Business | The Economist

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After years of investor complaints that its sprawling corporate empire was hampering profits, General Electric decided to split into three independent companies. Its healthcare assets will be sold in 2023; energy and power will be brought together and split in 2024; and aviation must remain the sole focus of interest of GE. The conglomerate has been laying off companies for more than a decade. The decision to separate heralds the end of arguably the world’s best-known conglomerate, a titan of American business throughout the 20th century.

On the road

Rivien, an Amazon-backed electric vehicle maker, successfully debuted on the Nasdaq. Its stock rose 30% above the offer price, giving it a market cap of over $ 100 billion, more than Ford or General Motors. The company has raised around $ 12 billion, making it the biggest Initial Public Offering in America since Alibaba’s listing in 2014.

Unlike the automotive business, by Hertz the stock price fell 10% on its first trading day since the company exited bankruptcy.

The General Court of the European Union, the lower court of the Court of Justice, rejected from google appeal against the € 2.4 billion ($ 2.8 billion) fine that the European Commission imposed on the company in 2017 for anti-competitive practices promoting its own price comparison service. In the only ray of light for Google, which is also appealing two other successful antitrust fines in Europe, the court said general research was not included in its decision.

Rolls-Royce said it has received enough investment from private partners to start building small modular reactors, or small nuclear center, in Great Britain. The government is contributing to the project as part of its “green industrial revolution”.

Brittany the economic growth rate slowed in the third quarter to 1.3%. As in other countries, supply chain issues are hampering recovery. GDP is still 2.1% lower than in the last three months of 2019.

Oil price climbed higher, with Brent crude again above $ 85 a barrel. In America, the price of gasoline at the pump hit a seven-year average high of $ 3.41 per gallon. California remains the most expensive state to fill up your car, averaging $ 4.64 per gallon of gasoline, according to the American Automobile Association.

The price of fuel is a major factor behind the American outbreak inflation. The annual increase in the government’s consumer price index jumped to 6.2% in October from 5.4% in September, the largest increase since the late 1990s. Stubborn inflation is putting pressure on the Federal Reserve to advance an interest rate hike.

Government relief

Meanwhile, the pace of hiring has picked up in America, with employers creating 531,000 works in October. That’s closer to the monthly average for this year and comes after two months of weaker-than-expected job growth.

The advice of Sydney Airport agreed to a 23.6 billion Australian dollars ($ 17.5 billion) buyout from a consortium of investors. The deal comes as the aviation industry feels business is really taking off after 20 months of pandemic gloom. America has reopened its limits to most travelers this week. Emirates, one of the world’s largest airlines, reported passenger numbers rose 319 percent from April 1 to September 30, year-on-year, although it still recorded a net loss over the years. first six months of this year.

After a little over a year as a listed company, Mcafee agreed to a buyout from a consortium of private equity firms, in a deal worth $ 14 billion. The IT security company will refocus entirely on the consumer market, after having sold its business activity in July.

Consumers’ voracious appetite to order food from home is fueling a wave of consolidation in the industry. This week DoorDash, America’s largest food delivery platform, agreed to purchase Wolt, based in Helsinki and present in 23 countries, for 7 billion euros (8 billion dollars).

Viasat, a California-based satellite company, will take over Inmarsat, a British rival who counts the American armed forces among his clients, in a transaction of 7.3 billion dollars. The combined company will compete in the increasingly congested space to provide satellite broadband.

Markets were once again left in awe of the motivations behind Elon musk latest move, when he asked his Twitter followers if he should sell 10% of his Tesla stake to pay taxes, in a dig at a Democratic proposal to tax unrealized capital gains. They said yes. The Tesla share price has vanished. Mr. Musk then began to sell shares. He had planned to sell at least some of his shares before seeking advice from Twitterati.

This article appeared in the The World This Week section of the print edition under the headline “Business”


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