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High noon for big tech in Washington? | Ticker VIEWS

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While everyone was focusing on the bipartisan deal between President Biden and a group of moderate senators last week, another drama was unfolding on Capitol Hill

Officials in the House Judiciary Committee were working on the most significant move to bring antitrust laws to bear on the most powerful companies in America (and the world) since Microsoft was the target of a move to break its business model 23 years ago.

As the Big Tech companies continue to grow, they face increasing scrutiny over how they operate and whether competition is limited as a result.

Facebook, Google and Amazon in particular have been growing and extending their power and scale. This has lead to questions as to whether these companies are abusing consumers’ rights.

This is one issue that has strong bipartisan support

It has support from Republicans, because Big Tech is seen as pro-left; cancelling out the voices of President Trump and other conservatives. And from Democrats, who fear Big Tech’s rampant concentration of power.

Since President Teddy Roosevelt’s extraordinarily successful crusades a century ago, a fundamental tenet of governance in a democracy is that no company or business interest is more powerful than the rule of law. That authorities can regulate corporate power to serve the public interest.

In US telecoms and tech, AT&T and Microsoft succumbed to this imperative of how capitalism must operate.

The US House Judiciary Committee.

It is this bipartisan cooperation that opened the door to aggressive enforcement activity in Washington

Under the Trump administration, the Justice Department and Federal Trade Commission filed landmark antitrust lawsuits against Google and Facebook.

40 US states have filed similar litigation.  The intent is consistent: break up their business models, introduce more competition, and establish rules to protect consumers.

The House Judiciary Committee last week approved five bills that would prevent Big tech mergers that could eliminate competitors. The Committee passed these bills with bipartisan support.

These bills will be difficult to enact into law, and Republicans in Congress remain divided

Trump supporters do not believe they do anything to stop Big Tech from closing down conservative media platforms. The concern comes after Twitter and Facebook both recently decided to turn off Trump. 

And if these bills do pass the House, successful Senate legislation requires a supermajority (60 votes out of 100 Senators) to pass.

What is most significant, however, is that the action sends a powerful signal that these issues are absolutely legitimate

This will strengthen the hand of both the Federal Commission, now under the new leadership of Lina Khan. It will also allow the Justice Department to litigate antitrust actions, bringing competition and consumer laws to these powerful commercial entities.  

Th Big Tech lobbyists can slow down how far Congress will go.  But not the landmark lawsuits managed by President Biden’s Executive Branch.

Read more by Bruce Wolpe here

Bruce Wolpe is a Ticker News US political contributor. He’s a Senior Fellow at the US Studies Centre and has worked with Democrats in Congress during President Barack Obama's first term, and on the staff of Prime Minister Julia Gillard. He has also served as the former PM's chief of staff.

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US stocks face tests from Tesla, Netflix earnings

US markets brace for Tesla and Netflix earnings amid rising volatility and delayed inflation data

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US markets brace for Tesla and Netflix earnings amid rising volatility and delayed inflation data

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In Short:
– Earnings reports from Tesla and Netflix might affect U.S. stock performance next week amid high inflation concerns.
– Increased market volatility arises from U.S.-China trade tensions and fewer S&P 500 stocks in an uptrend.
This coming week, earnings reports from companies including Tesla and Netflix are anticipated to impact U.S. stock performance.
Investors are also awaiting delayed U.S. inflation data, which could test market stability as it remains near record highs.Recent trading activity has shown increased volatility, influenced by ongoing U.S.-China trade tensions and concerns regarding regional bank credit risks. The CBOE volatility index has seen a rise, indicating increased market uncertainty.

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The S&P 500 entered its fourth year of growth amidst these fluctuations, having previously experienced a period of calm. Experts suggest market risks are intensifying as valuations reach peak levels.

Market Volatility

Concerns regarding U.S.-China trade relations escalated last week when the U.S. threatened to raise tariffs by November 1 over China’s rare-earth export policies. President Donald Trump is scheduled to meet with President Xi Jinping in two weeks to discuss these issues.

Despite these challenges, major stock indexes gained ground over the week, with the S&P 500 up 13.3% year-to-date. However, a noticeable decline in the number of S&P 500 stocks in an uptrend raises caution among investors about underlying market weaknesses.

The upcoming third-quarter earnings will be closely monitored, especially as the government shutdown halts economic data releases. Companies like Procter & Gamble, Coca-Cola, RTX, and IBM are due to report. The delayed U.S. consumer price index is also expected to provide crucial insights ahead of the Federal Reserve’s monetary policy meeting on October 28-29.


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Australia’s unemployment rate rises to 4.5 per cent

Australia’s unemployment rate rises to 4.5 per cent in September, prompting calls for potential Reserve Bank interest rate cut

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Australia’s unemployment rate rises to 4.5 per cent in September, prompting calls for potential Reserve Bank interest rate cut

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In Short:
– Australia’s unemployment rate rose to 4.5% in September, the highest since November 2021.
– Economists note a cooling labour market, with fewer job ads and increased participation rate amid rising living costs.
Australia’s unemployment rate increased to 4.5 per cent in September, up from 4.3 per cent in August.It marks the highest seasonally adjusted unemployment rate since November 2021.

Economists suggest that the Reserve Bank should consider another interest rate cut next month. BetaShares chief economist David Bassanese noted a slowdown in employment demand as the labour market struggles to accommodate job seekers.

The number of officially unemployed rose by 33,900 in September, while the employment count increased by 14,900. The labour force expanded by 48,800 people, resulting in a participation rate rise of 0.1 percentage points to 67 per cent, returning to July levels.

In trend terms, the unemployment rate remained steady at 4.3 per cent.

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Labour Market

BDO chief economist Anders Magnusson stated that while the unemployment rate has increased, the labour market is cooling, not collapsing.

He pointed out that the 14,900 jobs added in September were slightly below the average for the past year.

A growing participation rate indicates that rising living costs are prompting more individuals to seek employment. Magnusson said the release confirms a gradual cooling of the labour market that keeps the Reserve Bank on track without necessitating immediate action.

He added that hiring activity is slowing, signalled by a 3.3 per cent drop in job advertisements in September, the largest monthly decrease since February 2024.

Despite this, he does not foresee a rate cut in November.


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Stocks rebound after Trump eases China trade tensions

Stocks rebound 600 points as Trump eases China trade tensions, signalling optimism in markets following Friday’s sell-off

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Stocks rebound 600 points as Trump eases China trade tensions, signalling optimism in markets following Friday’s sell-off

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In Short:
– Stocks rose on Monday after Trump expressed optimism about trade relations with China.
– The Dow Jones gained 621 points, with significant increases in tech stocks and broad market recovery.
Stocks gained ground on Monday, recovering from Friday’s decline after President Donald Trump expressed optimism regarding trade relations with China, stating they “will all be fine.”The Dow Jones Industrial Average rose by 621 points, approximately 70% of its previous loss. The S&P 500 experienced a 1.6% increase, nearing a 60% recovery of its earlier drop. The Nasdaq Composite increased by 2.3%, bolstered by rebounds in technology stocks.

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Oracle’s stock surged over 5%, with AMD and Nvidia seeing 1% and 3% increases, respectively. Broadcom’s stock jumped 10% following the announcement of a partnership with OpenAI.

Trump’s comments hinted that he might not impose a significant increase in tariffs on China, which had previously caused market turmoil. Vice President JD Vance similarly indicated a willingness to negotiate with China, while also asserting that the U.S. holds advantages in potential trade discussions.

Broader Recovery

Monday’s trading saw a positive shift with four out of five S&P 500 stocks rising, indicating widespread recovery. Small-cap stocks also made gains, with the Russell 2000 rising over 2.5%.

Market concerns persist, however, with a government shutdown continuing and a major payroll deadline approaching on October 15. Earnings reports from major financial institutions, including Citigroup and JPMorgan Chase, are expected this week, potentially impacting market sentiment.


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