Tech layoffs

The pandemic boom time appears over, as US tech giants announce staff layoffs in vast numbers. Intel signalled thousands of job losses, aiming to cut $10 billion in costs by 2025. Meta cut 11,000 jobs, its biggest retrenchment yet. At Twitter, half the staff were laid off as Elon Musk took ownership. The world’s richest man warned of possible bankruptcy at the social network, unless staff adopted his ‘hard core’ work ethic. Meanwhile, as Amazon looked for 10,000 layoffs, founder Jeff Bezos, the world’s fourth richest man, promised to give away the majority of his $124 billion fortune.

Pivot or no pivot?

US interest rates might now stay ‘higher for longer’, but Jay Powell, president of the Federal Reserve, indicated that the ‘jumbo’ rate hikes of the last four meetings could be a thing of the past. Other Fed governors flagged that recent rate hikes might just prove excessive, after the October inflation print undershot forecasts. Markets rallied in hopes of a pivot to lower rates next spring. But a European Central Bank board member told a different story, suggesting government help with fuel bills could prevent a fall in demand. Meaning inflation stays higher for longer instead.

Blue line holds

Against the pundits’ predictions, and despite his own poor approval ratings, President Biden’s Democratic Party has retained control of the US Senate. But the Republican Party took control of the House of Representatives, which could block the passing of new laws. Donald Trump’s predicted ‘red wave’ of Republican victories failed to materialise. Nonetheless, the former president later declared his candidacy for the 2024 presidential election. Perhaps to demonstrate his credentials as a ‘free speech absolutist’, Elon Musk then reinstated Trump’s suspended Twitter account, after an online poll voted marginally in favour.