Argentina's financial crisis
After 100 days with Milei – the shock therapy pays off
It has been a brutal hundred days since Javier Milei took office as Argentina's president, writes The Economist who made a review.
Milei promised sweeping cuts and already the country has seen some success with the monthly budget surplus. At the same time, the government has devalued the currency by over 50 percent and lowered interest rates, which in the past year has sent inflation up to 276 percent.
The poverty rate is now at its highest level in 20 years and this has led to increased strikes and protests in recent weeks, according to Al Jazeera calling it shock therapy.
- Milei plays a high game with the Argentine people. If he doesn't deliver results soon, I think the protests will start to turn violent, says Matias Vernengo, a former official at Argentina's central bank.
After 100 days with Milei – the shock therapy pays off
It has been a brutal hundred days since Javier Milei took office as Argentina's president, writes The Economist who made a review.
Milei promised sweeping cuts and already the country has seen some success with the monthly budget surplus. At the same time, the government has devalued the currency by over 50 percent and lowered interest rates, which in the past year has sent inflation up to 276 percent.
The poverty rate is now at its highest level in 20 years and this has led to increased strikes and protests in recent weeks, according to Al Jazeera calling it shock therapy.
- Milei plays a high game with the Argentine people. If he doesn't deliver results soon, I think the protests will start to turn violent, says Matias Vernengo, a former official at Argentina's central bank.
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Inflation concerns
Switzerland first with unexpected interest rate cut
Switzerland's National Bank becomes the first major central bank and the first country in Western Europe to initiate interest rate cuts. The policy rate is cut by 25 basis points to 1.50 percent.
"The easing of monetary policy is possible because the fight against inflation over the past two and a half years has been effective," writes the central bank in a statement according to AFP.
The announcement goes against forecasts that predicted an unchanged interest rate in advance. At the same time, a few banks believed that Switzerland would surprise, writes Bloomberg and refers to economists at Barclays and Citigroup. The argument was, among other things, that even two years ago Switzerland was ahead of the ECB with interest rate cuts.
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The Riksbank's announcement will come next week.
The US Department of Justice is suing Apple
The US is suing Apple and accusing the tech giant of a monopoly around the iPhone, writes the Department of Justice according to CNBC.
"Every step of Apple's actions built and strengthened the moat around their smartphone monopoly," the lawsuit states.
The lawsuit filed by the department on Thursday may mean that the tech giant needs to make changes to several products, such as iPhones, the Apple Watch and the range of services, writes CNBC.
Apple has said it disagrees with the premise of the lawsuit and will defend itself against it.
The Ministry of Justice will hold a press conference at 4 p.m.
The US Department of Justice is suing Apple
The US is suing Apple and accusing the tech giant of a monopoly around the iPhone, writes the Department of Justice according to CNBC.
"Every step of Apple's actions built and strengthened the moat around their smartphone monopoly," the lawsuit states.
The lawsuit filed by the department on Thursday may mean that the tech giant needs to make changes to several products, such as iPhones, the Apple Watch and the range of services, writes CNBC.
Apple has said it disagrees with the premise of the lawsuit and will defend itself against it.
The Ministry of Justice will hold a press conference at 4 p.m.
The stock retreats 3 percent on Wall Street.
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The problems with the Boeing plan
Boeing's dissatisfied customers demand a meeting with the board
Boeing's frustrated customers have had enough after the accidents that have surrounded the plane recently. Several airline CEOs are now making an unusual move and demanding a meeting directly with the board, the Wall Street Journal reports.
According to information given to the newspaper, the leaders want to know what plans Boeing has to address and fix the production problems. As early as next week, a meeting could be held with the largest American customers and Boeing's chairman Larry Kellner.
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Fed decision relief for Thedéen – now the focus is inflation
The fact that the US Federal Reserve sticks to the forecast of three interest rate cuts this year makes it easier for other central banks to follow suit - including the Riksbank. That's what SEB's USA analyst Elisabet Kopelman tells Ekot and describes the news as "a bit of a relief".
Alexandra Stråberg, chief economist at Länsförsäkringar, believes that yesterday's decision does not affect the Riksbank headed by Erik Thedéen to such a large extent.
- What will affect the Riksbank is the inflation outcome in the coming months, she tells the radio.
SVT's economic commentator Alexander Norén says that the American economy is "very important" for Sweden. But that this particular message doesn't have that much of an impact.
The fact that the US Federal Reserve sticks to the forecast of three interest rate cuts this year makes it easier for other central banks to follow suit - including the Riksbank. That's what SEB's USA analyst Elisabet Kopelman tells Ekot and describes the news as "a bit of a relief".
Alexandra Stråberg, chief economist at Länsförsäkringar, believes that yesterday's decision does not affect the Riksbank headed by Erik Thedéen to such a large extent.
- What will affect the Riksbank is the inflation outcome in the coming months, she tells the radio.
SVT's economic commentator Alexander Norén says that the American economy is "very important" for Sweden. But that this particular message doesn't have that much of an impact.
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