The utility company has been decimated this year as energy prices soared. The cost in euros of Germany’s bailout of Uniper, once Europe’s biggest importer of Russian gas. That’s good news for workers, but it may force the Fed to double down on aggressive rate increases in the first half of 2023. Job growth is ticking lower, but employers are continuing to hire, keeping the unemployment rate a relatively strong 3.7 percent. Ordinarily, when economic growth falters, hiring slows down, too (example A: the tech sector). The labor market is confounding economists. The number of jobs created in the past 12 months, according to the Bureau of Labor Statistics.
But as the broader economy slowed in the latter half of the year, companies have been squeezed and tech stocks have plummeted. Companies hired aggressively ( perhaps too aggressively) when demand for services boomed as consumers were stuck at home. The shift is partly a post-pandemic correction. Job cuts at companies including Amazon, Meta, Twitter and Stripe have dominated headlines in recent months, as Silicon Valley faces pressure to downsize. The number of layoffs in the tech sector, according to Layoffs.fyi.
The lingering challenges facing the debt-fueled housing industry point to structural questions that still hang over the economy. over the past decade, but a squeeze on the industry caused seemingly impregnable companies to teeter and prompted rare social unrest among unhappy property owners. Real estate development accounted for about a quarter of China’s G.D.P. The world’s second-largest economy has been hammered this year and a sharp slowdown in the crucial property sector has been one big reason. The number of vacant properties in China as of late summer. But his style has won admiration among many tech executives, founders and investors. Musk’s management of Twitter has been erratic: He’s fired workers, refused to pay invoices, changed content moderation policies, allowed banned users back on to the platform, temporarily suspended some journalists’ accounts, been accused of neglecting his other companies and said he would resign as C.E.O. Unable to sell that debt without incurring huge losses, the banks head into the new year saddled with loans that will constrain their ability to finance more deals. The banks made the promise before technology sector shares crashed, the billionaire tried to walk away from the acquisition, and the market for leveraged loans seized up. The value in dollars of Elon Musk’s deal to buy Twitter, backed by about $12.5 billion of debt that investment banks, led by Morgan Stanley, took on to help finance the acquisition. The effect: stocks and bonds slumped on concerns that the increases would slow the economy. Many were following the Fed, which increased its prime lending rate to a target range of 4.25 to 4.5 percent from roughly zero a year ago. Central banks have collectively increased rates by more than 70 percent in 2022, according to LPL Financial, with the same goal: raise borrowing costs to cool rising prices that have been hitting shoppers from London to Poughkeepsie.
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User, you will first be asked to create an account FREE of charge and then taken to the email sign up page.The number of major central banks - the Bank of Japan and the People’s Bank of China - that didn’t raise interest rates this year, even as inflation threatened global economic growth and sapped consumer purchasing power. Just go to, check the DealBook signup box, and click the save button. Sign up now for DealBook - your source for daily briefings on the latest and most comprehensive news about market-moving mergers and acquisitions, IPOs, private equity transactions, venture capital deals and Wall Street maneuverings, all delivered beforeĮdited by Andrew Ross Sorkin, The New York Times' chief mergers and acquisitions reporter, DealBook is one-stop reading that gives you the news from The Times and dozens of other international, national and local publications including The Wall Street
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