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The collapse of a major bridge in the U.S. port of Baltimore after a container vessel struck it has highlighted the vulnerability of the country's infrastructure and the potential ripple effect on the global supply chain. The port of Baltimore, although not one of the busiest, plays a significant role in the transportation of foreign cargo and is the largest American port for cars and light trucks. Disruptions in port operations can have a major impact on shipping rates and the country's gross domestic product. The incident, which serves as a reminder of the urgent need for infrastructure investment, especially in the face of increasing investments in areas like artificial intelligence, underscores the importance of tangible goods and transportation in supporting economic growth. 

 

Reuters

Compliance software provider Avetta has attracted interest from private equity firms, including EQT AB and Warburg Pincus, as well as Bain Capital. Avetta, which operates a cloud-based supply chain risk management and commercial marketplace platform, could be valued at over $3bn in a potential sale. The company's projected 2024 earnings before interest, tax, depreciation, and amortization is around $125m. Deliberations are ongoing and there is no certainty of a transaction. Avetta's owner, Welsh Carson Anderson & Stowe, is working with a financial adviser to gauge interest in the company. Avetta recently launched an OpenAI-powered "risk assistant" to enhance contractor compliance and safety.

 

Bloomberg

Visa and Mastercard have reached a settlement with U.S. merchants regarding swipe fees, potentially saving American shoppers tens of billions of dollars. The settlement caps the credit interchange fees until 2030 and requires the companies to negotiate fees with merchant buying groups. The pact would lower all rates, which average out at around 2%, by 0.04 percentage point for three years, and the average rate across the networks would be lowered by 0.07 percentage point for five years. It is estimated that the savings in swipe fees could amount to around $30bn. The settlement stems from a 2005 lawsuit that alleged merchants paid excessive fees to accept Visa and MasterCard credit cards, and that the companies and their member banks violated antitrust laws. Visa has stated that over 90% of the merchants involved in the settlement are small businesses, with $15m of the settlement allocated for merchant education. The settlement is subject to final approval by the Eastern District Court of New York.

 

CNN

New York Times

The Oregonian

Wall Street Journal

Amazon, SpaceX, Starbucks, and Trader Joe's are among companies which are arguing that the National Labor Relations Board (NLRB) is unconstitutional. The Supreme Court has previously upheld the constitutionality of the NLRB and rejected similar arguments. The attacks on the NLRB are seen as a response to growing support for unions among Americans. The NLRB has been more assertive in prosecuting employers for violating workers' rights and has implemented rules to facilitate the unionization process. If these corporations succeed in their constitutional challenges, the NLRB's ability to protect workers' rights and negotiate fair contracts could be compromised. Additionally, other government agencies may also be at risk. The Supreme Court's conservative majority has shown a pro-business stance, which raises concerns for labor rights and administrative agencies. However, there is optimism as workers are organizing in greater numbers, and history has shown that popular support for unions can influence the Supreme Court's decisions, writes  Kate Andrias of Columbia University.

 

Yahoo News Australia

Apple is facing a series of new consumer lawsuits accusing the company of monopolizing the smartphone market. The lawsuits, filed in California and New Jersey federal courts, claim that Apple inflated the cost of its products through anticompetitive conduct. The lawsuits mirror the claims made by the U.S. Justice Department and 15 states in a recent antitrust case against Apple. The company has denied the allegations. Attorney Steve Berman, who filed one of the new cases, stated that he is pleased with the DOJ's agreement with its approach. Apple is already facing private lawsuits challenging its business practices, including a class action related to the monopoly of the iPhone app market. In separate cases, Apple has previously settled for $550m. Private antitrust class actions have been found to sometimes go further than government cases.

 

Reuters

Federal prosecutors in Manhattan have charged cryptocurrency exchange KuCoin with violating U.S. anti-money laundering laws, enabling the transfer of billions of dollars in illicit funds since its establishment in 2017. KuCoin, one of the world's largest cryptocurrency exchanges, allegedly sought business from U.S. customers without complying with U.S. legal requirements. The exchange's founders, Chun Gan and Ke Tang, have been charged with conspiracy. The U.S. Commodity Futures Trading Commission has also filed a civil lawsuit against KuCoin for failing to register its futures and swaps activities. KuCoin previously settled a lawsuit with the state of New York, agreeing to block New York users and pay $22m.

 

Bloomberg

Reuters

Citigroup's equities division has been plagued by a pattern of harassment, discrimination, and drug use, according to interviews with 22 individuals who worked in or closely with the division. The division's toxic culture, which persisted for years, was revealed through a lawsuit filed by a managing director at the bank. The lawsuit exposed instances of sexual harassment, discrimination, and drug use, including a disturbing incident at a client party. Citigroup has responded to the allegations, stating that it values inclusivity and respectful treatment in the workplace. Bloomberg says the revelations highlight the challenges that Wall Street still faces in addressing gender and behaviour issues.

 

Bloomberg

Four Chinese provinces and cities are shutting down their financial asset exchanges in order to crack down on illegal fundraising and rising risks in local government finances. The exchanges, which were initially designed for local financial asset transactions, have increasingly been used for sales of banned wealth management products and local government private debt. China's central bank and top securities regulators have repeatedly vowed to crack down on such illegal activities and exchanges. The closure of these exchanges is part of China's efforts to strengthen financial regulation and reduce local government debt and other financial risks. China launched a nationwide inspection of local financial asset exchanges in 2021, with a focus on their debt financing activities. The People's Bank of China and the China Securities Regulatory Commission have both pledged to defuse financial exchange risks in an orderly manner.

 

Reuters

The Securities and Exchange Commission (SEC) is pursuing fines and penalties amounting to $2bn in its case against Ripple Labs over the sales of the cryptocurrency XRP, the firm's CEO, Brad Garlinghouse, has announced. The SEC sued Ripple in 2020, claiming the firm broke rules when it raised money by selling the digital token without registering it as a security.

 

Bloomberg

Reuters

Canada Goose, the luxury parka maker, is reducing about 17% of its corporate roles in an effort to rein in costs amid weaker consumer spending. The layoffs will affect approximately 156 jobs out of the 915 employees at Canada Goose's corporate head offices. Chief executive Dani Reiss stated that the company is realigning its teams to support growth across geographies, categories, and channels. The retailer had previously warned about the impact of soft consumer spending in China and the United States. Canada Goose has also announced a reshuffle of its leadership roles. Carrie Baker, president of brand and commercial, has had her remit expanded to include design, while Beth Clymer, president of finance, strategy and administration, is taking on additional operations responsibilities that used to fall under chief operating officer John Moran, who left the company last week. Chief transformation officer Daniel Binder has been given oversight of the firm's global stores.

 

CBC News

CNBC

New orders placed with U.S. factories for durable goods rose in February for the first time in three months, suggesting firms are somewhat optimistic about the direction of the economy. The Commerce Department reports that bookings for all durable goods - defined as items meant to last three years - increased 1.4%, beating the 1% rise forecast by economists surveyed by the Wall Street Journal. Excluding transportation equipment, orders rose 0.5% after falling the previous two months. Core capital goods shipments, a figure that is used to help calculate equipment investment in the government’s gross domestic product report, fell 0.4%. Bookings also increased for machinery, computers, primary metals and motor vehicles.

 

Market Watch

Employment in nearly one-third of U.S. states, including California and New York, remains below pre-pandemic levels, indicating a rise in migration to other parts of the country. Over one million fewer people are employed in 16 states, with Maryland and Illinois also witnessing notable decreases in employment. Meanwhile, Texas and Florida have seen significant gains in employment, with one million more people working in Texas since February 2020. The job market has recovered nationally, but certain sectors continue to struggle. The number of employed workers in the OPTICS category, which includes office and administrative, support, production, transportation and material moving, installation, maintenance and repair, construction and extraction, is about 1.9 million lower than 2019 levels.

 

Bloomberg

Larry Fink, CEO of asset manager BlackRock, has warned of a looming “crisis” for global pension savers, saying retirees across the world are threatened by a lack of money to support them. He also suggested that policymakers have neglected the importance of pension savings, saying: “As a society, we focus a tremendous amount of energy on helping people live longer lives. But not even a fraction of that effort is spent helping people afford those extra years.” In a letter to BlackRock investors, Mr Fink said that “maybe once a decade, the U.S. faces a problem so big and urgent that government and corporate leaders stop business as usual. They step out of their silos and sit around the same table to find a solution,” adding that business leaders “need to do something similar for the retirement crisis.”

 

CNBC

 

BBC News