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Musk’s lawyer pleads with the judge to have the Twitter hearing delayed

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Elon Musk’s lawyer pleads with the judge to have the Twitter hearing delayed, asks for investigation into whistleblower’s claims

Elon Musk’s lawyer has urged the court to delay the Twitter trial, so a whistleblower’s claims can be investigated. The case surrounds Musk’s desire to distance himself from his $44 billion without having to pay a termination fee.

The billionaire’s representation has requested a delay of several weeks, with the whistleblower claiming the Twitter platform has serious security deficiencies.

Musk’s acquisition of the social media giant had cracks in it from day one. The Tesla boss asked Twitter execs to produce information around the number of bots and false accounts on the platform almost immediately after announcing his intention to buy.

Do the whistleblower’s claims stack up?

New information shared by Twitter’s former Head of Security, Peiter Zatko, claims the platform lacks robust data security processes. This helped to support Musk’s reluctance to continue with the purchase.

But current Twitter execs have slammed Zatko’s claims as false. They also accused Musk of grasping at any information possible to back out of their agreement without paying the fee.

Observing this entire situation, it was clear from the beginning that  Musk rushed the purchase announcement. He failed to complete the due diligence required for an acquisition of such significant proportions.

The announcement was accompanied by bold claims surrounding what Musk would change on the platform, once he became the owner.

The initial media coverage generated by these announcements was astronomical. But once this eased, it became clear that Musk was beginning to stall the acquisition process – and his list of requirements from Twitter grew, in line with his reluctance follow through.

Now that Musk wants out, he is trying anything to walk away from the deal with as little cost to him as possible. Musk and the purchase of Twitter may be the most expensive impulse buy in history.

Dr Karen Sutherland is a Senior Lecturer at the University of the Sunshine Coast where she designs and delivers social media education and research. Dr Sutherland is also the Co-Founder and Social Media Specialist at Dharana Digital marketing agency focused on helping people working in the health and wellness space.

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Money

Dow rises 400 points as trade tensions ease

Dow climbs 400 points as trade tensions ease, Trump signals no plan to fire Fed Chairman Powell.

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Dow climbs 400 points as trade tensions ease, Trump signals no plan to fire Fed Chairman Powell.

In Short

Stocks rose significantly on Wednesday, with the Dow up 461 points amid optimism about reduced U.S.-China tariffs.

Investors reacted positively to President Trump’s comments on trade, improving overall market sentiment after a four-day losing streak.

Stocks saw significant movement on Wednesday, with the Dow Jones Industrial Average rising by 461 points, or 1.2%.

The S&P 500 and Nasdaq Composite also experienced gains of 1.7% and 2.6%, respectively.

Initially, the Dow surged by 1,100 points due to optimism surrounding U.S.-China trade relations.

President Donald Trump indicated a willingness to adopt a less aggressive trade strategy, suggesting that the current 145% tariff on imports from China would be significantly reduced but not eliminated entirely.

Trade agreement

Treasury Secretary Scott Bessent commented on the potential for a beneficial trade agreement between the two nations, expressing a desire for joint efforts to address trade imbalances.

Market reactions reflected relief at the prospect of eased tensions, with Keith Buchanan from Globalt Investments noting that investors were hopeful the worst might be over, though uncertainties remain.

Reports indicated that the U.S. administration was contemplating reducing tariffs on China to between 50% and 65%, contingent upon mutual concessions from both countries.

Stocks affected by trade dynamics, particularly tech companies like Apple and Nvidia, showed marked increases, with Tesla’s shares rising 5% partly attributed to these easing tariff concerns.

Investor sentiment improved further when Trump reaffirmed that he has no intention of dismissing Federal Reserve Chairman Jerome Powell, a shift from his previous criticism of Powell’s leadership.

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Money

Credit-card firms prepare for economic downturn risks

Credit card companies prepare for economic downturn; rising delinquencies prompt tighter lending despite continued consumer spending.

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Credit card companies prepare for economic downturn; rising delinquencies prompt tighter lending despite continued consumer spending.

In Short

US credit card companies are preparing for a possible economic downturn by tightening lending and increasing reserves, even as consumer spending remains high.

While the wealthy continue to spend, access to credit is diminishing for lower-income individuals, and caution is growing among banks.

Credit card companies in the US are preparing for a potential economic downturn despite current consumer spending levels. Businesses are increasing reserves and tightening lending as delinquencies rise to pre-pandemic levels.

JPMorgan Chase and Citigroup have augmented their rainy day funds to mitigate expected losses. Retail card issuer Synchrony is applying stricter lending criteria, while U.S. Bancorp is targeting wealthier customers to reduce risk.

Although large lenders are still reporting profits, the effects of Trump’s trade war have yet to reflect in financial results. Recent data shows that Americans are spending and borrowing at a faster pace compared to last year.

Travel and entertainment

However, there are warning signs as consumers begin to cut back on nonessential expenditures such as travel and entertainment. The trend of cardholders making only minimum payments is above pre-pandemic levels.

Despite consumers showing confidence in spending in early April, banks remain cautious. They are redirecting their marketing strategies towards affluent households, recognising that the wealthiest individuals account for a significant proportion of total spending.

Conversely, access to credit is tightening for lower-income individuals, with Synchrony reporting declines in active accounts and purchase volumes. American Express, meanwhile, continues to perform well among high-income clients, with strong consumer spending growth reported.

Unemployment rates among white-collar workers remain low, offering some stability in credit card portfolios for certain issuers.

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U.S. shares rebound amid tariff negotiation optimism

U.S. shares rebound over 2.5% amid tariff optimism, despite economic warnings and mixed global market performance.

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U.S. shares rebound over 2.5% amid tariff optimism, despite economic warnings and mixed global market performance.

In Short

U.S. shares rebounded significantly due to optimism over tariff negotiations, with major indexes rising over 2.5%. However, companies continue to face challenges from tariffs and uncertainty in the market, leading to mixed results overseas.

U.S. shares saw a significant rebound on Tuesday, with major indexes increasing by over 2.5%.

This recovery was influenced by optimism regarding tariff negotiations, as noted by Treasury Secretary Scott Bessent, who expressed confidence in a potential de-escalation of the trade war with China.

Despite this positive sentiment, companies are still grappling with the effects of the Trump administration’s tariffs.

Defense contractor RTX announced an anticipated $850 million financial impact, and Kimberly-Clark cited a “global geopolitical landscape” for a lowered profit outlook.

Economic forecasts

The International Monetary Fund has revised its economic forecasts for the U.S. and globally, highlighting tariffs as a factor in slower growth.

Goldman Sachs CEO David Solomon indicated that high levels of uncertainty are hindering corporate decisions and impacting asset prices, and the Institute of International Finance warned of a probable U.S. recession later this year.

Gold prices have fluctuated, retreating after reaching a record high on Tuesday, reinforcing its status in uncertain markets.

Tesla’s quarterly earnings did not meet estimates, but the company’s share price remained stable.

Concerns about President Trump’s trade policies and his remarks regarding Federal Reserve Chair Jerome Powell contributed to market volatility earlier in the week.

In trading results, the Dow Jones increased by 1,017 points or 2.7%, while the Nasdaq and S&P 500 both rose by 2.7% and 2.5%, respectively.

Treasury yields decreased slightly, and Bitcoin’s value climbed past $91,000.

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