Category: Business

Cities reviving downtowns by converting offices to housing

natixis-ezine

Read time : 4 mins

Level : Advanced

A pedestrian is silhouetted against a high rise at 160 Water Street in Manhattan’s financial district, as the building is undergoing a conversion to residential apartments, Tuesday, April 11, 2023, in New York. (AP Photo/Bebeto Matthews)

By MAE ANDERSON, ASHRAF KHALIL and MICHAEL CASEY Associated Press

NEW YORK (AP) — On the 31st floor of what was once a towering office building in downtown Manhattan, construction workers lay down steel bracing for what will soon anchor a host of residential amenities: a catering station, lounge, fire pit and gas grills.

The building, empty since 2021, is being converted to 588 market-rate rental apartments that will house about 1,000 people. “We’re taking a vacant building and pouring life not only into this building, but this entire neighborhood,” said Joey Chilelli, managing director of real estate firm Vanbarton Group, which is doing the conversion.

Across the country, office-to-housing conversions are being pursued as a potential lifeline for struggling downtown business districts that emptied out during the coronavirus pandemic and may never fully recover. The conversion push is marked by an emphasis on affordability. Multiple cities are offering serious tax breaks for developers to incentivize office-to-housing conversions — provided that a certain percentage of apartments are offered at affordable below-market prices. Continue reading

Delta loses $363 million but says travel demand still strong

natixis-ezine

Read time : 3 mins

Level : Intermediate

FILE – A Delta airplane takes off from Hartsfield-Jackson Atlanta International Airport in Atlanta, Tuesday, Nov. 22, 2022. Delta reports earnings on Thursday, April 13, 2023. (AP Photo/Brynn Anderson, File)

By DAVID KOENIG AP Airlines Writer

Delta Air Lines reported a $363 million loss for the first quarter on Thursday, with higher spending on labor and fuel overshadowing a sharp rise in revenue.

But the airline predicted it will make a bigger-than-expected profit in the current second quarter, which includes the start of the key summer travel season.

Airlines are getting a tailwind from the combination of strong demand and limited flights, which has pushed fares higher. But investors were spooked this week when industry analysts warned that growth in airline bookings has slowed down compared with this time last year.

Delta’s CEO said it is unfair to compare current ticket sales with those from a year ago, when travel was just starting to boom as pandemic-related restrictions were lifted. Continue reading

New India-born World Bank chief: Real change or rebranding?

natixis-ezine

Read time : 5 mins

Level : Advanced

FILE – Ajay Banga, then-president and CEO of MasterCard, speaks during the U.S. Africa Business Forum during the U.S. Africa Leaders Summit in Washington, Aug. 5, 2014. The incoming president of the World Bank was born in India and forged his early business success there, a fact supporters say gives Banga valuable insight into the challenges faced by the developing countries the bank is supposed to help. (AP Photo/Jacquelyn Martin, File)

By SIBI ARASU Associated Press

BENGALURU, India (AP) — The incoming president of the World Bank was born in India and forged his early business success there, a fact supporters say gives Ajay Banga valuable insight into the challenges faced by the developing countries the bank is supposed to help.

But not everyone is sure that Banga, who has spent most of the last two decades in the U.S. corporate world, can be counted on to shake up the bank in the way some think it should be.

U.S. Treasury Secretary Janet Yellen talked up Banga’s credentials this week on the sidelines of the World Bank and International Monetary Fund’s spring meetings in Washington. Banga, currently vice chairman at private equity firm General Atlantic, has more than 30 years of business experience, including as CEO of Mastercard and on the boards of the American Red Cross, Kraft Foods and Dow Inc.

“He has the right leadership and management skills, background, and financial expertise to lead the World Bank at a critical moment in its history,” Yellen said. Continue reading

Bank survey shows Japan’s businesses turning pessimistic

natixis-ezine

Read time : 2 mins

Level : Intermediate

People walk at a pedestrian crossing in Ginza shopping district Friday, March 31, 2023, in Tokyo. Business sentiment among big Japanese manufacturers worsened in the first quarter of this year, marking the fifth straight decline, according to a closely watched central bank survey of business sentiments called “tankan.” (AP Photo/Eugene Hoshiko)

By YURI KAGEYAMA AP Business Writer

TOKYO (AP) — Business sentiment among big Japanese manufacturers worsened in the first quarter of this year in the fifth straight decline, according to a central bank survey released Monday.

The headline measure in the Bank of Japan quarterly survey called “tankan” found such sentiments stood at plus 1, down from plus 7 in December. It’s the worst quarterly result since December 2020.

Sentiments among major non-manufacturers rose one point to plus 20, its the fourth straight quarter of improvement.

The Japanese economy has tended to stagnate in recent years, with slow wage increases, and has recently been hit by inflationary pressures, even as some parts of the nation’s economy continue to experince deflation, the opposite trend in which prices continually decrease. Continue reading

New Starbucks CEO plans to work in stores monthly

natixis-ezine

Read time : 3 mins

Level : Intermediate

FILE – Incoming CEO Laxman Narasimhan speaks during Starbucks Investor Day 2022, Sept. 13, 2022, in Seattle. Starbucks officially has a new CEO. The Seattle coffee giant said Monday, March 20, 2023 that Laxman Narasimhan has assumed the role of CEO and joined the company’s board of directors. (AP Photo/Stephen Brashear, file)

By DEE-ANN DURBIN AP Business Writer

Starbucks’ new CEO Laxman Narasimhan says he plans to work a half-day shift once a month in one of the company’s stores in an effort to stay close to its culture and customers.

Narasimhan, who took the reins as CEO earlier this week, said in a letter to Starbucks’ employees Thursday that he also expects the company’s leadership team to be connected and engaged in stores.

“While our performance is strong, our health needs to be stronger,” Narasimhan wrote in the letter. “We must care for the artists and the theater in the front of our stores and the factory in the back.” Continue reading

Deal to buy Silicon Valley Bank calms bank fears, for now

natixis-ezine

Read time : 3 mins

Level : Advanced

A First Citizens Bank sign is seen in Durham, North Carolina, on Monday March 27, 2023. North Carolina-based First Citizens will buy Silicon Valley Bank, the tech industry-focused financial institution that collapsed earlier this month. (AP Photo/Jonathan Drew)

By STAN CHOE AP Business Writer

NEW YORK (AP) — First Citizens Bank is buying much of Silicon Valley Bank, the tech-focused financial institution whose failure this month set off a chain reaction that helped rattle faith in banks around the world.

The Federal Deposit Insurance Corp. and other regulators had already taken extraordinary steps to head off a wider crisis by guaranteeing all depositors in SVB and another failed institution, Signature Bank, could get their money, even if they had more than the $250,000 limit insured by the FDIC.

The First Citizens deal announced late Sunday, at least initially, seemed to achieve what regulators have sought: a shoring up of trust in other regional banks across the country.

Stock prices strengthened for First Republic, PacWest Bancorp. and other banks that investors have spotlighted as most at risk for a sudden exodus of nervous customers, similar to the run that caused Silicon Valley Bank’s failure. Continue reading

Army of lobbyists helped water down banking regulations

natixis-ezine

Read time : 3 mins

Level : Advanced

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

natixis-ezine

Read time : 3 mins

Level : Advanced

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?

natixis-ezine

Read time : 4 mins

Level : Intermediate

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

natixis-ezine

Read time : 2 mins

Level : Advanced

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