The worst decline in the American stock market

 Economic indicators in the United States witnessed a remarkable decline during the last weeks of the ending year, and this decline continued until the beginning of 2022, according to an analysis by the Wall Street Journal.

On Friday, the Standard & Poor's 500 Index fell 84.79 points, or 1.9%, while the Dow Jones Industrial Average lost 450 points, or 1.3%, and the Nasdaq fell 385.1 points, or 2.7%.

 

This situation raised the concerns of investors, and some of them suggested that interest rates would rise as a result.

The "Standard & Poor's 500" and "Nasdaq" index ended their worst week since March 2020, with a significant decline, while the Dow Jones index ended its worst weekly performance since October 2020, according to the same source.

The report prepared by the newspaper said that investors have repositioned their financial portfolios away from the high risks that this decline in the indices brings.

The possibility of higher interest rates particularly affected shares of technology companies and shares of non-profitable companies.

Meanwhile, oil prices and yields on government bonds soared in 2022.

Investors largely expect the Federal Reserve to raise interest rates several times this year to combat inflation, which has weighed on stocks.

Last week, Federal Reserve Chairman Jerome Powell described rapid inflation as a "serious threat" to a full economic recovery.

The data showed that consumer prices rose to a four-decade high in December.

Even with these hikes, interest rates will remain near historic lows, according to experts.

Over the past week, the Nasdaq is down 7.55%, the S&P is down 5.7%, and the Dow is down 4.6%.

Cryptocurrencies, notably Bitcoin, fell 11% to $36689.39, their lowest since July 25. Ether is down 15%.

Experts the newspaper spoke to recommended not buying technology stocks when they fell.

Alone, the consumer goods sector closed the last week "in the green" in the words of Wall Street, up less than 0.1%.

On the other hand, shares of other companies came under pressure, as "Netflix" shares plunged $110.75, or 22%, to $397.50 after the company said it expects subscriber growth to slow.

On the other hand, Peloton Sports Equipments rose $2.84, or 12 percent, to $27.06, recouping some losses after the stock fell nearly 24 percent last Thursday, due to reports that the fitness company has halted production.

Investors' bets on faster rate increases have led to higher yields on inflation-linked bonds, which are seen as a benchmark for financing costs.

The yield on the benchmark 10-year Treasury fell to 1.477% Friday, the biggest one-day yield drop since Dec. 3.

Tensions between Russia and NATO are also weighing on the market, investors said.

On Friday, global benchmark Brent crude prices fell 0.55% to $87.89 a barrel, the biggest drop in nearly two weeks, affected by a sudden increase in US crude stocks, according to analysts.

Positive signs about the "supply chain" crisis

 After months of suffering, the problem of global supply chain bottlenecks showed signs of solutions, and economists expressed cautious optimism about the future of the crisis, which contributed to high inflation rates in all major economies around the world.

In Asia, factory closures due to the coronavirus, power shortages and port capacity limits have eased in recent weeks.

US importers also said they imported most of what they needed for the holiday season, and sea freight rates had fallen to record levels.

However, executives and economists say strong consumer demand for goods in the West, persistent port congestion in the United States, a shortage of truck drivers and rising global freight rates are still overshadowing any recovery.

Shipping, manufacturing and retail managers note that they do not expect a return to normal operations until next year, and that shipments will continue to be delayed, if a new outbreak of the Covid-19 pandemic disrupts major distribution centers, according to the American Wall Street Journal.

Reducing choke points in the supply chain would allow production to move towards meeting strong demand and reduce logistics costs, and if this continues, this will in turn help reduce inflation, according to the newspaper.

Shipping and retail managers say they expect the US ports to be unloaded in early 2022, after the holiday shopping season.

 Trans-Pacific freight rates have fallen in recent weeks, as the cost of moving a container across the Pacific fell by more than a quarter last week, the biggest drop in two years.

"Globally, we have left the worst of the worst in terms of supply chain problems," Louis Koes, head of Asian economics at Oxford Economics, told the Wall Street Journal.

Any missteps, such as the repeated temporary closure of the Chinese port of Ningbo-Zhoushan last August, due to a case of "Covid-19" infection was found, could cause freight rates to rise again.

In Vietnam, owners in the country's southern manufacturing hub said production is much smoother than it was several months ago, but challenges remain, including high shipping costs and labor shortages, as many workers who have returned to their villages during a wave COVID-19, they are not back to work yet.

In China, the energy crisis that hit the country's manufacturing centers earlier this fall has eased in recent weeks, after the authorities allowed coal-fired power plants to charge higher prices.

Other factory owners say they are still struggling to deal with bottlenecks.

Since June this year, boxes full of auto parts have been piling up in the warehouse of Zhejiang Songtian Parts Industry Corporation, as more importers from the West have stopped buying, amid rising freight rates.

Economic inflation .. a "global pandemic" that exceeds the United States

 While the world is trying to get out of the repercussions of the Corona pandemic, inflation has imposed itself on one of the largest economies in the world, as the United States is witnessing a huge rise in prices, which has returned international markets to the circle of concern about a forced recession, and other economic pests, according to analysts.

The inflation rate in the United States witnessed a big jump during the month of October, reaching 6.2 percent on an annual basis, the highest level in 31 years. What are the causes of this phenomenon and its repercussions on the rest of the world?

The analyst, professor and lecturer at the American University in Washington, Dr. Gregory Avtandilian, answers in an interview with Al-Hurra, saying: "There are several reasons, but the most important among them is "supply chains."

Avtandilian explained that, "After the easing of Corona restrictions, and the return of companies and individuals to the markets, demand increased in a way that supply could not meet due to a real problem in the supply based on the movement of ships and trucks in various countries of the world."

He added: "Suppliers are unable to keep pace with the rise in demand, due to the record rise in international oil prices, and in light of the increase in demand over supply, prices inevitably rise, and this is what is known economically as inflation."

And oil prices witnessed a record rise before they began to decline this week, as US Vice President Kamala Harris confirmed, last Friday, that the United States is dealing with the rise in oil prices seriously after the rise of crude affected the prices of basic commodities.

President Joe Biden on Wednesday asked the US Competition Authority to "immediately" look into the "potentially illegal" behavior of oil companies that raise fuel prices at stations while "lowering their costs."

The White House called on Federal Trade Commission Chair Lina Khan to "be alert to increasingly clear indications of consumer-harming behavior by oil and gas companies," according to AFP.

Last week, the Organization of the Petroleum Exporting Countries (OPEC) lowered its forecast for global oil demand for the fourth quarter by 330,000 barrels per day from its estimates last month, while high energy prices impede the economic recovery from the Covid-19 pandemic.

Avtandilian noted that in addition to the rise in global oil prices, "another reason that led to the obstruction of supply is that suppliers are facing a shortage of workers and truck drivers since the beginning of the pandemic, which has led to the inability to meet the need of markets, after the reopening of economies."

In addition to the supply crisis, "the US government suffers from the fact that expenditures exceed revenues, due to the economic stimulus package that it incurred to confront the outbreak of the pandemic," according to Avtandilian.

And last March, Biden approved the new economic stimulus plan to counter the repercussions of the Corona pandemic, explaining that the new trillion rescue plan would help the middle class.

The plan includes the provision of direct cash assistance to a large segment of Americans in the range of 1,400 dollars, as well as weekly unemployment benefits in the range of 300 dollars until the sixth of next September.

The corporate tax exemption has also been extended for an additional year, until 2026.

As for how things will turn out, Avtandilian expresses his hope that "inflation rates will decrease in the second half of 2022 if there is a development in the resource chain," stressing that "inflation will remain high until this period."

On ways to address this economic phenomenon in the United States, the American economist, Sherif Fahmy, said in an interview with Al-Hurra that "the solution is to maintain the economic infrastructure in the country."

Al-Sharif praised "the performance of the Biden administration, which submitted financial proposals to the Senate that were approved, and most notably the work on rebuilding roads because the United States depends on trucks for supplies and supplies."

Al-Sharif considered that it is necessary to "work also to enhance reliance on the smart world and develop artificial intelligence techniques, to ensure access to economic movement at a low cost that is not affected by external conditions."

The effect of inflation on other countries

Regarding the impact of inflation in the United States on the rest of the countries, Avtandilian says that "it is not a reflection, but a similar one," explaining that "inflation will hit different countries, given that the problem of supply and the rise in prices of raw materials and oil are the same for everyone."

While Sharif says that "the global market is linked to the US dollar, and for example, the UAE dirham is linked to the dollar, which means if the value of the dollar is high, the global economy will be fine, especially in the oil-producing countries, most notably the Gulf states."

Here, the Saudi economic analyst, Yassin Al-Jafri, believes in an interview with Al-Hurra that "the Gulf countries are clearly and directly affected by inflation, as they are more importers than exporters."

He added that "American inflation will become a global pandemic, as it will lead to an increase in the prices of imported goods, and will also affect the exchange rate."

In turn, the Tunisian economic expert residing in France, Ezzedine Saidan, confirms, in an interview with Al-Hurra, that "the European Union is affected by the repercussions of the Corona pandemic, and there is a significant increase in prices, which indicates that inflation rates are increasing significantly."

Saidan considered that "if things continue in this way, that is, the supply remains unable to meet the demand, an explosion may occur whose repercussions cannot be expected."

In the same context, the Jordanian economic analyst, Hossam Ayesh, stresses, in an interview with Al-Hurra website, that clarifying the repercussions on the rest of the countries requires a refutation of government measures to confront the global pandemic.

Ayyash said that "the major governments incurred a lot of expenses, and spent a lot of revenues in order to be able to provide financial stimulus packages to individuals and companies, most notably the European Union and the United States."

He added that "the United States and European countries did not consider, while presenting these packages, whether there was a continuous need to keep them or not, which led to an increase in savings or unspent expenses of families and companies, which led to this wave of increased demand."

He continued, "Unfortunately, the increase in demand was accompanied by the inability of supply to meet the need due to the problem of global supply chains that stumbled or their cost increased due to the increase in energy and raw materials prices, as well as the return of the outbreak of the Corona virus in some countries, most notably China and Southeast Asian countries." .

Ayyash considered that "the current problem is how global central banks deal with inflation, as the United States, and other G20 countries, were rising to gradually re-raising interest rates, but they will now have to stop providing stimulus packages or assistance."

He expected that "governments will be forced to review interest rates at other times than they wanted, and this may affect the final result on the business community and economic growth."

It is reported that the Federal Reserve’s statement, quoting Vice Chairman Richard Clarida, said that while the US central bank remains “far from thinking about raising interest rates,” if its current forecasts for the economy prove correct, “the necessary conditions for raising the target range for the Fed will be completed by the end of 2022.

Inflation, so far, already represents "much more than a moderate overshoot" of the long-term inflation target, Clarida said, adding, "I would not consider repeat performance next year a policy success."

Regarding the impact of all this on the economies of the countries, Al-Sharif says: “The tendency of the United States and even Arab and European countries to raise interest rates will lead to companies and institutions bearing an additional cost, which their conditions after Corona may not be able to bear.”

Al-Sharif lamented that the high interest rates would lead to "the bankruptcy of tens and hundreds of thousands of companies around the world, as well as forcing governments to raise workers' wages."

He added: "Many Arab and developing countries may not allow their circumstances to bear these inevitable measures, which may lead to an increase in unemployment and poverty rates."

He concluded, "Inflation will become the topic of the hour in the world, and it will constitute a state of terror that will strike countries, governments, global central markets, companies and institutions, and even families and individuals through the rise in food and basic prices."

AMAZON: THIS BANK CARD WILL NO LONGER BE ACCEPTED FROM 2022

 Amazon has announced that payments by Visa credit cards issued in the United Kingdom will no longer be accepted to pay for an order over the internet from January 19, 2022.

To explain its decision, the web giant explains, in a statement released Wednesday, November 17, that the fees charged by the payment services company are too high. The company founded by Jeff Bezos has affirmed its ambition to "promote faster, cheaper and more inclusive payment options".

"These costs should decrease over time, as technologies advance, but the costs remain high or even increase" laments the Seattle-based company.

VISA IS "VERY DISAPPOINTED"

Visa's reaction was quick on Wednesday. The company said it was "very disappointed" in a statement, but said "continue to work" with Amazon to resolve this dispute. “When consumer choice is limited, no one wins,” Visa explained in its response.

However, some payment methods will not be affected by this announcement. In an email addressed to its customers, the American juggernaut specified that Visa debit cards or credit cards provided by Mastercard, Amex and Eurocard would still be usable after January 19.

Why will the world economy not return to normal in 2022?

 The Economist does not expect the American and global economy to return to normal in 2022 at a time when several problems still dominate the global economic situation, preventing it from recovering from the severe blow of Corona that it suffered two years ago.

In its report, the magazine refers to the great problem that the United States and the world are suffering from at the present time, which is high rates of inflation, with economists doubting that this inflation will be temporary, as well as the problem of disruption of supply chains in the world, and the increase in demand for goods in exchange for a shortage in demand. Services.

On inflation, the magazine said that economists have been saying throughout 2021 that inflation will be temporary, supply problems will subside, workers in rich countries will return to work, and energy prices will fall, but by the end of the year people and even central bankers themselves began to doubt that this could happen. .

And the American economist, Paulo von Serach, said in a statement to Al-Hurra website that the Corona pandemic caused “enormous destruction to the global economy due to the restriction of travel and production in the world, stifling supply chains, and increasing unemployment rates, and this is unprecedented.”

The Economist report says that global trade problems in 2021 were not caused only by supply disruptions, such as the closure of Vietnamese factories due to the pandemic, but also because there was an increase in demand in the United States and the world, and in the end there was no shortage of goods, compared to the significantly high demand. Unusual it.

For the global economy to return to normal, consumers need to spend more of their big money on services, such as going to restaurants and traveling, which is hard to do right now.

Unfortunately, the report says, economies are suffering from a shortage of workers needed for service industries to thrive, and there are no indications that workers are returning from vacations they took during the pandemic.

The report expects inflation to remain high in the first months of 2022, and even with an increase in interest rates, it will take a year and a half for the rate hike to have its full effect on the economy, according to central bankers.

In his statement to Al-Hurra, the American expert said that inflation rates in the United States reached about 6 percent for the first time in decades, and even with people receiving stimulus money, "they are unable to bear the costs of high prices in almost everything."

He expected the US Federal Reserve to raise interest rates at some point, to deal with the inflation crisis.

The report also expected that the slow growth in China would have negative repercussions on the world, with the continuing real estate crisis there.

Above all, the epidemic is not over yet, according to the magazine, and the virus’s strong spread again, if the strength of vaccines declines and new variables appear that vaccines cannot deal with, disrupt economies again.

The economist says to Al-Hurra website that the global economy has improved recently due to the vaccines and policies that have been followed, but Covid is not over yet.

"The global economy will not return to normal until Covid-19 becomes a disease that can be controlled," he adds.

With a supply problem, the report says, the world cannot repeat the trick of maintaining economic growth by using economic stimulus money, which increases consumer spending on goods.

The American economist agrees on this, saying that the more money is in the hands of American consumers because of the stimulus money and with the problem of supply, the demand increased more and the supply decreased more, which increased the pressure on prices.

The magazine suggests that the world's central banks take drastic measures to cut spending in order to avoid inflation, while making room for supply in the markets to adapt to new spending and working patterns, which are very different from what prevailed before.

"If normal life does not return in 2022, the alternative is a painful economic adjustment," the report says.

The analyst does not expect things to return to normal soon, "because of the problems caused by the epidemic, the consequences of which have not decreased, to the point where it can be said that there is an opportunity to return to what we were before." "We will continue to suffer," he says.

Emirati-Israeli talks to reach a comprehensive economic partnership

 Today, Tuesday, the UAE and Israel announced the launch of bilateral talks to reach a comprehensive economic partnership agreement.

Emirati and Israeli media reported that the talks started via video call, with the participation of Abdullah bin Touq Al Marri, UAE Minister of Economy, and Orna Barbivay, Israeli Minister of Economy, in the presence of Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, and Mohammed Al Khaja, UAE Ambassador to Israel.

The comprehensive economic partnership agreement between the two countries, if reached, aims to strengthen economic relations, promote trade exchange to higher levels, and create a wealth of new investment opportunities for companies of the two countries.

Before launching the talks, the UAE Minister of Economy said that his country continues to develop its economic model to be more sustainable, flexible and open to global markets.

He added, "It has been more than a year since the conclusion of the Abrahamic Peace Agreement between the UAE and Israel, as an expression of the common desire to promote peace, stability and prosperity in the Middle East."

He continued, "During this period, we worked on utilizing the new diplomatic relations between the two countries to enhance economic partnership and develop trade, investment, tourism, industry and scientific and technological cooperation at the bilateral and regional levels."

For her part, the Israeli Minister of Economy stated that "the launch of these official talks will contribute to strengthening cooperation and discussion during the next stage, with the aim of reaching a comprehensive economic partnership agreement that contributes significantly to the development of trade between the two countries."

She expressed her ambition that the agreement, when completed, would serve the business communities in the two countries, and would create wide opportunities in a number of sectors of common interest.

The value of trade exchange between "Israel" and the UAE amounted to more than 3.5 billion dirhams (about $950 million) in a year since the signing of the peace agreement between the two parties, in September 2020, until the end of September of this year 2021.

Boeing is back in the competition!

 The American company "Boeing" returned to rival "European" Airbus on the third day of the Dubai Air Show, placing several orders on Tuesday, including the sale of 72 "737 Max" aircraft to a newly created Indian company.

And "Boeing" got small orders, compared to its competitor in the first two days of the huge air show, the first of this size since the outbreak of the Covid-19 virus, which paralyzed global travel for many months.

Boeing's deal with India's Air Akasa is worth about $9 billion, and according to the US manufacturer, this agreement will allow the newly founded Indian company to "build its fleet" in order to launch its operations quickly.

"We are delighted to be collaborating with Boeing on our first order of the aircraft, and we thank them for their confidence in the business plan" of his company, India's CEO Vinay Dube said in a statement.

"India is one of the fastest growing air transport markets in the world with unparalleled potential. We are already seeing a strong recovery and see decades of growth ahead," he added.

Boeing continued production of the Max planes after the plane was grounded in two fatal accidents, although it canceled more than 600 orders for the plane last year.

The US plane maker had 370 parked planes waiting for customers at the end of October, according to its president, David Calhoun. Therefore, selling aircraft of this type is a good thing, especially since the aircraft will be for a startup company.

According to Dube, Max's planes will help his company "achieve our goal of operating a profitable, reliable and affordable airline, but also an environmentally friendly company with a modern fleet."

Modern models such as the Max or the Airbus A-320neo family can save more than 15 percent of the usual amount of kerosene, thus reducing carbon dioxide emissions by the same amount, which is necessary since air transport is exposed pressured by concerns about climate change.

In addition to the agreement with the Indian company, "Boeing" also signed a contract with Tanzanian Airlines to sell it five long-range aircraft, a "787 Dreamliner", a 767 freighter, and two "737 Max" models, worth about $726 million.

Boeing also announced the sale of the Emirati lessor, Sky One FZE, 3 completed 777 aircraft, and the sale of two 777 freighters to Emirates Airlines, while acknowledging that the latter deal is already registered in its order book.

For its part, "Airbus" continued to harvest contracts after a giant order of 255 "A-321s" for the American "Indigo Partners" group, and a letter of intent signed with "ELC" to sell 111 aircraft of all models.

The European carrier also signed a firm order to sell 10 A220s to Nigeria's state-owned Ibom Air, a deal worth more than $800 million according to the last discontinued price list in 2018.

Airbus also signed a memorandum of understanding for the sale of 20 A320s and eight A321s to the Kuwaiti company, Al Jazeera, in addition to the option to purchase five additional similar planes.

According to Al-Jazeera, "the deal is valued at more than $3.3 billion, according to the list price, while the actual value of the deal will remain confidential."

While airlines have been hit by the collapse in global air traffic, which has returned to half its pre-crisis level, they are beginning to recover and set delivery times for new planes, according to Airbus President Guillaume Faury.

For Emirates President Tim Clark, once back on the recovery path, there will be 18 months "of increased demand, something we haven't seen before".

Clark expects global travel to return to pre-crisis levels by 2023-2024, to grow by about four percent each year thereafter.

But he predicted that "there will be no capacity in the international airline industry to meet this demand." "This is the biggest problem in the future, during the next five to ten years," he said, according to what was reported by "AFP."

OVER $ 1,000 PROFIT PER SECOND, ACCORDING TO A STUDY

 For Pfizer, BioNTech and Moderna, seconds are golden. According to a study published this Tuesday, November 16 by the People's Vaccine Alliance, the trio collectively collects more than 1,000 dollars (about 880 euros) per second, 65,000 dollars per minute and 93.5 million dollars per day.

A colossal profit that the association considers "indecent" since these pharmaceutical groups have amassed this money by selling the vast majority of their doses to rich countries, at the expense of less developed nations which remain very poorly vaccinated.

34 BILLION DOLLARS IN PROFITS BEFORE TAX

Maaza Seyoum, member of the African branch of the People's Vaccine Alliance, specifies that “only 2% of people in low-income countries have been fully vaccinated against the coronavirus”. This, even as "a few companies are pocketing millions of dollars in profit every hour."

According to calculations by the association, which campaigns for a better distribution of vaccines across the world, the three laboratories should, according to the results they have published, make pre-tax profits of $ 34 billion. This year. Knowing that Pfizer, BioNTech and Moderna, unlike AstraZeneca and Johnson & Johnson, do not sell their serum at cost.

Recalling that the three of these groups have mobilized more than $ 8 billion in public funding, the People's Vaccine Alliance further criticizes them for rejecting calls to transfer vaccine technology to producers in low-income countries. , through the World Health Organization (WHO).

However, this measure "could increase the global supply, lower prices and save millions of lives," said the association. Also, she urges these pharmaceutical giants to immediately lift the patents protecting anti-Covid vaccines, via an initiative of the World Trade Organization, around which negotiations continue.

“Sex outside marriage” in Morocco “suffocates” hotels

 Hotel owners in Morocco are seeking to amend an article in the penal code that prohibits sexual relations outside marriage, which prevents any man and woman who are not in a marriage relationship from renting a joint hotel room, which has negatively affected the tourism market, which has already declined due to the Corona pandemic, according to a report. For The Economist.

The magazine said that the number of tourists who visited Morocco decreased by 80 percent due to the Corona epidemic, "and Morocco's ban on sex outside marriage makes matters worse, which stifles the local market" for hotels.

The report says that Article 490 of the Penal Code punishes people who are caught in one room without proof that they are in a marriage relationship, with imprisonment for up to a year.

"I get more calls from single couples who want to stay more than others," says Mariam Zniber, a resort manager in the Rif Mountains region. "I can fill my hotel 100 percent if they only lift the legal ban."

The report refers to the hopes that were placed in changing the law after the defeat of the Islamists in the parliamentary elections, and Aziz Akhannouch, who seems more liberal, assumed the prime ministership, and his government pledged to review the entire penal code, but he removed the only party from his coalition that publicly called for the amendment of the article, according to the magazine.

The Ministry of Interior may also oppose the law, and according to a former minister who spoke to the magazine, they "are afraid of turning hotels into brothels."

The report says that while conservatives in Morocco call for respect for tradition, young people say Article 490 was introduced by France in 1953, near the end of the colonial era, and point to other Muslim countries that have been freed from similar laws banning sex outside of marriage.

Last February, activists launched a campaign to repeal Article 490, following a court order to imprison a woman for a month for having sex outside marriage.

There were campaigns and hashtags under the titles "Love is not a crime" and "Stop490" (Stop Article 490).

This activist called for solidarity with the young woman who was imprisoned for "corruption and public indecency" after a video of her of a sexual nature spread.

Airbus announces the signing of a "historic" contract

 Airbus signed a "historic" contract to sell 255 A321 single-aisle aircraft to four companies affiliated with the American "Indigo Partners" group, on the first day of the Dubai Airshow, Sunday.

The order value for Wizz Air, Frontier Airlines, Volaris and Jet Masart is more than $33 billion, according to the latest price list published in 2018, by the giant European manufacturer.

The Dubai Airshow opened its doors on Sunday in the first large gathering organized since the Covid-19 pandemic, with the start of the recovery of the aviation sector, which is facing a difficult dilemma due to environmental pressures.

The paralysis of air traffic in the spring of 2020 severely damaged airlines, caused financial losses, and put pressure on companies that suspended hundreds of flights due to the lack of passengers.

According to estimates by the International Air Transport Association (IATA), global airlines will incur a global loss of 51.8 billion dollars this year due to the Covid-19 epidemic, and will continue to record negative results in 2022, but with a lower loss estimated at 11.6 billion dollars.

"We are pleased to expand our relationship with "Indigo Partners" (...who acted quickly and decisively over the past few months to prepare themselves for this historic decade as the impact of the epidemic recedes," Airbus said in the statement, after signing with the American group. .

Under the contract, Hungarian Wizz Air will get 102 planes, American "Frontier" will get 91, Mexican "Volaris" will get 39, and Chilean "JetSmart" will get 23.

Of the 255 A321s, 29 are the futuristic single-aisle XLR, which is capable of traversing long distances, usually the preserve of large aircraft.

TESLA: ELON MUSK SOLD ALMOST $ 7 BILLION SHARE IN ONE WEEK

 Tesla chief Elon Musk this week sold more than $ 6.9 billion in shares of his company, according to documents released Friday by the Securities and Exchange Commission (SEC), the US market regulator.

As the complainant explained himself, he does not receive a salary. Selling his shares is therefore a way for Elon Musk to pay his taxes. But this operation is not without risk either.

Before launching, the CEO of Tesla had also decided to publish a survey on the social network Twitter. Indeed, Elon Musk had turned directly to Internet users to ask if he should sell "10% of his shares in Tesla," his electric car company. Some 3.5 million users had voted in this way, and 57.9% of the votes had responded positively.

Two days after that poll, the company's shares had fallen 15.4%. But as the BBC website reminds us, "Tesla is the most valued automobile manufacturer in the world, with a market value of over a billion dollars".

On Friday, Elon Musk then sold 1.2 million shares held by his trust, or more than $ 1.2 billion, according to documents released by the SEC. This is also in addition to his sale of 3.6 million shares valued at $ 4 billion, and an additional 934,000 shares for approximately $ 1.1 billion.

1.4 BILLION DOLLARS WILL BE TAXED

In total Elon Musk has therefore sold more than 5.1 million shares of the manufacturer of electric vehicles, of which about 4.2 million were housed in a trust. About $ 1.4 billion in capital gains taxes will be taken from the $ 6.9 billion Elon Musk earned by selling his shares this week. A significant value, since this is one of the largest disposals ever observed in such a short period and without the sale being constrained or falling within the framework of an inheritance.

And although Elon Musk could have sold his shares at an even higher price before his tweet, it should be noted that the man from South Africa had already initiated the sale of at least some of these shares on the basis of a pre-established negotiation plan since September 14, as the documents also specify. It seems his decision to sell to pay his taxes was already taken, especially since it comes as US Democrats recently proposed "a billionaire tax" that could tax the richest on their "unrealized gains" .

In the meantime, the documents filed Friday with the SEC, recalls that Elon Musk still holds at the end of the operation, 1.22 million Tesla shares in open access, as well as 166.2 million other housed in a trust, the total value of which is estimated at 173 billion dollars. This contributes to making the fiftieth the richest man in the world, thanks to a total fortune which amounts to 281.6 billion dollars, or 246 billion euros.

ALIBABA MAKES A LOW PROFILE

 While tech giants are closely watched by the Communist Party, Alibaba has downplayed the importance of its new record: € 74 billion in sales in just 24 hours.

Chinese e-commerce giant Alibaba on Friday announced a new record for its annual "Singles Day" sale operation, with 74 billion euros spent in 24 hours. Up 8.5% compared to last year.

The "Singles Day" gives rise every year in China to a rush of consumers on their smartphones to order millions of products at reduced prices (clothing, food, computers ...).

But Alibaba, in the sights of regulators for several months, has contrary to its habits downplayed the importance of its new record.

"The amount of sales is no longer the only indicator of success," Alibaba said in a statement.

The "Singles Day" is presented as the biggest sales operation in the world, ahead of the American "Black Friday".

Alibaba in the crosshairs of the authorities

The group based in Hangzhou (eastern China) usually organizes a large media operation, where a giant screen shows in real time the amount of transactions carried out on its platforms. But Alibaba has kept a low profile since last year and its founder Jack Ma's criticisms of regulators, which he accused of hampering the development of his company.

The authorities had imposed the stop of a gigantic IPO (34 billion euros), of Ant Group, the financial arm of the company, on a background of concern about the systemic risks that such an operation would create weigh on the financial system.

Alibaba was then fined 2.3 billion euros for abuse of a dominant position. The platform was accused of prohibiting merchants from selling their products on competing platforms or of using algorithms to bombard consumers with purchase recommendations.

Alibaba's main competitor, JD.com, announced sales of 271 billion yuan (37 billion euros), a sharp increase of about 28% year on year. The two rival platforms say they have recorded particularly strong sales for certain items: household appliances, electronic devices, pet products and even cosmetics.

Qatar Airways joins IATA

 Qatar Airways said it will become the first air cargo company to join the "IATA CO2NNECT" platform, which provides innovative environmental solutions to its customers, in partnership with the International Air Transport Association (IATA).

And according to what was reported by the Qatar News Agency (QNA), yesterday, Thursday, "Kona + Nagel", which is considered one of the leading global companies for freight and logistics services, will be the starting platform for this program in line with its commitment to sustainability.

Earlier this month, Qatar Airways Cargo operated the first carbon-neutral air cargo flight from Doha to Frankfurt (Germany), Zaragoza (Spain), Liege (Belgium) and Paris (France).

Qatar Airways said that it will contribute to the transportation of carbon-neutral air freight by providing an integrated solution for calculating and offsetting carbon emissions, between Qatar Airways Cargo, customers and air freight agents such as Kona + Nagel.

This pilot project was launched on four air segments, and the company plans to expand its scope to include all the destinations to which Qatar Airways Cargo operates.

This project uses IATA best practices to calculate CO2 emissions per kilogram of freight.

Through this program, freight customers can easily offset the carbon related to air shipments, as a step towards fulfilling their environmental sustainability commitments.

These offsets will only be used after they have been verified and in accordance with high quality CORSIA regulations.

Qatar Airways CEO Akbar Al Baker said the company has implemented a carbon offset program for passenger flights in 2020.

Al Baker added: "Providing the option of carbon-neutral air freight transportation from now on, Qatar Airways Cargo has always been at the forefront of airlines in launching initiatives in the aviation sector."

For his part, Director-General of the International Air Transport Association (IATA), Willie Walsh, said that the aviation sector's goal of reaching net zero carbon emissions by 2050 applies to both passenger flights and air freight.

Qatar Airways Cargo is looking to take the lead in meeting the expectations of travelers with the highest standards of environmental sustainability, by offering a voluntary program to offset carbon in air freight.

The country program applies best practices in the aviation sector to account for and offset carbon to ensure more sustainable air freight transportation.

Elon Musk sells 5 billion dollars of Tesla shares

 Tesla CEO Elon Musk has fulfilled his promise to sell a portion of his stake in the company, worth $5 billion.

The American billionaire took this step a few days after a poll he posted on Twitter, in which he asked for the opinions of his followers about selling ten percent of his stake.

In the first sale of shares since 2016, Musk sold nearly 3.6 million shares in Tesla, worth about four billion dollars, and sold another 934,000 shares for 1.1 billion dollars, after activating financial options to obtain approximately 2.2 million shares.

Sold shares equal about three percent of his total holding in the electric car manufacturer, which makes up the bulk of his fortune, estimated at $281.6 billion.

On Saturday, Musk began a poll on Twitter to sell about 10 percent of his holdings, which led to a decline in the value of Tesla's stock, after the majority supported the sale.

The stock fell 12 percent on Tuesday in a multi-day sell-off that put the company's standing as one of the more than $1 trillion companies at risk, but the stock rose 4.3 percent on Wednesday.

The sale gave Musk large reserves of cash, as his wealth is linked to his stakes in Tesla and SpaceX, and he does not receive a financial wage or salary for her work in them.

Although Tesla lost nearly $150 billion in market value this week, retail investors were net buyers of the shares, netting $157 million on Monday and Tuesday, according to Vanda Research.

Suez Canal raises traffic fees

 The Suez Canal announced, on Wednesday, that the authority will raise the prices of vessel transit fees by six percent, starting from next February.

The head of the authority, Osama Rabie, said in a telephone interview with the Egyptian satellite channel "Sada Al-Balad", that "this increase will include all ships except for two types only."

He explained, "No increase will be imposed on cruise ships, because this sector has suffered and is still suffering due to the Corona pandemic."

He added that the decision will not include the passage of LNG ships, "because we have already raised their prices at the beginning of this month by ten percent."

Rabie pointed out that this increase is the first in seven years, and that it comes at a time when the maritime transport sector is in great demand, adding that this increase will bring the authority "from 400 to 500 million dollars per year."

He added that the decision came after reviewing "the periodic reports and recommendations issued by international organizations such as the International Monetary Fund, which indicated that there is a growth in the global economy by six percent, a continuation of the growth of global trade and a high demand for maritime transport at seven percent, in addition to We studies the market and the flow in the Suez Canal."

He continued: "After the prices of freight and goods increased, we had to take our share, because we want to provide a distinguished service and develop the authority and bring in new units."

ELECTRIC CARS Rivian has started his stock market adventure

 It is more than the legendary Ford or General Motors manufacturers even though it has barely taken its first vehicles off the production line.

Rivian, an American manufacturer of pick-ups,

SUVs and electric vans, on Wednesday started his stock market adventure on the hats of wheels on Wall Street, where it is now worth more than $ 100 billion.

It is more than the legendary manufacturers Ford (78 billion) or General Motors (86) even though it has barely taken its first vehicles off the production line, prompting comparisons with Tesla in the process.

Rivian had set its introductory price at $ 78 on Tuesday evening, well above the range of $ 57 to $ 62 considered less than ten days ago. In view of the strong demand, it also increased the number of shares issued on Tuesday.

$ 12 billion in new money

But that wasn't enough to quench the thirst of the market, which briefly propelled it up more than 50% at the start of its listing, around 4:00 p.m. GMT. At around 4:40 p.m. GMT, the stock was trading at $ 108.79, or a market capitalization of around $ 108 billion.

The IPO allows it to recover at least $ 11.9 billion in new money. This is the largest fundraiser in this way since 2014 and the arrival on Wall Street of the Chinese giant Alibaba.

The company was founded in 2009 by Robert Scaringe, a car enthusiast who wanted from the end of his studies to focus on low-polluting means of transport.

He initially thought about developing a sports car, but reoriented in 2012, believing that it would have more of an environmental impact with large vehicles.

The 38-year-old entrepreneur has convinced large companies to accompany him in his adventure, including Ford, which should own 13% of Rivian's shares after its IPO.

The company has also entered into a partnership with Amazon, which has ordered 100,000 vans to be delivered by 2030 and is expected to hold around 19% of the shares after the transaction.

Still largely in deficit

The company delivered its first pickups, dubbed R1T, in September.

With rounded contours, being able to pull up to 5 tons and go about 500 kilometers with a recharge, the R1T is sold at the base price of 67,500 dollars.

Rivian plans to sell its first SUVs, vehicles at the crossroads of 4x4 and minivan, in December. Called R1S, they sold for $ 70,000.

At the end of October, the company had an order book for 55,4000 R1T and R1S that it expected to deliver by the end of 2023.

All of its vehicles are currently produced at a factory in Normal, Illinois, acquired from Mitsubishi in 2017.

Rivian is still largely in deficit. But the company was capitalizing on the investor craze for electric vehicles on Wednesday, which saw Tesla join the small club of companies worth more than $ 1,000 billion on Wall Street.

New Tesla?

"There is currently a huge demand for all ESG investments (respecting environmental, social and governance criteria)", explains Gregori Volokhine, portfolio manager for Meeschaert Financial Services.

But "there are not so many big companies" which purely meet these criteria, he adds: General Electric for example manufactures wind turbines, but also gas turbines while Ford or GM continue for the moment. to produce the vast majority of vehicles with exhaust pipes.

Rivian is sometimes touted as the “new Tesla” in the truck niche. Especially since the company has chosen, like the group of Elon Musk, to sell its cars directly to customers and not through dealers.

This comparison is not necessarily justified, according to Jessica Caldwell of the specialist firm Edmunds.

Tesla released its first model when no one really cared about electric cars, she told AFP.

A little saturated market

Rivian "arrives on a market which already seems a little saturated" with other start-ups of clean vehicles like Lucid, Faraday or Fisker, and especially the traditional manufacturers having recently taken the turn of the electric one.

"The largest manufacturer of pick-ups in the world, Ford, is preparing to launch a more affordable, larger vehicle under a better-known brand in the coming months," recalls the specialist.

Rivian could perhaps do well in the utility vehicle market even if he faces the ambitions of GM and its new subsidiary BrightDrop there.

But, also concedes Ms. Caldwell, "all investors are looking for the company that could experience the same boom as Tesla on the stock market and some think it is Rivian"

Evergrande faces a 'big test'

 Weeks ago, global markets were nervous about the possible collapse of China's Evergrande Group, the world's most indebted real estate developer, and everyone feared the impact of debts totaling $300 billion on China's economy in general, if Beijing did not provide a rescue plan for the company.

Although the turmoil in Evergrande has eased recently after the company made payments on multi-million dollar bonds, its financial problems have already sparked a broader panic that has contributed to a wave of defaults among other developers, whose problems are growing, according to the report. The New York Times, USA.

It is becoming harder to find money because the cost of borrowing has gone up, fewer people are buying apartments and property values ​​are declining, the paper said.

CAISA Group, the first Chinese developer to default on foreign debt in six years, told investors last week that it was facing "unprecedented pressure".

The pressure on Chinese real estate developers has increased to the point that the US Federal Reserve referred to it as a potential risk to the US economy in a report this week.

With Chinese property developers failing to meet their core financial commitments, experts warn that Evergrande's problems are already having a serious spillover effect.

A report published on Bloomberg says that the company faces a major test, Wednesday, as a debt of $ 150 million is due, and it is unclear how the company will be able to pay it “when the company has no money, no one is buying its apartments, and a very long queue of creditors stands outside its doors.”

According to the network, the way Evergrande will deal with this debt, may deliver messages to other creditors.

More than a million homebuyers await unfinished apartments, and the company owes money to many builders, painters and employees.

The company began granting vacations for a year, with a salary of less than ten percent of the usual salary for many of its employees, and told them that it would use the money to pay the company's debts or to finish the apartments due for delivery.

CNN said Evergrande is looking at about $8 billion in debt obligations to foreign investors over the next year. The company's billionaire founder and chairman, Xu Jia-yin, may have to pay at least some of that out of his own pocket.

Concerns have been raised that the real estate developer will default and spark a spark that affects global markets, and in its latest financial stability report, the US Federal Reserve warned that "pressures in China's real estate sector could strain the Chinese financial system, with potential repercussions for United States," according to the network.

The US Wall Street Journal said that "the largest sale in China's international junk bond market wiped out about a third of bondholders' wealth in just six months."

"This sharp and rapid decline shows how regulatory restrictions on borrowing, largely unraveling credit markets, and slowing home sales have combined to pressure more Chinese property developers, who account for most of China's high-return investment," she added.

China is enacting new measures to change how the economy operates and reduce the power of executives. Driven by a desire to consolidate state control, these changes, according to the New York Times, mark the end of a golden age of private business that made the country a formidable manufacturing power.

The newspaper said that China's leader, Xi Jinping, is reshaping the business world in China in his own image, above all, and this means control.

Already implementing many measures, the Chinese government has tightened internet control in the country, declared all financial transactions involving cryptocurrency illegal and detained top CEOs of troubled companies, meanwhile, China's largest developer, Evergrande, is reeling without any News from those responsible for the rescue operation.

What China does next will be important, the newspaper said. If Chinese officials rescue the Evergrande, they risk sending the message that some companies are still too big to fail, and if not, as many as 1.6 million homebuyers are waiting for apartments. Unfinished and hundreds of small businesses, creditors and banks could lose their money."

The Chinese authorities have tried to instill confidence and reassure investors by describing Evergrande's risks as manageable and pledging to ease Chinese capital controls on the movement of money into and out of the country, which would help Evergrande and other property developers make payments to foreign creditors.

While Beijing has indicated earlier that it will not step in to bail out the Evergrande - part of a broader strategy to clean up the sector's debt problem - the Chinese authorities have a history of quietly bailing out the country's giants.

Before the Evergrande, the Chinese authorities rescued HNA Transport and Hotel Company, after news spread that a number of its managers had been detained.

Like HNA, Evergrande has hired restructuring experts, but little is known about whether the authorities plan to break up the company.

Some Evergrande investors had a chance to learn more about the company's daunting challenges during a recent meeting, but they signed confidentiality agreements ordering them to keep information confidential before a potential restructuring.

MasterCard and Bitcoin Payment

 MasterCard has partnered with 3 digital asset platforms in Asia to issue payment cards that allow users to convert Bitcoin and other cryptocurrencies into fiat currencies, according to Forbes.

MasterCard announced Tuesday that it is teaming up with crypto finance company Amber Group in Hong Kong, Bitkub in Thailand, and Australian trading platform Coinjar, as the partnership aims to offer crypto-linked credit, debit and prepaid cards to individuals and businesses across Asia Pacific.

Cardholders will be able to instantly convert Bitcoin and other digital currencies into fiat currencies, which can then be spent online or offline with any of the merchants that accept MasterCard payments.

The collaboration comes as interest in cryptocurrencies is rising to an all-time high in the Asia Pacific region, Mastercard said in a statement, with the payment giant in America finding in its latest survey that 45% of consumers in the region are considering using currencies. digital over the next year, which is higher than the global average of 40%.

“In collaboration with those partners who adhere to the same core principles as Mastercard, which is that any digital currency must provide stability, regulatory compliance, and consumer protection,” Rama Sridhar, Executive Vice President of Mastercard who oversees digital partnerships in the Asia Pacific region, said in a statement. MasterCard is expanding what is possible with cryptocurrency to give people more choice and flexibility in how they pay.”

MasterCard is strengthening its services as its main competitor, Visa, is also seeking to capture a dominant share in the emerging cryptocurrency payment market. And merchants in America on the MasterCard payment network offer crypto-related services, such as offering customers bitcoin as rewards.

In April, MasterCard teamed up with cryptocurrency exchange Gemini to launch credit cards in America, and the move came just a month after Crypto.com announced its partnership with Visa to launch a similar service.