to take forceful enough action.”&nbsp;

It added, “SVB’s failure demonstrates that there are weaknesses in regulation and supervision that must be addressed.” The report also highlighted the underlying cultural issues at the Fed, where supervisors were unwilling to take strict action on bank management when they saw growing problems.

“Supervisors did not fully appreciate the extent of the vulnerabilities as Silicon Valley Bank grew in size and complexity,” said Barr. He added, “When supervisors did identify vulnerabilities, they did not take sufficient steps to ensure that Silicon Valley Bank fixed those problems quickly enough.”&nbsp;

The Fed&nbsp;also concluded, on the note, that these cultural issues stemmed from legislation passed in 2018, which lessened regulations for banks with less than $250 billion in assets. A year later, the Fed also weakened its own rules and exempted banks below that threshold from stress tests and other regulations.&nbsp;

SVB’s role

The report also noted that the Fed “did not appreciate the seriousness of critical deficiencies” in SVB’s governance, liquidity, and interest rate risk management, adding, this meant that while the conditions deteriorated and significant risk to the firm’s safety and soundness emerged the bank remained “well-rated.”

Meanwhile, Fed also criticised the bank for how they managed executive compensation, as the report indicates that the executive compensation at the bank was geared toward short-term profits and the stock price with no incentives tied to risk management.

It is also worth noting that the Silicon Valley Bank did not have a chief risk officer at the firm for roughly a year and it was also the time when the firm was rapidly growing. In 2022, SVB did not test its capacity to borrow at the discount window or have appropriate collateral and operational arrangements in place to obtain contingency funding.

What does the Fed plan to do now?

The central bank now plans to reexamine how it regulates larger regional banks like SVB, which had $200 billion in assets when it collapsed. “While higher supervisory and regulatory requirements may not have prevented the firm’s failure, they would likely have bolstered the resilience of Silicon Valley Bank,” the report noted.&nbsp;

Meanwhile, banking policy analysts said that this report, along with the two separate ones released by Federal Deposit Insurance Corp&nbsp;and the Government Accountability Office might lead to tighter regulations. Although the Fed acknowledged it could take years for proposals to be implemented.&nbsp;

(With inputs from agencies) 
 
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The Federal Reserve failed to “take forceful enough action” before the collapse of the Silicon Valley Bank last month, said the United States central bank, on Friday (April 28).

The Federal Reserve failed to “take forceful enough action” before the collapse of the Silicon Valley Bank last month, said the United States central bank, on Friday (April 28). However, it also criticised leadership at Silicon Valley Bank (SVB) for “a textbook case of mismanagement,” in its latest report. The report also noted the extremely poor bank management, weakened regulations and lax government supervision for the failure of the collapse of the US lender. The collapse had also triggered an ongoing banking crisis for mid-sized US banks as the panic it set off also reportedly led to the failure of another major lender, Signature Bank, two days later. Furthermore, the report also includes the release of internal reports and Fed communications which is rare and typically confidential but the Fed chose to release these reports to show how the bank was managed up to its failure. Where did the Fed go wrong? In its report, the Fed issued a detailed and scathing assessment of what led to the collapse of SVB, the US’ 16th largest bank. The report was authored by Vice Chair for Supervision Michael Barr and staff said, “Federal Reserve supervisors failed to take forceful enough action.” It added, “SVB’s failure demonstrates that there are weaknesses in regulation and supervision that must be addressed.” The report also highlighted the underlying cultural issues at the Fed, where supervisors were unwilling to take strict action on bank management when they saw growing problems. “Supervisors did not fully appreciate the extent of the vulnerabilities as Silicon Valley Bank grew in size and complexity,” said Barr. He added, “When supervisors did identify vulnerabilities, they did not take sufficient steps to ensure that Silicon Valley Bank fixed those problems quickly enough.” The Fed also concluded, on the note, that these cultural issues stemmed from legislation passed in 2018, which lessened regulations for banks with less than $250 billion in assets. A year later, the Fed also weakened its own rules and exempted banks below that threshold from stress tests and other regulations. SVB’s role The report also noted that the Fed “did not appreciate the seriousness of critical deficiencies” in SVB’s governance, liquidity, and interest rate risk management, adding, this meant that while the conditions deteriorated and significant risk to the firm’s safety and soundness emerged the bank remained “well-rated.” Meanwhile, Fed also criticised the bank for how they managed executive compensation, as the report indicates that the executive compensation at the bank was geared toward short-term profits and the stock price with no incentives tied to risk management. It is also worth noting that the Silicon Valley Bank did not have a chief risk officer at the firm for roughly a year and it was also the time when the firm was rapidly growing. In 2022, SVB did not test its capacity to borrow at the discount window or have appropriate collateral and operational arrangements in place to obtain contingency funding. What does the Fed plan to do now? The central bank now plans to reexamine how it regulates larger regional banks like SVB, which had $200 billion in assets when it collapsed. “While higher supervisory and regulatory requirements may not have prevented the firm’s failure, they would likely have bolstered the resilience of Silicon Valley Bank,” the report noted. Meanwhile, banking policy analysts said that this report, along with the two separate ones released by Federal Deposit Insurance Corp and the Government Accountability Office might lead to tighter regulations. Although the Fed acknowledged it could take years for proposals to be implemented. (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.

Federal Reserve admits fault, blames Silicon Valley Bank executives for collapse, calls for stricter rules

First Republic Bank’s shares plunged nearly 40 per cent on Friday as the California-based bank closed on to yet another week of the loss of the financial heft it once bossed over.&nbsp;After the latest plunge, the US Federal Deposit Insurance Corporation (FDIC) is preparing to place First Republic under receivership imminently, a person familiar with the matter was quoted as saying by Reuters&nbsp;on Friday.

The US banking regulator has decided that the troubled regional lender's position has deteriorated and there is no more time to pursue a rescue through the private sector, a source cited by Reuters states.

<o:p></o:p>

According to the people briefed on the matter, the First Republic Bank and its advisers were preparing to launch a private-sector solution amid the likelihood of the bank being taken over by the Federal Deposit Insurance Corporation [FDIC].&nbsp;<o:p></o:p>

But the First Republic's proposal reportedly fell short of winning over both the private-sector US banks and the officials in Biden administration, Financial Times reported. <o:p></o:p>

The bank is now "engaged in discussions with multiple parties about [its] strategic options while continuing to serve [its] clients."<o:p></o:p>

<h3 class="MsoNormal">Will Biden administration take over the First Republic Bank?<o:p></o:p></h3>

Earlier, reports said that the Biden administration was looking to avoid another FDIC takeover, weeks after it took over Silicon Valley Bank. This is because frequent takeovers of crisis-ridden banks may lead to a chain reaction of crises within the financial institutions with unhinged balance sheets.&nbsp;

But the latest developments suggest otherwise. After Friday's fall at the Wall Street, the First Republic Bank may soon get taken over by the FDIC.

<o:p>ALSO READ |&nbsp;</o:p><o:p><a href="https://www.wionews.com/business-economy/first-republic-bank-to-cut-up-to-25-workforce-as-deposits-tumble-585828">First Republic Bank to cut up to 25% workforce as deposits tumble</a></o:p><o:p></o:p>

Some 11 of the largest US lenders have pumped about $30 billion into First Republic Bank in an effort to stabilise it. But the bank could not attain stability despite tens of billions pumped to revive its financial health.<o:p></o:p>

<h3 class="MsoNormal">First Republic Bank crisis: How bad is the situation?<o:p></o:p></h3>

The First Republic Bank’s shares have fallen 97 per cent this year. Earlier this week, on Monday, the bank revealed that it went through more than $100bn in deposit outflows in the first quarter of 2023.

<o:p>ALSO WATCH |&nbsp;</o:p><o:p>First Republic Bank loses $100 billion in deposits</o:p>

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A report in the Financial Times said&nbsp;that the bank may face more hits to its prospects of profitability due to rising interest rates that have hammered the paper value of its mortgage book.

<h3 class="MsoNormal">First Republic Bank crisis: The options forward<o:p></o:p></h3>

First Republic's&nbsp;takeover by the Federal Deposit Insurance Corporation [FDIC] now appears to be imminent.

The Financial Times reported that one proposal floated for the First Republic’s stabilisation was for a group of banks to buy some of First Republic’s older assets at prices above their market value. That would have cleared some of its losses while the buyers could hold assets to maturity while&nbsp;avoiding to take a hit themselves.

<o:p>But the latest developments suggest that the window for implementation of such proposals has closed as the First Republic may soon get&nbsp;taken over by the&nbsp;</o:p>Federal Deposit Insurance Corporation.<o:p></o:p>

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First Republic Bank’s shares plunged nearly 40 per cent on Friday as the California-based bank closed on to yet another week of the loss of the financial heft it once bossed over.

First Republic Bank’s shares plunged nearly 40 per cent on Friday as the California-based bank closed on to yet another week of the loss of the financial heft it once bossed over. After the latest plunge, the US Federal Deposit Insurance Corporation (FDIC) is preparing to place First Republic under receivership imminently, a person familiar with the matter was quoted as saying by Reuters on Friday. The US banking regulator has decided that the troubled regional lender's position has deteriorated and there is no more time to pursue a rescue through the private sector, a source cited by Reuters states. According to the people briefed on the matter, the First Republic Bank and its advisers were preparing to launch a private-sector solution amid the likelihood of the bank being taken over by the Federal Deposit Insurance Corporation [FDIC]. But the First Republic's proposal reportedly fell short of winning over both the private-sector US banks and the officials in Biden administration, Financial Times reported. The bank is now "engaged in discussions with multiple parties about [its] strategic options while continuing to serve [its] clients." Will Biden administration take over the First Republic Bank? Earlier, reports said that the Biden administration was looking to avoid another FDIC takeover, weeks after it took over Silicon Valley Bank. This is because frequent takeovers of crisis-ridden banks may lead to a chain reaction of crises within the financial institutions with unhinged balance sheets. But the latest developments suggest otherwise. After Friday's fall at the Wall Street, the First Republic Bank may soon get taken over by the FDIC. ALSO READ | First Republic Bank to cut up to 25% workforce as deposits tumble Some 11 of the largest US lenders have pumped about $30 billion into First Republic Bank in an effort to stabilise it. But the bank could not attain stability despite tens of billions pumped to revive its financial health. First Republic Bank crisis: How bad is the situation? The First Republic Bank’s shares have fallen 97 per cent this year. Earlier this week, on Monday, the bank revealed that it went through more than $100bn in deposit outflows in the first quarter of 2023. ALSO WATCH | First Republic Bank loses $100 billion in deposits × A report in the Financial Times said that the bank may face more hits to its prospects of profitability due to rising interest rates that have hammered the paper value of its mortgage book. First Republic Bank crisis: The options forward First Republic's takeover by the Federal Deposit Insurance Corporation [FDIC] now appears to be imminent. The Financial Times reported that one proposal floated for the First Republic’s stabilisation was for a group of banks to buy some of First Republic’s older assets at prices above their market value. That would have cleared some of its losses while the buyers could hold assets to maturity while avoiding to take a hit themselves. But the latest developments suggest that the window for implementation of such proposals has closed as the First Republic may soon get taken over by the Federal Deposit Insurance Corporation. 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.

First Republic Bank nears collapse as US regulator prepares for takeover

Several large banks, including JPMorgan Chase &amp; Co. and PNC Financial Services Group Inc., are reportedly interested to bid for purchasing First Republic Bank. According to reports, US banking regulator Federal Deposit Insurance Corp. (FDIC) could seize and sell First Republic bank this weekend.

FDIC is an independent agency created by the US&nbsp;Congress to maintain stability and public confidence in the nation’s financial system.&nbsp;

The announcement comes as the FDIC is getting ready to immediately put First Republic into receivership after determining there is no longer time to attempt a private sector rescue of the ailing regional lender.

The San Francisco-based lender would be the third American bank to fail since March if it enters receivership, after the failure of Silicon Valley Bank and Signature Bank. First Republic clients panicked and withdrew almost $100 billion in deposits in a few days of the SVB catastrophe.

Also Read | <a href="https://www.wionews.com/world/eu-nations-reach-deal-in-principle-to-transit-grain-from-ukraine-587170">EU nations reach deal 'in principle' to transit grain from Ukraine</a> 
 
Since then, the stock has lost around 97% of its value. The largest banks in the country, including JPMorgan and PNC, attempted to support the First Republic bank with a $30 billion deposit, but it was insufficient.

According to The Wall Street Journal, First Republic contemplated a sale or an outside capital infusion and recruited investment bankers to advise on its alternatives.

Also Read |&nbsp;<a href="https://www.wionews.com/india-news/indian-air-force-uses-night-vision-goggles-bravely-rescues-121-people-from-sudan-airstrip-587183">Indian Air Force uses night vision goggles, bravely rescues 121 people from Sudan airstrip</a>

Additionally, a proposal to sell some of its loans, securities, or both at a premium to market value was floated. It would be the second-largest bank to collapse in the United States history, with $233 billion in assets at the end of the first quarter.

On Monday, First Republic presented a dreadful quarterly profits report that included fresh information on the severity of the harm caused by the deposit run.

The bank claimed that costly loans from the Federal Reserve and Federal Home Loan Bank were used to plug the hole left by fleeing depositors. That left the lender facing a future scenario in which it might have to pay more in liabilities than it would have made in assets.

Watch | After Russia's winter assault, Ukraine prepares for summer attack

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The bank's stocks dropped roughly 50% in one day. It fell further during the week, closing at $3.51 a share on Friday, down from $115 on March 8 when SVB announced its&nbsp;losses that alarmed investors.

Customers with balances above the $250,000 deposit insurance limit started to withdraw their money in large quantities in March out of fear for the stability of a few smaller banks, which set off turbulence in the banking industry.

A few days following SVB's demise, the New York-based Signature Bank went down.

Regulators and bankers anticipated that once the government intervened to compensate uninsured depositors at SVB and Signature, the panic had subsided. However, First Republic had few viable options due to its severely damaged balance sheet.

The assets and deposits of First Republic might be easily absorbed by a small number of banks. Some of them, such as Wells Fargo &amp; Co., encounter regulatory barriers to growth. Others are still processing recent bank agreements.

Both JPMorgan and the Pittsburgh-based PNC have a history of stepping up in times of need.

In 2008, JPMorgan acquired the failing Bear Stearns, and after the government seized it, it took over the activities of Washington Mutual Inc.

Jamie Dimon, the CEO, used his expertise in crisis management to establish himself as a statesman among bank executives. He frequently utilises his position to advise government leaders and advocate for policy changes he believes would boost the economy.

With support from the government, PNC acquired the struggling Cleveland-based lender National City Corp. during the financial crisis of 2008. According to the Federal Reserve, it was the sixth-largest bank in the country at the end of last year.&nbsp;

 
 
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Several large banks, including JPMorgan Chase & Co. and PNC Financial Services Group Inc., are reportedly interested to bid for purchasing First Republic Bank. According to reports, US banking regulator Federal Deposit Insurance Corp.

Several large banks, including JPMorgan Chase & Co. and PNC Financial Services Group Inc., are reportedly interested to bid for purchasing First Republic Bank. According to reports, US banking regulator Federal Deposit Insurance Corp. (FDIC) could seize and sell First Republic bank this weekend. FDIC is an independent agency created by the US Congress to maintain stability and public confidence in the nation’s financial system. The announcement comes as the FDIC is getting ready to immediately put First Republic into receivership after determining there is no longer time to attempt a private sector rescue of the ailing regional lender. The San Francisco-based lender would be the third American bank to fail since March if it enters receivership, after the failure of Silicon Valley Bank and Signature Bank. First Republic clients panicked and withdrew almost $100 billion in deposits in a few days of the SVB catastrophe. Also Read | EU nations reach deal 'in principle' to transit grain from Ukraine Since then, the stock has lost around 97% of its value. The largest banks in the country, including JPMorgan and PNC, attempted to support the First Republic bank with a $30 billion deposit, but it was insufficient. According to The Wall Street Journal, First Republic contemplated a sale or an outside capital infusion and recruited investment bankers to advise on its alternatives. Also Read | Indian Air Force uses night vision goggles, bravely rescues 121 people from Sudan airstrip Additionally, a proposal to sell some of its loans, securities, or both at a premium to market value was floated. It would be the second-largest bank to collapse in the United States history, with $233 billion in assets at the end of the first quarter. On Monday, First Republic presented a dreadful quarterly profits report that included fresh information on the severity of the harm caused by the deposit run. The bank claimed that costly loans from the Federal Reserve and Federal Home Loan Bank were used to plug the hole left by fleeing depositors. That left the lender facing a future scenario in which it might have to pay more in liabilities than it would have made in assets. Watch | After Russia's winter assault, Ukraine prepares for summer attack × The bank's stocks dropped roughly 50% in one day. It fell further during the week, closing at $3.51 a share on Friday, down from $115 on March 8 when SVB announced its losses that alarmed investors. Customers with balances above the $250,000 deposit insurance limit started to withdraw their money in large quantities in March out of fear for the stability of a few smaller banks, which set off turbulence in the banking industry. A few days following SVB's demise, the New York-based Signature Bank went down. Regulators and bankers anticipated that once the government intervened to compensate uninsured depositors at SVB and Signature, the panic had subsided. However, First Republic had few viable options due to its severely damaged balance sheet. The assets and deposits of First Republic might be easily absorbed by a small number of banks. Some of them, such as Wells Fargo & Co., encounter regulatory barriers to growth. Others are still processing recent bank agreements. Both JPMorgan and the Pittsburgh-based PNC have a history of stepping up in times of need. In 2008, JPMorgan acquired the failing Bear Stearns, and after the government seized it, it took over the activities of Washington Mutual Inc. Jamie Dimon, the CEO, used his expertise in crisis management to establish himself as a statesman among bank executives. He frequently utilises his position to advise government leaders and advocate for policy changes he believes would boost the economy. With support from the government, PNC acquired the struggling Cleveland-based lender National City Corp. during the financial crisis of 2008. According to the Federal Reserve, it was the sixth-largest bank in the country at the end of last year. 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.

JPMorgan Chase, PNC bid for distressed First Republic as part of FDIC takeover

Fitch Ratings on Friday downgraded France's debt worthiness to "AA-" from "AA", claiming the political deadlock and social movements posed a threat to President Emmanuel Macron's reform policies which could in turn slow down the economy. It added the country's&nbsp;"fiscal metrics are weaker than peers".

"Public finances, and in particular the high level of government debt, are a&nbsp;rating&nbsp; weakness,"&nbsp;the credit rating agency noted.&nbsp;

"Political deadlock and (sometimes violent) social movements pose a risk to Macron's reform agenda and could create pressures for a more expansionary fiscal policy or a reversal of previous reforms," it added.&nbsp;

The agency warned that lower economic growth prospects and a decrease in competitiveness could contribute to a further downgrade in ratings.&nbsp;

<h2>We will continue with reforms: French government</h2>

After the release of the ratings, Finance Minister Bruno Le Maire said the government will continue to proceed with structural reforms to overhaul the economy.&nbsp;

"I believe that the facts invalidate Fitch's assessment. We are able to implement structural reforms and we will continue to implement structural reforms for the country," Le Maire was quoted as saying by AFP.&nbsp;

"Do not doubt our complete determination to restore the nation's public finances. We have proven our ability...to pass reforms that transform the French economic model."

The assessment by Fitch ratings comes barely a week after Macron suggested that&nbsp;his government may be in danger&nbsp;as far-right leader Marine Le Pen continues to make gains.&nbsp;

"Marine Le Pen will arrive (in power) if we are unable to respond to the challenges of the country and if we introduce a habit of lying or denying reality," he said.&nbsp;

Macron also lamented that&nbsp;he was not involved sufficiently in selling his highly unpopular pension reform bill to the public.

"Perhaps the mistake was not being sufficiently present to give a substance to the reform and carry it myself," Macron told Le Parisien newspaper.&nbsp;

<a href="https://www.wionews.com/world/french-president-emmanuel-macron-laments-not-selling-his-pension-reform-plan-adequately-to-public-585502">ALSO READ |&nbsp;French President Emmanuel Macron laments not selling his pension reform plan adequately to public</a>

<h2>French court approves the bill</h2>

Earlier this month, the French court approved Macron's pension reform plan to raise the retirement age. The decision was validated by the nine-member Constitutional Council after almost three months of protests across the country.&nbsp;

The council was of the view that the government's actions were in line with the constitution and that the retirement age should be raised.&nbsp;

However, the protests over the reforms are yet to stop. Parisians are still taking to the streets and demanding that Macron restore the status quo, which according to Fitch, may further impede Paris's economic growth.&nbsp;

(With inputs from agencies) 
&nbsp;

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Fitch Ratings on Friday downgraded France's debt worthiness to "AA-" from "AA", claiming the political deadlock and social movements posed a threat to President Emmanuel Macron's reform policies which could in turn slow down the economy.

Fitch Ratings on Friday downgraded France's debt worthiness to "AA-" from "AA", claiming the political deadlock and social movements posed a threat to President Emmanuel Macron's reform policies which could in turn slow down the economy. It added the country's "fiscal metrics are weaker than peers". "Public finances, and in particular the high level of government debt, are a rating weakness," the credit rating agency noted. "Political deadlock and (sometimes violent) social movements pose a risk to Macron's reform agenda and could create pressures for a more expansionary fiscal policy or a reversal of previous reforms," it added. The agency warned that lower economic growth prospects and a decrease in competitiveness could contribute to a further downgrade in ratings. We will continue with reforms: French government After the release of the ratings, Finance Minister Bruno Le Maire said the government will continue to proceed with structural reforms to overhaul the economy. "I believe that the facts invalidate Fitch's assessment. We are able to implement structural reforms and we will continue to implement structural reforms for the country," Le Maire was quoted as saying by AFP. "Do not doubt our complete determination to restore the nation's public finances. We have proven our ability...to pass reforms that transform the French economic model." The assessment by Fitch ratings comes barely a week after Macron suggested that his government may be in danger as far-right leader Marine Le Pen continues to make gains. "Marine Le Pen will arrive (in power) if we are unable to respond to the challenges of the country and if we introduce a habit of lying or denying reality," he said. Macron also lamented that he was not involved sufficiently in selling his highly unpopular pension reform bill to the public. "Perhaps the mistake was not being sufficiently present to give a substance to the reform and carry it myself," Macron told Le Parisien newspaper. ALSO READ | French President Emmanuel Macron laments not selling his pension reform plan adequately to public French court approves the bill Earlier this month, the French court approved Macron's pension reform plan to raise the retirement age. The decision was validated by the nine-member Constitutional Council after almost three months of protests across the country. The council was of the view that the government's actions were in line with the constitution and that the retirement age should be raised. However, the protests over the reforms are yet to stop. Parisians are still taking to the streets and demanding that Macron restore the status quo, which according to Fitch, may further impede Paris's economic growth. (With inputs from agencies) WATCH WION LIVE HERE:

Fitch downgrades France’s credit rating, blames political risks and government debt

OYO founder Ritesh Agarwal announced that the company in the March quarter has become cashflow positive for the first time. Watch this video to know more.

OYO's cashflow turns positive for first time

The skies are about to get busier as Air India announces a grand plan to hire 1,000 new pilots for its fleet expansion. Watch this video to know more.

Air India to hire more pilots amidst salary structure changes

The White House said it is monitoring the situation at First Republic Bank. The US commercial bank is struggling after the banking crisis in March.

White House monitoring US banking woes

US chip maker intel announced its worst-ever quarterly results. Intel's losses come after personal computer and data centre sales dropped steeply amid a gloomy global economic backdrop.

Intel reports worst quarterly results

If you are planning to move abroad for a job, there is some good news for you.&nbsp;

The latest World Development Report by the World Bank states that it is more viable for Indians to move abroad.

According to the report, Indian workers see a 120 percent&nbsp;rise in their incomes outside India, while internal migration within India will only add about 40 percent&nbsp;to personal incomes.&nbsp;

"Migration leads to large wage increases for most people whose skills and attributes are a strong match with the needs of the destination society. These gains often exceed what could be achieved in the country of origin, even from internal migration to relatively better-off locations," says the report.&nbsp;

Moving abroad is even more rewarding for low-skilled workers from less developed and developing countries such as India.&nbsp;

A low-skilled Indian worker is likely to see a whopping 500 percent rise in income in the United States. The United Arab Emirates is the next favourite destination for low-skilled workers, who can earn 300 percent more than in India. &nbsp;

"The gains are so large that at current rates of economic growth it would take decades for the average low-skilled person working in some countries of origin to earn the income they achieve by migrating to a high-income country," notes the report.&nbsp;

According to the International Labour Organisation, low-skilled work consisting of “simple and routine tasks which require the use of hand-held tools and often some physical effort”.&nbsp;

Tech brain drain a boon in disguise?&nbsp;

Migration of talented Indians to the developed world has often been dubbed "brain drain" in the media. While there may well be some truth in it, the World Bank report argues that "brain drain" may have played a role in India's Information Technology revolution.&nbsp;

Many techies from India have not only prospered in the Silicon Valley but also become an integral part of the Indian diaspora -- the largest in the world. Sundar Pichai, Satya Nadella and Arvind Krishna are some of the best examples of Indian migrants making it big in the US. &nbsp;

These illustrious names, the report argues, have helped develop industries in India by transferring knowledge and fostering innovation.

"Indian migrants in California’s Silicon Valley have launched large Information Technology–related firms in India. In 2006, firms established by returnees accounted for some 90 percent of firms in software technology parks in Bangalore," notes the report.&nbsp;

Economic migration - a major source of remittances&nbsp;

In many cases, migration to developed countries can economically help the country of origin.&nbsp;

"Remittances are a stable source of income for migrants’ families, supporting investments in children’s education, health care, housing, and entrepreneurial activities," observes the report.&nbsp;

India is the biggest beneficiary of remittances in the world, having crossed the $100 billion-mark in 2022.

A large part of the remittances to India come from migrants living in the Gulf. According to the report, low-skilled Indian migrants in Gulf countries send, on average, nearly 70 percent of their earnings to their families.

According to India's Ministry of External Affairs, nearly 50 per cent of India's migrant population works in Gulf Co-operation Council (GCC) countries of&nbsp;Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.&nbsp;

If you are planning to move abroad for a job, there is some good news for you. The latest World Development Report by the World Bank states that it is more viable for Indians to move abroad.

If you are planning to move abroad for a job, there is some good news for you. The latest World Development Report by the World Bank states that it is more viable for Indians to move abroad. According to the report, Indian workers see a 120 percent rise in their incomes outside India, while internal migration within India will only add about 40 percent to personal incomes. "Migration leads to large wage increases for most people whose skills and attributes are a strong match with the needs of the destination society. These gains often exceed what could be achieved in the country of origin, even from internal migration to relatively better-off locations," says the report. Moving abroad is even more rewarding for low-skilled workers from less developed and developing countries such as India. A low-skilled Indian worker is likely to see a whopping 500 percent rise in income in the United States. The United Arab Emirates is the next favourite destination for low-skilled workers, who can earn 300 percent more than in India. "The gains are so large that at current rates of economic growth it would take decades for the average low-skilled person working in some countries of origin to earn the income they achieve by migrating to a high-income country," notes the report. According to the International Labour Organisation, low-skilled work consisting of “simple and routine tasks which require the use of hand-held tools and often some physical effort”. Tech brain drain a boon in disguise? Migration of talented Indians to the developed world has often been dubbed "brain drain" in the media. While there may well be some truth in it, the World Bank report argues that "brain drain" may have played a role in India's Information Technology revolution. Many techies from India have not only prospered in the Silicon Valley but also become an integral part of the Indian diaspora -- the largest in the world. Sundar Pichai, Satya Nadella and Arvind Krishna are some of the best examples of Indian migrants making it big in the US. These illustrious names, the report argues, have helped develop industries in India by transferring knowledge and fostering innovation. "Indian migrants in California’s Silicon Valley have launched large Information Technology–related firms in India. In 2006, firms established by returnees accounted for some 90 percent of firms in software technology parks in Bangalore," notes the report. Economic migration - a major source of remittances In many cases, migration to developed countries can economically help the country of origin. "Remittances are a stable source of income for migrants’ families, supporting investments in children’s education, health care, housing, and entrepreneurial activities," observes the report. India is the biggest beneficiary of remittances in the world, having crossed the $100 billion-mark in 2022. A large part of the remittances to India come from migrants living in the Gulf. According to the report, low-skilled Indian migrants in Gulf countries send, on average, nearly 70 percent of their earnings to their families. According to India's Ministry of External Affairs, nearly 50 per cent of India's migrant population works in Gulf Co-operation Council (GCC) countries of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

Indian workers earn 120% more abroad: World Bank report

The US House of Representatives passed a bill, narrowly at it, to raise the government's debt limit. &nbsp;

The bill, passed on Wednesday by a 217-215 vote, proposes to increase the borrowing limit by $1.5 trillion or until March 31, 2024, whichever comes first.

The bill will now reach the US Senate, where it is expected to face serious pushback from the Democrats, who hold a slight majority over the Republicans. &nbsp;

The Democrats aren't happy with the latest version of the bill as they want the debt limit to rise without any cut in welfare spending. &nbsp;

The bill approved by the House of Representatives will also reduce spending to 2022 levels, cap annual growth at one per cent, eliminate renewable energy tax breaks and tighten work requirements for anti-poverty programmes.

While Speaker of the House Kevin McCarthy, a Republican, seeks talks with President Joe Biden for the bill's smooth passage, the latter is likely to use his veto power to reject the proposal. &nbsp;

That would, however, not be good news for the United States as the Treasury Department may run out of methods to pay its obligations and will begin defaulting between July and September, as per various estimates. &nbsp;

What's a debt limit?&nbsp;&nbsp;

Keeping politics aside, debt limit or debt ceiling is a concept of fiscal discipline. However, the frequent changes to the limit, especially in the last decade, also puts a question mark on the concept itself. &nbsp;

The Treasury Department defines its debt limit as "the total amount of money that the United States government is authorised to borrow to meet its existing legal obligations."

The "legal obligations" referred to by the department include funding for Social Security and Medicare benefits, military salaries, interest on the national debt, tax refunds, and other payments.

While the debt limit is tied to the total national debt of the United States, it has a complicated relationship with the US budgeting process. &nbsp;

Technically speaking, the debt limit is a strict reminder about paying up the past obligations of the government. However, the US federal spending –&nbsp; future expenditure – has a separate legislative process, which has little to do with the debt limit. &nbsp;

However, lawmakers cutting across party lines in the US have sought major cuts in federal spending while negotiating for a suspension or raise in the debt limit. &nbsp;

The current debt ceiling is $31.4 trillion, which the United States hit in January. The country will default on its payments once the Treasury Department runs out of "extraordinary measures" to fund its obligations. &nbsp;

Strictly speaking, the United States has hit the debt ceiling several times in the past too. Yet, it has never defaulted on its payments as Congress ultimately increases or temporarily suspends the debt limit, allowing the government to borrow more. &nbsp;

What if the US defaults?

But the US defaulting on its debt may have unprecedented consequences. &nbsp;

This is what the Treasury Department has to say about such a scenario: "The scope of the negative repercussions related to a default are unknown but would likely have catastrophic repercussions in the United States and in markets across the globe."

One great possibility arising from a debt default is the downgrade in the credit ratings of US sovereign debt.&nbsp;

In August 2011, while the country avoided defaulting by raising the debt limit, credit rating agency Standard &amp; Poor reduced the United States'&nbsp;rating from AAA (outstanding) to AA+ (excellent). &nbsp;

Any downgrade in credit ratings sends negative signals about economic health and raises concerns regarding a country's ability to repay its debts. &nbsp;

More recently, Goldman Sachs economists estimated that a debt ceiling breach would immediately halt about one-tenth of US economic activity.

The history of debt limits

The concept of a debt ceiling or limit dates back to the early 20th Century, to be precise to 1917 when the US entered the first world war. &nbsp;

Until then, the US was an isolationist in international affairs and needed funds to bolster its war efforts. Consequently, Congress legislated the Second Liberty Bond Act in 1917, which sought public funds through bonds and also created the debt ceiling. &nbsp;

However, it was only in 1939 and 1941, amid the second world war, that the debt ceiling, as we know it today, was substantially established. The Public Debt Acts of 1939 and 1941 put an aggregate limit to nearly all federal debt.

Since 1960, the US Congress has raised or temporarily suspended the debt limit at least 78 times -- 49 times under a Republican administration and 29 times while Democrats have been in power.

The US debt limit has risen dramatically in the last decade, owing to the fallout of the 2007-08 financial crisis and the consequent global recession. &nbsp;

Since 2010, the debt limit has risen by over $17 trillion, from $14.2 trillion in February 2010 to $31.4 trillion in December 2021. &nbsp;

Given the ballooning debt burden, many analysts feel that the concept of debt limit has failed. Some have even suggested that the US must do away with the debt limit, calling it "harmful" to the US economy. &nbsp;

Roger Ferguson, a senior fellow at the Centre for Foreign Relations, argues that the US Congress should eliminate the debt ceiling completely or at least tie it to federal spending. &nbsp;

"It is time for the United States to leave behind this antiquated mechanism that brings the country to the precipice of default every few years," the US think tank quoted him as saying. &nbsp;

The US House of Representatives passed a bill, narrowly at it, to raise the government's debt limit. The bill, passed on Wednesday by a 217-215 vote, proposes to increase the borrowing limit by $1.

The US House of Representatives passed a bill, narrowly at it, to raise the government's debt limit. The bill, passed on Wednesday by a 217-215 vote, proposes to increase the borrowing limit by $1.5 trillion or until March 31, 2024, whichever comes first. The bill will now reach the US Senate, where it is expected to face serious pushback from the Democrats, who hold a slight majority over the Republicans. The Democrats aren't happy with the latest version of the bill as they want the debt limit to rise without any cut in welfare spending. The bill approved by the House of Representatives will also reduce spending to 2022 levels, cap annual growth at one per cent, eliminate renewable energy tax breaks and tighten work requirements for anti-poverty programmes. While Speaker of the House Kevin McCarthy, a Republican, seeks talks with President Joe Biden for the bill's smooth passage, the latter is likely to use his veto power to reject the proposal. That would, however, not be good news for the United States as the Treasury Department may run out of methods to pay its obligations and will begin defaulting between July and September, as per various estimates. What's a debt limit? Keeping politics aside, debt limit or debt ceiling is a concept of fiscal discipline. However, the frequent changes to the limit, especially in the last decade, also puts a question mark on the concept itself. The Treasury Department defines its debt limit as "the total amount of money that the United States government is authorised to borrow to meet its existing legal obligations." The "legal obligations" referred to by the department include funding for Social Security and Medicare benefits, military salaries, interest on the national debt, tax refunds, and other payments. While the debt limit is tied to the total national debt of the United States, it has a complicated relationship with the US budgeting process. Technically speaking, the debt limit is a strict reminder about paying up the past obligations of the government. However, the US federal spending – future expenditure – has a separate legislative process, which has little to do with the debt limit. However, lawmakers cutting across party lines in the US have sought major cuts in federal spending while negotiating for a suspension or raise in the debt limit. The current debt ceiling is $31.4 trillion, which the United States hit in January. The country will default on its payments once the Treasury Department runs out of "extraordinary measures" to fund its obligations. Strictly speaking, the United States has hit the debt ceiling several times in the past too. Yet, it has never defaulted on its payments as Congress ultimately increases or temporarily suspends the debt limit, allowing the government to borrow more. What if the US defaults? But the US defaulting on its debt may have unprecedented consequences. This is what the Treasury Department has to say about such a scenario: "The scope of the negative repercussions related to a default are unknown but would likely have catastrophic repercussions in the United States and in markets across the globe." One great possibility arising from a debt default is the downgrade in the credit ratings of US sovereign debt. In August 2011, while the country avoided defaulting by raising the debt limit, credit rating agency Standard & Poor reduced the United States' rating from AAA (outstanding) to AA+ (excellent). Any downgrade in credit ratings sends negative signals about economic health and raises concerns regarding a country's ability to repay its debts. More recently, Goldman Sachs economists estimated that a debt ceiling breach would immediately halt about one-tenth of US economic activity. The history of debt limits The concept of a debt ceiling or limit dates back to the early 20th Century, to be precise to 1917 when the US entered the first world war. Until then, the US was an isolationist in international affairs and needed funds to bolster its war efforts. Consequently, Congress legislated the Second Liberty Bond Act in 1917, which sought public funds through bonds and also created the debt ceiling. However, it was only in 1939 and 1941, amid the second world war, that the debt ceiling, as we know it today, was substantially established. The Public Debt Acts of 1939 and 1941 put an aggregate limit to nearly all federal debt. Since 1960, the US Congress has raised or temporarily suspended the debt limit at least 78 times -- 49 times under a Republican administration and 29 times while Democrats have been in power. The US debt limit has risen dramatically in the last decade, owing to the fallout of the 2007-08 financial crisis and the consequent global recession. Since 2010, the debt limit has risen by over $17 trillion, from $14.2 trillion in February 2010 to $31.4 trillion in December 2021. Given the ballooning debt burden, many analysts feel that the concept of debt limit has failed. Some have even suggested that the US must do away with the debt limit, calling it "harmful" to the US economy. Roger Ferguson, a senior fellow at the Centre for Foreign Relations, argues that the US Congress should eliminate the debt ceiling completely or at least tie it to federal spending. "It is time for the United States to leave behind this antiquated mechanism that brings the country to the precipice of default every few years," the US think tank quoted him as saying.

US House passes bill to revise ''debt ceiling'': Decoding the controversial term

Intel reported its largest-ever quarterly loss on Thursday, April 27 due to a sharp decline in personal-computer sales and rising competition. It's the fifth quarter in a row for the semiconductor giant when it reported falling sales and the second consecutive quarter of losses.&nbsp;

The quarterly results showed a staggering 133 per cent annual decline in the earnings per share. The revenue dipped nearly 36 per cent to $11.7 billion.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/us-government-wants-chip-makers-to-share-profits-in-return-for-subsidies-567189">US government wants chip makers to share profits in return for subsidies</a>

The company reported a net loss of $2.8 billion.&nbsp;

The Santa Clara, California-headquartered microprocessor-developer had reported a profit of $8.1 billion last year.&nbsp;

<h2>Why Intel, other chipmakers are on a losing spree?</h2>

There are three notable reasons behind the current plunge faced by chipmakers. They are the rising prices, a global chip glut and poor demand for hardware. All these factors have also become punishing for Intel's rival Samsung, which earlier&nbsp;on Thursday reported its worst quarterly profits in 14 years.

Intel's&nbsp;loss and sales collapse was slightly less disastrous&nbsp;than expectations.

ALSO WATCH |&nbsp;World Business Watch | Netherlands plans curbs on China chip exports

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Intel is one of the world's leading semiconductor makers&nbsp;that bring out a wide range of products, including the latest generation chips along with Taiwan's TSMC and South Korea's Samsung.

It was also affected by falling demand for chips that power data centres&nbsp;and is struggling to compete with Nvidia for the semiconductors that undergird ChatGPT-style generative AI, a major new and chips-hungry sector for the industry.

The chips industry, which also powers technology such as smartphones and cars, is well-known for its volatility, with demand and supply see-sawing with the dips and rises in the world economy.

Its central role in the global supply chain became clear during the height of the Covid pandemic.&nbsp;

Lockdowns and health restrictions diminished production out of Asia, leaving surging demand for chips unmet just as everyone turned online for work, shopping and entertainment.

Semiconductors have also become part of the ongoing geopolitical moment of reckoning&nbsp;between the US and China, with Washington urging allies to stop supplying China with cutting edge chips, further destabilising the sector.

(With inputs from agencies)

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Intel reported its largest-ever quarterly loss on Thursday, April 27 due to a sharp decline in personal-computer sales and rising competition. It's the fifth quarter in a row for the semiconductor giant when it reported falling sales and the second consecutive quarter of losses.

Intel reported its largest-ever quarterly loss on Thursday, April 27 due to a sharp decline in personal-computer sales and rising competition. It's the fifth quarter in a row for the semiconductor giant when it reported falling sales and the second consecutive quarter of losses. The quarterly results showed a staggering 133 per cent annual decline in the earnings per share. The revenue dipped nearly 36 per cent to $11.7 billion. ALSO READ | US government wants chip makers to share profits in return for subsidies The company reported a net loss of $2.8 billion. The Santa Clara, California-headquartered microprocessor-developer had reported a profit of $8.1 billion last year. Why Intel, other chipmakers are on a losing spree? There are three notable reasons behind the current plunge faced by chipmakers. They are the rising prices, a global chip glut and poor demand for hardware. All these factors have also become punishing for Intel's rival Samsung, which earlier on Thursday reported its worst quarterly profits in 14 years. Intel's loss and sales collapse was slightly less disastrous than expectations. ALSO WATCH | World Business Watch | Netherlands plans curbs on China chip exports × Intel is one of the world's leading semiconductor makers that bring out a wide range of products, including the latest generation chips along with Taiwan's TSMC and South Korea's Samsung. It was also affected by falling demand for chips that power data centres and is struggling to compete with Nvidia for the semiconductors that undergird ChatGPT-style generative AI, a major new and chips-hungry sector for the industry. The chips industry, which also powers technology such as smartphones and cars, is well-known for its volatility, with demand and supply see-sawing with the dips and rises in the world economy. Its central role in the global supply chain became clear during the height of the Covid pandemic. Lockdowns and health restrictions diminished production out of Asia, leaving surging demand for chips unmet just as everyone turned online for work, shopping and entertainment. Semiconductors have also become part of the ongoing geopolitical moment of reckoning between the US and China, with Washington urging allies to stop supplying China with cutting edge chips, further destabilising the sector. (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.

Intel posts biggest quarterly loss as PC sales drop, chip wars intensify

Mark Zuckerberg's wealth increased by over $10 billion on Thursday, his third-biggest jump on record, after Facebook parent company Meta Platforms Inc. recorded a small uptick in its revenues in the first quarter of 2023.&nbsp;

Meta's revenue in the first three months of the year was up 3 per cent from a year ago to $28.6bn. The analysts had expected a slight decline in Meta's revenue to $27.7bn.&nbsp;

The Meta Platforms Inc. co-founder's mega wealth jump comes after his 'year of efficiency' pitch entailed thousands of job cuts across all Meta Platforms in the recent past.

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/metas-net-income-drops-as-thousands-lose-jobs-amid-ai-race-586460">Meta's net income drops as thousands lose jobs amid AI race</a>

Meta shares rose 14 per cent after the quarterly results. It lifted Zuckerberg’s fortune to $87.3 billion and took him to the 13th spot on the Bloomberg Billionaires Index.&nbsp;

It's the highest the Meta chief executive officer’s wealth has been in more than a year.&nbsp;

Thursday’s move reversed the wealth destruction Zuckerberg experienced in 2022, when his net worth fell 57 per cent or $71 billion.

The billionaire used Thursday’s results to burnish his case for pressing on with investments in areas like artificial intelligence and virtual reality.&nbsp;

ALSO WATCH |&nbsp;Big Tech Earnings: Meta in focus

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Zuckerberg’s biggest one-day increases in net worth are $12.5 billion on February&nbsp;2, and $11 billion about a year ago.

Meta announced a restructuring of its staff previously leading to about 20,000 job cuts across Facebook, WhatsApp, Instagram and Reality Labs.&nbsp;

<h2>We are becoming more efficient: Mark Zuckerberg</h2>

After the release of Meta’s quarterly results, Zuckerberg hailed the ‘good quarter’ company had and expressed optimism for Artificial Intelligence-related prospects of the company.

"Our Artificial Intelligence work is driving good results across our apps and business. We are also becoming more efficient so we can build better products faster and put ourselves in a stronger position to deliver our long-term vision."

<h2>World's richest persons at present</h2>

Of the ten richest persons in the world, eight [ranking 2 to 9] belong to the United States. French luxury clothing magnate Bernard Arnault continues to be the richest person on the planet with $195 billion net worth. Arnault is followed by Elon Musk [$171 billion], Jeff Bezos [$126 billion], Bill Gates [$121 billion], Warren Buffett [$110 billion], Larry Ellison [$108 billion], Steve Ballmer [$103 billion], Sergey Brin [$95.3 billion] and Francoise Bettencourt Meyers [$88.9 billion].

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Mark Zuckerberg's wealth increased by over $10 billion on Thursday, his third-biggest jump on record, after Facebook parent company Meta Platforms Inc. recorded a small uptick in its revenues in the first quarter of 2023.

Mark Zuckerberg's wealth increased by over $10 billion on Thursday, his third-biggest jump on record, after Facebook parent company Meta Platforms Inc. recorded a small uptick in its revenues in the first quarter of 2023. Meta's revenue in the first three months of the year was up 3 per cent from a year ago to $28.6bn. The analysts had expected a slight decline in Meta's revenue to $27.7bn. The Meta Platforms Inc. co-founder's mega wealth jump comes after his 'year of efficiency' pitch entailed thousands of job cuts across all Meta Platforms in the recent past. ALSO READ | Meta's net income drops as thousands lose jobs amid AI race Meta shares rose 14 per cent after the quarterly results. It lifted Zuckerberg’s fortune to $87.3 billion and took him to the 13th spot on the Bloomberg Billionaires Index. It's the highest the Meta chief executive officer’s wealth has been in more than a year. Thursday’s move reversed the wealth destruction Zuckerberg experienced in 2022, when his net worth fell 57 per cent or $71 billion. The billionaire used Thursday’s results to burnish his case for pressing on with investments in areas like artificial intelligence and virtual reality. ALSO WATCH | Big Tech Earnings: Meta in focus × Zuckerberg’s biggest one-day increases in net worth are $12.5 billion on February 2, and $11 billion about a year ago. Meta announced a restructuring of its staff previously leading to about 20,000 job cuts across Facebook, WhatsApp, Instagram and Reality Labs. We are becoming more efficient: Mark Zuckerberg After the release of Meta’s quarterly results, Zuckerberg hailed the ‘good quarter’ company had and expressed optimism for Artificial Intelligence-related prospects of the company. "Our Artificial Intelligence work is driving good results across our apps and business. We are also becoming more efficient so we can build better products faster and put ourselves in a stronger position to deliver our long-term vision." World's richest persons at present Of the ten richest persons in the world, eight [ranking 2 to 9] belong to the United States. French luxury clothing magnate Bernard Arnault continues to be the richest person on the planet with $195 billion net worth. Arnault is followed by Elon Musk [$171 billion], Jeff Bezos [$126 billion], Bill Gates [$121 billion], Warren Buffett [$110 billion], Larry Ellison [$108 billion], Steve Ballmer [$103 billion], Sergey Brin [$95.3 billion] and Francoise Bettencourt Meyers [$88.9 billion]. 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.

Zuckerberg's wealth soars by record $10bn after Meta's post-layoff quarterly results

As business and leisure travel has resumed, the worst of the pandemic has passed, countries are once again accessible, and airlines anticipate strong revenue. So why is air fare still so high?

There aren't enough planes, to start with, according to a Bloomberg report.&nbsp;Due to the pandemic's low travel demand, airlines shut down a significant portion of their fleets. The biggest jets have to be prepared for service after being parked away for 100 working hours, so they can't bring them back quickly enough at the moment.

Another factor is that after being denied the chance to travel, in some cases for up to three years, people are willing to pay more for tickets, the Bloomberg report said. More than 25,000 adults who planned to travel in the next 12 to 24 months participated in a Booking.com study, and many said they wished to be "more indulgent" with their travel plans in order to make up for missed opportunities.

“Even if some trips might be a bit more expensive than they were previously, many people still see value in spending on travel,” said Marcos Guerrero, senior director of flights at the online travel company, who spoke to Bloomberg.&nbsp;

<h2>Staff Shortage</h2>

Airlines suffered losses of almost $200 billion due to Covid, which resulted in the loss of tens of millions of aviation jobs. The travel industry is struggling to re-hire enough people, now that a recovery is well underway.

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/facebook-owner-meta-jumps-after-earnings-lifting-us-stocks-586780">Facebook-owner Meta's shares jump after earnings, lifting US stocks</a>

Delays at airport check-in counters, immigration counters, and baggage carousels have gotten worse as a result of the shortages. They've also made airlines work harder to recruit and keep personnel, which has required paying higher wages. As a result, airlines charge more because they need to cover the extra expenses.

<h2>Rising oil prices</h2>

Although the cost of oil has decreased over the previous year, it is still more expensive than it was in January 2019, which is problematic for airlines because it is their single-highest expense. Numerous carriers, especially low-cost ones, don't hedge their fuel costs, making them susceptible to price increases brought on by situations like Russia's invasion of Ukraine, the Bloomberg report said.

A little over two per cent&nbsp;of the carbon emissions in the world come from airlines, but they lag well behind all other industries in their commitment to a greener future. That's in part because the sole practical option available right now, sustainable aviation fuel, costs up to five times as much as traditional jet fuel.&nbsp;

<h2>Aircraft shortage</h2>

At the height of the pandemic, up to 16,000 aircraft—or almost two-thirds of the commercial fleet worldwide—were grounded. It takes a lot of work to get them back in the air, and every component must be carefully inspected for safety. Many were maintained in the US and Australia's deserts, where they are less prone to deterioration, but they can still experience problems including harmed interiors and engines.

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/china-broadening-counter-espionage-law-spooks-foreign-businesses-586656">China broadening counter-espionage law spooks foreign businesses</a>

Obtaining new engines is another hassle. Due to a lack of parts and the difficulty in producing new turbines, airlines including Spirit Airlines Inc. and India's IndiGo have been forced to idle new aircraft. Some newer technology also requires more frequent maintenance because components made of composites, coatings, and peculiar metal alloys wear out more quickly.

“Capacity is a challenge,” Ryanair’s O’Leary said at a Bloomberg conference this month.

“Over the medium term, the inability of Airbus and Boeing to deliver any meaningful increase in production means capacity is going to continue to be challenging for the next two, three, five years,” he said.

&nbsp;

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As business and leisure travel has resumed, the worst of the pandemic has passed, countries are once again accessible, and airlines anticipate strong revenue. So why is air fare still so high?

As business and leisure travel has resumed, the worst of the pandemic has passed, countries are once again accessible, and airlines anticipate strong revenue. So why is air fare still so high? There aren't enough planes, to start with, according to a Bloomberg report. Due to the pandemic's low travel demand, airlines shut down a significant portion of their fleets. The biggest jets have to be prepared for service after being parked away for 100 working hours, so they can't bring them back quickly enough at the moment. Another factor is that after being denied the chance to travel, in some cases for up to three years, people are willing to pay more for tickets, the Bloomberg report said. More than 25,000 adults who planned to travel in the next 12 to 24 months participated in a Booking.com study, and many said they wished to be "more indulgent" with their travel plans in order to make up for missed opportunities. “Even if some trips might be a bit more expensive than they were previously, many people still see value in spending on travel,” said Marcos Guerrero, senior director of flights at the online travel company, who spoke to Bloomberg. Staff Shortage Airlines suffered losses of almost $200 billion due to Covid, which resulted in the loss of tens of millions of aviation jobs. The travel industry is struggling to re-hire enough people, now that a recovery is well underway. ALSO READ | Facebook-owner Meta's shares jump after earnings, lifting US stocks Delays at airport check-in counters, immigration counters, and baggage carousels have gotten worse as a result of the shortages. They've also made airlines work harder to recruit and keep personnel, which has required paying higher wages. As a result, airlines charge more because they need to cover the extra expenses. Rising oil prices Although the cost of oil has decreased over the previous year, it is still more expensive than it was in January 2019, which is problematic for airlines because it is their single-highest expense. Numerous carriers, especially low-cost ones, don't hedge their fuel costs, making them susceptible to price increases brought on by situations like Russia's invasion of Ukraine, the Bloomberg report said. A little over two per cent of the carbon emissions in the world come from airlines, but they lag well behind all other industries in their commitment to a greener future. That's in part because the sole practical option available right now, sustainable aviation fuel, costs up to five times as much as traditional jet fuel. Aircraft shortage At the height of the pandemic, up to 16,000 aircraft—or almost two-thirds of the commercial fleet worldwide—were grounded. It takes a lot of work to get them back in the air, and every component must be carefully inspected for safety. Many were maintained in the US and Australia's deserts, where they are less prone to deterioration, but they can still experience problems including harmed interiors and engines. ALSO READ | China broadening counter-espionage law spooks foreign businesses Obtaining new engines is another hassle. Due to a lack of parts and the difficulty in producing new turbines, airlines including Spirit Airlines Inc. and India's IndiGo have been forced to idle new aircraft. Some newer technology also requires more frequent maintenance because components made of composites, coatings, and peculiar metal alloys wear out more quickly. “Capacity is a challenge,” Ryanair’s O’Leary said at a Bloomberg conference this month. “Over the medium term, the inability of Airbus and Boeing to deliver any meaningful increase in production means capacity is going to continue to be challenging for the next two, three, five years,” he said. WATCH WION LIVE HERE:

What's driving up air fares despite rising demand? Experts have the answer

A man from Ohio in the United States of America was given a four-year prison sentence after being caught on camera in a bathtub filled with dollars. He allegedly stole 713 Bitcoins from&nbsp;a now- seized &nbsp;computer device.&nbsp;Agents stumbled upon&nbsp;his picture in a cash tub at a nightclub after the Bitcoins disappeared from the The Internal Revenue Service's (IRS)&nbsp;device.

After entering a guilty plea in January, Gary Harmon, 31, was sentenced on Thursday by <a href="https://www.justice.gov/opa/pr/man-sentenced-stealing-over-712-bitcoin-subject-forfeiture">US District Judge Beryl Howell in Washington</a>, DC, as reported by NewsBytes.&nbsp;

He also agreed according to the US Justice Department, to forfeit cryptocurrency and other assets totaling more than $20 million.

<h2>Harmon recreated eight Bitcoin wallets using his brother's login information</h2>

In April 2020, Harmon had copied eight Bitcoin wallets that had been kept on a device in an evidence locker at the Internal Revenue Service using his brother's login details.&nbsp;

The 713 Bitcoins he stole were worth $4.9 million at the time. For laundering $311 million in cryptocurrency transactions on Darknet platforms, Harmon's brother Larry was accused in February 2020.

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/explained-mystery-surrounding-the-bitcoin-founder-who-is-satoshi-nakamoto-585924">Explained | Mystery surrounding the identity of Bitcoin founder. Who is Satoshi Nakamoto?</a>

After it disappeared from the device, a photo was found on Harmon's mobile phone&nbsp;where he was sitting&nbsp;in a cash-filled bathtub.

<h2>For a $1.2 million loan, Harmon used 68 Bitcoins as security</h2>

Prosecutors claim that Harmon used some money to buy an expensive condo in Cleveland and put up 68 Bitcoins as security for a $1.2 million loan.

Harmon learned that his brother had kept Bitcoins on a Trezor device, but that the authorities needed the "seed phrase" to access them.

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/air-indias-expansion-takes-flight-airline-set-to-hire-over-1000-pilots-586952">Air India's expansion takes flight: Airline set to hire over 1,000 pilots</a>

Bitcoins can be handled by someone who has that phrase plus an additional pin.

"While the conduct was certainly illegal, it is practically no different and no more sophisticated than obtaining a key to a safe deposit box and taking the contents of that box," Harmon's lawyer said.

The prosecutors, however, refuted the assertions made by the attorney.

<h2>Harmon lawyers requested a three-year sentence</h2>

Due to Harmon's 21 months of "extremely harsh conditions" in custody, Harmon's attorney requested a sentence of three years.

Harmon consented to the confiscation of cryptocurrencies and other assets that were the proceeds of the theft,&nbsp;including more than 647.41 Bitcoin (BTC), 2.14 Ethereum (ETH), and 17,404,400.64 Dogecoin (DOGE). Because of the increase in market prices, the total value of these forfeitable properties exceeds $20 million.

&nbsp;

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A man from Ohio in the United States of America was given a four-year prison sentence after being caught on camera in a bathtub filled with dollars. He allegedly stole 713 Bitcoins from a now- seized computer device.

A man from Ohio in the United States of America was given a four-year prison sentence after being caught on camera in a bathtub filled with dollars. He allegedly stole 713 Bitcoins from a now- seized computer device. Agents stumbled upon his picture in a cash tub at a nightclub after the Bitcoins disappeared from the The Internal Revenue Service's (IRS) device. After entering a guilty plea in January, Gary Harmon, 31, was sentenced on Thursday by US District Judge Beryl Howell in Washington, DC, as reported by NewsBytes. He also agreed according to the US Justice Department, to forfeit cryptocurrency and other assets totaling more than $20 million. Harmon recreated eight Bitcoin wallets using his brother's login information In April 2020, Harmon had copied eight Bitcoin wallets that had been kept on a device in an evidence locker at the Internal Revenue Service using his brother's login details. The 713 Bitcoins he stole were worth $4.9 million at the time. For laundering $311 million in cryptocurrency transactions on Darknet platforms, Harmon's brother Larry was accused in February 2020. ALSO READ | Explained | Mystery surrounding the identity of Bitcoin founder. Who is Satoshi Nakamoto? After it disappeared from the device, a photo was found on Harmon's mobile phone where he was sitting in a cash-filled bathtub. For a $1.2 million loan, Harmon used 68 Bitcoins as security Prosecutors claim that Harmon used some money to buy an expensive condo in Cleveland and put up 68 Bitcoins as security for a $1.2 million loan. Harmon learned that his brother had kept Bitcoins on a Trezor device, but that the authorities needed the "seed phrase" to access them. ALSO READ | Air India's expansion takes flight: Airline set to hire over 1,000 pilots Bitcoins can be handled by someone who has that phrase plus an additional pin. "While the conduct was certainly illegal, it is practically no different and no more sophisticated than obtaining a key to a safe deposit box and taking the contents of that box," Harmon's lawyer said. The prosecutors, however, refuted the assertions made by the attorney. Harmon lawyers requested a three-year sentence Due to Harmon's 21 months of "extremely harsh conditions" in custody, Harmon's attorney requested a sentence of three years. Harmon consented to the confiscation of cryptocurrencies and other assets that were the proceeds of the theft, including more than 647.41 Bitcoin (BTC), 2.14 Ethereum (ETH), and 17,404,400.64 Dogecoin (DOGE). Because of the increase in market prices, the total value of these forfeitable properties exceeds $20 million. WATCH WION LIVE HERE:

Ohio Bitcoin thief photographed in cash-filled bathtub gets 4-year jail term

It's been a wild ride for Tesla's stock price, with dramatic ups and downs over the past few months. But this week, the electric car maker's valuation plunged below the $500 billion threshold. That has raised concerns among investors and analysts about the company's ability to maintain its profitability.

Tesla's stock price takes a hit

China's updated law on espionage could be the latest point of concern for foreign companies. The amended anti-espionage law broadens the definition of national security. But it falls short of defining what exactly constitutes "National security".

China's updated law on spying spooks foreign businesses

US commercial bank First Republic Bank's struggles continue. The bank's market value fell 41% on Wednesday amid uncertainty about its future.

First Republic Bank's value falls below $1 bn

US Republican lawmakers passed a bill to raise the government's debt ceiling on Wednesday. While US debt default looms, the bill has introduced sweeping spending cuts for the next decade.

US House passes debt limit bill in a major win for Republicans

Wall Street stocks rose early Thursday, following strong earnings from&nbsp;Facebook&nbsp;parent Meta despite disappointing first-quarter US economic data.

About 30 minutes into trading, Meta was up around 15 per cent, while all three major US indices were in positive territory.&nbsp;

The Dow Jones Industrial Average gained 0.7 per cent to 33,526.80.

The broad-based S&amp;P 500 advanced 0.8 per cent to 4,087.37, while the tech-rich Nasdaq Composite Index climbed 0.9 per cent to 11,960.26.

Meta reported a profit of $5.7 billion in the first quarter of this year, beating forecasts after a massive wave of cost-cutting and layoffs.

"Stocks are up mainly on Meta's earnings and the banking side of things seems to be a little bit calmer today," said LBBW's Karl Haeling.

Among other companies reporting results, American Airlines gained 4.8 per cent, Southwest Airlines dropped 5.2 per cent, Caterpillar lost 3.5 per cent and Norfolk Southern dipped 0.2 per cent.

US gross domestic product rose at an annual rate of 1.1 per cent in the January to March period, markedly less than expected and down from 2.6 per cent in the final three months last year.

The figures reflected a decline in private inventory investment offset by a jump in consumer spending.

&nbsp;

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Wall Street stocks rose early Thursday, following strong earnings from Facebook parent Meta despite disappointing first-quarter US economic data. About 30 minutes into trading, Meta was up around 15 per cent, while all three major US indices were in positive territory.

Wall Street stocks rose early Thursday, following strong earnings from Facebook parent Meta despite disappointing first-quarter US economic data. About 30 minutes into trading, Meta was up around 15 per cent, while all three major US indices were in positive territory. The Dow Jones Industrial Average gained 0.7 per cent to 33,526.80. The broad-based S&P 500 advanced 0.8 per cent to 4,087.37, while the tech-rich Nasdaq Composite Index climbed 0.9 per cent to 11,960.26. Meta reported a profit of $5.7 billion in the first quarter of this year, beating forecasts after a massive wave of cost-cutting and layoffs. "Stocks are up mainly on Meta's earnings and the banking side of things seems to be a little bit calmer today," said LBBW's Karl Haeling. Among other companies reporting results, American Airlines gained 4.8 per cent, Southwest Airlines dropped 5.2 per cent, Caterpillar lost 3.5 per cent and Norfolk Southern dipped 0.2 per cent. US gross domestic product rose at an annual rate of 1.1 per cent in the January to March period, markedly less than expected and down from 2.6 per cent in the final three months last year. The figures reflected a decline in private inventory investment offset by a jump in consumer spending. 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.

Facebook-owner Meta's shares jump after earnings, lifting US stocks