Business
Credit Suisse Rescued By Swiss Rival UBS for $3 Billion
Credit Suisse has been rescued by its Swiss rival UBS in a government-backed deal on Sunday. The announcement came after a weekend of emergency talks between the two banks and Switzerland’s financial regulators in Switzerland.
UBS Group AG, founded and headquartered in Switzerland, is a multinational investment bank and financial services firm. According to the Swiss National Bank, the agreement is the best way to restore financial market confidence and manage economic risks.
The Bank of England welcomed the “comprehensive set of actions,” the BBC reported.
Credit Suisse shareholders will receive one share in UBS for every 22.48 shares they own, valuing the bank at $3.15 billion (£2.6 billion).
Credit Suisse was valued at around $8 billion (£6.5 billion) at the close of business on Friday.
However, the agreement accomplished what regulators set out to do: secure a result before the financial markets opened on Monday.
In a statement, Switzerland’s central bank said, “a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation”.
To mitigate any risks for UBS, the federal government announced a $9.6 billion (£7.9 billion) guarantee against potential losses. The Swiss central bank has also offered up to $110 billion (£90 billion) in liquidity assistance.
Global financial institutions quickly applauded the transaction between Credit Suisse and UBS.
The Bank of England said it welcomed the “comprehensive set of actions” set out by the Swiss authorities.
“Throughout the preparations for today’s announcements, we worked closely with international counterparts and will continue to support their implementation.”
It said the UK banking system was “well capitalized and funded and remains safe and sound”.
The UK Treasury also said it welcomed the merger and the British government would continue to engage with the Financial Conduct Authority (FCA) and the Bank of England “as is usual”.
Because both UBS and Credit Suisse have operations in London, the FCA said on Sunday that it was “minded to approve” the takeover to support financial stability.
“The FCA remains closely engaged with UK and international regulatory partners to monitor market developments,” the watchdog said.
Christine Lagarde, President of the European Central Bank, said she welcomed the “swift action” of the Swiss authorities.
“They are instrumental in restoring orderly market conditions and ensuring financial stability. “The eurozone banking sector is resilient, with strong capital and liquidity positions,” stated Ms. Lagarde.
The remarks of the European Central Bank President were echoed in the United States.
Treasury Secretary Janet Yellen and Federal Reserve Board Chairman Jerome Powell said the Swiss authorities’ announcement supported “financial stability”.
“The US banking system’s capital and liquidity positions are strong, and the US financial system is resilient,” they said.
Credit Suisse is the latest and most significant casualty of a confidence crisis that has already resulted in the failure of two mid-sized US banks and an emergency industry whip-round for another. But this is not the case. Switzerland’s second-largest lender was considered one of the world’s top 30 most important banks, so the Swiss authorities rushed through this takeover.
Although the causes of each failure vary slightly, the main factor has been a sharp rise in global interest rates, which has reduced the value of even safe investments in which banks keep some of their money. This has alarmed investors, causing all bank share prices to fall, with the weakest banks suffering the most.
The EU, US, and UK financial authorities have supported this agreement, emphasizing that banks are strong and people’s savings and deposits are secure. The acid test for whether this Swiss rescue has calmed financial markets will be when they open on Monday, so completing this on Sunday night was critical.
Following the announcement on Sunday night, UBS chairman Colm Kelleher said Credit Suisse was a “very fine asset we are determined to keep” in Bern, Switzerland.
“This acquisition is appealing to UBS shareholders, but let us be clear: this is an emergency rescue for Credit Suisse,” he added.
Mr. Kelleher stated that UBS would acquire Credit Suisse’s investment banking division.
The chairman of UBS said it was “too early” to predict what would happen to jobs: “We need to do this in a rational and thoughtful way after we’ve sat down and analyzed what we need to do,” he said.
The weekend deal comes after the Swiss National Bank’s emergency $54 billion (£44.5 billion) lifeline on Wednesday failed to reassure markets, and Credit Suisse shares fell 24%, sparking a wider sell-off on European markets.
The 167-year-old bank is losing money and has had many problems recently, including allegations of money laundering.
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Business
Sonic the Hedgehog Dominates Christmas Wish Lists
Sonic the Hedgehog is dominating Christmas wish lists this year. The lovable blue hedgehog is back in the spotlight, from sonic the hedgehog toys and games to sonic the hedgehog coloring pages and movie hype.
Sonic-themed holiday merchandise is on fire, from quirky sweaters to action figures flying off shelves. Sonic the Hedgehog Christmas outfits for kids are selling out fast, making them a go-to gift option for festive fun.
Retailers have been quick to recognize Sonic’s holiday appeal. Special promotions and exclusive items, like the Sonic holiday t-shirts, are everywhere.
Everyone’s stocking up on Sonic merchandise, from big-box stores to boutique retailers.
Online shopping platforms are seeing a surge in searches for Sonic items. Whether it’s Sonic Christmas-themed tops or Sonic the Hedgehog coloring pages, Sonic the Hedgehog toys or Sonic and the Hedgehog 3, the demand is skyrocketing.
Retailers who tap into this trend are sure to see strong holiday sales.
Sonic has been around since the early 90s, but his popularity never wanes. With the release of Sonic 3, fans are more excited than ever.
Sonic the Hedgehog 4
Meanwhile, Paramount Pictures is preparing “Sonic the Hedgehog 4,” with the newest addition in the family-friendly genre set for a spring 2027 release.
The announcement comes as “Sonic 3” opens in theatres on Friday, estimated to gross $55 million to $60 million from 3,800 North American locations.
The sequel is shaping up to be a good holiday season blockbuster for Paramount, which explains the desire in future “Sonic” adventures. On the international front, the film will be released on Christmas Day in 52 markets.
On Rotten Tomatoes, critics gave “Sonic 3” an outstanding 87% fresh score.
The first two films grossed a total of $725.2 million at the global box office and generated over $180 million in global consumer expenditure through home entertainment rentals and digital purchases.
They also inspired a spinoff Paramount+ series, “Knuckles,” which premiered earlier this year.
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Business
Amazon Strike Called By Teamsters Union 10,000 Walkout
An Amazon strike has hit facilities in the United States in an effort by the Teamsters union to pressure the corporation for a labour agreement during a peak shopping season.
The Teamsters union told the Associated Press that Amazon delivery drivers at seven facilities in the United States walked off the job on Thursday after the firm failed to discuss a labour contract.
According to the union, Amazon employees in Teamsters union jackets were protesting at “hundreds” of additional Amazon facilities, which the union billed as the “largest strike” in US history involving the company.
The corporation, which employs over 800,000 people in its US delivery network, stated that its services will be unaffected.
It was unclear how many people, including members of Germany’s United Services Union, participated in Thursday’s demonstration. The Teamsters union reported that thousands of Amazon employees were implicated in the United States.
Amazon Strike at 10 Locations
Overall, the group claims to represent “nearly 10,000” Amazon strikers, having signed up thousands of people at roughly ten locations across the country, many of whom have joined in recent months.
The organization has claimed recognition from Amazon going on strike, claiming the firm illegally neglected its obligation to bargain collectively over salary and working conditions.
The Teamsters is a long-standing US union with nearly one million members. It is well-known for securing lucrative contracts for its members at companies like delivery behemoth UPS.
Most of the Teamsters’ Amazon campaigns have concerned drivers working for third-party delivery companies that partner with the tech behemoth.
Amazon denies that it is liable as an employer in those circumstances, which is a point of legal contention. In at least one case, labour officials have taken a preliminary stance in favour of the union.
Stalled Contract Negotiations
Amazon employees at a major warehouse on Staten Island in New York have also chosen to join the Teamsters. Their warehouse is the only Amazon facility in the United States where labour officials have formally recognized a union win.
However, the Amazon strike is because contract negotiations have not progressed since the 2022 vote. It was not one of the areas scheduled to go on strike on Thursday.
Amazon, one of the largest employers in the United States, has long received criticism for its working conditions and has been the target of activists seeking to gain traction among its employees.
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Business
Amazon Encounters Numerous Strikes As Unions Aim At The Holiday Shopping Surge.
(VOR News) – Thousands of Amazon employees at various sites across the country were scheduled to go on strike on Thursday in an effort by the Teamsters union to pressure the retail behemoth to acknowledge its unionised workers in the United States.
The walkout is expected to concentrate on seven Amazon locations across the country during the holiday purchasing surge and may be the most significant union action against Amazon in the nation’s history.
The business announced on Thursday morning that there had been no effect on operations. It also stated that it is “continuing to concentrate on fulfilling customers’ holiday orders.”
The International Brotherhood of Teamsters maintains that it represents more than 10,000 Amazon employees and contractors in aviation centres, warehouses, and delivery centres.
Amazon has refused to acknowledge the union for many years.
The retail giant, which employs approximately 1.5 million individuals, excludes contractors and part-timers. A strike has been initiated by delivery couriers and warehouse employees at seven distinct locations in order to exert pressure on the company to negotiate a collective bargaining agreement that would encompass modifications to compensation, amenities, and working conditions.
Picketing was intended for New York, Atlanta, Los Angeles, San Francisco, and Skokie, Illinois.
Also, the Teamsters assert that they are establishing picket lines at “hundreds” of additional warehouses and delivery centres by encouraging non-unionized workers to picket under U.S. labour law, which protects workers’ ability to take collective action to further their interests.
“Amazon workers are exercising their power,” Randy Korgan stated to NPR.
“They now realise there is a pathway to take on a corporate giant like this – and that they hold the power.” Amazon responds by accusing the Teamsters of fabricating information regarding the strikes, asserting that the participants are “entirely” outsiders rather than employees or subcontractors of the corporation.
Amazon spokesperson Kelly Nantel stated that “the reality is that they were unable to secure sufficient support from our employees and partners and have invited external parties to harass and intimidate our team.” For more than a year, the Teamsters have been intentionally misleading the public by claiming to represent “thousands of employees and drivers.” They do not.
The Teamsters did not provide a specific duration for the strike; however, they informed NPR that it would extend beyond one day. Workers would receive $1,000 per week in strike money, as per the union.
Teamsters President Sean O’Brien issued a statement in which he stated, “If your package is delayed during the holidays, you can attribute it to Amazon’s insatiable greed.” We established a firm deadline for Amazon to attend the meeting and treat our members equitably. They disregarded it.
The Teamsters granted until December 15 to convene with its unionised employees and develop a collective bargaining agreement.
Amazon has opposed all unionisation efforts in court, asserting that unions were not advantageous to its employees and emphasising the compensation and benefits that the organisation currently provides.
Amazon has been accused of discriminatory labour practices on numerous occasions, including the termination of labour organisers. Furthermore, it has disputed its official status as a contract employer.
Teamsters organize Amazon delivery couriers and other employees.
In June, Amazon established its first unionised warehouse in Staten Island, New York, two years after making history by voting to join the fledgling Amazon Labour Union, which is also affiliated with the Teamsters.
The union is one of the most influential in the United States and Canada, with 1.3 million members. On Thursday, the German United Services Union declared that Amazon employees in Germany would participate in a strike in conjunction with their American counterparts.
In the past, Amazon has experienced demonstrations in Germany and Spain that were related to the holiday season in order to advocate for improved wages and working conditions.
“The holiday season has arrived.” Delivery is anticipated. Patricia Campos-Medina, the executive director of Cornell University’s Worker Institute, asserts that “this is the moment in which workers have control over the supply chain.”
The Teamsters have reported that Amazon’s profits have increased both during and after the pandemic. The corporation is currently valued at over $2.3 trillion, with net income of $15 billion in the most recent quarter alone. It is the second-largest private employer in the United States, following Walmart.
SOURCE: NPR
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