1. China’s Xi Meets Germany’s Scholz, First EU Leader Since Start of Ukraine War (WSJ)
Shortly after securing his third term as the leader of the People’s Republic of China Xi Jinping welcomed the German chancellor Olaf Scholz this Friday in Beijing, China. Scholz is therefore the first European leader allowed visitation since the start of the Covid-19 pandemic. The meeting between the two world leaders was critically watched as China continues to lean towards Russia while having strong economic ties with the greater world. For Germany in particular, the meeting was of paramount importance as China is one of its biggest markets for export goods. Moreover, since the start of the war between Ukraine and Russia, the German economy has suffered immensely. On his trip, Scholz was accompanied by twelve of Germany’s most influential CEOs to strengthen their relationship with China further. As Germany’s economy lies on the brink of a recession due to high energy prices, China’s role may be vital in determining the survival of Germany.
2. Elon Musk’s Twitter Begins Layoffs (WSJ)
About a week after the world’s richest man, Elon Musk, acquired the social network company Twitter, Inc., the company started its mass layoff. Immediately after the acquisition of Twitter, Musk fired the CEO & CFO and sent out a companywide message informing Twitter’s employees of their potential future. According to company filings, at the point of Musk’s acquisition, Twitter had approximately 7,500 employees. Newest reported figures from people familiar with the matter outline that the company is expected to let go of 2,000 – 3,750 employees within the upcoming weeks starting 4 November 2022. Twitter employees who were released this Friday have already taken legal action by filing a class-action lawsuit against the company claiming they were not given a 60-day notice before being released.
3. Raising Money on Wall Street Hasn’t Been This Hard in a Decade (WSJ)
Usually, around this time of the year, big players on Wall Street are announcing some of their biggest deals. However, this year it has gotten quiet on Wall Street. Latest reports show that stock sales, debt raises, and corporate mergers have slowed down dramatically. The reason for the outstanding flow of cash has been the FED’s interest in raising interest rates and therefore increases the price of borrowed money. Companies that have accumulated a large amount of debt within the past few years while interest rates were close to 0% are now in deep trouble. Moreover, experts expect that the cost of borrowing could remain this high for a long period to come. Companies, therefore, need to start rethinking their approach to doing business and account for the rising inflation within the global economy.
Wall Street Journal, n.d. (2022, November 4). China's XI meets Germany's Scholz, first EU leader since start of Ukraine War. The Wall Street Journal. Retrieved November 6, 2022, from https://www.wsj.com/video/chinas-xi-meets-germanys-scholz-first-eu-leader-since-start-of-ukraine-war/CAED9C76-EBD9-40FB-99C2-653DAFFBAB38.html
Corse, A., & McMillan, R. (2022, November 4). Elon Musk's twitter begins layoffs. The Wall Street Journal. Retrieved November 6, 2022, from https://www.wsj.com/articles/twitter-tells-employees-jobs-cuts-will-be-announced-friday-11667523638?mod=Searchresults_pos3&page=1
Wirz, M. (2022, November 6). Raising money on wall street hasn't been this hard in a decade. The Wall Street Journal. Retrieved November 6, 2022, from https://www.wsj.com/articles/raising-money-on-wall-street-hasnt-been-this-hard-in-a-decade-11667730621?mod=hp_lead_pos4
Image Retreived from https://www.nytimes.com/2022/11/04/business/germany-china-covid-vaccine.html