Headlines

The International Monetary Fund chief said Thursday the world economy is expected to grow less than 3% this year, down from 3.4% last year, increasing the risk of hunger and poverty globally, the Associated Press reported.

After announcing the largest rounds of layoffs in their history, U.S. big tech companies are now learning how difficult it is to reduce headcount in Europe, Bloomberg reported. In the U.S., companies can announce widespread job cuts and let go of hundreds if not thousands of workers within months — and many have. Meanwhile, in Europe, mass layoffs among tech companies have stalled because of labor protections that make it virtually impossible to dismiss people in some countries without prior consultations with employee interest groups.

Canadian dealmakers are optimistic about a return to strength in the second half of the year after mergers and acquisitions (M&A) in the first quarter dropped to pandemic levels, belayed by higher borrowing costs and panic around a banking crisis, Reuters reported. The collapse of regional banks Silicon Valley Bank and Signature Bank in the U.S. tightened credit market making funding difficult for deals.

Complaints from consumers about banks and other financial firms in Germany rose by a fifth last year, official data shows, as regulators flex their muscles to shore up trust in the sector, Reuters reported. BaFin, Germany's financial watchdog, has been increasing its focus on consumer protection in the wake of the collapse of Wirecard, the blue-chip payment company that folded in an accounting scandal.

Asian shares were trading mixed Wednesday following a decline on Wall Street after reports on the U.S. economy came in weaker than expected, the Associated Press reported. Japan’s benchmark Nikkei 225 lost 1.3% in morning trading to 27,931.00. Australia’s S&P/ASX 200 stood little changed, inching down less than 0.1% to 7,235.80. South Korea’s Kospi added 0.2% to 2,485.21. Trading was closed in Hong Kong and Shanghai for the Qingming Festival, a holiday. On Wall Street, the S&P 500 dropped 0.6% to 4,100.60, breaking a four-day winning streak.

Raghuram Rajan — the former International Monetary Fund chief economist who predicted the global financial crisis more than a decade ago — warned that the banking system is headed for more turmoil after the rescues of Silicon Valley Bank and Credit Suisse, Times of India reported. Rajan, who was also governor of Reserve Bank of India, said a decade of easy money and a flood of liquidity from central banks has caused an “addiction” and a fragility within the financial system as policy makers tighten policy.

Mitsubishi UFJ Financial Group has created a fund investing in loans for leveraged buyouts, the first of its kind in Japan, anticipating growing demand for such financing as mergers and acquisitions gain steam, Nikkei Asia reported. The roughly 16 billion yen ($121 million) fund has lined up a dozen or so investors, including life insurers and regional banks. MUFG plans to have three such funds by fiscal 2024, with a total of up to 100 billion yen in assets.

German technology and stock photography company EyeEm has reportedly filed for bankruptcy and is insolvent, PetaPixel reported. The company originally set itself apart from competitors through its innovative use of artificial intelligence. But Business Insider in Germany reports that it has filed for bankruptcy, the latest in a string of issues that have plagued the company for the last several years. EyeEm attempted to restructure itself internally in 2020, which resulted in the company’s two founders leaving the business.

Asian shares were trading mixed Wednesday following a decline on Wall Street after reports on the U.S. economy came in weaker than expected, the Associated Press reported. Japan’s benchmark Nikkei 225 lost 1.3% in morning trading to 27,931.00. Australia’s S&P/ASX 200 stood little changed, inching down less than 0.1% to 7,235.80. South Korea’s Kospi added 0.2% to 2,485.21. Trading was closed in Hong Kong and Shanghai for the Qingming Festival, a holiday. On Wall Street, the S&P 500 dropped 0.6% to 4,100.60, breaking a four-day winning streak.

Switzerland’s banking regulator said it considered putting Credit Suisse Group AG into bankruptcy before deciding on the takeover by UBS Group AG, as the risk of contagion was too great, Bloomberg reported. Finma scoped out various rescue options before the day the bank was sold in the government-backed deal. The lender had faced an “unprecedented” bank run, Finma President Marlene Amstad said at a press conference on Wednesday in the Swiss capital Bern.