The world this week--Business
After months of prevarication and legal limbo, Elon Musk completed his takeover of Twitter and promptly ousted the chief executive, the chief financial officer, the head of policy and the entire board of directors.
Mr Musk had taken issue with senior management, blaming them for misleading him over the number of fake accounts on the platform.
As interim CEO he plans big changes, such as to the “current lords and peasants system” for verifying blue-tick marks.
Marking a sharp deviation from the company’s platitude of enabling “healthy conversation”, Mr Musk tweeted: “Twitter speaks to the inner masochist in all of us.”
Meta’s share price was battered for several days after the company revealed another big loss at the division developing the “metaverse” and warned of further losses to come.
With its share price now down by 75% since the start of the year, some big investors are reportedly furious at Meta’s emphasis on building worlds of virtual reality, but, as Mark Zuckerberg has majority control, there is little they can do.
Another casualty of the rout in tech stocks, Amazon, saw its market capitalisation fall below $1trn for the first time since 2020 after it issued a disappointing sales forecast.
The company’s share price is back to where it was around the start of the pandemic.
The Federal Reserve raised its benchmark interest rate by three-quarters of a percentage point for the fourth consecutive time, taking it to a range of between 3.75% and 4%.
Markets looked for signals from the central bank about when it might ease the pace of increases.
Jerome Powell, the Fed’s chairman, hinted that the next rate rise may not be so large, but warned that the “ultimate level of interest rates will be higher than expected”.
Annual inflation in the euro zone hit another record in October, of 10.7%.
In Germany consumer prices were up by 11.6%, year on year.
Although the country unexpectedly avoided an economic contraction in the second quarter (GDP rose by 0.3% on the previous quarter) its economy is expected to shrink in the final three months of 2022.
The European Central Bank recently raised its key interest rate by another three-quarters of a percentage point, to 1.5%, but it softened its guidance on further increases, a nod to concerns over the economic impact of the fast pace of tightening.