International News 18 February 2025
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Massive Layoff Wave! Leading Bank Cuts Thousands of Workers
Germany's second largest commercial bank, Commerzbank, has announced plans to reduce its workforce by 3,900 by 2028. This strategic move is aimed at enhancing profitability and maintaining resilience in the face of ongoing merger discussions with UniCredit. The bank's approach involves a focus on optimising its global workforce, with a commitment to maintaining the total number of full-time positions at 36,700. This will be achieved through strategic recruitment in countries with lower labour costs, such as Poland. The bank has earmarked €700 million for restructuring costs as part of this ambitious plan. Analysts have responded positively to the news, with Deutsche Bank rating the bank's new target as 'bullish' and RBC describing it as 'ambitious'.
Japan's economy grows 2.8% in fourth quarter of 2024, faster than expected
Japan's economy grew at a faster-than-expected rate of 2.8% in the final quarter of 2019, driven by strong business spending and solid domestic demand. The growth exceeded analysts' forecasts and should support the Bank of Japan's plans to continue raising interest rates and normalising monetary policy. The rise in gross domestic product (GDP) beat expectations, with quarterly growth of 0.7%, better than the 0.3% expected. Private consumption, which accounts for more than half of economic output, rose by 0.1% against forecasts of a 0.3% decline. However, consumption growth was lower than in the previous quarter, mainly due to rising food prices, which discouraged households from increasing their spending. The Bank of Japan is closely monitoring consumption and wage trends to assess the strength of the economy and determine the need for further interest rate hikes.
DaVita stock is Warren Buffett's latest victim, plummeting 11% in a day
Warren Buffett, the 94-year-old investor and manager of Berkshire Hathaway, has sold a significant stake in healthcare provider DaVita, sending its share price down 11%. The sale of billions of dollars worth of DaVita shares was announced after the market closed on Thursday. As one of the most watched investors, Buffett's moves are closely followed by thousands of investors, who often copy his actions, causing significant fluctuations in share prices. Despite the sale, Berkshire still owns 45% of DaVita. Buffett, with a net worth of $148 billion, manages a diverse portfolio of companies including Geico, Duracell and Dairy Queen. The recent sale of DaVita shares is the largest single-day stock sale in nearly two years.