Economy

According to a New York Post report, the billionaire was found dead of a self-inflicted gunshot wound at his Manhattan office on Thursday morning. The report cited police sources. Reuters could not immediately confirm the cause of death. The New York Police Department did not respond to a Reuters request for comment. “The family is extremely saddened by Tom’s death,” Lee’s family said in a statement “Our hearts are broken. We ask that our privacy be respected and that we be allowed to grieve.”Lee was the founder and chairman of Lee Equity and had served as chairman and CEO of Thomas H. Lee Partners, according to the Lee Equity website. More

BENGALURU (Reuters) – Global finance leaders will tally the economic damage from Russia’s war in Ukraine on Friday as they meet on the conflict’s first anniversary with some voicing concerns that more sanctions on Moscow would disrupt a modest improvement in growth.The meeting of G20 finance ministers and central bank governors on the outskirts of India’s Bengaluru tech hub comes amid signs that the global outlook has improved from the group’s last meeting in October, when a number of G20 economies were teetering on the brink of recession amid energy and food price spikes caused by the war.U.S. Treasury Secretary Janet Yellen on Thursday highlighted the improvement, saying the global economy “is in a better place today than many predicted just a few months ago”.The International Monetary Fund has forecast global GDP growth for 2023 at 2.9%, up from a 2.7% forecast in October, but still well below the 3.4% achieved in 2022.Yellen attributed the improvement in part to cooperation among G20 central banks and governments over the past year in taking strong action to quell inflation, even at the expense of growth. Inflation in the United States and other countries has eased alongside lower energy prices, but Yellen added that such efforts needed to continue and more work was needed to mitigate spillovers from the war, such as easing food shortages and holding down energy prices and Russian revenues.Yellen and fellow G7 ministers on Thursday called for more financial support for Ukraine and vowed to maintain tough sanctions on Russia.G7 chair Japan’s finance minister, Sunichi Suzuki, told reporters that the group would closely monitor the effectiveness of sanctions and “take further actions as needed”.German Finance Minister Christian Lindner said the pressure on Russia must be kept high to “completely isolate” Russia’s economy.But the enthusiasm for squeezing Russia’s economy further is not shared by some members of the broader G20 group, especially India, which does not want additional sanctions against Russia during its G20 presidency this year, according to government sources.The existing sanctions on Russia, which has historic ties to India, “are having a negative impact on the world,” one of the Indian officials said. New Delhi has maintained a neutral stance on the conflict, vastly increasing its purchases of cheaper Russian oil and pushing against the term “war” in negotiations over G20 communique language. Russia calls its actions in Ukraine a “special military operation”.Yellen said the communique was still under discussion and she hoped to see a strong condemnation of Russia’s invasion and the damage it has caused Ukraine and the global economy. More

BENGALURU (Reuters) – Finance ministers from the United States and its G7 allies called for more financial support for Ukraine on Thursday and vowed to maintain tough sanctions on Russia on the eve of the first anniversary of Moscow’s invasion.Speaking ahead of a meeting of the Group of 20 nations in India, U.S. Treasury Secretary Janet Yellen took the lead in urging the IMF to pull together a loan programme for Ukraine, adding that Washington was preparing an additional $10 billion in economic assistance.The Group of Seven rich democracies, in a statement delivered by the finance minister of current head Japan, said the bloc hoped the IMF programme would be ready by March, adding that the G7 had increased financial aid for Ukraine for this year to $39 billion.”We, together with the international community, remain strongly committed to addressing Ukraine’s urgent short-term financing needs,” Japanese Finance Minister Sunichi Suzuki told reporters from a resort near India’s tech hub Bengaluru, where the G20 ministerial meeting will start on Friday. “Our sanctions have significantly undermined Russia’s capacity to wage its illegal war. We will continue to closely monitor the effectiveness of sanctions and take further actions as needed,” he added.Ukraine is seeking a $15 billion multi-year IMF programme. Yellen said that previous U.S. military, economic and humanitarian aid totalling $46 billion had allowed Ukraine to preserve economic and financial stability.”Our economic assistance is making Ukraine’s resistance possible by supporting the home front,” she said. “As President Biden has said, we will stand with Ukraine in its fight – for as long as it takes.”    German Finance Minister Christian Lindner said the pressure on Russia must be kept high. “We have to make further efforts to completely isolate Russia from international markets,” he added.The G20 includes the G7, Russia, China, Brazil and Saudi Arabia.WORLD BANKThe bloc is currently chaired by India, which has kept a neutral stance on the war and does not want additional sanctions against Russia to be discussed at the meetings, government sources have told Reuters.India was also pressing participants to avoid using “war” in communique language to describe the conflict, G20 officials said.Yellen said the communique was still under discussion and that she would like to see a “strong condemnation” of Russia’s invasion and the damage it has caused Ukraine and the global economy.She warned China against providing any material support to Russia’s war effort, adding that talks between the United States and China on economic issues would resume at “an appropriate time”. Ties between Beijing and Washington have been strained after the downing of a suspected Chinese surveillance balloon that floated over the continental United States this month.The outlook for the global economy and the situation of highly indebted countries will be the main topics discussed at the G20 meetings.Both Yellen and the G7 said the global economy was doing better than expected but that it was also important for the G20 to keep working to quell inflation.In a bid to shape the global economic agenda, the United States on Thursday nominated Indian-American businessman Ajay Banga to become president of the World Bank, which is embarking on a major series of reforms to better respond to climate change and other pressing challenges facing developing countries.Banga’s nomination all but assures he will take the job, as the United States is the bank’s largest shareholder. The institution plans to open nominations for the post later on Thursday. More

OTTAWA (Reuters) -Canada is launching a joint federal and provincial investigation into short-video app TikTok over concerns about the Chinese-owned platform’s collection, use and disclosure of personal information, the Privacy Commissioner of Canada said on Thursday.The federal privacy regulator, as well as provincial counterparts in Quebec, British Columbia and Alberta, will examine whether TikTok’s practices are in compliance with Canadian privacy laws, the commissioner’s office said in a statement.They will focus on examining “whether valid and meaningful consent is being obtained for the collection, use and disclosure of personal information,” according to the statement.A spokesperson for TikTok said the privacy and safety of users “is always a top priority” and the probe was an opportunity to “set the record straight” on how the company protects the privacy of Canadians.Canada joins governments and regulators from around the world that have been scrutinizing TikTok because of concerns China could use the app to harvest users’ data or advance its interests. TikTok is owned by Chinese company ByteDance Ltd.The European Union’s two biggest policy-making institutions have banned TikTok from staff phones, while the U.S. Senate in December passed a bill to bar federal employees from using the app on government-owned devices.The investigation also adds another potential thorn in Sino-Canadian relations which have been tense for various reasons, including recent accusations by Ottawa that China has tried to influence its elections and that it has been running air and maritime surveillance activities.Beijing denies those allegations and has urged Ottawa to stop unwarranted speculation and smearing. More

(Reuters) -Warner Bros Discovery (NASDAQ:WBD) Inc is borrowing a page from the Walt Disney (NYSE:DIS) Co playbook, saying it will lean into its popular entertainment franchises – including Superman, Batman, Lord of the Rings and Harry Potter. Chief Executive David Zaslav said that after completing 10 months of restructuring, the media company now looks to “take full advantage” of its roster of globally recognized characters through new movies and television shows.”I believe that we have an overwhelming advantage in the marketplace with the IP that we own,” said Zaslav, using the industry’s shorthand for intellectual property. “To get that advantage, we have to create great content.”Warner Bros Studios has struck a deal to make multiple films based on J.R.R. Tolkein’s “Lord of the Rings” fantasy novels, Zaslav told investors Thursday, during the company’s fourth-quarter investor call.Warner Bros Discovery posted a $2.1 billion loss in the quarter, reflecting charges related to the restructuring of the merged media companies. The company, like its Hollywood peers, is working to create a profitable streaming business as consumers and advertisers flee traditional TV. The “Lord of the Rings” announcement builds on plans to reinvigorate the DC Comics franchise in the mold of Disney’s Marvel Cinematic Universe. DC Studios co-Chairmen James Gunn and Peter Safran (EPA:SAF) last month laid out an ambitious slate of 10 film and television projects that tell a single story that unfolds over eight to 10 years.”It’s one of the biggest value-creation opportunities for us,” Zaslav told investors.Warner Bros Discovery said the months-long merger-related restructuring, which resulted in thousands of layoffs and canceled film and television projects, is complete. The company cited signs of gathering momentum, including the popularity of the HBO drama “The Last of Us,” the fourth HBO series to average more than 15 million viewers, as well as the chart-topping success of its “Harry Potter” videogame “Hogwarts Legacy.”The news came as Warner Bros Discovery reported revenue of $11 billion, shy of analysts’ consensus estimate of nearly $11.36 billion.Warner Bros Discovery reported a loss of 86 cents per share, versus expectations of a 21-cent-per-share loss. Before-tax earnings, or adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), of $2.6 billion modestly exceeded analysts’ forecasts of $2.58 billion.Shares of Warner Bros fell 1.5% in after-hours trading.    Warner Bros Discovery also said it had paid down $7 billion in debt since April. Chief Financial Officer Gunnar Wiedenfels said the company continues to look for efficiencies, and was on a path to deliver $4 billion in savings through 2024.    Like other media companies, Warner Bros Discovery has yet to turn a profit on its HBO Max and Discovery+ streaming services, though the company has reduced losses from them.    The streaming unit reported an operating loss of $217 million in the quarter, compared with pro-forma losses of $728 million a year ago. It booked $2.45 billion in revenue, exceeding Wall Street forecasts of $2.39 billion.The relaunch of HBO Max on Amazon (NASDAQ:AMZN) Channels in December helped add 1.1 million subscribers in the quarter, bringing the total to 96.1 million.Streaming and games chief J.B. Perrette told investors a new version of the streaming service, with better performance, enhanced features and broader entertainment offerings, will be unveiled at a press event on April 12.Zaslav confirmed reports that Discovery+ would remain available as a stand-alone service for those who are satisfied with its reality programming.    The studios segment reported operating income of $768 million, down 34% from the prior year’s quarter. Revenue fell 23% to $3.84 billion, in part because of fewer theatrical releases.Operating income for Warner Bros Discovery’s television segment fell 7% to $2.48 billion, on revenue of $5.52 billion as U.S. audiences shrank and the ad market remained weak. TV ad revenue of $2.2 billion fell short of expectations of $2.5 billion, according to Factset. More

UK consumer confidence rebounded in February to its highest level in almost a year, in a sign of households’ resilience despite the cost of living crisis, according to data published on Friday.Research group GfK said its index of consumer confidence, a closely watched measure of how people view their personal finances and wider economic prospects, rose by seven points to -38.Beating consensus forecasts of -43, that is the highest reading since April 2022 for the index, which fell to a near-record low in January. The measure remained well below zero, however, indicating that most respondents reported a decline in confidence. Joe Staton, GfK’s client strategy director, said that although February’s score was “still severely depressed”, consumers had “suddenly shown more optimism about the state of their personal finances and the general economic situation, especially for the coming year”.Respondents to the survey, based on interviews conducted between February 1 and 13, were more optimistic about the year ahead, as the sub-index measuring their general outlook on the future economic situation jumped by 11 points between January and February. Consumers also reported recovering confidence in their personal finances, as well as a growing willingness to make expensive purchases. The savings index, which measures how likely consumers are to put away money but is not included in the overall score, increased from 14 to 19 — a level five points higher than in February last year.The uptick across all five measures included in the overall index suggested that consumers might experience “a milder recession than the pundits predicted”, said Staton. The survey follows a string of encouraging official data, showing that the UK avoided a contraction in the final quarter of 2022, while the labour market remained resilient despite economic headwinds.

Headline inflation declined to 10.1 per cent in January, down from its 41-year peak of 11.1 per cent in October, the Office for National Statistics said last week.Meanwhile, the public finances registered a surprise £30bn windfall in the fiscal year to January, the ONS said on Tuesday, gifting chancellor Jeremy Hunt scope to provide extra support to households in his spring Budget on March 15. Overall, consumer confidence in February was 12 points lower than in the same month in 2022, as soaring energy bills and higher interest rates and food prices squeezed household budgets over the past 12 months. “[Consumer] mood as well as the economy remain a long way off pre-lockdown levels,” said Staton, “but a little consumer resilience might be what we need to soften any downturn in 2023.” More

TOKYO (Reuters) -Japan’s core consumer inflation hit a fresh 41-year high in January as companies passed on higher costs to households, data showed on Friday, keeping the central bank under pressure to phase out its massive stimulus programme.The data underscores the dilemma policymakers face as soaring prices of fuel and daily necessities hit households, many of whom have yet to see wages rise enough to make up for the higher cost of living.The nationwide core consumer price index (CPI), which excludes volatile fresh food but includes energy costs, was 4.2% higher in January than a year earlier, matching a median market forecast and accelerating from a 4.0% annual gain seen in December.January’s rise was the fastest since September 1981, when fuel costs spiked due to a Middle East oil crisis and hit Japan’s import-reliant economy.Core consumer inflation has now exceeded the Bank of Japan’s 2% target for nine straight months, mostly reflecting persistent rises in fuel and raw material costs, the data showed.”Inflation will probably peak in January but may not fall back below the BOJ’s 2% target for some time,” said Yoshimasa Maruyama, chief economist at SMBC Nikko Securities.”But there are questions as to whether the rise in inflation will be sustainable, as it is still driven largely by food and fuel costs,” he said.Incoming Governor Kazuo Ueda faces a challenge in sustaining the BOJ’s yield control policy, which has come under attack by markets betting strong inflation will force the bank to raise interest rates.Upon approval by parliament, Ueda is expected to succeed incumbent Haruhiko Kuroda when his term ends in April. At Ueda’s debut policy meeting on April 28, the BOJ will release for the first time its inflation forecasts extending to fiscal 2025.Japan’s economy averted recession in the fourth quarter of last year but rebounded much less than expected as business investment slumped.While private consumption is holding up against headwinds from rising living costs, uncertainties over the global economic outlook will weigh on Japan’s delayed recovery from the scars of the COVID-19 pandemic, analysts say. More

WASHINGTON (Reuters) -U.S. President Joe Biden nominated former Mastercard Inc (NYSE:MA) CEO Ajay Banga to lead the World Bank, betting the India-born executive’s ties to the private sector and emerging markets will jump-start the 77-year-old institution’s overhaul to better address climate change.Biden’s nomination on Thursday of Banga, 63, now a U.S. citizen, all but assures he will assume a job that oversees billions of dollars of funding, as it races to help developing countries address climate change.The World Bank (WB) on Wednesday said it expects to select a new president by early May to replace David Malpass, who announced his resignation last week after months of controversy sparked by his initial refusal to say if he accepted the scientific consensus on climate change, and pressure by Treasury Secretary Janet Yellen for him to adopt “bolder” reforms.”I think the speed of the nomination, less than 48 hours after the WB board launched the process, reflects a desire to discourage any challengers and wrap it up quickly,” said Scott Morris, a senior fellow at the Center for Global Development and a former U.S. Treasury official.Biden noted Banga’s decades of experience building global companies and public-private partnerships to fund responses to climate change and migration and said he had a proven track record working with global leaders.”Ajay is uniquely equipped to lead the World Bank at this critical moment in history,” Biden said in a statement, hailing the business executive’s Indian roots and knowledge of the challenges facing developing countries and ability to mobilize private capital to tackle big problems.Banga’s work in India and other emerging markets, his “obsession” with expanding financial inclusion, and his deep knowledge of new technologies could help bridge the divide between rich countries and emerging markets, said Luis Alberto Moreno, who worked closely with Banga while serving as president of the Inter-American Development Bank.”He can really be a force for change,” Moreno said, noting that Banga enjoyed the trust of financial markets. India was expected to support Banga’s candidacy, according to Krishnamurthy Subramanian, the former top economic adviser to the Indian government who now serves as India’s executive director at the International Monetary Fund. “It’s an elegant solution.”DIVERSITYThe bank has historically been headed by someone from the United States, its largest shareholder, while a European heads the International Monetary Fund (IMF), but developing countries and emerging markets have pushed to widen those choices.Banga’s nomination is the first to be made public, but the bank will accept nominations from other member countries through March 29. Germany, another major shareholder, this week said the job should go to a woman since the bank has never been headed by a woman.A senior U.S. administration official said they did not know if other countries would nominate candidates for the post.Asked about Washington’s decision not to nominate a woman, the official said Banga had “a personal conviction and excellent track record promoting diversity, equity and inclusion in the work that he does” and would bring that view to the bank.But Jeff Hauser, who heads the progressive Revolving Door Project, demanded Biden retract the nomination of a top official from a “rapacious international private equity firm” who had previously worked only in private sector firms.”Neither private equity, nor MasterCard, nor Citigroup (NYSE:C), nor PepsiCo (NASDAQ:PEP), nor Nestlé, nor Dow promote shared prosperity. They all do vastly more to exacerbate inequality than to fight it,” he said in a statement. Oxfam International said the next bank president should be chosen through a transparent global process. “The World Bank is not a U.S. bank, a commercial bank, or a private equity firm. For a job of this stature, we need more than a tap on the shoulder from President Biden.”Banga is vice chair of General Atlantic, a U.S. private equity firm that administration officials said has invested over $800 million in EV charging solutions, solar power and sustainable farming.He retired in December 2021 after 12 years at the helm of Mastercard, where administration officials noted that he helped 500 million unbanked people join the digital economy, averted layoffs of the bank’s 19,000 employees during the COVID-19 pandemic, and led work on climate, gender and sustainable agriculture.Vice President Kamala Harris said Banga brought “great insight, energy and persistence” to his role as co-chair of the Partnership for Central America, which has mobilized $4.2 billion in public, private and nonprofit funds to advance economic opportunity in northern Central America. More