Business

According to the World Bank Chief, Developing Countries Face Stiff Economic Headwinds

David Malpass, President of the World Bank, stated that ‘the human consequence of these overlapping crises are catastrophic.
Photo: Lev Radin/Zuma Press

WASHINGTON – The head of the World Bank warned that the near-term outlook for developing countries is very challenging due to the sharp slowdown of global growth. This raises the risk of a prolonged recession.
Speaking Wednesday at Stanford University

David Malpass
The war in Ukraine has caused higher food, fertilizer, and energy prices, as well rising interest rates, currency appreciation, and capital outflows. This could lead to a shortage in funds that can be used to support people’s economic activities and lives.
He said, “The human consequences of these overlapping crises are catastrophic.”
The International Monetary Fund and the World Bank will host meetings in Washington next month to discuss the global economic slowdown. In the midst of high inflation, rising interest rate, market turmoil, and the effects of Russia’s invasion of Ukraine, central bankers and finance officials from all over the globe are planning to meet.
While growth prospects for wealthy economies like China and the European Union are declining, Malpass stated that developing countries face additional risks. He said that policies adopted by advanced economies to combat inflation and slowdown could leave behind insufficient capital for less-developed nations.

He said that if current fiscal and monetary policies are the new norm, it would mean heavy absorption of capital by advanced countries, prolonging the underinvestment in developing countries, and hindering future growth.

Mr. Malpass stated that underinvestment in developing countries began after 2008’s global financial crisis. This was due to a shift in monetary policy of advanced economies towards zero interest rates and massive bond buying. He said that the easy-money policies in America, Europe, and Japan have fueled asset prices in advanced economies while limiting investment in developing countries.
He stated that “a pressing danger for the developing countries is that the sharp slowdown of global growth deepens into world recession.”

The risks of a recession are increasing.
In September, Europe’s economic activity dropped sharply. To stabilize the UK’s debt market and prevent a crisis in its pension system, the central bank of the U.K. began emergency purchases of government bonds Wednesday.
Monday’s cut by the World Bank in China was a result of a real-estate crunch, and the government’s zero tolerance approach to Covid-19.

According to the Organization for Economic Cooperation and Development, the war in Ukraine will result in $2.8 trillion in lost production by the end next year.
In a September 15 report, World Bank economists stated that the global economy would likely grow by 2.9% this year. This is down from 5.7% last. They expect growth to slow further to 2.4% next, before recovering to 3.3% in 2024.
Emerging-market and developing economies are among the worst-hit countries. They rely on more expensive imported fuel and commodities. Many were already in deep debt after the economic slumps that were linked to the pandemic and a period of low interest rates.

Slowing growth, rising U.S. rates of interest and a strengthening dollar are further pinching these countries, increasing concerns about a possible debt crisis in low and middle-income countries.
In recent months, yields on emerging market debt have skyrocketed as investors abandon them in favor of safer assets. Numerous countries, including Argentina, Pakistan, Egypt, Sri Lanka, and Pakistan, have turned to IMF for assistance, pushing the outstanding loan amount of the international financial institution to record levels.
As the IMF & the World Bank attempt to address global economic problems, Mr. Malpass is facing a problem of his very own. He has been criticized for his comments about climate change.
Climate activists have asked Mr. Malpass for his resignation following last week’s response to questions about whether burning fossil fuels caused global warming. A public discussion on climate issues hosted at the
New York Times
He declined to answer directly, saying that he was not a scientist.
Since then, he has sought to clarify his position by stating that climate change is caused by greenhouse-gas emissions. Former President Donald Trump’s nominee, Mr. Malpass, stated that he isn’t resigning.
According to a source familiar with the situation, Mr. Malpass apologised for his “poor performance” at the climate discussion at an all-hands bank staff meeting on Tuesday. This person claims that he made similar remarks Monday at his meeting to the World Bank Board.
Wednesday’s speech by Mr. Malpass highlighted the active role of the World Bank in addressing climate crisis. He noted that the Bank is the largest single financier of climate-related finance in developing countries and a leader on areas such as climate diagnostics, methane emission reduction, and innovative climate financing.
Write to Yuka Hayashi at [email protected]

Business

Tucker Carlson leaves Fox News after Dominion settlement for defamation

In this articleFOXAFollow stocks you likeCREATE A FREE ACCOUNTTucker Carlson, the right-wing prime-time host at Fox News, is leaving immediately. The cable network announced this Monday. This announcement came just days after Fox News parent company settled Dominion Voting Systems defamation suit for $787.5 Million. CNBC reported that the settlement did not require the company’s hosts to discuss the lawsuit or apologize for it. FOX News Media announced in a Monday statement that it and Tucker Carlson had agreed to part ways. “We thank him both for his work as a network host and, before that, as a contributing contributor. “There will not be a send-off for Carlson as his last show aired on Friday. Carlson had said he would return Monday when he signed off on Friday. Carlson’s “Tucker Carlson Tonight” has been one of Fox’s most popular programs for years. The company would not comment beyond the press release or whether Carlson had been taken off the air as a result of the Dominion defamation lawsuit. Fox News did make a statement in Carlson’s name. The Fox Corp. Class A share price fell about 3% on Sunday. Carlson’s emails and texts were also included in the evidence that was released before the settlement. Carlson was also among the hosts deposed by Dominion and included in the evidence. Other hosts deposed were Maria Bartiromo and Jeanine Pirro. Sean Hannity, Laura Ingraham and former host Lou Dobbs. “It’s unbelievably insulting to me.” Court documents show that Carlson stated in a text message sent in the weeks following the election: “Our viewers are good people, and they believe it.” Dominion pointed out the drop in Fox’s viewership after election night when the network called Arizona Biden. Carlson and his co-hosts expressed “the danger to them personally” behind the scenes. Carlson wrote to his producer in a message on November 5, “We worked hard to build what you have.” These f —-ers destroy our credibility. It enrages my.” Carlson was one of the witnesses who would have testified if the lawsuit went to trial. Abby Grossberg was also on that list of witnesses. She was a former Fox Producer who worked for Bartiromo, Carlson, and Bartiromo. Grossberg claimed she was forced to give misleading testimony in the Dominion lawsuit. Fox said Grossberg’s “unmeritorious claims” were “filled with false allegations about Fox and its employees”. “Grossberg’s attorneys stated in court documents that she was terminated by Fox as a result of retaliation. She has filed lawsuits against Fox in New York and Delaware, accusing the network of discrimination.Grossberg cheered Carlson’s departure in a statement Monday, saying, “This is a step towards accountability for the election lies and baseless conspiracy theories spread by Fox News, something I witnessed firsthand at the network, as well as for the abuse and harassment I endured while Head of Booking and Senior Producer for Tucker Carlson Tonight. I think this is fantastic for America! It’s a win for cable news viewers, not just Fox. “Carlson replaced Bill O’Reilly’s prime-time slot on Fox after O’Reilly quit the network in 2017 amid controversy. O’Reilly was accused of sexual harassment in the past by former Fox employees. He has denied these allegations. While the Dominion suit was unlikely to have an impact on Fox’s business it was not clear what effect it would have on its programming or hosts. Shortly after Smartmatic, a voting technology company, sued Fox in 2021 for defamation, Dobbs weekday show on Fox Business was cancelled. Dobbs was named as a defendant by Smartmatic in their ongoing lawsuit. The trial is not scheduled to begin until 2025. Fox had said that the show was already being cancelled before the lawsuit. Disclosure: NBCUniversal owns CNBC.

Business

Rupee Gains One Paisa to 82.16 US Dollar

The dollar index fell by 0.04 percent to 108.80. (File)Mumbai: The rupee gained 1 paisa to 82.16 against the US dollar in early trade on Friday, tracking a weak greenback against major currencies and positive sentiment in the domestic equities market.Forex traders said downward movement of crude oil prices also supported the local unit.

At the interbank foreign exchange, the domestic unit opened strong at 82.11 against the dollar and hit the lowest level of 82.17 before trading at 82.16, registering a rise of 1 paisa over its previous close.On Thursday, the rupee closed at 82.17 against the US currency.Participants were also cautious due to expectations of further interest rate hike by the US Federal Reserve and other central banks.

“Upside expectations were abandoned as soon USDINR turned under 82.2. As long as 81.97 is held, expect a bounce today. However, 82.4 seems far away. The 30-share BSE Sensex rose 109.93 or 0.18 percent to 59.742.28. The broader NSE Nifty gained 21.95 points, or 0.12 percent, to 17,646.40. According to exchange data, Foreign Institutional Investors (FIIs), who are net sellers on the capital market today sold shares worth Rs 1,169.32 million.

Business

Sensex and Nifty markets rise in early trade on buying Reliance Industries

The BSE Sensex climbed 134 to 59 766 in early trading. The 30-share BSE Sensex climbed 134 to 59,766.37 points in early trading. The NSE Nifty gained 36.4 points, to 17,660.85. HCL Technologies was the largest gainer among the Sensex companies, climbing nearly 2% in early deals.

HCL Technologies posted a 10.85 percent increase in consolidated profit to Rs 3,983 billion for the fourth quarter 2022-23. Kotak Mahindra Bank was among the other winners. The Q4 results have been mixed, with IT disappointing, and banking showing early signs of continued strength. This trend is likely not to change. There can be a slight pullback in IT after the sharp correction following the Infosys result.

“HCL Tech’s results have not disappointed. Some IT midcaps could beat market expectations.” The Sensex rose 64.55 points (0.11%) to settle at 59.632.35 on the Thursday. The Nifty rose by 5.70 points, or 0.03 percent, to close at 17,624.45. Brent crude, the global oil benchmark, fell 0.09 percent to USD 81.03 a barrel. According to exchange data, Foreign Portfolio Investors (FPIs), sold equities valued at Rs 1,169.32 crore.

Business

DeSantis and his allies intensify their Disney battle as more Republicans criticize him

Ron DeSantis answers a question at a press conference held Monday, April 17th, 2023, at the headquarters of Central Florida Tourism Oversight District (formerly Reedy Creek Improvement District), which a newly appointed board has renamed. Orlando Sentinel Ron DeSantis, his allies and the Republican presidential hopeful are intensifying their fight against Walt Disney Co. despite the criticism from his rivals for his long-running battle with the entertainment giant.

DeSantis has ripped Disney this week repeatedly over its recent moves to thwart his efforts to seize control of the company’s Orlando parks and property. DeSantis, who hasn’t announced his presidential plans, is considered the top Republican candidate for the 2024 GOP presidential nomination. He was promoting a new book that calls Disney a “Magic Kingdom of Woke Corporatism”. “Meanwhile his handpicked Disney World’s Special Tax District board of supervisors increased the pressure on Disney.

The officials took action on Wednesday to regain control of the property they claim Disney wrongfully took away before they took over. “People have suggested that we create a state-run park or try to build more amusement parks. Someone suggested another state prison. Who knows?” DeSantis said.It is the latest chapter of a grim story that began over a year ago, when Disney opposed the controversial Republican Florida law limiting discussion in classrooms about sexual orientation or gender identification. Disney’s stance on the legislation, dubbed by critics “Don’t Say Gay”, sparked an intense feud.

The Republican governor of Florida and the GOP-controlled legislature targeted a special tax district which has allowed Disney to govern itself for decades. DeSantis, who is willing to use his political influence to engage in cultural battles, has become a rising star within the GOP. His transition to the national scene, in apparent anticipation for a presidential announcement has sparked some criticism from his fellow Republicans. Trump, a former DeSantis supporter who is now regularly attacking the governor, wrote on Tuesday that the Governor is being “absolutely ruined by Disney”. “Republican ex-New Jersey Gov. Chris Christie questioned DeSantis this week about his political skills, referencing the Disney row.

Chris Christie said in an interview with Semafor that “that’s not the person I want to sit across from” President Xi Jinping or Russian President Vladimir Putin and trying to resolve what is happening in Ukraine if you cannot see around a blind corner [Disney CEO] Bob Iger has created for you.” Chris Sununu, who spoke on CNN Monday, said that the battle “confuses the entire Republican message,” Politico reports. These Republicans are either running or considered potential candidates for president. They could be DeSantis’ rivals. DeSantis’ press secretary Bryan Griffin responded to the recent GOP criticism by referring to a statement released on Tuesday accusing Disney of passing a “legally defective, 11th-hour agreement” to preserve its special privileges.

Griffin’s statement was a response Christie’s criticism. It said: “That’s an effort to subvert will of the people in Florida, and Governor DeSantis won’t stand for that.” The Reedy Creek Improvement District is a local government entity established in 1967. It gave Disney regulatory control of public services and functions in a 25,000-acre region encompassing its Florida resorts and parks. Disney paid Reedy Creek millions of dollars in taxes to fund these services. This was on top of the local tax obligations.

Florida Republicans passed legislation weeks after Disney denounced this classroom bill. DeSantis then signed the bill. The move raised concerns that Florida taxpayers living in the two counties around Reedy Creek would be hit with a large tax bill if Florida removed Disney’s self governing status. In a February special session, the state legislature scrapped the plan and replaced it with a proposal that allowed DeSantis the power to appoint the five board members.

But last month, the newly chosen board of the governing board — now called the Central Florida Tourism Oversight District – said that their predecessors had stripped many of their rights on their way out. “The bottom line is Disney committed a caper that would have made Scrooge McDuck proud to try and evade Florida laws,” said David Thompson, identified as trial counsel for the board. David Thompson, identified by the board as trial counsel, said that its efforts were illegal and would not stand.

Business

Media outlets and top pro leagues join forces to combat problematic sports betting ads

Kansas City Star The coalition is led by Jonathan Nabavi, NFL vice president of government affairs and public policy. It aims to regulate the sports-betting advertisements that flood television, internet, and print media. The coalition said that as sports betting becomes legal across the country, it is important to set guidelines for how the industry should be promoted to consumers. “Each coalition member feels a sense of responsibility to ensure that sports betting advertising is not just targeted at the right audience, but is also carefully crafted and delivered.

“The coalition describes themselves as voluntary and stated that it will work to ensure that sports-betting advertisements only target adults of legal betting ages, do not promote excessive or irresponsible gaming habits, remain in good taste and aren’t misleading. David Highhill is the general manager of sports wagering for the NFL. He said that legalized sports betting gives fans a new way to interact with their favorite sports.

“But we must not only support problem-gambling prevention, but also be mindful of the way sports betting is advertised and presented to consumers. This coalition will greatly help in this cause. The National Council on Problem Gambling commended the coalition, and promised to collaborate with it in order to “better minimize problem gambling-related harm.”