Economy

(Reuters) – The combined fortunes of the world’s five richest men have more than doubled to $869 billion since 2020 while five billion people have been made poorer, anti-poverty group Oxfam said.An Oxfam report, which comes as business elites gather this week for the annual World Economic Forum (WEF) meeting in Davos, found that a billionaire is now either running, or is the main shareholder of, 7 out of 10 of the world’s biggest companies.Oxfam called on Monday for governments to rein in corporate power by breaking up monopolies; instituting taxes on excess profit and wealth; and promoting alternatives to shareholder control such as forms of employee ownership.It estimated that 148 top corporations made $1.8 trillion in profits, 52 percent up on 3-year average, allowing hefty pay-outs to shareholders even as millions of workers faced a cost of living crisis as inflation led to wage cuts in real terms.”This inequality is no accident; the billionaire class is ensuring corporations deliver more wealth to them at the expense of everyone else,” said Oxfam International interim Executive Director Amitabh Behar.The Davos events were launched to champion “stakeholder capitalism”, which the WEF says defines a corporation as being not just about maximising profits but fulfilling “human and societal aspirations as part of the broader social system”. Oxfam said its report, based on data sources ranging from the International Labour Organization and World Bank to the Forbes annual rich list, showed such aspirations were far from being fulfilled.”What we know for sure is that today’s extreme system of shareholder capitalism, which puts ever-increasing returns to rich shareholders above all other objectives, is driving inequality,” said Max Lawson, its Head of Inequality Policy.The inflation-adjusted surge in wealth of the top five billionaires was driven by strong gains in the assets of Tesla (NASDAQ:TSLA) CEO Elon Musk, LVMH chief Bernard Arnault, Amazon (NASDAQ:AMZN)’s Jeff Bezos, Oracle (NYSE:ORCL) co-founder Larry Ellison and investor Warren Buffett. Meanwhile nearly 800 million workers saw their wages over the past two years fail to keep up with inflation, resulting on average in the equivalent of 25 days of lost annual income per worker, according to Oxfam’s analysis. Of the world’s 1,600 largest corporations, just 0.4% of them have publicly committed to paying workers a living wage and to supporting a living wage in their value chains, the study found. (Writing and reporting by Mark John; Editing by Alexander Smith) More

LONDON (Reuters) – Average asking prices for British homes made the strongest start to the year since 2020, according to a Rightmove (OTC:RTMVY) survey on Monday that added to signs that the slowdown in the sector could be easing as demand picked up in January.The average price of homes put on sale between Dec. 3 and Jan. 6 was 1.3% higher than the month before, the biggest December to January rise since 2020 and more than double the average increase for this time of year, Rightmove said.House prices in Britain typically pick up at the start of January after a lull in the run-up to Christmas.”For now the data at the start of 2024 points to building momentum, and reasons for growing market optimism,” Tim Bannister, director of property science at Rightmove, said.Rightmove said the number of agreed sales was 20% higher in the first week of January compared to the same period last year, and buyer demand was up 5%. The number of homes coming to the market rose by 15%. British house prices, like those in many other rich countries, surged during the COVID-19 pandemic, rising by more than 25% according to official data. But transactions slowed sharply in late 2022 after then-Prime Minister Liz Truss’ budget plans caused turmoil in bond markets, which pushed up the cost of mortgages, while rising Bank of England rates acted as a brake through 2023.Asking prices in Rightmove’s January period are still 0.7% lower than the year before.Average mortgage rates have fallen, however, from a peak of 6.11% for a five-year fixed term in July 2023 to 4.86% now, Rightmove said.Financial markets expect the Bank of England to start cutting rates from their current 15-year high of 5.25% in May.Other indicators have also shows a rise in house prices. Britain’s biggest mortgage lender Halifax earlier this month reported a 1.1% monthly increase in prices in December and the first annual rise in eight months That said, buyers were still likely to feel the squeeze from elevated mortgage rates and the cost-of-living crisis this year, Bannister said.And while the housing market appears to be gaining momentum, Bannister said activity was likely to slow in the weeks leading up to the national election which Prime Minister Rishi Sunak has suggested will be held in the second half of this year. More

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Expectations of monetary easing have heightened after major Chinese commercial banks lowered deposit rates late last year, paving the way for further reductions in policy rates at a time when persistent deflationary pressures also warrant additional stimulus.A protracted property crisis, cautious consumers and geopolitical challenges are also pointing to another bumpy year for the world’s second-biggest economy.In a Reuters poll of 35 market participants conducted this week, 19 or 54.3% expected the People’s Bank of China (PBOC) to cut the borrowing cost of one-year medium-term lending facility (MLF) loans.The central bank last cut the MLF rate in August 2023 by 15 basis points (bps).Thirty, or 85.7% of all respondents, predicted the central bank would inject fresh funds into the financial system exceeding the maturing 779 billion yuan ($108.73 billion) of MLF loans due this month.”Inflation could be of higher priority for the PBOC to prevent a negative feedback loop between deflation and activities,” Citi analysts said in a note.”We reiterate our view for a policy rate/LPR cut as early as in coming weeks within January … We maintain our expectations of 50-basis-point reserve requirement ratio (RRR) cuts and 20-basis-point MLF rate cuts for the whole year.”The interest rate on MLF loans currently stands at 2.5%. As it serves as a guide to the loan prime rate (LPR), markets mostly see the rate as a precursor to adjustments in the LPR. China is due to announce the monthly LPR fixing on Jan. 22. “I think the central bank should take action as early as possible: it should lower both interest rates and RRR as early as the beginning of the year,” said Wang Tao, chief China economist at UBS.However, she added that the PBOC might be rather cautious as it has to pay close attention to U.S. Federal Reserve and dynamics of interest rate movements in global markets.Wang expects a total of 10 to 20 bps of rate reductions and 25 to 50 bps points of RRR cuts this year. Investors’ expectations for an RRR cut also rose after Zou Lan, monetary policy department head of PBOC, highlighted reserve requirements as one of monetary policy options to support credit growth, according to a state media report this week. ($1 = 7.1643 Chinese yuan renminbi) More

Pilbara Minerals has experienced a notable decline in its share value, with a 27% drop recorded over the past six months. This decrease is partly attributed to a slump in lithium prices, which has adversely affected the firm’s recent performance. Goldman Sachs anticipates that shares may continue to face downward pressure.The company’s strategy to ramp up production has not alleviated the investment bank’s concerns. Goldman Sachs remains cautious, pointing to an expected downturn in free cash flow. This forecast is based on the sustained pressure from lithium supply and the increased expenditures associated with growth. The bank’s outlook suggests that despite Pilbara’s efforts to increase its production capabilities, the financial burden of expansion could outweigh the benefits in the current market environment.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More

The fdx platform, announced at the National Retail Federation’s Big Show, is part of FedEx’s transition to a more digitally-led business model, leveraging its existing physical transportation network. FedEx Corp. President and CEO Raj Subramaniam emphasized the platform’s role in strengthening merchant partnerships by offering digital intelligence to optimize and expand their operations.Currently, fdx offers capabilities that enable merchants to connect with potential customers, share delivery estimates, track shipments with near real-time visibility, access carbon emissions data, and manage returns digitally. These features are intended to help businesses grow consumer demand, improve conversion rates, and streamline logistics processes.Scheduled for an official launch in fall 2024, fdx is presently in a private preview phase. Interested businesses can request access to learn more about the platform. Attendees of NRF 2024 can also experience a preview of fdx at FedEx’s booth.The upcoming capabilities set to be released with the platform’s launch include tools to optimize order fulfillment and create customized post-purchase experiences that align with brand standards, offering transparency in delivery dates and shipment updates.FedEx, with an annual revenue of $88 billion, continues to focus on innovation and digital solutions while maintaining its commitment to safety, ethical standards, and community needs. The company, which operates with a vision of carbon-neutral operations by 2040, is recognized globally for its reliable transportation, e-commerce, and business services.This news article is based on a press release statement from FedEx Corp.As FedEx Corp. (NYSE: FDX) forges ahead with its latest digital commerce platform, fdx, investors may be curious about how the company’s financial health can support such innovative endeavors. According to real-time data from InvestingPro, FedEx boasts a robust market cap of $14.73 billion, underscoring its substantial presence in the industry. The company’s impressive gross profit margin, which stands at 92.39% for the last twelve months as of Q3 2023, indicates strong operational efficiency—a critical factor for the success of their newly announced platform.Moreover, FedEx’s commitment to maintaining dividend payments for 26 consecutive years, coupled with a healthy dividend yield of 5.11%, reflects its dedication to shareholder returns. This financial stability, alongside a significant 28.75% price total return over the past three months, suggests that FedEx is on a positive trajectory as it continues to invest in digital transformation.For those looking to delve deeper into FedEx’s financials and future prospects, InvestingPro offers additional insights. There are 7 more InvestingPro Tips available, including analysis on sales growth and near-term earnings potential, which can be accessed via the platform. As part of a special Cyber Monday sale, InvestingPro subscriptions are now available with a discount of up to 60%. Plus, use coupon code ProW345 to get an additional 10% off a 2-year InvestingPro+ subscription. This offer is a valuable opportunity for investors seeking comprehensive data and expert analysis to inform their investment decisions.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More

(Reuters) – A look at the day ahead in Asian markets.Financial market activity in Asia on Monday will be lighter than usual with U.S. markets closed for the Martin Luther King Jr. holiday, but there is a decent sprinkling of local economic and political developments for investors to get their teeth into.Japan releases money supply figures, South Korea and Indonesia publish their latest trade numbers, while Indian wholesale price inflation data are also due out following CPI figures last week that showed price pressures in December were not quite as hot as forecast.On the political front, there may be ripples from the parliamentary and presidential elections in Taiwan on Saturday, in which the ruling, pro-independence Democratic Progressive Party won a third term. China, which last week vowed it would “smash any independence plots”, condemned foreign governments that congratulated Taiwan’s president-elect Lai Ching-te on his victory. The potential for military conflict between China and Taiwan is one reason investors are increasingly cautious on China where a property sector bust, deflation and sluggish growth are already giving them serious food for thought.Wednesday sees the release of another batch of top-tier economic indicators – house prices, fixed asset investment, industrial production, unemployment and retail sales, culminating in fourth quarter GDP growth. China’s growth is expected to have picked up from 4.9% year-on-year in the third quarter, but only due to favorable base effects.Economists at SocGen are forecasting 5.3% and their peers at Goldman Sachs are eyeing 5.6%. On the gloomier side, economists at Barclays are predicting just 4.5%, and warn that the risks to their already sub-consensus 2024 outlook of 4.4% GDP growth are tilted to the downside. All eyes in Japan, meanwhile, turn to December’s inflation figures on Friday. Recent signs that price pressures may be cooling have called into question whether the Bank of Japan needs to be so committed to ‘normalizing’ policy. The potential for a BOJ rethink has been rocket fuel to Japanese stocks. The Nikkei soared to a 34-year high and rose 6% last week alone, so soft inflation numbers will surely add further fuel to that fire.Economists expect core annual inflation to slow to 2.3% from 2.5% in November, and headline inflation to fall from 2.8% closer to the BOJ’s 2% target.Other regional highlights this week include the Indonesian central bank’s latest policy decision on Wednesday and Malaysian GDP on Friday.Broad market sentiment seem fairly benign. For all the talk of global supply chain issues and inflationary pressures as a result of the Red Sea shipping disruption, there are no real sign of risk aversion or inflation fears among investors.Gold and oil were flat last week, the two-year U.S. yield fell 25 basis points, and world stocks rose more than 1%. Even Asian stocks, which have had a shaky start this year, fell only 0.75%.Here are key developments that could provide more direction to markets on Monday:- South Korea trade (December)- Indonesia trade (December)- India WPI inflation (December) (By Jamie McGeever; Editing by Diane Craft) More

The initiative, which began in 2022, integrates Sensormatic’s inventory intelligence solution to improve item-level tracking between Allbirds’ warehouses and stores, facilitating future omnichannel strategies. This collaboration is part of Allbirds’ commitment to adopting cutting-edge technologies to optimize their retail operations and customer service.Micah Nelson, Allbirds’ director of product management, emphasized that operational accuracy is critical to focusing on what matters most: the shopper experience. Sensormatic Solutions’ RFID cloud-based inventory management system, known as Supply Chain Visibility, supports Allbirds in streamlining merchandise programs, coordinating deliveries, and aiding floor associates.Frank Cho, vice president and product general manager of Inventory Intelligence at Sensormatic Solutions, praised Allbirds for its dedication to innovation and retail precision. The partnership is designed to smooth operations for the benefit of both employees and consumers.Allbirds, founded as a direct-to-consumer brand in 2014 and opening its first physical store in 2018, has sustainability at the core of its business model. The collaboration with Sensormatic Solutions also leverages Google (NASDAQ:GOOGL) Cloud’s BigQuery for enhanced operational insights.Visitors to the 2024 NRF Big Show, running from January 14-16 at the Javits Center in New York City, will have the opportunity to interact with Sensormatic Solutions’ technologies at booth #4865. The showcase is expected to demonstrate how Sensormatic powers precise retail experiences across the supply chain.This news is based on a press release statement. For additional information, Sensormatic Solutions and Allbirds can be explored through their respective websites, sensormatic.com and allbirds.com.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More