Source: AUN News
The Not-So-Good Day of Meta
The day of Wednesday was not good for the organization formerly known as Facebook. The Federal Trade Commission filed a case first, and the corporation then disclosed its first-ever revenue decline since becoming public. The F.T.C., led by Lina Khan, a renowned opponent of Big Tech, is suing Meta to prevent it from acquiring Within, a virtual reality business that would support Meta’s CEO Mark Zuckerberg’s entry into the metaverse. The F.T.C. charged Meta with trying to acquire a business that it ought to be in competition with in the lawsuit.
The agency had assembled a case “based on ideology and guesswork,” Meta said. Later, the business said that its second-quarter revenue had decreased by 1% from the prior year. Mr. Zuckerberg explained these figures in terms of a “economic downturn that will have a broad impact” on digital advertising. Even yet, he seems determined to implement his vision for the company’s future, and he has made it clear to his staff that anyone who is not on board is free to go.
Is there a recession? Or Not?
The economy dropped for the second quarter in a row, fitting one traditional definition of a recession. Accounting for inflation, the Commerce Department said on Thursday that the gross domestic product declined 0.2 percent in the second quarter. However, while GDP is widely monitored, it is not the only indicator of a severe downturn: Economists analyze a wide range of data to assess the state of the economy, including measures of income, spending, and employment, and the majority believe that the United States is not in a recession. The latest GDP figures, as perceived by Federal Reserve officials, indicate that their attempts to slow the economy are working. However, the prognosis is undoubtedly worse, particularly as the housing market slows and some layoffs start to creep up.
Supersized Rate Rise by the Fed
Last week, the Federal Reserve increased interest rates by three-quarters of a percentage point in a continued effort to rein in increasing prices. The supersize rise was unanimously approved by policymakers and came after one of the exact sizes in June, which was the greatest since 1994. According to the Biden administration, the Fed plays a significant role in keeping inflation under control. However, President Biden announced a deal with West Virginia Senator Joe Manchin III a day after the Fed meeting to pursue a package known as the Inflation Reduction Act. The strategy will “meaningfully contribute,” according to Cecilia Rouse, chair of Vice President Biden’s Council of Economic Advisers, to the government’s attempts to reduce inflation.
Next, what? July 31–August 6
Increased Oil Profits
Energy is an obvious winner in the global markets as every other industry battles with issues like growing production costs, shortages, supply chain snarls, shifting consumer habits, the strength of the dollar against other currencies, and the list goes on. Another record for the corporation was set last week when Shell announced $11.5 billion in earnings for the second quarter, thanks to skyrocketing oil and gas prices sparked by the conflict in Ukraine. With record profits for the quarter, Exxon Mobil and Chevron followed suit. BP will likely report equally explosive figures on Tuesday.
The corporation reported a “excellent” performance overall, more than doubling its profits from a year earlier, but wrote off $25.5 billion for leaving Russia in the first quarter. As rising energy prices shake up economies, the largest oil firms of the globe will collectively declare by the end of this week that they have added tens of billions of dollars to their bottom lines.
Yet Another Job Report That Will Be Watched
As a result of June’s higher-than-expected job growth and an expanding economy, the labor market is still thriving. The Fed, whose officials are monitoring a variety of economic statistics for indications that the economy is cooling off from its brisk pace, did not necessarily find that to be a positive conclusion. On the other hand, when asked whether the economy is in a recession, the Biden administration may utilize a positive jobs report as a message tool. On Friday, the July jobs report will be released, giving analysts a new number to analyze as they try to determine where the economy is at.
Britain also has high inflation
Bank of England officials hinted at the possibility of being less circumspect about rate rises in August following a string of quarter-point increases at its most recent meeting in June. Its benchmark rate is at 1.25, which is the highest value since 2009. Inflation in Britain is racing at its fastest rate in decades, as it is everywhere, and some central bank officials are concerned they are not acting quickly enough to curb it. Three of the nine members of the rate-setting committee voted against a half-point rise in June, but the majority overruled them. The pressure from other central banks that are operating more aggressively may now be felt by policymakers.
What else is there?
A day after Spirit broke off merger talks with Frontier Airlines, JetBlue Airways and Spirit Airlines announced their intentions to join. The company’s more than 500 stores unionized for the first time at a Trader Joe’s in Hadley, Massachusetts. Following the involvement of celebrities in a user-led backlash, Instagram retracted several of its product changes.
Analysis by: Advocacy Unified Network