Global Market major focus on, a temporary shutdown of America’s second-largest coal port and potential losses of $30 billion over five years, highlight global economic challenges.
Global Market:- Larry Fink of BlackRock expressed concern about a retirement system crisis, while California QSRs plan mass layoffs ahead of a minimum wage hike. Donald Trump’s social media platform debuts on the bourses.
California’s new wage hike law
California’s new minimum wage hike law, set to take effect on April 1, is leading fast-food restaurants and operators to reduce their workforce. Pizza eateries, take-away joints, and large chains are implementing price hikes and workforce reduction measures to mitigate the impact of higher wages. In December 2023, Pizza Hut franchise operators laid off all delivery drivers. Global Market The wage increase was seen as a solution to the cost-of-living crisis for around 700,000 QSR workers in California.
Retirement Problem
BlackRock CEO Larry Fink emphasized the need for a revamp of the retirement system and Social Security due to its looming insolvency. He called for a coordinated effort from the government and private sector to ensure American seniors can retire comfortably. Fink emphasized the importance of capital markets in helping people retire and emphasized the need for a high-level effort to address this issue.
Trump’s Truth coming
Ex-US President Donald Trump’s social media platform, Truth Social, made a significant debut on the bourses, with shares of Trump Media trading at $70 per share. Trump now owns a stake worth over $4 billion in Trump Media & Technology Group, which lost around $50 million in its first nine months and generated $3.3 million in revenue.
Card’s fate
Visa and MasterCard are set to lose $30 billion over five years due to a settlement in a decades-long antitrust case. The settlement will reduce merchant fees per swipe for customers using Visa or MasterCard credit cards, reducing fees by 4 bps for three years.
Coal supply effected
A containership collided with a Baltimore bridge, halting one of the largest coal-export hubs in the US. This closure could potentially disrupt the global supply chain, as the hub exported around 74 million tonnes of coal, and all ship traffic has been paused until further notice.
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