Apple Supplier Foxconn Apologizes for Hiring Blunder
Apple's major supplier Foxconn said on Thursday that a "technical error" occurred when hiring new recruits at a COVID-hit iPhone factory in China, and the company apologized to workers after the company was rocked by new labor unrest.
Hundreds of workers demonstrated outside the largest iPhone manufacturing facility in the world in Zhengzhou, China on Wednesday. The demonstration was sparked by claims of unpaid wages and annoyance with the harsh COVID-19 restrictions. Men smashed surveillance cameras and engaged in physical altercations with security personnel.
MACROECONOMIC DATA ANALYSIS
The central bank of South Korea slowed the pace of rate hikes on Thursday, drastically reducing its 2023 growth forecast and changing the language used to describe its rate outlook, all of which may indicate that the tightening cycle is nearing its conclusion. In an effort to control inflation without impeding economic expansion, the Bank of Korea (BOK) increased its benchmark policy rate by 25 basis points to 3.25% on Thursday, the highest level since 2012. This follows an October increase of 0.5 percentage points.
Tiff Macklem, governor of the Bank of Canada, testified before the House of Commons on Wednesday that Canada's inflation is still too high and that higher interest rates will be required to cool the overheating economy. According to Macklem, “inflation has decreased recently, but we have yet to see a general decline in price pressures.” He also said that this tightening stage “will come to an end.”
The U.S. dollar fell broadly on Thursday’s early hours as investors & traders bet on riskier assets, encouraged by the possibility of a slower pace of imminent interest rate hikes from the Federal Reserve. The Dollar Index slipped by 0.29% to 105.653.
Gold prices surpassed key levels on Thursday, aided by a weaker dollar greenback as minutes from the Federal Reserve's most recent meeting revealed that a growing number of members supported a slower pace of interest rate hikes. Gold Futures traded higher by 0.56% to $1,755 per ounce.
Oil prices dropped on Thursday morning, hovering around two-month lows as the proposed price cap on Russian oil from the Group of Seven (G7) nations was deemed higher than current trading levels, allaying fears of a supply shortage. Brent crude futures fell by 0.77% to $84.75 a barrel, while West Texas Intermediate crude slide by 0.63% to $77.44 a barrel.
USA: S&P500 +0.59%, Dow Jones Industrial Average +0.28%, Nasdaq Composite +0.97%
Europe: FTSE 100 +0.17%, DAX +0.04%, CAC 40 +0.32%
Asia: Nikkei 225 +0.95%, Hang Seng +0.67%, CSI 300 -0.43%, Nifty 50 +0.62%
Morgan Stanley has fined employees who use messaging apps like WhatsApp and others for work-related communications, the Financial Times reported on Thursday. The fines, which ranged from a few thousand dollars to over $1 million per employee, were established by taking into account various elements, including the quantity of messages sent, seniority, and whether or not they had previously been warned.
Top advertisers cut their spending on Twitter by 71% in December as a result of Elon Musk’s recent takeover, according to data from an advertising research firm.
The latest Standard Media Index (SMI) data comes as Twitter works to reverse the advertiser exodus. It has launched a slew of initiatives to win back advertisers, including offering some free ads, lifting a ban on political advertising, and giving businesses more control over the placement of their ads.