Evergrande, Federal Reserve and Britain’s Fuel Shortage: Live Updates

Daily Business Communication

Sep 27, 2021, 9:19 am ET

Sep 27, 2021, 9:19 am ET

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Credit …Lionel Bonaventure / Agence France -Presse – Getty Images

Facebook said Monday it has stopped developing an “Instagram Kids” service tailored for children 13 years of age or younger amid questions about the app’s impact on teens ’mental health.

The announcement precedes a congress hearing this week about internal research conducted by Facebook, and reported on The Wall Street Journal, which showed the harmful mental health effects that Instagram experiences on teenage girls.

Facebook said it still wanted to develop an Instagram product intended for kids that would have a more “age -appropriate experience,” but postponed plans in the face of external criticism.

“This will give us time to work with parents, experts, policy makers and regulators, to listen to their concerns, and demonstrate the value and importance of this project for younger youth online today,” he wrote. Adam Mosseri, the head of Instagram, in a Blog post

Facebook argued that teens still use Instagram, despite age -demanding rules, so it would be better to come up with a version more suitable for those with more parental controls. YouTube, which is owned by Google, has released a child version for its app.

But since it became public that Facebook was working on the app earlier this year, the company has faced criticism from policy makers, regulators, child safety groups and consumer rights groups. They argued that they associate them with the app with the younger rather than protect them from service problems, including child care arrangements, bullying and physical humiliation.

Opposition to Facebook’s plans gained momentum this month when The Journal published a series of articles based on leaked internal documents that showed Facebook knew about much of the damage it had caused. Facebook’s internal research shows that Instagram, in particular, has a negative impact on mental health among young people, especially girls, even as company executives publicly attempted to minimize those. app failure.

This is new news. Check back for updates.

Credit …Carlos Garcia Rawlins / Reuters

The financial world is watching the struggles of China Evergrande Group, one of the world’s largest asset developers and certainly the most indebted. Last week, a deadline to be made a payment of $ 83 million to foreign investors came and went without a hint that Evergrande had met its obligations, raising questions about what would happen if the massive debt load turned sour, Reported by Keith Bradsher for The New York Times.

China has a lot of riding on the ability to contain fallout from an Evergrande collapse. After Xi Jinping, China’s most powerful leader in generations, began his second term in 2017, he recognized financial risk aversion as one of the “great battles” for his administration. As he approaches a possible third term in power that begins next year, it could be politically damaged if his government misgoverns Evergrande.

The government has not wanted to move yet because I hope Evergrande’s struggles will show other Chinese companies that they need to be disciplined with their finances, said people knowledgeable in the considerations who spoke about the condition not introducing. But it has a set of financial tools that it believes are powerful enough to thwart a financial panic if things get worse.

The government will “still provide guarantees” for most of Evergrande’s activities, said Zhu Ning, deputy dean of the Shanghai Advanced Institute of Finance, “but investors will have to work up a sweat.”

Credit …Steven Senne / Associated Press

A Federal Reserve bank president who was recently burned for the trade deal he held last year, when the central bank was active in rescuing financial markets from the pandemic crisis, said he would retire nine months ago. ahead of schedule.

Eric S. Rosengren, who is president of the Federal Reserve Bank of Boston, will retire on Sept. 30, he said in a news release. Mr. Rosengren said he was stopping to try to prevent a kidney condition from getting worse, to eliminate dialysis.

“Eric has often distinguished himself over more than three decades of dedicated public service to the Federal Reserve System,” Jerome H. Powell, the Fed chairman, said in a statement released in conjunction with the news.

Mr. Rosengren is one of two Fed presidents whose fiscal activity in 2020 has come under scrutiny in recent weeks. He held stakes to trusted real estate investments and listed the purchases and sales on them, at the time he warned the public about the risks in the commercial real estate market and helped to set policy on security purchases supported by mortgage.

His colleague, Robert S. Kaplan at the Federal Reserve Bank of Dallas, has drawn attention to buying and selling millions of dollars in individual stocks, among other investments. Both presidents had previously announced that they will do broadly based on indices and cash before Sept. 30.

The Better Market watchdog team is calling for the Fed to remove both presidents if they do not resign, in light of their activity.

Mr. Rosengren has been president of the Boston Fed since 2007, and his retirement was previously planned for June 2022. The 12 regional Fed members will rotate in and out of voting seats, and Mr. Rosengren hopefully there will be a vote on monetary policy next year.

Kenneth C. Montgomery, the first vice president of the Boston Fed, will serve as interim president. Boston Fed board members – not including bank representatives – will have to choose a permanent pick for the president, subject to approval from the Fed’s Board of Governors in Washington.

A longtime Fed employee who worked in bank research and administration before becoming president, Mr. Rosengren will play a key role in addressing the crisis in 2020. His regional Fed has run the same money market fund. and Main Street lending backstop programs launched by the Fed last year.

The Boston Fed said in the release that Mr. Rosengren hopes his health condition will improve, and that he can “explore areas of professional interest” in the future.

  • Senate voted on debt limit: The Senate is expected to vote on legislation to keep government funding until early December and raise the federal borrowing limit until the end of 2022 before Thursday’s deadline. The United States could default on its debt sometime in October if Congress does not take action to raise or suspend debt limit, Secretary of the Treasury Janet L. Yellen warned.

  • Consumer confidence: The Conference Board is scheduled to report the consumer confidence index for September. Results last month showed the index’s sharp decline since February, but preliminary data from the University of Michigan’s consumer sentiment measure showed a modest gain for September.

  • Senate Banking Committee Hearing: Jerome H. Powell, the chairman of the Federal Reserve, and Ms. Yellen will testify at the Senate Banking Committee hearing about their agencies ’oversight of the CARES Act. Economists expect officials to be quizzed about inflation, a $ 1 trillion infrastructure bill and the debt ceiling.

  • NABE Conference: Si Ms. Yellen is scheduled to speak at a virtual event prepared by the Los Angeles Chapter of the National Association for Business Economics. Her address will be followed by a moderated conversation with Constance Hunter, the chief economist for KMPG.

  • Personal Consumption Costs: Ang measuring inflation will provide insight into how much and how fast prices are rising. The data comes after an update from the Fed about its plans to “taper” bond purchases the central bank makes to support the economy.

Credit …Carl Recine / Reuters

Since January, after Britain the final stage of Brexit, employers are not free to hire workers in Europe. The pandemic also exacerbated a crisis stemming from a long -term shortage of British truck drivers.

Over the weekend, Britain’s Prime Minister Boris Johnson changed course and offered thousands of visas to foreign trucks to combat the driver shortage that left supermarket shelves empty and caused by long lines at gas stations, Stephen Castle reports for The New York Times.

The decision, announced late Saturday, reflecting growing alarm within the government about a disruption of supplies which prompted buying panic and, in some areas, caused fuel depletion and closure of gas stations.

The post-Brexit exodus of workers to Europe is just one of the causes of the shortage of long-term drivers. The industry has had difficulty attracting workers to jobs that have traditionally been lower wages and require long, tiring hours away from home. Truckers also complained that safe parking spaces and rest stops can be hard to find.

That’s a huge concern there was speculation that the military might be called in to drive the trucks. That hasn’t happened yet, but Defense Ministry staff members will be asked to help expedite the process for truck licensing applications.

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