Meta To Cut 10,000 Jobs in Second Round of Layoffs
Meta Platforms, the parent company of Facebook, announced on Tuesday that it would eliminate 10,000 jobs this year, becoming the first Big Tech company to do so as the sector braces for a severe economic downturn.
The news caused the price of Meta to increase by 6%. The much-awaited job cuts are part of a reorganization that will also see the company kill off lower priority projects, "flatten" middle management layers and abandon hiring plans for 5,000 openings.
MACROECONOMIC DATA ANALYSIS
Ankur Banerjee previews the day's trading in the European and international markets. In an effort to boost the world's sixth-largest economy, British Finance Minister Jeremy Hunt will put the market's relief rally to the test when he delivers the UK spring budget. Business lobbies are clamoring for sweeteners. Hunt is due to speak at 1230 GMT and is expected to stay away from big tax cuts or spending increases.
China's central bank announced on Wednesday that it would increase financing support for private micro and small businesses as the nation seeks to build on its recovery from COVID-19 disruptions while contending with weaker demand abroad and a domestic property downturn. The People's Bank of China (PBOC), the nation's central bank, announced in a statement following a work meeting that it will support private companies' reasonable bond financing needs.
The US dollar remained at a nearly one-month low on Wednesday as consumer inflation eased as anticipated, while most Asian currencies traded in a flat-to-low range as data indicated a somewhat uneven recovery in the Chinese economy. The US dollar index, which compares the greenback to a basket of six major currencies, rose by 0.09% to 103.308.
Gold prices fell slightly on Wednesday after falling from a six-week high the previous session, as a mixed reading on US inflation fueled some uncertainty about the Federal Reserve's stance on monetary policy, while fears of a banking crisis in the country remained. Gold futures fell by 0.32% to $1,904 per ounce.
Oil prices rose more than 1% on Wednesday, after falling the day before as OPEC's improved assessment of Chinese demand helped counteract gloomy investor sentiment worldwide following the recent failures of U.S. banks. Brent crude futures increased by 1.15% to $78.34 a barrel, while the West Texas Intermediate rose by 1.26% to $72.21 a barrel.
USA: S&P500 +1.65%, Dow Jones Industrial Average +1.06%, Nasdaq Composite +2.32%
Europe: FTSE 100 +1.17%, DAX +1.83%, CAC 40 +1.86%
Asia: Nikkei 225 -0.03%, Hang Seng +1.50%, CSI 300 +0.25%, Nifty 50 +0.58%
Moderna president Stephen Hoge said in an interview on Monday that the company expects to price its COVID-19 vaccine in the United States at around $130 per dose in the future as government purchases shift to the private sector.
Hoge stated this in advance of a Congressional hearing on Moderna's pricing strategies chaired by Democratic U.S. Senator Bernie Sanders. "There are different customers negotiating different prices right now, which is why it's a little bit complicated," he added.
Market confidence increased on Monday as a result of government efforts to prevent a global banking crisis. Investors welcomed the historic Swiss-backed purchase of troubled Credit Suisse by UBS Group as well as the emergency dollar liquidity provided by leading central banks.
UBS will pay 3 billion Swiss francs ($3.23 billion) for the 167-year-old Credit Suisse Group AG and take on up to $5.4 billion in losses as part of a deal arranged by Swiss regulators on Sunday.