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John Ray, the new CEO of embattled crypto exchange FTX is getting paid USD 1300 per hour, court filings in a US court have revealed. Ray took reins of FTX after its spectacular and very recent collapse. Previous CEO Sam Bankman-Fried is currently facing charges of fraud while he negotiates with authorities in the Bahamas to secure a bail.

Ray and his close-knit team in-charge of bankruptcy restructuring at FTX are not regular employees. The team are&nbsp;what is called professional independent contractors. This means they get paid immediately, even before FTX investors get their money back.

USD 1300 per hour comes to USD 2.6 million annually.

This is not first bankruptcy restructing for Ray and his team. They have worked on bankruptcy restructuring of Enron in 2005. He also has a tight-knit team which has worked with him through years. The team has worked with him at Enron, Nortel (2009) and at Overseas Shipbuilding Group (2014)

The team includes Kathryn Shultea who is the chief administrative officer, Mary Cilia who is chief financial officer and Raj Perubhatla who is chief information officer.&nbsp;

For the team, FTX is shelling out USD 975 per hour. This comes to USD 5.85 million annually.

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

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John Ray, the new CEO of embattled crypto exchange FTX is getting paid USD 1300 per hour, court filings in a US court have revealed. Ray took reins of FTX after its spectacular and very recent collapse.

John Ray, the new CEO of embattled crypto exchange FTX is getting paid USD 1300 per hour, court filings in a US court have revealed. Ray took reins of FTX after its spectacular and very recent collapse. Previous CEO Sam Bankman-Fried is currently facing charges of fraud while he negotiates with authorities in the Bahamas to secure a bail. Ray and his close-knit team in-charge of bankruptcy restructuring at FTX are not regular employees. The team are what is called professional independent contractors. This means they get paid immediately, even before FTX investors get their money back. USD 1300 per hour comes to USD 2.6 million annually. This is not first bankruptcy restructing for Ray and his team. They have worked on bankruptcy restructuring of Enron in 2005. He also has a tight-knit team which has worked with him through years. The team has worked with him at Enron, Nortel (2009) and at Overseas Shipbuilding Group (2014) The team includes Kathryn Shultea who is the chief administrative officer, Mary Cilia who is chief financial officer and Raj Perubhatla who is chief information officer. For the team, FTX is shelling out USD 975 per hour. This comes to USD 5.85 million annually. You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

New CEO of collapsed crypto exchange FTX is earning $1300 per hour

Four United States lawmakers have introduced a bill "to severely'' sanction Chinese technological giant Huawei and untrustworthy Chinese 5G producers who engage in espionage against the US. The bill has been introduced by Republican senator Tom Cotton and backed by lawmakers including two democrats —&nbsp;Chris Van Hollen and Chuck Schumer.&nbsp;

"This bill would add these entities to the Treasury Department's Specially Designated Nationals (SDN) List, which would effectively freeze them from accessing the US financial system. Congressman Mike Gallagher (WI-08) introduced companion legislation in the US&nbsp;House of Representatives,'' a statement issued by Cotton said on Tuesday.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/world/huawei-may-be-evading-us-sanctions-through-a-small-start-up-report-523079">Huawei may be evading US sanctions through a small start-up: Report</a>

“We’ve made great strides in recent years at home and abroad in combatting Huawei’s malign attempts to dominate 5G and steal Americans’ data," Cotton added.&nbsp; 
Pointing out that Huawei is an arm of Chinese intelligence, Cotton said that Huawei and the Chinese Communist Party (CCP) cannot be allowed to have access to Americans’ personal data and the country’s most sensitive defence systems.&nbsp;

"We must address the dire threat these Chinese companies pose to our national security,” Cotton further said in the statement.&nbsp;

Senator Chris Van Hollen, meanwhile, said on Tuesday that foreign companies that spy on the United States and violate its laws should face severe consequences, adding Huawei is a repeat offender.&nbsp;

"This bipartisan bill will bolster our national defences by further sanctioning Huawei and other similar bad actors seeking to undermine our security,” Hollen added.&nbsp;

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Four United States lawmakers have introduced a bill "to severely'' sanction Chinese technological giant Huawei and untrustworthy Chinese 5G producers who engage in espionage against the US.

Four United States lawmakers have introduced a bill "to severely'' sanction Chinese technological giant Huawei and untrustworthy Chinese 5G producers who engage in espionage against the US. The bill has been introduced by Republican senator Tom Cotton and backed by lawmakers including two democrats — Chris Van Hollen and Chuck Schumer. "This bill would add these entities to the Treasury Department's Specially Designated Nationals (SDN) List, which would effectively freeze them from accessing the US financial system. Congressman Mike Gallagher (WI-08) introduced companion legislation in the US House of Representatives,'' a statement issued by Cotton said on Tuesday. ALSO READ | Huawei may be evading US sanctions through a small start-up: Report “We’ve made great strides in recent years at home and abroad in combatting Huawei’s malign attempts to dominate 5G and steal Americans’ data," Cotton added. Pointing out that Huawei is an arm of Chinese intelligence, Cotton said that Huawei and the Chinese Communist Party (CCP) cannot be allowed to have access to Americans’ personal data and the country’s most sensitive defence systems. "We must address the dire threat these Chinese companies pose to our national security,” Cotton further said in the statement. Senator Chris Van Hollen, meanwhile, said on Tuesday that foreign companies that spy on the United States and violate its laws should face severe consequences, adding Huawei is a repeat offender. "This bipartisan bill will bolster our national defences by further sanctioning Huawei and other similar bad actors seeking to undermine our security,” Hollen added. 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.

US lawmakers introduce bill to severely sanction Huawei, Chinese 5G companies

The UK government announced on Thursday that it will significantly relax limits on taking liquids in carry-on luggage at airports from June 2024.

World Business Watch: UK airports to relax aircraft liquid rules beginning in mid-2024

The U.S. Federal Reserve reinforced its inflation fight Wednesday by raising its key interest rate for the seventh time this year and signalling more hikes to come.

World Business Watch: U.S. announces 7th interest rate hike of 2022

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Tesla shares have extended declines and hit their lowest level in more than two years as investors lashed out at Elon Musk. They alleged that his purchase of Twitter is distracting him from the electric car company.

World Business Watch: Tesla shares at over two-year low levels as investors bash Elon Musk

The US' largest automaker, General Motors on Wednesday said it's recalling almost 825,000 trucks and SUVs in North America over headlight issues.&nbsp;According to the company's statement, the vehicles' daylight running lights don't deactivate when the headlights are on, causing excess glare, Reuters reported.

The automobile maker's recall covers 740,000 vehicles from US and 85,000 from Canada.

<a href="https://www.wionews.com/business-economy/japanese-automaker-subaru-recalls-271000-vehicles-over-high-risk-of-combustion-542979">Also read |&nbsp;Japanese automaker Subaru recalls 271,000 vehicles over high risk of fire, cautions owners</a>

The recall was ordered after a company's software engineer submitted a report about the issue in October, prompting GM to conduct an investigation and pass the recall order.&nbsp;

GM stated that till now it hasn't received any accident or injury report.&nbsp;

The recall targets models from 2020 to 2023 of Cadillac CT4 and CT5, Buick Envision,&nbsp; Cadillac Escalade and Escalade ESV, Chevrolet Silverado 1500,&nbsp;Suburban, GMC Sierra 1500 and Yukon XL vehicles.&nbsp;

<a href="https://www.wionews.com/world/general-motors-temporarily-halts-advertising-on-twitter-after-musks-takeover-529321">Also read |&nbsp;General Motors halts advertising on Twitter temporarily after Musk's takeover&nbsp;</a>

GM said that for repair, the control body software will be updated by a dealer or a through-air update will be done to resolve the issue.&nbsp;

Commenting on the issue, the National Highway Traffic Safety Administration said that the vehicles do not comply with US federal vehicles safety and can increase the risk or reduce visibility.&nbsp;

The current GM recall is an extension of the one done in November.&nbsp;

Recently, Japanese automobile manufacturer Subaru on December 14 recalled over 270,000 vehicles over high combustion risk. The company had&nbsp;asked owners to park their cars far away from homes and not use them if they see any smoke coming from the dash.&nbsp;

(With inputs from agencies) 
&nbsp;

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The US' largest automaker, General Motors on Wednesday said it's recalling almost 825,000 trucks and SUVs in North America over headlight issues. According to the company's statement, the vehicles' daylight running lights don't deactivate when the headlights are on, causing excess glare, Reuters reported.

The US' largest automaker, General Motors on Wednesday said it's recalling almost 825,000 trucks and SUVs in North America over headlight issues. According to the company's statement, the vehicles' daylight running lights don't deactivate when the headlights are on, causing excess glare, Reuters reported. The automobile maker's recall covers 740,000 vehicles from US and 85,000 from Canada. Also read | Japanese automaker Subaru recalls 271,000 vehicles over high risk of fire, cautions owners The recall was ordered after a company's software engineer submitted a report about the issue in October, prompting GM to conduct an investigation and pass the recall order. GM stated that till now it hasn't received any accident or injury report. The recall targets models from 2020 to 2023 of Cadillac CT4 and CT5, Buick Envision, Cadillac Escalade and Escalade ESV, Chevrolet Silverado 1500, Suburban, GMC Sierra 1500 and Yukon XL vehicles. Also read | General Motors halts advertising on Twitter temporarily after Musk's takeover GM said that for repair, the control body software will be updated by a dealer or a through-air update will be done to resolve the issue. Commenting on the issue, the National Highway Traffic Safety Administration said that the vehicles do not comply with US federal vehicles safety and can increase the risk or reduce visibility. The current GM recall is an extension of the one done in November. Recently, Japanese automobile manufacturer Subaru on December 14 recalled over 270,000 vehicles over high combustion risk. The company had asked owners to park their cars far away from homes and not use them if they see any smoke coming from the dash. (With inputs from agencies) WATCH WION LIVE HERE

After Japan's Subaru, now US' General Motors recalls 825,000 trucks and SUVs

The United States Federal Reserve following its last meeting of the year on Wednesday announced another interest rate hike, this time by half a percentage point making this its seventh time this year. Furthermore, the officials have also said that the central bank will deliver more interest rate hikes in 2023, in a bid to tame decade-high inflation in the country.&nbsp;

The interest rate, which is now at its highest in the last 15 years, seems to be reducing inflation to some degree as the US CPI data shows that the annual inflation has slowed down from 7.7 per cent in October to 7.1 per cent in November. However, Federal Reserve Chair Jerome Powell said that the recent slowing down has not been reassuring that the fight has been won.

Why is the Fed raising the interest rates?

When an economy is booming and inflation is on the rise, an increase in the interest rates slows everything down by making borrowing more expensive and&nbsp;discouraging consumers and businesses to spend more. This decrease in spending typically slows the economy and cools down inflation.&nbsp;

These hikes are also in line with the central bank’s goal to push inflation down to two per cent. So far, the Feds have been aggressively raising the interest rate as the country continues to battle high inflation, this time around, the&nbsp;benchmark was raised&nbsp;by half a point as opposed to the string of four straight three-quarter point hikes&nbsp;in the past couple of months.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/us-federal-reserve-raises-interest-rate-by-075-again-in-a-bid-to-combat-inflation-530687">In a historic move, US Federal Reserve raises interest rate by 0.75% again</a>

Furthermore, the interest rate hike announced on Wednesday also marked the highest fed funds rate since December 2007 during the onset of the global financial crisis of 2008. However, this trend may continue for the upcoming year as it is projected that the rates would rise above five per cent by the end of next year, which is now somewhere between the 4.25 per cent to 4.5 per cent range.&nbsp;

What does it mean for American consumers?

The federal funds rate, set by the central bank, is the interest rate at which the commercial banks borrow and lend from one another overnight. Consequently, it directly or indirectly affects the borrowing costs for consumers and their earnings on savings accounts.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/fed-lifts-benchmark-rate-by-half-percentage-point-543120">Fed lifts benchmark rate by half percentage point</a>

As of now, this leads many Americans to lean on credit as they are affected at a time when they are facing higher prices due to inflation as well as an unprecedented rise in interest rates which has not been witnessed in the past decade or so.

Notably, the Fed does not control all interest rates; rather it's a ripple effect, which begins with the central bank raising the interest rates and others following suit. Some of these interest rates affected include mortgages, credit cards, and other loans.&nbsp;

Chief financial analyst at Bankrate, Greg McBride, said, “Credit card rates are at a record high and still increasing. Auto loan rates are at an 11-year high. Home equity lines of credit are at a 15-year high. And online savings account and CD yields haven’t been this high since 2008.”&nbsp;

The New York-based consumer financial services firm, Bankrate also noted that the average credit card rate hit a record high of 19.40 per cent (as of December 7) which is up from 16.3 per cent since the beginning of the year. Consequently, with the recent hike consumers can also witness an increase in their credit card rates within a few statements.&nbsp;

ALSO WATCH |&nbsp;<a href="https://www.wionews.com/videos/world-business-watch-us-announces-7th-interest-rate-hike-of-2022-543170">World Business Watch: U.S. announces 7th interest rate hike of 2022</a>

Therefore, McBride suggests transferring any balances on the credit cards to a zero-rate balance transfer card which locks in a zero rate between a year and 21 months, this would “insulate you from rate hikes” giving the consumer a “clear runway” to pay off their debt. He added, “Less debt and more savings will enable you to better weather rising interest rates, and is especially valuable if the economy sours.”

As for mortgages, the recent Fed hike would affect millions. Freddie Mac, an enterprise promoting home lending, said that with every percentage point increase in mortgage rates, which is eventually affected by the increase in the central bank’s benchmark rate, households which can afford a $400,000 mortgage decline by three to four million.&nbsp;

Furthermore, according to the federally funded company, the 30-year fixed-rate mortgage average was 6.33 per cent by the end of the second week of December which is more than double the same time last year, for the first time in US history. This comes as mortgage rates have been rising over the past year or so which has also affected at least 15 million potential homebuyers.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/us-securities-regulator-issue-new-guidelines-on-disclosing-cryptocurrency-risks-541559">US securities regulator issues new guidelines for firms, makes cryptocurrency risk disclosure must</a>

The 30-year average at one point had peaked above seven per cent, however, the decrease is not enough to help buyer affordability, said McBride. Furthermore, with mortgage rates rising faster than home prices dropping, Americans will be forced to spend more which could add to the financial stress of high inflation, said a report by NBC. Therefore, with more hikes in the Fed interest rate on the horizon, mortgage rates may climb further.&nbsp;

How has the market reacted to the latest hike?

Interest rate hikes typically create volatility in the stock market and this time was no different. Following the announcement, the Dow Jones Industrial Average fell 142.29 points or 0.42 per cent, while S&amp;P 500 lost 24.33 points or 0.61 per cent and the Nasdaq Composite dropped 85.93 points, or 0.76 per cent, reported Reuters.&nbsp;

Notably, three major averages on Wall Street might witness a yearly decline for the first time since 2018 as well as their biggest annual percentage decline since the financial crisis of 2008. This comes as nearly all 11 major S&amp;P 500 sectors ended in negatives on Wednesday with healthcare being an exception, while financials were down 1.29 per cent making it the worst performing sector.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/dollar-gains-broadly-as-upbeat-us-data-muddles-fed-rate-hike-views-540382">Dollar gains broadly as upbeat US data muddles Fed rate hike views</a> 
 
Meanwhile, the condition of Asian stocks was no better, on Thursday, following the announcement and declines on Wall Street, Japan’s Nikkei dropped 0.42 per cent, while Australia’s S&amp;P/ASX 200 fell 0.62 per cent, Hong Kong’s Hang Seng witnessed a decline of 1.13 per cent and South Korea’s Kospi tumbled 1.32 per cent.&nbsp;

The decline has also been attributed to a rise in COVID-19 cases in China and crude oil’s downturn after strong gains a day prior. Additionally, while Beijing moves to open its economy after lifting its stringent zero-Covid restrictions, the slowed factory output and fewer retail sales in November continued to affect its outlook.&nbsp;

What has the Fed forecasted for the upcoming year?

On Wednesday, following the announcement of the interest rate hike, Powell also said that more interest rate hikes are on the horizon for the upcoming year while the US economy is in the midst of possibly slipping into recession. The Fed officials also projected a rise in the unemployment rate from the current 3.6 per cent to 4.6 per cent for the upcoming year. &nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/poll-shows-that-the-us-economy-is-headed-for-a-shallow-recession-heres-what-it-means-541596">Poll shows that the US economy is headed for a shallow recession: Here’s what it means</a>

Currently, the rate of unemployment is increasing by 0.5 per cent annually and by the end of 2023, it would be well beyond what has historically been associated with recession. However, Powell has said that they don’t “talk about this kind of recession, that kind of a recession. We just make these forecasts.”

During the press conference, following the meeting of the Federal Reserve’s Federal Open Market Committee (FOMC), he also said that there is no “completely painless way to restore price stability” and they are doing the best they can. However, even with the recent aggressive hikes, inflation remains at least three times higher than their target and they speculate it will take at least three years for things to fall back.&nbsp;

ALSO WATCH |&nbsp;<a href="https://www.wionews.com/videos/fitch-inflation-and-fed-hikes-to-drive-us-economy-into-recession-526566">Fitch: Inflation and fed hikes to drive US economy into recession</a>

“The inflation data received so far in October and November show a welcome reduction in the pace of price increases, but it will take substantially more evidence to give confidence inflation is on a sustained downward path,” said Powell.&nbsp; 
 
(With inputs from agencies)&nbsp; 
 
&nbsp;

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The United States Federal Reserve following its last meeting of the year on Wednesday announced another interest rate hike, this time by half a percentage point making this its seventh time this year.

The United States Federal Reserve following its last meeting of the year on Wednesday announced another interest rate hike, this time by half a percentage point making this its seventh time this year. Furthermore, the officials have also said that the central bank will deliver more interest rate hikes in 2023, in a bid to tame decade-high inflation in the country. The interest rate, which is now at its highest in the last 15 years, seems to be reducing inflation to some degree as the US CPI data shows that the annual inflation has slowed down from 7.7 per cent in October to 7.1 per cent in November. However, Federal Reserve Chair Jerome Powell said that the recent slowing down has not been reassuring that the fight has been won. Why is the Fed raising the interest rates? When an economy is booming and inflation is on the rise, an increase in the interest rates slows everything down by making borrowing more expensive and discouraging consumers and businesses to spend more. This decrease in spending typically slows the economy and cools down inflation. These hikes are also in line with the central bank’s goal to push inflation down to two per cent. So far, the Feds have been aggressively raising the interest rate as the country continues to battle high inflation, this time around, the benchmark was raised by half a point as opposed to the string of four straight three-quarter point hikes in the past couple of months. ALSO READ | In a historic move, US Federal Reserve raises interest rate by 0.75% again Furthermore, the interest rate hike announced on Wednesday also marked the highest fed funds rate since December 2007 during the onset of the global financial crisis of 2008. However, this trend may continue for the upcoming year as it is projected that the rates would rise above five per cent by the end of next year, which is now somewhere between the 4.25 per cent to 4.5 per cent range. What does it mean for American consumers? The federal funds rate, set by the central bank, is the interest rate at which the commercial banks borrow and lend from one another overnight. Consequently, it directly or indirectly affects the borrowing costs for consumers and their earnings on savings accounts. ALSO READ | Fed lifts benchmark rate by half percentage point As of now, this leads many Americans to lean on credit as they are affected at a time when they are facing higher prices due to inflation as well as an unprecedented rise in interest rates which has not been witnessed in the past decade or so. Notably, the Fed does not control all interest rates; rather it's a ripple effect, which begins with the central bank raising the interest rates and others following suit. Some of these interest rates affected include mortgages, credit cards, and other loans. Chief financial analyst at Bankrate, Greg McBride, said, “Credit card rates are at a record high and still increasing. Auto loan rates are at an 11-year high. Home equity lines of credit are at a 15-year high. And online savings account and CD yields haven’t been this high since 2008.” The New York-based consumer financial services firm, Bankrate also noted that the average credit card rate hit a record high of 19.40 per cent (as of December 7) which is up from 16.3 per cent since the beginning of the year. Consequently, with the recent hike consumers can also witness an increase in their credit card rates within a few statements. ALSO WATCH | World Business Watch: U.S. announces 7th interest rate hike of 2022 Therefore, McBride suggests transferring any balances on the credit cards to a zero-rate balance transfer card which locks in a zero rate between a year and 21 months, this would “insulate you from rate hikes” giving the consumer a “clear runway” to pay off their debt. He added, “Less debt and more savings will enable you to better weather rising interest rates, and is especially valuable if the economy sours.” As for mortgages, the recent Fed hike would affect millions. Freddie Mac, an enterprise promoting home lending, said that with every percentage point increase in mortgage rates, which is eventually affected by the increase in the central bank’s benchmark rate, households which can afford a $400,000 mortgage decline by three to four million. Furthermore, according to the federally funded company, the 30-year fixed-rate mortgage average was 6.33 per cent by the end of the second week of December which is more than double the same time last year, for the first time in US history. This comes as mortgage rates have been rising over the past year or so which has also affected at least 15 million potential homebuyers. ALSO READ | US securities regulator issues new guidelines for firms, makes cryptocurrency risk disclosure must The 30-year average at one point had peaked above seven per cent, however, the decrease is not enough to help buyer affordability, said McBride. Furthermore, with mortgage rates rising faster than home prices dropping, Americans will be forced to spend more which could add to the financial stress of high inflation, said a report by NBC. Therefore, with more hikes in the Fed interest rate on the horizon, mortgage rates may climb further. How has the market reacted to the latest hike? Interest rate hikes typically create volatility in the stock market and this time was no different. Following the announcement, the Dow Jones Industrial Average fell 142.29 points or 0.42 per cent, while S&P 500 lost 24.33 points or 0.61 per cent and the Nasdaq Composite dropped 85.93 points, or 0.76 per cent, reported Reuters. Notably, three major averages on Wall Street might witness a yearly decline for the first time since 2018 as well as their biggest annual percentage decline since the financial crisis of 2008. This comes as nearly all 11 major S&P 500 sectors ended in negatives on Wednesday with healthcare being an exception, while financials were down 1.29 per cent making it the worst performing sector. ALSO READ | Dollar gains broadly as upbeat US data muddles Fed rate hike views Meanwhile, the condition of Asian stocks was no better, on Thursday, following the announcement and declines on Wall Street, Japan’s Nikkei dropped 0.42 per cent, while Australia’s S&P/ASX 200 fell 0.62 per cent, Hong Kong’s Hang Seng witnessed a decline of 1.13 per cent and South Korea’s Kospi tumbled 1.32 per cent. The decline has also been attributed to a rise in COVID-19 cases in China and crude oil’s downturn after strong gains a day prior. Additionally, while Beijing moves to open its economy after lifting its stringent zero-Covid restrictions, the slowed factory output and fewer retail sales in November continued to affect its outlook. What has the Fed forecasted for the upcoming year? On Wednesday, following the announcement of the interest rate hike, Powell also said that more interest rate hikes are on the horizon for the upcoming year while the US economy is in the midst of possibly slipping into recession. The Fed officials also projected a rise in the unemployment rate from the current 3.6 per cent to 4.6 per cent for the upcoming year. ALSO READ | Poll shows that the US economy is headed for a shallow recession: Here’s what it means Currently, the rate of unemployment is increasing by 0.5 per cent annually and by the end of 2023, it would be well beyond what has historically been associated with recession. However, Powell has said that they don’t “talk about this kind of recession, that kind of a recession. We just make these forecasts.” During the press conference, following the meeting of the Federal Reserve’s Federal Open Market Committee (FOMC), he also said that there is no “completely painless way to restore price stability” and they are doing the best they can. However, even with the recent aggressive hikes, inflation remains at least three times higher than their target and they speculate it will take at least three years for things to fall back. ALSO WATCH | Fitch: Inflation and fed hikes to drive US economy into recession “The inflation data received so far in October and November show a welcome reduction in the pace of price increases, but it will take substantially more evidence to give confidence inflation is on a sustained downward path,” said Powell. (With inputs from agencies) WATCH WION LIVE HERE

US Federal Reserve raises interest rate for 7th time this year: Here’s what it means

US Federal Reserve on Wednesday (December 14) increased benchmark lending rate by half percentage point as it appeared to moderate its all-out campaign to cool US inflation.

America's central bank has taken aggressive moves to ease demand in the world's biggest economy, hiking rates seven times this year with interest-sensitive sectors like housing already reeling from tightening policy.

The latest increase has taken the benchmark rate to 4.25-4.50 per cent. This is highest since 2007.

But officials signaled that their battle to cool the US economy is not yet over.

"The committee anticipates that ongoing increases in the target range will be appropriate" to reach a stance restrictive enough to rein in inflation, said a statement by the Fed's policy-setting Federal Open Market Committee (FOMC). 
The committee anticipates its interest rate will end up higher than earlier projected next year.

On Wednesday, policymakers also downgraded their forecast for US economic growth in 2023 to 0.5 percent, narrowly avoiding a contraction, and see inflation rising more than anticipated.

While it takes time for policy effects to ripple through sectors, there have been positive signs, with consumer inflation in the United States easing in November.

The consumer price index, a key gauge of inflation, logged its smallest annual increase in nearly a year, fueling optimism that the Fed could soon moderate its efforts.

(With inputs from agencies)

US Federal Reserve on Wednesday (December 14) increased benchmark lending rate by half percentage point as it appeared to moderate its all-out campaign to cool US inflation.

US Federal Reserve on Wednesday (December 14) increased benchmark lending rate by half percentage point as it appeared to moderate its all-out campaign to cool US inflation. America's central bank has taken aggressive moves to ease demand in the world's biggest economy, hiking rates seven times this year with interest-sensitive sectors like housing already reeling from tightening policy. The latest increase has taken the benchmark rate to 4.25-4.50 per cent. This is highest since 2007. But officials signaled that their battle to cool the US economy is not yet over. "The committee anticipates that ongoing increases in the target range will be appropriate" to reach a stance restrictive enough to rein in inflation, said a statement by the Fed's policy-setting Federal Open Market Committee (FOMC). The committee anticipates its interest rate will end up higher than earlier projected next year. On Wednesday, policymakers also downgraded their forecast for US economic growth in 2023 to 0.5 percent, narrowly avoiding a contraction, and see inflation rising more than anticipated. While it takes time for policy effects to ripple through sectors, there have been positive signs, with consumer inflation in the United States easing in November. The consumer price index, a key gauge of inflation, logged its smallest annual increase in nearly a year, fueling optimism that the Fed could soon moderate its efforts. (With inputs from agencies)

Fed lifts benchmark rate by half percentage point

Subaru said it was recalling 271,000 Ascent sport utility vehicles with model years between 2019 to 2022 due to increased fire risks and urged owners to park their vehicles outside until repairs are completed.

World Business Watch: Subaru issues recall of 271,000 SUVs because of increased risk of fire

Twitter Co-founder Jack Dorsey took the blame for Twitter’s controversial content decisions that the platform made under his leadership, while warning of content control by governments and corporations.

World Business Watch: Co-founder Jack Dorsey admits mistakes at Twitter

Elon Musk is no longer richest man in the world, LVMH's Arnault has taken over Musk as world's richest person. Tesla CEO's wealth has been cut in half from 340 billion dollar peak. The major drop in wealth was due to Twitter purchase.

World Business Watch: Elon Musk no longer world's richest, loses tile to LVMH's Arnault

Binance has registered $1.9 billion withdrawals in the last 24 hours. It's world's biggest crypto exchange and has temporarily paused withdrawals of USDC stable coins. Binance, whose dominance of crypto was cemented by fall of FTX last week tweeted the proof of reserves.

World Business Watch: Binance withdrawals hit $1.9 bn in 24 hours

Japanese automobile manufacturing company Subaru has recalled nearly 271,00 US Ascent sport vehicles with model years between 2019 to 2022 due to high fire risk.&nbsp;The company has requested owners to park their cars outside, away from the building, until they are completely repaired. It also urged vehicle owners to avoid leaving vehicles unattended while the engine is running.&nbsp;

<a href="https://www.wionews.com/business-economy/how-a-secret-software-change-allowed-ftx-to-use-client-money-542963">Also read |&nbsp;How a secret software change allowed FTX to use client money</a>

The recall was announced on Tuesday (Dec 13).&nbsp;Till now there have been two fire incidents reported with no injuries.&nbsp;

Watch |&nbsp;World Business Watch: Subaru issues recall of 271,000 SUVs because of increased risk of fire

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The National Highway Traffic Safety Administration has requested owners to park vehicles until the repair is done. It added that if an owner sees or notices smoke coming from the dash, they should immediately stop the car and turn off the ignition.

Subaru dealers claimed that it will replace heater ground bolts and if needed will change the ground wire and connector holder.&nbsp;

<a href="https://www.wionews.com/business-economy/binance-braces-for-challenging-period-after-record-19bn-outflows-542921">Also read | Binance braces for 'challenging period' after record $1.9bn outflows</a>

In 2020, Subaru first replaced battery tools with air tools at the production line. Later in the same year, the Japanese company received its first technical problem in Ascent of smoke in the cabin.

The company received its first fire incident in September 2021 and received a fire damage report in 2022.&nbsp;

(With inputs from agencies) 
&nbsp;

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Japanese automobile manufacturing company Subaru has recalled nearly 271,00 US Ascent sport vehicles with model years between 2019 to 2022 due to high fire risk.

Japanese automobile manufacturing company Subaru has recalled nearly 271,00 US Ascent sport vehicles with model years between 2019 to 2022 due to high fire risk. The company has requested owners to park their cars outside, away from the building, until they are completely repaired. It also urged vehicle owners to avoid leaving vehicles unattended while the engine is running. Also read | How a secret software change allowed FTX to use client money The recall was announced on Tuesday (Dec 13). Till now there have been two fire incidents reported with no injuries. Watch | World Business Watch: Subaru issues recall of 271,000 SUVs because of increased risk of fire The National Highway Traffic Safety Administration has requested owners to park vehicles until the repair is done. It added that if an owner sees or notices smoke coming from the dash, they should immediately stop the car and turn off the ignition. Subaru dealers claimed that it will replace heater ground bolts and if needed will change the ground wire and connector holder. Also read | Binance braces for 'challenging period' after record $1.9bn outflows In 2020, Subaru first replaced battery tools with air tools at the production line. Later in the same year, the Japanese company received its first technical problem in Ascent of smoke in the cabin. The company received its first fire incident in September 2021 and received a fire damage report in 2022. (With inputs from agencies) WATCH WION LIVE HERE

Japanese automaker Subaru recalls 271,000 vehicles over high risk of fire, cautions owners

In mid-2020,&nbsp;FTX's chief engineer made a&nbsp;secret&nbsp;change&nbsp;to the cryptocurrency exchange’s&nbsp;software.&nbsp;He tweaked the code to exempt Alameda Research, a hedge fund owned by&nbsp;FTX&nbsp;founder Sam Bankman-Fried, from a feature on the trading platform that would have automatically sold off Alameda's assets if it was losing too much borrowed&nbsp;money.

In a note explaining the&nbsp;change, the engineer, Nishad Singh, emphasised that&nbsp;FTX&nbsp;should never sell Alameda's positions. "Be extra careful not to liquidate,” Singh wrote in the comment in the platform's code, which it showed he helped author. Reuters reviewed the code base, which has not been previously reported.

The exemption&nbsp;allowed&nbsp;Alameda to keep borrowing funds from&nbsp;FTX&nbsp;irrespective of the value of the collateral securing those loans. That tweak in the code got the attention of the U.S. Securities and Exchange&nbsp;Commission, which charged Bankman-Fried with fraud on Tuesday. The SEC said the tweak meant Alameda had a “virtually unlimited line of credit.” Furthermore, the billions of dollars that&nbsp;FTX&nbsp;secretly lent to Alameda over the next two years didn't come from its own reserves, but rather were the deposits of other&nbsp;FTX&nbsp; customers', the SEC said.

Also Read |&nbsp;<a href="https://www.wionews.com/world/bail-in-bahamas-bankman-fried-requests-court-new-ftx-ceo-faces-us-lawmakers-542822">FTX founder Sam Bankman-Fried is denied bail after being charged with fraud</a>

The SEC and a spokesperson for Bankman-Fried declined to comment for the&nbsp;story. Singh did not respond to several requests for comment.

The regulator, which called the exchange&nbsp;“a house&nbsp;of cards,” alleged Bankman-Fried concealed that&nbsp;FTX&nbsp;diverted customer funds to Alameda in order to make undisclosed venture investments, luxury real estate purchases, and political donations. US&nbsp;prosecutors and the Commodity Futures Trading Commission also filed separate criminal and civil charges, respectively.

The complaints – along with previously unreported&nbsp;FTX&nbsp;documents seen by Reuters and three people familiar with the crypto exchange&nbsp;– provide new insights into&nbsp;how&nbsp;Bankman-Fried dipped into customer funds and spent billions more than&nbsp;FTX&nbsp;was making without the knowledge of investors, its customers and most employees.

Police in the Bahamas, where&nbsp;FTX&nbsp;was based, arrested Bankman-Fried on Monday evening, capping a stunning fall from grace for the 30-year-old former billionaire. His company collapsed in November after&nbsp;users rushed to withdraw deposits and investors shunned his requests for more financing.&nbsp;FTX&nbsp;declared bankruptcy on Nov. 11 and Bankman-Fried resigned as chief executive.

Bankman-Fried has apologised to customers, but said he didn't personally think he had any criminal liability.

The auto-liquidation exemption written into&nbsp;FTX&nbsp;code&nbsp;allowed&nbsp;Alameda to continually increase its line of credit until it “grew to tens of billions of dollars and effectively became limitless,” the SEC complaint said. It was one of two ways that Bankman-Fried diverted customer funds to Alameda.

The other was a mechanism whereby&nbsp;FTX&nbsp;customers deposited over $8 billion in traditional currency into bank accounts&nbsp;secretly controlled by Alameda. These deposits were reflected in an internal account on&nbsp;FTX&nbsp;that was not tied to Alameda, which concealed its liability, the complaint said.

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“SAFE, TESTED AND CONSERVATIVE”

As Bankman-Fried grew&nbsp;FTX&nbsp;into one of the world’s largest crypto exchanges, consumer protection was a central tenet of his pitch for crypto regulation in the United States. Bankman-Fried stressed this theme in countless statements to customers, investors, regulators and lawmakers.&nbsp;FTX’s auto-liquidation&nbsp;software&nbsp;would protect everyone, he had claimed.

In congressional testimony on May 12, he called&nbsp;FTX’s&nbsp;software&nbsp;“safe, tested and conservative.”

“By quickly unwinding the riskiest, most undercollateralized positions, the risk engine prevents build-up of credit risk that could otherwise cascade beyond the platform, resulting in contagion,” Bankman-Fried had testified.

He did not tell lawmakers about the&nbsp;software&nbsp;change&nbsp;to exempt Alameda. Indeed, he told investors that Alameda received no preferential treatment from&nbsp;FTX, the SEC complaint said.

Bankman-Fried had directed subordinates to update the&nbsp;software&nbsp;in mid-2020 to enable Alameda to maintain a negative balance on its account, the SEC complaint said. No other customer account at Alameda was&nbsp;allowed&nbsp;to do so, the complaint added. This would allow Alameda to keep borrowing more&nbsp;FTX&nbsp;funds without the need to provide more collateral.

In&nbsp;software&nbsp;tweaks made in August 2020, Alameda was designated as the “Primary Market Maker” or “PMM,” according to a Reuters review of its codebase. Market makers are dealers who enable trading in an asset by standing ready to buy and sell it.

To explain the&nbsp;change, Singh, the chief engineer, inserted a comment into the code: “Alameda would be liquidating, prevented.” He included a warning “not to liquidate the PMM."

Only Singh, Bankman-Fried and a few other top&nbsp;FTX&nbsp;and Alameda executives knew about the exemption in the code, according to three former executives briefed on the matter. A digital dashboard&nbsp;used by staff to track&nbsp;FTX&nbsp;customer assets and liabilities was programmed so it would not take into account that Alameda had withdrawn the&nbsp;client&nbsp;funds, according to two of the people and a screenshot of the portal that Reuters has previously reported.

Bankman-Fried's house&nbsp;of cards "began to crumble" in May 2022, the SEC complaint said.

As the value of crypto tokens plummeted that month, several of Alameda's lenders demanded repayment. Since Alameda didn't have the funds to meet these requests, Bankman-Fried directed Alameda to tap its "line of credit" with&nbsp;FTX&nbsp;to obtain billions of dollars in financing, the complaint said.

Ultimately, when&nbsp;FTX&nbsp;customers dashed to withdraw their&nbsp;money&nbsp;this November, spooked by media reports about the company's financial health, many discovered that their funds were no longer there.

&nbsp;

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In mid-2020, FTX's chief engineer made a secret change to the cryptocurrency exchange’s software. He tweaked the code to exempt Alameda Research, a hedge fund owned by FTX founder Sam Bankman-Fried, from a feature on the trading platform that would have automatically sold off Alameda's assets if it was losing too much borrowed money.

In mid-2020, FTX's chief engineer made a secret change to the cryptocurrency exchange’s software. He tweaked the code to exempt Alameda Research, a hedge fund owned by FTX founder Sam Bankman-Fried, from a feature on the trading platform that would have automatically sold off Alameda's assets if it was losing too much borrowed money. In a note explaining the change, the engineer, Nishad Singh, emphasised that FTX should never sell Alameda's positions. "Be extra careful not to liquidate,” Singh wrote in the comment in the platform's code, which it showed he helped author. Reuters reviewed the code base, which has not been previously reported. The exemption allowed Alameda to keep borrowing funds from FTX irrespective of the value of the collateral securing those loans. That tweak in the code got the attention of the U.S. Securities and Exchange Commission, which charged Bankman-Fried with fraud on Tuesday. The SEC said the tweak meant Alameda had a “virtually unlimited line of credit.” Furthermore, the billions of dollars that FTX secretly lent to Alameda over the next two years didn't come from its own reserves, but rather were the deposits of other FTX customers', the SEC said. Also Read | FTX founder Sam Bankman-Fried is denied bail after being charged with fraud The SEC and a spokesperson for Bankman-Fried declined to comment for the story. Singh did not respond to several requests for comment. The regulator, which called the exchange “a house of cards,” alleged Bankman-Fried concealed that FTX diverted customer funds to Alameda in order to make undisclosed venture investments, luxury real estate purchases, and political donations. US prosecutors and the Commodity Futures Trading Commission also filed separate criminal and civil charges, respectively. The complaints – along with previously unreported FTX documents seen by Reuters and three people familiar with the crypto exchange – provide new insights into how Bankman-Fried dipped into customer funds and spent billions more than FTX was making without the knowledge of investors, its customers and most employees. Police in the Bahamas, where FTX was based, arrested Bankman-Fried on Monday evening, capping a stunning fall from grace for the 30-year-old former billionaire. His company collapsed in November after users rushed to withdraw deposits and investors shunned his requests for more financing. FTX declared bankruptcy on Nov. 11 and Bankman-Fried resigned as chief executive. Bankman-Fried has apologised to customers, but said he didn't personally think he had any criminal liability. The auto-liquidation exemption written into FTX code allowed Alameda to continually increase its line of credit until it “grew to tens of billions of dollars and effectively became limitless,” the SEC complaint said. It was one of two ways that Bankman-Fried diverted customer funds to Alameda. The other was a mechanism whereby FTX customers deposited over $8 billion in traditional currency into bank accounts secretly controlled by Alameda. These deposits were reflected in an internal account on FTX that was not tied to Alameda, which concealed its liability, the complaint said. × “SAFE, TESTED AND CONSERVATIVE” As Bankman-Fried grew FTX into one of the world’s largest crypto exchanges, consumer protection was a central tenet of his pitch for crypto regulation in the United States. Bankman-Fried stressed this theme in countless statements to customers, investors, regulators and lawmakers. FTX’s auto-liquidation software would protect everyone, he had claimed. In congressional testimony on May 12, he called FTX’s software “safe, tested and conservative.” “By quickly unwinding the riskiest, most undercollateralized positions, the risk engine prevents build-up of credit risk that could otherwise cascade beyond the platform, resulting in contagion,” Bankman-Fried had testified. He did not tell lawmakers about the software change to exempt Alameda. Indeed, he told investors that Alameda received no preferential treatment from FTX, the SEC complaint said. Bankman-Fried had directed subordinates to update the software in mid-2020 to enable Alameda to maintain a negative balance on its account, the SEC complaint said. No other customer account at Alameda was allowed to do so, the complaint added. This would allow Alameda to keep borrowing more FTX funds without the need to provide more collateral. In software tweaks made in August 2020, Alameda was designated as the “Primary Market Maker” or “PMM,” according to a Reuters review of its codebase. Market makers are dealers who enable trading in an asset by standing ready to buy and sell it. To explain the change, Singh, the chief engineer, inserted a comment into the code: “Alameda would be liquidating, prevented.” He included a warning “not to liquidate the PMM." Only Singh, Bankman-Fried and a few other top FTX and Alameda executives knew about the exemption in the code, according to three former executives briefed on the matter. A digital dashboard used by staff to track FTX customer assets and liabilities was programmed so it would not take into account that Alameda had withdrawn the client funds, according to two of the people and a screenshot of the portal that Reuters has previously reported. Bankman-Fried's house of cards "began to crumble" in May 2022, the SEC complaint said. As the value of crypto tokens plummeted that month, several of Alameda's lenders demanded repayment. Since Alameda didn't have the funds to meet these requests, Bankman-Fried directed Alameda to tap its "line of credit" with FTX to obtain billions of dollars in financing, the complaint said. Ultimately, when FTX customers dashed to withdraw their money this November, spooked by media reports about the company's financial health, many discovered that their funds were no longer there. 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.

How a secret software code change allowed FTX to (mis)use client money

Sam Bankman-Fried, or SBF, known as the "cryptocurrency genius", was arrested on Monday (December 12) in the Bahamas at the request of the United States.&nbsp;Last month, he announced his resignation from FTX after facing a loss of 94 per cent of his net worth.&nbsp;&nbsp;

The "cryptogenius," also known as "modern JP Morgan"&nbsp;for his intervening to save volatile exchanges, has now been charged with&nbsp;defrauding investors in the company, by the United States&nbsp;Securities and Exchange Commission.&nbsp;The arrest was made on the eve of Bankman-Fried's scheduled appearance at a US Congress hearing. 
 
Who is SBF?&nbsp;

The&nbsp;30-year-old&nbsp;began his career as a trader at Jane Street and eventually amassed a crypto empire.&nbsp;SBF studied Physics at MIT, and after joining Jane Street, in 2017, he learned about cryptocurrencies and began using his expertise in the market. In his early days, he started by purchasing bitcoin in the US and used to sell them in Japan, a minimum price of at least 10 per cent due to price difference. &nbsp;

In&nbsp;2017, SBF established his own cryptocurrency trading firm 'Almeda Research,' which offers liquidity in exchange for digital assets and cryptocurrencies.&nbsp;Two years later, in 2019, he launched FTX, turning it to be one of the top exchanges for buying and selling cryptocurrency derivatives. Forbes estimates his exchange is worth $40 billion.

Watch |&nbsp;Binance walks away from FTX deal due to 'mishandled funds'

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Fried has designated himself as a 'selfless altruist,' who pledged to give the majority of his wealth to charity. Additionally, promised to provide billion-dollar support to US candidates to take precautions against pandemics. However, Cointelegraph reported that he till now has only donated only 0.1 per cent of his wealth.&nbsp;

Fried's exchange worth fell drastically by 94 per cent in a single day, as reported by the Bloomberg Billionaires Index. His net worth was nearly $15.5 billion prior to this announcement of the company's financial crisis. The worth dropped to $991.5 million back in November.&nbsp;

According to Fox News, the now-bankrupt founder of FTX, was also a&nbsp;generous supporter of Democratic candidates and liberal causes, contributing at least $38 million to left-wing organisations during the 2022 election cycle.

What happened to FTX? 
 
Concerns of liquidity issues in Alameda and FTX began in 2022.&nbsp;The cryptocurrency platform FTX has recently filed for Chapter 11 bankruptcy in the US, as per the statement released. &nbsp;

The drama in the world of digital currencies began after the largest cryptocurrency platform Binance said that it will sell its stock in the company, Binance eventually backed out of the agreement leaving the firm to acquire nearly $9.4 billion from investors. Investors sold FTT, FTX's tokens as a result.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/cryptocurrency-lender-blockfi-files-for-bankruptcy-ftx-fallout-rattles-crypto-industry-538578">Cryptocurrency lender BlockFi files for bankruptcy; FTX fallout rattles crypto industry</a>

Notably, this crash left the finance world shocked after the company faced&nbsp;bankruptcy with panicked customers who began withdrawing billions from the platform.

According to&nbsp;Bankman-Fried,&nbsp;traders pulled $6 billion from the platform within three days while Binance, a rival exchange platform, declined to sign a rescue deal.&nbsp;

Two individuals familiar with the matter told Reuters that&nbsp;Bankman-Fried secretly transferred $10 billion in client money to affiliated trading firm Alameda Research, causing a liquidity crunch at the FTX. He has since told the news agency that did not move the money or run the research firm.&nbsp;

The FTX collapse and fallout

The fallout of this collapse was felt beyond the crypto world. A&nbsp;number of celebrities who endorsed his now-toxic exchange such as NFL quarterback Tom Brady and comedian Larry David were sued by the&nbsp;cryptocurrency investors who claimed they used misleading tactics to market FTX yield-bearing digital currency accounts.

ALSO WATCH |&nbsp;<a href="https://www.wionews.com/videos/trending-on-wion-former-ftx-founder-sam-bankman-fried-arrested-in-bahamas-542544">Trending on WION: Former FTX founder Sam Bankman-Fried arrested in Bahamas</a>

The class action lawsuit filed&nbsp;in Miami, last month also included&nbsp;Brazilian supermodel Gisele Bündchen,&nbsp;basketball legend Shaquille O'Neal, tennis star Naomi Osaka as well as The Golden State Warriors basketball franchise. Meanwhile, the collapsed crypto exchange by the end of November began a strategic evaluation of its worldwide assets and is putting some businesses up for sale or reorganisation.

Furthermore, with its 101 associated companies, FTX also requested judicial intervention to permit the functioning of a new worldwide cash management system and payment to its essential suppliers. Subsequently, crypto lender, BlockFi filed for bankruptcy citing the “significant exposure” to FTX which led to a liquidity crisis.&nbsp; 
 
Bankman-Fried apologises for his "mistakes"

Earlier this month, in his first public appearance after the collapse of FTX, he said, “I'm deeply sorry about what happened. Clearly, I made a lot of mistakes or things I would be able to give anything to be able to do over again.” The FTX founder was addressing a&nbsp;conference in New York, speaking via video call, he also said that he didn't knowingly behave fraudulently.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/world/former-ftx-ceo-sam-bankman-fried-apologises-for-his-mistakes-says-didnt-knowingly-commit-fraud-538944">Former FTX CEO Sam Bankman-Fried apologises for his 'mistakes,' says didn't knowingly commit fraud</a> 
 
Furthermore, on December 4, the FTX founder&nbsp;took to Twitter and said that he would testify before the United States House Financial Services Committee after he is done <a href="https://www.wionews.com/business-economy/ftxs-bankman-fried-to-testify-before-us-house-committee-after-learning-and-reviewing-its-collapse-540324">“learning and reviewing”</a> the collapse&nbsp;of his cryptocurrency exchange platform. This was in response to&nbsp;the Committee Chair Maxine Waters who had also taken to the microblogging platform to invite him to speak at the panel's hearing scheduled for December 13.

What has the 'crypto genius' been arrested and charged for?

Notably, a day before the aforementioned hearing, he was&nbsp;arrested in the <a href="https://www.wionews.com/videos/wion-business-news-ftxs-sam-bankman-fried-questioned-by-bahamas-police-533929">Bahamas</a>. He was going to testify under oath about his crypto exchange platform. In recent weeks he had made several public and media appearances telling his version of the&nbsp;company's sudden failure from the crypto exchange platform's headquarters in the&nbsp;Bahamas.&nbsp;

On Tuesday, the US SEC said, "The Securities and Exchange Commission today charged Samuel Bankman-Fried with orchestrating a scheme to defraud equity investors in FTX Trading Ltd, the crypto trading platform of which he was the CEO and co-founder." The committee said that investigations of "securities law violations and into other entities and persons relating to the alleged misconduct are ongoing.”

The FTX founder has also been charged with allegedly using&nbsp;FTX customer funds, commingled with Alameda for large political donations, lavish real estate&nbsp;purchases, and undisclosed investments in ventures. Additionally, even though the company is based in the Bahamas since FTX raised $1.1 billion from at least 90&nbsp;US-based investors, the SEC will oversee the case, the agency asserted.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/world/sam-bankman-fried-ex-ceo-of-now-defunct-crypto-exchange-ftx-arrested-in-bahamas-542490">Sam Bankman-Fried, ex-CEO of now-defunct crypto exchange FTX, arrested in Bahamas</a>

During the hearing, the SEC also&nbsp;used&nbsp;FTX's collapse&nbsp;as an example to highlight the "very real risks that unregistered crypto asset trading platforms can pose for investors and customers alike,” said&nbsp;Gurbir Grewal, the agency's director&nbsp;of the division of enforcement.

He added,&nbsp;that while the investigation is underway for&nbsp;potential violations of federal securities laws, they are also holding&nbsp;Bankman-Fried responsible for "fraudulently raising billions of dollars from investors in FTX and misusing funds belonging to FTX’s trading customers.”

(With inputs from agencies)

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Sam Bankman-Fried, or SBF, known as the "cryptocurrency genius", was arrested on Monday (December 12) in the Bahamas at the request of the United States. Last month, he announced his resignation from FTX after facing a loss of 94 per cent of his net worth.

Sam Bankman-Fried, or SBF, known as the "cryptocurrency genius", was arrested on Monday (December 12) in the Bahamas at the request of the United States. Last month, he announced his resignation from FTX after facing a loss of 94 per cent of his net worth. The "cryptogenius," also known as "modern JP Morgan" for his intervening to save volatile exchanges, has now been charged with defrauding investors in the company, by the United States Securities and Exchange Commission. The arrest was made on the eve of Bankman-Fried's scheduled appearance at a US Congress hearing. Who is SBF? The 30-year-old began his career as a trader at Jane Street and eventually amassed a crypto empire. SBF studied Physics at MIT, and after joining Jane Street, in 2017, he learned about cryptocurrencies and began using his expertise in the market. In his early days, he started by purchasing bitcoin in the US and used to sell them in Japan, a minimum price of at least 10 per cent due to price difference. In 2017, SBF established his own cryptocurrency trading firm 'Almeda Research,' which offers liquidity in exchange for digital assets and cryptocurrencies. Two years later, in 2019, he launched FTX, turning it to be one of the top exchanges for buying and selling cryptocurrency derivatives. Forbes estimates his exchange is worth $40 billion. Watch | Binance walks away from FTX deal due to 'mishandled funds' Fried has designated himself as a 'selfless altruist,' who pledged to give the majority of his wealth to charity. Additionally, promised to provide billion-dollar support to US candidates to take precautions against pandemics. However, Cointelegraph reported that he till now has only donated only 0.1 per cent of his wealth. Fried's exchange worth fell drastically by 94 per cent in a single day, as reported by the Bloomberg Billionaires Index. His net worth was nearly $15.5 billion prior to this announcement of the company's financial crisis. The worth dropped to $991.5 million back in November. According to Fox News, the now-bankrupt founder of FTX, was also a generous supporter of Democratic candidates and liberal causes, contributing at least $38 million to left-wing organisations during the 2022 election cycle. What happened to FTX? Concerns of liquidity issues in Alameda and FTX began in 2022. The cryptocurrency platform FTX has recently filed for Chapter 11 bankruptcy in the US, as per the statement released. The drama in the world of digital currencies began after the largest cryptocurrency platform Binance said that it will sell its stock in the company, Binance eventually backed out of the agreement leaving the firm to acquire nearly $9.4 billion from investors. Investors sold FTT, FTX's tokens as a result. ALSO READ | Cryptocurrency lender BlockFi files for bankruptcy; FTX fallout rattles crypto industry Notably, this crash left the finance world shocked after the company faced bankruptcy with panicked customers who began withdrawing billions from the platform. According to Bankman-Fried, traders pulled $6 billion from the platform within three days while Binance, a rival exchange platform, declined to sign a rescue deal. Two individuals familiar with the matter told Reuters that Bankman-Fried secretly transferred $10 billion in client money to affiliated trading firm Alameda Research, causing a liquidity crunch at the FTX. He has since told the news agency that did not move the money or run the research firm. The FTX collapse and fallout The fallout of this collapse was felt beyond the crypto world. A number of celebrities who endorsed his now-toxic exchange such as NFL quarterback Tom Brady and comedian Larry David were sued by the cryptocurrency investors who claimed they used misleading tactics to market FTX yield-bearing digital currency accounts. ALSO WATCH | Trending on WION: Former FTX founder Sam Bankman-Fried arrested in Bahamas The class action lawsuit filed in Miami, last month also included Brazilian supermodel Gisele Bündchen, basketball legend Shaquille O'Neal, tennis star Naomi Osaka as well as The Golden State Warriors basketball franchise. Meanwhile, the collapsed crypto exchange by the end of November began a strategic evaluation of its worldwide assets and is putting some businesses up for sale or reorganisation. Furthermore, with its 101 associated companies, FTX also requested judicial intervention to permit the functioning of a new worldwide cash management system and payment to its essential suppliers. Subsequently, crypto lender, BlockFi filed for bankruptcy citing the “significant exposure” to FTX which led to a liquidity crisis. Bankman-Fried apologises for his "mistakes" Earlier this month, in his first public appearance after the collapse of FTX, he said, “I'm deeply sorry about what happened. Clearly, I made a lot of mistakes or things I would be able to give anything to be able to do over again.” The FTX founder was addressing a conference in New York, speaking via video call, he also said that he didn't knowingly behave fraudulently. ALSO READ | Former FTX CEO Sam Bankman-Fried apologises for his 'mistakes,' says didn't knowingly commit fraud Furthermore, on December 4, the FTX founder took to Twitter and said that he would testify before the United States House Financial Services Committee after he is done “learning and reviewing” the collapse of his cryptocurrency exchange platform. This was in response to the Committee Chair Maxine Waters who had also taken to the microblogging platform to invite him to speak at the panel's hearing scheduled for December 13. What has the 'crypto genius' been arrested and charged for? Notably, a day before the aforementioned hearing, he was arrested in the Bahamas. He was going to testify under oath about his crypto exchange platform. In recent weeks he had made several public and media appearances telling his version of the company's sudden failure from the crypto exchange platform's headquarters in the Bahamas. On Tuesday, the US SEC said, "The Securities and Exchange Commission today charged Samuel Bankman-Fried with orchestrating a scheme to defraud equity investors in FTX Trading Ltd, the crypto trading platform of which he was the CEO and co-founder." The committee said that investigations of "securities law violations and into other entities and persons relating to the alleged misconduct are ongoing.” The FTX founder has also been charged with allegedly using FTX customer funds, commingled with Alameda for large political donations, lavish real estate purchases, and undisclosed investments in ventures. Additionally, even though the company is based in the Bahamas since FTX raised $1.1 billion from at least 90 US-based investors, the SEC will oversee the case, the agency asserted. ALSO READ | Sam Bankman-Fried, ex-CEO of now-defunct crypto exchange FTX, arrested in Bahamas During the hearing, the SEC also used FTX's collapse as an example to highlight the "very real risks that unregistered crypto asset trading platforms can pose for investors and customers alike,” said Gurbir Grewal, the agency's director of the division of enforcement. He added, that while the investigation is underway for potential violations of federal securities laws, they are also holding Bankman-Fried responsible for "fraudulently raising billions of dollars from investors in FTX and misusing funds belonging to FTX’s trading customers.” (With inputs from agencies) WATCH WION LIVE HERE

Sam Bankman-Fried, the former FTX CEO charged with defrauding investors: All you need to know

After Binance reported record $1.9 billion in withdrawals during a 24-hour period between December 12 and December 13, its Chief Executive Officer Changpeng Zhao warned his colleagues to expect tough months ahead.

"While we expect the next several months to be bumpy, we will get past this challenging period – and we will be stronger for having been through it," Zhao's internal memo was quoted as saying by Bloomberg.&nbsp;

Binance is the world's largest cryptocurrency exchange trade platform. The $1.9 billion of withdrawals of tokens based on the Ethereum blockchain mark the largest daily outflow over a 24-hour period since June 13,&nbsp;data compiled by&nbsp;blockchain analytics platform Nansen showed.&nbsp;

Earlier on Tuesday, Binance said that it had "temporarily paused" the withdrawals of the USDC stablecoin. The withdrawals were resumed later on Tuesday.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/ftx-was-under-the-federal-radar-long-before-its-collapse-report-536246">FTX was under the federal radar long before its collapse</a>

Both the users as well as the regulators, are closely watching the operational methods of cryptocurrency exchanges such as Binance after its rival crypto exchange platform FTX went bankrupt earlier this month. FTX founder Sam Bankman-Fried was also charged with defrauding customers by the US Securities and Exchange Commission.&nbsp;

FTX’s shock collapse has reportedly hit investor sentiment, prompting some traders to take control of their cryptocurrency tokens. Binance was one of the exchanges hit by large outflows on Tuesday.

WATCH |&nbsp;<a href="https://www.wionews.com/videos/ftx-saga-continues-funds-vanish-at-bankrupt-crypto-exchange-company-confirms-unauthorised-access-533669">FTX saga continues: Funds vanish at bankrupt Crypto exchange, company confirms 'unauthorised access'</a>

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At the time of Binance's resumption for withdrawals of the USDC stablecoin on Tuesday, CEO Changpeng Zhao&nbsp;had assured that the withdrawals were "business as usual".&nbsp;

"We saw some withdrawals today (net $1.14b ish). We have seen this before. Some days we have net withdrawals; some days we have net deposits," Binance CEO Changpeng Zhao tweeted on Tuesday.&nbsp;

A Binance spokesperson had earlier said that the platform had “more than enough funds” to meet withdrawal requests.&nbsp;

"User assets at Binance are all backed 1:1 and Binance’s capital structure is debt free," the spokesperson had said in an official statement.

Binance is a cryptocurrency exchange which is the largest exchange in the world in terms of daily trading volume of cryptocurrencies. It was founded in 2017 and is registered in the Cayman Islands.&nbsp;Binance has no headquarters, and claims to be&nbsp;a decentralised company.&nbsp;

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After Binance reported record $1.9 billion in withdrawals during a 24-hour period between December 12 and December 13, its Chief Executive Officer Changpeng Zhao warned his colleagues to expect tough months ahead.

After Binance reported record $1.9 billion in withdrawals during a 24-hour period between December 12 and December 13, its Chief Executive Officer Changpeng Zhao warned his colleagues to expect tough months ahead. "While we expect the next several months to be bumpy, we will get past this challenging period – and we will be stronger for having been through it," Zhao's internal memo was quoted as saying by Bloomberg. Binance is the world's largest cryptocurrency exchange trade platform. The $1.9 billion of withdrawals of tokens based on the Ethereum blockchain mark the largest daily outflow over a 24-hour period since June 13, data compiled by blockchain analytics platform Nansen showed. Earlier on Tuesday, Binance said that it had "temporarily paused" the withdrawals of the USDC stablecoin. The withdrawals were resumed later on Tuesday. ALSO READ | FTX was under the federal radar long before its collapse Both the users as well as the regulators, are closely watching the operational methods of cryptocurrency exchanges such as Binance after its rival crypto exchange platform FTX went bankrupt earlier this month. FTX founder Sam Bankman-Fried was also charged with defrauding customers by the US Securities and Exchange Commission. FTX’s shock collapse has reportedly hit investor sentiment, prompting some traders to take control of their cryptocurrency tokens. Binance was one of the exchanges hit by large outflows on Tuesday. WATCH | FTX saga continues: Funds vanish at bankrupt Crypto exchange, company confirms 'unauthorised access' × At the time of Binance's resumption for withdrawals of the USDC stablecoin on Tuesday, CEO Changpeng Zhao had assured that the withdrawals were "business as usual". "We saw some withdrawals today (net $1.14b ish). We have seen this before. Some days we have net withdrawals; some days we have net deposits," Binance CEO Changpeng Zhao tweeted on Tuesday. A Binance spokesperson had earlier said that the platform had “more than enough funds” to meet withdrawal requests. "User assets at Binance are all backed 1:1 and Binance’s capital structure is debt free," the spokesperson had said in an official statement. Binance is a cryptocurrency exchange which is the largest exchange in the world in terms of daily trading volume of cryptocurrencies. It was founded in 2017 and is registered in the Cayman Islands. Binance has no headquarters, and claims to be a decentralised company. 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.

Binance braces for 'challenging period' after record $1.9bn outflows

The Wall Street Journal has reported citing an email that Twitter disbanded its Trust and Safety Council on Monday night. The council, set up in 2016, comprised civil-society groups and was responsible for addressing hate speech, child exploitation, suicide, self-harm and other problems on the platform. This was before the platform was taken over by billionaire Elon Musk.

“As Twitter moves into a new phase, we are reevaluating how best to bring external insights into our product and policy development work. As part of this process, we have decided that the Trust and Safety Council is not the best structure to do this,” read the email signed “Twitter.”

“Our work to make Twitter a safe, informative place will be moving faster and more aggressively than ever before and we will continue to welcome your ideas going forward about how to achieve this goal,” the email said.

Twitter hasn't officially said anything on the matter.

The decision happened the same day Musk tweeted that Twitter's Basic blue tick will have half the number of advertisements and will offer a higher tier with no advertisements by next year. The move is aimed at boosting the social media platform's revenue.&nbsp;

Also Read |&nbsp;<a href="https://www.wionews.com/trending/elon-musk-met-with-a-crowd-of-boos-at-dave-chapelles-on-the-eve-of-twitter-blue-relaunch-watch-542498">Elon Musk met with a 'crowd of boos' at a Dave Chapelle show</a>

The company re-enabled the Twitter Blue sign earlier in the day. Individuals are reported to get a blue check, while gold and gray check marks will denote business and government accounts. The monthly subscription price will be $8 on the web and $11 on Apple devices, respectively.

Twitter’s new head of trust and safety, Ella Irwin, who was entrusted with the job of overseeing user content and safety policies in November, told WSJ the company is moving quickly towards addressing problematic content. However, the cancellation email came in about an hour before the council was scheduled to meet Irwin and Nick Pickles, senior director for global public policy strategy, development and partnerships.&nbsp;

There has been a question mark over the role of Trust and Safety Council ever since Musk took over. He had earlier mentioned that he will create a content moderation council, but its working relation with Trust and Safety Council remained unclear.

Twitter had postponed the Trust and Safety Council’s regularly scheduled meeting until December 15 last month, before eventually moving it up to Monday last week.

Notably, the Trust and Safety Council had been unhappy with the way content was being handled by the platform. The members had met without Twitter representatives to discuss their concerns on November 29. Three members had publicly announced last week that they will quit the council saying that the safety and well-being of users was not being given any importance.

(With inputs from agencies)

&nbsp;

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The Wall Street Journal has reported citing an email that Twitter disbanded its Trust and Safety Council on Monday night. The council, set up in 2016, comprised civil-society groups and was responsible for addressing hate speech, child exploitation, suicide, self-harm and other problems on the platform.

The Wall Street Journal has reported citing an email that Twitter disbanded its Trust and Safety Council on Monday night. The council, set up in 2016, comprised civil-society groups and was responsible for addressing hate speech, child exploitation, suicide, self-harm and other problems on the platform. This was before the platform was taken over by billionaire Elon Musk. “As Twitter moves into a new phase, we are reevaluating how best to bring external insights into our product and policy development work. As part of this process, we have decided that the Trust and Safety Council is not the best structure to do this,” read the email signed “Twitter.” “Our work to make Twitter a safe, informative place will be moving faster and more aggressively than ever before and we will continue to welcome your ideas going forward about how to achieve this goal,” the email said. Twitter hasn't officially said anything on the matter. The decision happened the same day Musk tweeted that Twitter's Basic blue tick will have half the number of advertisements and will offer a higher tier with no advertisements by next year. The move is aimed at boosting the social media platform's revenue. Also Read | Elon Musk met with a 'crowd of boos' at a Dave Chapelle show The company re-enabled the Twitter Blue sign earlier in the day. Individuals are reported to get a blue check, while gold and gray check marks will denote business and government accounts. The monthly subscription price will be $8 on the web and $11 on Apple devices, respectively. Twitter’s new head of trust and safety, Ella Irwin, who was entrusted with the job of overseeing user content and safety policies in November, told WSJ the company is moving quickly towards addressing problematic content. However, the cancellation email came in about an hour before the council was scheduled to meet Irwin and Nick Pickles, senior director for global public policy strategy, development and partnerships. There has been a question mark over the role of Trust and Safety Council ever since Musk took over. He had earlier mentioned that he will create a content moderation council, but its working relation with Trust and Safety Council remained unclear. Twitter had postponed the Trust and Safety Council’s regularly scheduled meeting until December 15 last month, before eventually moving it up to Monday last week. Notably, the Trust and Safety Council had been unhappy with the way content was being handled by the platform. The members had met without Twitter representatives to discuss their concerns on November 29. Three members had publicly announced last week that they will quit the council saying that the safety and well-being of users was not being given any importance. (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.

Twitter scraps its Trust and Safety advisory group, says report

In the latest sign of improving PlayStation 5 supply, Sony Group led a big jump in video-game hardware sales in the US last month. The Tokyo-based entertainment giant drove a 45 per cent spurt in US games hardware sales in November.

World Business Watch: Sony PlayStation 5 sales surge in US as supply woes ease

China’s abrupt ending of its Zero Covid policy injects more uncertainty into an already fragile economy. Economists expect President Xi Jinping to flesh out policy objectives for the coming year at the Central Economic Work Conference.

World Business Watch: China to set economic plans amid shift from Zero Covid policy

Goldman Sachs aims to cut at least a few hundred more jobs as the Wall Street titan restructures its struggling consumer business and braces for an uncertain economy in the year ahead.

World Business Watch: Goldman Sachs to cut hundreds more jobs as consumer unit scaled back

Oil prices rose more than 1% on Monday as a key pipeline supplying the United States stayed shut while Russian President Vladimir Putin threatened to cut production in retaliation for a Western price cap on its exports.

World Business Watch: Oil rises on uncertainty over US pipeline restart, Russian supplies

Skoda Auto, part of Volkswagen, is considering withdrawing from China and will make a final decision next year, said CEO Klaus Zellmer. He also added that Skoda wants to focus more in India at the moment.

World Business Watch: Volkswagen's Skoda considers withdrawing from China

Air India is close to placing a historic order for as many as 500 jetliners worth tens of billions of dollars from Airbus and Boeing, said a report by Reuters citing sources. This comes months after the Tata Group conglomerate officially took over the airline from the Indian government following an Rs 18,000 crore ($180 billion) deal.&nbsp;

Tata Group recently also announced the merger of Air India with Vistara, its joint venture with Singapore Airlines, thereby creating a significant presence in the domestic and international markets.&nbsp;

Why is this deal so important?

The report citing anonymous industry sources claims that the order includes at least 400 narrow-body jets and 100 or more wide-bodies jets like several Airbus A350s and Boeing 787s and 777s. If the deal is inked, it would be among some of the biggest purchases by a single airline in terms of volume, surpassing the combined order of over 460 Airbus and Boeing jets from American Airlines placed over a decade ago.&nbsp;

ALSO WATCH |&nbsp;<a href="https://www.wionews.com/videos/world-business-watch-tata-group-owned-air-india-nears-historic-order-for-up-to-500-jets-report-542151">World Business Watch | Tata Group-owned Air India nears historic order for up to 500 jets: Report</a>

However, despite significant expected discounts, it could still cost the company over $100 billion dollars, at list prices. This comes as the plane giants have faced an increase in demand following the ease of COVID-19 pandemic restrictions amid mounting industrial and environmental pressures.&nbsp;

These would also allow Airbus to utilise production slots for their A350s which had been initiated for Russia's Aeroflot and have been vacant since the Russian invasion of Ukraine and subsequent western sanctions on Moscow.&nbsp;

The merger of Air India with Vistara as well as the Singapore Airlines <a href="https://www.wionews.com/videos/singapore-airlines-and-tata-group-to-merge-air-india-vistara-by-march-2024-538653">joint venture</a> gives the conglomerate access to over 200 additional aircraft, making it India’s largest international carrier and the second largest in the domestic market.&nbsp;

If the deal is inked, the purchase could take at least a decade to be delivered, in addition to the Vistara deal. The potential procurement seems to be an indication of the Tata group’s expansion to take over a significant share of traffic flows to and from India which is currently dominated by foreign airlines like Emirates. In the domestic market, Indigo is one of the other biggest players.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/india-news/jrd-tata-air-india-and-the-determination-to-fly-high-539915">Singapore Airlines buys 25.1% stake in Air India, that helped it in its launch</a> 
 
In the larger context, if the purchase of the additional 500 jets is finalised, it would significantly contribute to the Indian economy with the country being one of the largest airline markets in the world as&nbsp;more Indians look&nbsp;for affordable and convenient travel options. Furthermore, it would significantly contribute to Indian Prime Minister Narendra Modi’s aim of expanding the economy to $5 trillion.&nbsp; 
 
Tata’s investment into the debt-laden flag carrier so far

Earlier this year, Tata bought the debt-laden flag carrier from the Indian government after nearly seven decades since it was founded by the conglomerate’s JRD Tata in 1932 and later nationalised. The group, at the time of the takeover, had paid Rs 2,700 crore ($27 billion) in cash and had also taken over Rs 15,300 crore ($153 billion) of the airline’s debt.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/india-news/air-india-decides-to-procure-airbus-a350-aircraft-first-planes-delivery-likely-by-march-2023-488698">Air India decides to procure Airbus A350 aircraft; first plane's delivery likely by March 2023</a>

With the Air India takeover, Tata gained access to valuable flying rights and landing slots, particularly in the United States and Europe. The group had also announced that it would spend more than $400 million to refurbish the interiors of its entire wide-body fleet in a bid to attract more flyers. This also included the introduction of a premium economy cabin, it said, adding that the first aircraft with the improvements will be rolled out in mid-2024. 
 
Has the Tata-owned airline made any purchases yet?

So far, there have been <a href="https://www.wionews.com/india-news/air-india-set-to-make-one-of-the-largest-aircraft-deals-in-the-history-490213">multiple reports</a> of a landmark purchase on the horizon by Tata-owned Air India, but the company as well as the aeroplane giants have refused to comment on the same.&nbsp;

Aside from the airline's CEO, Campbell Wilson, in November, there have been no official indications of deals. Wilson had said, “we are in deep discussion with Boeing, Airbus and engine manufacturers for a historical order of the latest generation aircraft that will power Air India's medium- and long-term growth.”

He added, “At the risk of gross understatement, the investment will be substantial.”

ALSO WATCH |&nbsp;<a href="https://www.wionews.com/videos/world-business-watch-air-india-slapped-with-1215-mn-fine-for-delay-in-refunds-534628">World Business Watch: Air India slapped with $121.5 mn fine for delay in refunds</a>

On Sunday, another report by the Economic Times, citing anonymous sources, said that the Air India is close to signing a deal with Boeing Co. to buy up to 150, 737 Max planes.

It added that the company is likely to place an order for at least 50 jets while they may later procure as many as 150.&nbsp;

What are some of the hurdles to this potential purchase?

Once known for its lavishly decorated planes and stellar service in the 1950s, very few opt for the airline now either on domestic or international routes. It is largely perceived as another government department synonymous with being an unreliable and shabbily managed airline with mounting debt.

Nationalised in 1953, its reputation declined in the mid-2000s amid financial woes.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/india-news/singapore-airlines-ltd-owned-vistara-announces-merger-with-air-india-538537">Singapore Airlines Ltd-owned Vistara announces merger with Air India</a>

The airline had a net debt of Rs 60,000 crore ($600 billion) at the time of purchase and former chief of Tata Sons, Ratan Tata had said, “While admittedly it will take considerable effort to rebuild Air India, it will hopefully provide a very strong market opportunity to the Tata Group's presence in the aviation industry.”

The Reuters report, citing experts, said there are several hurdles in Tata group’s ambitious revival of Air India including “frail domestic infrastructure, pilot shortages and the threat of tough competition with established Gulf and other carriers.”&nbsp;

Additionally, the airline might also struggle to procure the medium-haul Airbus A321neos that were reportedly being ordered for the Air India-Vistara tie-up, as the European planemaker sold out for at least the next five years or more.&nbsp;

(With inputs from agencies)&nbsp;

Air India is close to placing a historic order for as many as 500 jetliners worth tens of billions of dollars from Airbus and Boeing, said a report by Reuters citing sources.

Air India is close to placing a historic order for as many as 500 jetliners worth tens of billions of dollars from Airbus and Boeing, said a report by Reuters citing sources. This comes months after the Tata Group conglomerate officially took over the airline from the Indian government following an Rs 18,000 crore ($180 billion) deal. Tata Group recently also announced the merger of Air India with Vistara, its joint venture with Singapore Airlines, thereby creating a significant presence in the domestic and international markets. Why is this deal so important? The report citing anonymous industry sources claims that the order includes at least 400 narrow-body jets and 100 or more wide-bodies jets like several Airbus A350s and Boeing 787s and 777s. If the deal is inked, it would be among some of the biggest purchases by a single airline in terms of volume, surpassing the combined order of over 460 Airbus and Boeing jets from American Airlines placed over a decade ago. ALSO WATCH | World Business Watch | Tata Group-owned Air India nears historic order for up to 500 jets: Report However, despite significant expected discounts, it could still cost the company over $100 billion dollars, at list prices. This comes as the plane giants have faced an increase in demand following the ease of COVID-19 pandemic restrictions amid mounting industrial and environmental pressures. These would also allow Airbus to utilise production slots for their A350s which had been initiated for Russia's Aeroflot and have been vacant since the Russian invasion of Ukraine and subsequent western sanctions on Moscow. The merger of Air India with Vistara as well as the Singapore Airlines joint venture gives the conglomerate access to over 200 additional aircraft, making it India’s largest international carrier and the second largest in the domestic market. If the deal is inked, the purchase could take at least a decade to be delivered, in addition to the Vistara deal. The potential procurement seems to be an indication of the Tata group’s expansion to take over a significant share of traffic flows to and from India which is currently dominated by foreign airlines like Emirates. In the domestic market, Indigo is one of the other biggest players. ALSO READ | Singapore Airlines buys 25.1% stake in Air India, that helped it in its launch In the larger context, if the purchase of the additional 500 jets is finalised, it would significantly contribute to the Indian economy with the country being one of the largest airline markets in the world as more Indians look for affordable and convenient travel options. Furthermore, it would significantly contribute to Indian Prime Minister Narendra Modi’s aim of expanding the economy to $5 trillion. Tata’s investment into the debt-laden flag carrier so far Earlier this year, Tata bought the debt-laden flag carrier from the Indian government after nearly seven decades since it was founded by the conglomerate’s JRD Tata in 1932 and later nationalised. The group, at the time of the takeover, had paid Rs 2,700 crore ($27 billion) in cash and had also taken over Rs 15,300 crore ($153 billion) of the airline’s debt. ALSO READ | Air India decides to procure Airbus A350 aircraft; first plane's delivery likely by March 2023 With the Air India takeover, Tata gained access to valuable flying rights and landing slots, particularly in the United States and Europe. The group had also announced that it would spend more than $400 million to refurbish the interiors of its entire wide-body fleet in a bid to attract more flyers. This also included the introduction of a premium economy cabin, it said, adding that the first aircraft with the improvements will be rolled out in mid-2024. Has the Tata-owned airline made any purchases yet? So far, there have been multiple reports of a landmark purchase on the horizon by Tata-owned Air India, but the company as well as the aeroplane giants have refused to comment on the same. Aside from the airline's CEO, Campbell Wilson, in November, there have been no official indications of deals. Wilson had said, “we are in deep discussion with Boeing, Airbus and engine manufacturers for a historical order of the latest generation aircraft that will power Air India's medium- and long-term growth.” He added, “At the risk of gross understatement, the investment will be substantial.” ALSO WATCH | World Business Watch: Air India slapped with $121.5 mn fine for delay in refunds On Sunday, another report by the Economic Times, citing anonymous sources, said that the Air India is close to signing a deal with Boeing Co. to buy up to 150, 737 Max planes. It added that the company is likely to place an order for at least 50 jets while they may later procure as many as 150. What are some of the hurdles to this potential purchase? Once known for its lavishly decorated planes and stellar service in the 1950s, very few opt for the airline now either on domestic or international routes. It is largely perceived as another government department synonymous with being an unreliable and shabbily managed airline with mounting debt. Nationalised in 1953, its reputation declined in the mid-2000s amid financial woes. ALSO READ | Singapore Airlines Ltd-owned Vistara announces merger with Air India The airline had a net debt of Rs 60,000 crore ($600 billion) at the time of purchase and former chief of Tata Sons, Ratan Tata had said, “While admittedly it will take considerable effort to rebuild Air India, it will hopefully provide a very strong market opportunity to the Tata Group's presence in the aviation industry.” The Reuters report, citing experts, said there are several hurdles in Tata group’s ambitious revival of Air India including “frail domestic infrastructure, pilot shortages and the threat of tough competition with established Gulf and other carriers.” Additionally, the airline might also struggle to procure the medium-haul Airbus A321neos that were reportedly being ordered for the Air India-Vistara tie-up, as the European planemaker sold out for at least the next five years or more. (With inputs from agencies)

Tata-owned Air India to place historic order of at least 500 jets: Here’s all you need to know

French energy group TotalEnergies announced on Friday (December 9) that it will exit the board of Russian gas giant Novatek. The firm also said that it would take a $3.7 billion hit to write off the value of its stake in the Russian group.&nbsp;

In the aftermath of Russia's invasion of Ukraine, the West imposed sanctions on Moscow, which was followed by several Western oil and gas majors exiting Russia.&nbsp;

TotalEnergies faced&nbsp;criticism for maintaining investments in Russia&nbsp;but now, the company has said in a statement that it cannot sell its stake in the Russian gas firm as "it is forbidden for TotalEnergies to sell any asset to one of Novatek's main shareholders who is under sanction".

In a statement, the Paris-based oil-and-gas giant said: "In view of the European sanctions in force since the beginning of the war, the two directors representing TotalEnergies on the board of directors of Novatek are led to abstain from voting in meetings of the board of directors of this company, in particular on financial matters."&nbsp;

WATCH |&nbsp;WION Fineprint: How long can the West keep supplying Ukraine?&nbsp;

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"Under these circumstances, the board of directors of TotalEnergies has decided to withdraw the representatives of the company from the board of PAO Novatek with immediate effect," the statement added.&nbsp;

It said it would also "no longer equity account for its 19.4 per cent stake in Novatek", which in turn will result in TotalEnergies recording an impairment of approximately $3.7 billion in the fourth quarter.&nbsp;

Notably, TotalEnergies is a minority shareholder in other Russian ventures, including the massive Yamal LNG gas field in Siberia and the Arctic LNG 2 project.&nbsp;

(With inputs from agencies)&nbsp;

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French energy group TotalEnergies announced on Friday (December 9) that it will exit the board of Russian gas giant Novatek. The firm also said that it would take a $3.

French energy group TotalEnergies announced on Friday (December 9) that it will exit the board of Russian gas giant Novatek. The firm also said that it would take a $3.7 billion hit to write off the value of its stake in the Russian group. In the aftermath of Russia's invasion of Ukraine, the West imposed sanctions on Moscow, which was followed by several Western oil and gas majors exiting Russia. TotalEnergies faced criticism for maintaining investments in Russia but now, the company has said in a statement that it cannot sell its stake in the Russian gas firm as "it is forbidden for TotalEnergies to sell any asset to one of Novatek's main shareholders who is under sanction". In a statement, the Paris-based oil-and-gas giant said: "In view of the European sanctions in force since the beginning of the war, the two directors representing TotalEnergies on the board of directors of Novatek are led to abstain from voting in meetings of the board of directors of this company, in particular on financial matters." WATCH | WION Fineprint: How long can the West keep supplying Ukraine? × "Under these circumstances, the board of directors of TotalEnergies has decided to withdraw the representatives of the company from the board of PAO Novatek with immediate effect," the statement added. It said it would also "no longer equity account for its 19.4 per cent stake in Novatek", which in turn will result in TotalEnergies recording an impairment of approximately $3.7 billion in the fourth quarter. Notably, TotalEnergies is a minority shareholder in other Russian ventures, including the massive Yamal LNG gas field in Siberia and the Arctic LNG 2 project. (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.

French energy group TotalEnergies pulls out of Russia gas firm's board with $3.7bn write-down

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