Army of lobbyists helped water down banking regulations

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FILE – The Silicon Valley Bank logo is seen at an open branch in Pasadena, Calif., on March 13, 2023. A handful of red state Democrats were instrumental helping Republicans secure a rollback of banking regulations sought by then-President Donald Trump in 2018. Now those changes are being blamed for contributing to the recent collapse of Silicon Valley Bank and Signature Bank that prompted a federal rescue and stoked anxiety about a broader banking contagion. (AP Photo/Damian Dovarganes, File)

By BRIAN SLODYSKO and KEN SWEET Associated Press

WASHINGTON (AP) — It seemed like a good idea at the time: Red-state Democrats facing grim reelection prospects would join forces with Republicans to slash bank regulations — demonstrating a willingness to work with President Donald Trump while bucking many in their party.

That unlikely coalition voted in 2018 to roll back portions of a far-reaching 2010 law intended to prevent a future financial crisis. But those changes are now are being blamed for contributing to the recent collapse of Silicon Valley Bank and Signature Bank that prompted a federal rescue and stoked anxiety about a broader banking contagion.

The rollback was was leveraged with a lobbying campaign that cost tens of millions of dollars and drew an army of hundreds of lobbyists into the effort. It also was seeded with ample campaign contributions.

The episode offers a fresh reminder of the power that bankers wield in Washington, where the industry spends prodigiously to fight regulation and often hires former members of Congress and their staff to make the case that they are not a source of risk to the economy. Continue reading


Oil giant Saudi Aramco makes a historic $161B profit in 2022

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FILE – Storage tanks are seen at the North Jiddah bulk plant, an Aramco oil facility, in Jiddah, Saudi Arabia, on March 21, 2021. Oil giant Saudi Aramco said Sunday, March 12, 2023, it earned a $161 billion profit last year, attributing its earnings to higher crude oil prices.(AP Photo/Amr Nabil, File)

By JON GAMBRELL Associated Press

DUBAI, United Arab Emirates (AP) — Oil giant Saudi Aramco reported Sunday earning $161 billion last year, claiming the highest-ever recorded annual profit by a publicly listed company and drawing immediate criticism from activists.

The monster profit by the firm, known formally as the Saudi Arabian Oil Co., came off the back of energy prices rising after Russia launched its war on Ukraine in February 2022, with sanctions limiting the sale of Moscow’s oil and natural gas in Western markets.

Aramco also hopes to increase its production to take advantage of market demand as China reenters the global market after lifting its coronavirus restrictions. That could raise the billions needed to pay for Crown Prince Mohammed bin Salman’s plans to develop futuristic cityscapes to pivot Saudi Arabia away from oil. Continue reading


Tesla price cuts: Flagging demand or tactic to boost sales?

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FILE – A Tesla logo is seen on a vehicle on display in Austin, Texas, Wednesday, Feb. 22, 2023. On Wednesday, March 1, Tesla executives said the company will use innovative manufacturing techniques and smaller factories to cut the cost of its next generation of vehicles by as much as half of the ones it now builds. (AP Photo/Eric Gay, File)

By TOM KRISHER AP Auto Writer

DETROIT (AP) — In explaining why Tesla Inc. keeps cutting prices on its electric vehicles, the auto industry is pretty much divided into two camps.

On one side are analysts who see an aggressive move by the leading manufacturer of EVs to gobble up sales and market share from its competitors just as they’re beginning to bring more vehicles to market.

On the other side are critics who argue that with demand for Tesla’s older vehicles beginning to wane, the company feels forced to slash prices to attract buyers.

Over the weekend, Tesla cut the prices of its two costliest vehicles, from $5,000 to $10,000, or from 4.3% to just over 9%. A Model S two-motor sedan now starts at $89,990, with the Plaid “performance” version beginning at $109,990. A Model X SUV dual motor starts at $99,990, the performance version at $109,990. Continue reading


4-day workweek trial: Shorter hours, happier employees

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FILE – A woman types on a laptop while on a train in New Jersey, May 18, 2021. A trial of a four-day workweek in Britain, billed as the world’s largest, has found that an overwhelming majority of the 61 companies that participated over six months last year will keep going with the shorter hours and that most employees were less stressed and burned out and had better work-life balance. (AP Photo/Jenny Kane, File)

By COURTNEY BONNELL Associated Press

LONDON (AP) — Work less, get more.

A trial of a four-day workweek in Britain, billed as the world’s largest, has found that an overwhelming majority of the 61 companies that participated from June to December will keep going with the shorter hours and that most employees were less stressed and had better work-life balance.

That was all while companies reported revenue largely stayed the same during the trial period last year and even grew compared with the same six months a year earlier, according to findings released this week.

“We feel really encouraged by the results, which showed the many ways companies were turning the four-day week from a dream into a realistic policy, with multiple benefits,” said David Frayne, research associate at University of Cambridge, who helped lead the team conducting employee interviews for the trial. “We think there is a lot here that ought to motivate other companies and industries to give it a try.” Continue reading


Chill pervades China’s tech firms even as crackdown eases

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FILE – A staff member prepares to demonstrate live streaming at a booth from Chinese technology firm Alibaba at the China International Fair for Trade in Services (CIFTIS) in Beijing, on Sept. 2, 2022. A grinding crackdown that wiped billions of dollars of value off Chinese technology companies is easing, but the once-freewheeling industry is bracing for much slower growth ahead. (AP Photo/Mark Schiefelbein, File)

By ZEN SOO AP Technology Writer

HONG KONG (AP) — A grinding crackdown that wiped billions of dollars of value off Chinese technology companies is easing, but the once-freewheeling industry is bracing for much slower growth ahead.

Analysts say China’s easing of restrictions on companies like e-commerce giant Alibaba and online games company Tencent and talk of support for the private sector reflects Beijing’s decision to refocus on growth after the economy was ravaged by the pandemic and restrictions imposed to fight COVID-19.

But controls on internet content remain firmly in place. And the crackdown has left a “chilling” effect on the industry, potentially slowing innovation, while U.S. restrictions against China’s computer chips industry are hindering progress in developing leading edge technology in 5G and artificial intelligence.

In January, a top official at China’s central bank said in an interview with state-owned media that the crackdown on technology companies was “basically” over, adding that companies would be encouraged to lead economic growth and create more jobs. That came just weeks after China dropped stringent entry restrictions and testing and quarantine requirements that were part of its “zero-COVID” strategy meant to quash the virus. Continue reading


Spotify latest tech name to cut jobs, axes 6% of workforce

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FILE- This March 20, 2018 file photo shows the Spotify app on an iPad in Baltimore. Music streaming service Spotify says it’s cutting 6% of its workforce, becoming yet another tech company resorting to layoffs as the economic outlook worsens. CEO Daniel Ek announced the restructuring in a message to employees that was also posted online Monday, Jan. 23, 2023. (AP Photo/Patrick Semansky, File)

By KELVIN CHAN AP Business Writer

LONDON (AP) — Music streaming service Spotify said Monday it’s cutting 6% of its global workforce, or about 600 jobs, becoming yet another tech company forced to rethink its pandemic-era expansion as the economic outlook weakens.

CEO Daniel Ek announced the restructuring in a message to employees that was also posted online.

As part of the revamp involving a management reshuffle, “and to bring our costs more in line, we’ve made the difficult but necessary decision to reduce our number of employees,” Ek wrote.

Big tech companies like Amazon, Microsoft and Google announced tens of thousands of job cuts this month as the economic boom that the industry rode during the COVID-19 pandemic waned. Continue reading


As elites arrive in Davos, conspiracy theories thrive online

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People set up the stage at the eve of the opening of the World Economic Forum in Davos, Switzerland, Sunday, Jan. 15, 2023. The annual meeting of the World Economic Forum is taking place in Davos from Jan. 16 until Jan. 20, 2023. (AP Photo/Markus Schreiber)

By SOPHIA TULP Associated Press

NEW YORK (AP) — When some of the world’s wealthiest and most influential figures gathered at the World Economic Forum’s annual meeting last year, sessions on climate change drew high-level discussions on topics such as carbon financing and sustainable food systems.

But an entirely different narrative played out on the internet, where social media users claimed leaders wanted to force the population to eat insects instead of meat in the name of saving the environment.

The annual event in the Swiss ski resort town of Davos, which opens Monday, has increasingly become a target of bizarre claims from a growing chorus of commentators who believe the forum involves a group of elites manipulating global events for their own benefit. Experts say what was once a conspiracy theory found in the internet’s underbelly has now hit the mainstream. Continue reading


Ukrainian startups bring tech innovation to CES 2023

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Packaging made from leaves is on display at the Releaf Paper booth during the CES tech show Thursday, Jan. 5, 2023, in Las Vegas. (AP Photo/John Locher)

By JAMES BROOKS Associated Press

LAS VEGAS (AP) — The past year has been difficult for startups everywhere, but running a company in Ukraine during the Russian invasion comes with a whole different set of challenges.

Clinical psychologist Ivan Osadchyy brought his medical device, called Knopka, to this year’s CES show in Las Vegas in hopes of getting it into U.S. hospitals.

His is one of a dozen Ukrainian startups backed by a government fund that are at CES this year to show their technology to the world.

“Two of our hospitals we operated before are ruined already and one is still occupied. So this is the biggest challenge,” Osadchyy said.

“The second challenge is for production and our team because they are shelling our electricity system and people are hard to work without lights, without heating in their flats,” he said. Continue reading


CES startups face cautious investors amid economic woes

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An exhibitor demonstrates the OneThird avocado ripeness checker during CES Unveiled before the start of the CES tech show, Tuesday, Jan. 3, 2023, in Las Vegas. More than a thousand startups are showcasing their products at the annual CES tech show in Las Vegas, hoping to create some buzz around their gadgets and capture the eyes of investors who can help their businesses grow.(AP Photo/John Locher, File)

By HALELUYA HADERO AP Business Writer

LAS VEGAS (AP) — More than a thousand startups are showcasing their products at the annual CES tech show in Las Vegas, hoping to create some buzz around their gadgets and capture the eyes of investors who can help their businesses grow.

But amid the slew of layoffs in the tech industry and an economic landscape battered with high inflation and interest rates, many may be met with cautious investors looking for products that can deliver quick returns instead of hype.

Analysts say the event this year has somewhat of a muted tone compared to prior shows, when many companies routinely unveiled pie-in-the-sky projects that never saw the light of day. Carolina Milanesi, president and principal analyst at the consumer tech research firm Creative Strategies, said this time around, many of the tech items displayed during the show’s media preview days, which occurred Tuesday and Wednesday, have been less “flamboyant” compared to prior years, which showcased things like talking microwaves and smart jeans that vibrate to direct users.

“The economy — and I think the mood in general — is a little bit negative around tech,” Milanesi said. “It’s really getting companies to focus on real value for customers.” Continue reading


South Asian eateries try ‘going local’ as recovery strategy

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People sit for a meal at a local restaurant in Goa, India, Thursday, Dec. 29, 2022. Across South Asia, hotels and restaurants have faced profoundly challenging circumstances over the past few years, rendering business plans ineffective and forcing a reset in strategies, say industry observers. Experts say revenge eating out after the pandemic restrictions were eased in 2022 have helped bring back investments in the restaurant business. (AP Photo/Vineeta Deepak)

By VINEETA DEEPAK Associated Press

NEW DELHI (AP) — Hotels and restaurants across South Asia have had to adapt and reimagine dining out since the pandemic ripped through the region, forcing many out of business.

Those that have survived are tapping local sources and going online.

In India, from hole-in-the-wall casual eateries to fine dining, restaurants were devastated by lockdowns and virus outbreaks, with millions losing their jobs since COVID-19 hit in early 2020.

In neighboring Sri Lanka, where the tourism-driven economy also has been hammered by political upheavals and shortages, the situation remains dire.

Saman Nayanananda, a food and beverage manager at a hotel chain in the Sri Lankan capital Colombo, says going local for food sourcing and menu offerings is vital.

Nayanananda, who was in New Delhi recently for the South Asian Food for Thought festival, survived a devastating tsunami in 2004 that killed 230,000. He lived through a prolonged civil war that ended in 2009 and witnessed the aftermath of deadly 2019 Easter terrorist attacks. After every calamity, the economy managed to get back on its feet. Continue reading