News

The European Union has revised its economic growth forecast downward for this year and next due to the impact of inflation and higher interest rates. The European Commission predicts slower growth in the eurozone and the broader EU. Weak domestic demand and high consumer prices are hindering people’s willingness to spend. The European Central Bank faces a crucial decision on whether to continue raising rates to control inflation.

Germany, the largest eurozone economy, is expected to shrink this year due to factors such as higher energy prices and reduced demand from China. Although unemployment remains low and wages are gradually increasing, recession concerns persist. The European Central Bank’s decision on interest rates remains uncertain as economists predict a possible pause in rate hikes. The euro’s depreciation against the US dollar also poses challenges for the region.

Indian Prime Minister Narendra Modi and Saudi Arabia’s Crown Prince Mohammed bin Salman met in New Delhi to discuss and expand trade and security ties between the two countries. During their meeting, they also chaired the India-Saudi Arabia Strategic Partnership Council, which focuses on various aspects such as energy security, investment, defense, healthcare, and food security.

Additionally, the leaders announced a new railways and port corridor deal that aims to connect India with the Middle East and Europe, serving as an alternative to China’s infrastructure program. The corridor is expected to enhance economic cooperation, energy development, and digital connectivity between Asia, West Asia, and Europe. The visit of the Crown Prince to India follows his participation in the G20 summit. The two countries view each other as important strategic partners, with trade between them reaching over $52.8 billion in the previous fiscal year.

The IRS has announced a new effort to aggressively pursue 1,600 millionaires and 75 large business partnerships that owe hundreds of millions of dollars in past due taxes. With increased funding and the use of artificial intelligence tools, the agency aims to target wealthy individuals who have evaded their tax obligations. IRS Commissioner Daniel Werfel highlighted the frustration of law-abiding taxpayers and emphasized the importance of holding wealthy filers accountable.

The IRS plans to use a combination of a massive hiring effort and AI research tools to identify tax delinquents. The initiative comes as Republicans in Congress seek to cut back on funding for the agency. The IRS gained enhanced abilities to identify tax evaders through resources provided by the Inflation Reduction Act signed by President Biden. The agency’s tax collection efforts will commence in October, and they anticipate a busy fall ahead.

Walmart, the largest private employer in the U.S., has reduced starting pay for new store employees involved in picking and packing online orders and restocking shelves. The move raises questions about whether companies are facing a cooling labor market or adjusting to a return to pre-pandemic shopping patterns. New employees on the digital or stocking teams now earn around a dollar less per hour than if they were hired several months ago.

However, Walmart clarified that no current employees in these roles faced a pay cut. The company also adjusted pay bands for more experienced employees, increasing wages for approximately 50,000 store employees. Walmart’s decision reflects efforts to maintain consistent starting pay across different roles and ensure better customer service. The retailer’s e-commerce sales have remained strong but not as robust as in the early pandemic period.

Apple shares fell about 3% on Thursday, following a 4% decline on Wednesday, amid reports suggesting that the Chinese government may ban its workers from using iPhones. The reported restrictions, which have not been officially announced, raise concerns that Apple’s products could become entangled in the escalating tensions between the US and China. Greater China, including Hong Kong and Taiwan, accounts for 18% of Apple’s total revenue and is where the majority of its products are assembled. While the ban on government employees could impact iPhone sales, the larger threat lies in encouraging consumers to use domestic technology instead. Analysts also cite increased competition from Huawei as a reason for concern.

Chinese retailers have recently started taking orders for Huawei’s new phone, which incorporates a Chinese-manufactured chip and has garnered significant attention on social media. The US imposed sanctions on Huawei in 2019, hampering its business and raising questions about the efficacy of restrictions on chip-manufacturing technology. Despite the potential challenges, Apple’s recent earnings report indicated growth in Greater China sales, with users switching from Android to iPhones.

A new World Bank report reveals that online gig work is increasing globally, particularly in developing countries, providing crucial employment opportunities for women and young people. The report estimates up to 435 million global online gig workers, with a 41% increase in demand between 2016 and early 2023. However, concerns about the lack of job security and social protections in the gig economy are raised.

The report emphasizes the importance of developing good jobs with basic labor standards and social safety nets. The study also highlights the low social insurance coverage among gig workers worldwide and the lack of retirement savings. While acknowledging the exploitative nature of online gig work, experts argue that the limited options available make it a better alternative for many workers in developing nations.

Ford Motor Co has revealed that around 8,000 U.S. workers represented by the United Auto Workers union will receive an average increase of $4.33 per hour as outlined in their current contract from 2019. The announcement comes as talks between Ford and the UAW for a new contract approach a strike deadline on September 14. Despite Ford’s wage increase proposals being deemed insufficient by the union, the company was the first among the Detroit Three automakers to present a detailed economic proposal. The pay increase is available to permanent hourly manufacturing employees who were hired before the 2019 contract effective date and were earning at least $24.40 per hour as of September 1, 2023.