U.S. central bank cuts interest rate for 1st time since 2008 - Canadanewsmedia
Connect with us

Business

U.S. central bank cuts interest rate for 1st time since 2008

Published

on

The U.S. central bank cut its benchmark interest rate for the first time in more than a decade on Wednesday, reducing the cost of borrowing in an attempt to stimulate the economy.

The Federal Reserve cut the upper range of its core lending rate, known as the federal funds rate, to 2.25 per cent.

That’s a cut of 0.25 percentage points from where it was before. It’s the first cut since late 2008, when central banks around the world slashed rates to effectively zero to deal with the credit crisis.

While the move was widely expected, it is still significant because it indicates that the central bank sees economic clouds on the horizon that warrant the move to stimulate the world’s largest economy.

The Fed’s move brings its rate to within 50 points of the Bank of Canada’s rate, which is currently set at 1.75 per cent.

The central bank’s rate filters down into the economy by affecting the rates that retail banks offer to savers and borrowers on things like savings accounts and mortgages. Broadly speaking, the central bank hikes its rate when it wants to slow down inflation. It cuts when it wants to encourage people to borrow and spend to stimulate the economy.

Federal Reserve chair Jerome Powell will have more to say about why the bank decided to make the move at a press conference that’s set to begin at 2:30 pm eastern time.

Let’s block ads! (Why?)

Continue Reading

Business

US$1 billion in 67 seconds and other numbers to know

Published

on

By

Singles’ Day in the world’s most populous country has become a mammoth marketing event for China’s e-commerce businesses that have turned it into the world’s biggest online shopping extravaganza.

Singles’ Day, which originated on university campuses in Nanjing, China in the 1990s, became an annual shopping bonanza after Alibaba, China’s biggest e-commerce retailer, made it into an event a decade ago.

This year’s sales surpassed last year’s record, with two of the country’s largest online retailers reporting combined sales of more than US$63 billion, even before final numbers were reported. The eye-popping figures make Black Friday and Cyber Monday in the U.S. seem somewhat anemic and humdrum by comparison. Alibaba posted live updates on its website and on Twitter, but for the very keen, the company also provided a real-time sales counter.

Singles’ Day by the numbers:

1. Singles’ Day takes place on November 11, because the number one and the date, 11/11, looks like a single person.

2. Alibaba said sales by merchants on its platforms totalled 268.44 billion yuan (US$38.38 billion) by midnight local time, handily surpassing last year’s total of US$30.8 billion.

3. Alibaba said the number of delivery orders exceeded 1.042 billion in 18 hours and 31 minutes; surpassing the 2018 total.

4. Alibaba said sales exceeded US$1 billion just 1 minute and 7 seconds after midnight on November 11, and surpassed US$10 billion after 29 minutes and 45 seconds.

5. In the U.S. in 2018, Black Friday brought in US$6.2 billion last year, and US$7.9 billion on Cyber Monday, according to Adobe Analytics.

6. Alibaba rival, JD.com, reported sales of 179.4 billion yuan ($25.6 billion) by mid-afternoon, according to The Associated Press.

7. More than 200,000 brands from over 200 countries and regions were expected to participate in this year’s event; only 27 brands participated in 2009.

8. A once-informal day, a countdown gala leading up to Singles’ Day that included a performance from Taylor Swift was broadcast on nearly 30 online streaming platforms and TV channels.

9. Online shopping makes up 19.5 per cent of Chinese consumer spending, compared with about 11 per cent for American consumers, according to The Associated Press.

10. Alipay said it set a record on Singles’ Day in 2017 for most payment transactions, processing 256,000 payment transactions per second, just 5 minutes into Singles’ Day; 1.48 billion transactions were ultimately processed over the course of 24 hours.

11. China’s State Post Bureau is expected to handle 2.8 billion packages from Nov 11 to 18, according to state-run press agency Xinhua.

Let’s block ads! (Why?)

Source link

Continue Reading

Business

OpenText snaps up cloud security firm Carbonite in $1.42 billion deal

Published

on

By

OpenText, the Waterloo-based enterprise cloud information management company, announced Monday that they have reached a deal worth US$1.42-billion to acquire Carbonite, Inc, a Boston company that does cloud data protection and endpoint management.

OpenText chief executive Mark Barrenechea said that part of the reason why he likes Carbonite is because it gives an opportunity to sell to 300,000 small businesses and 7 million individual professionals.

“This acquisition will further strengthen OpenText as a leader in cloud platforms, complete end-point security and protection, and will open a new route to connect with customers, through Carbonite’s marquee SMB/prosumer channel and products,” Barrenechea said in a news release.

The deal of US$23 per share for the Boston-based Carbonite is a 25 per cent premium to the close of trading Friday. OpenText will pay $800 million in cash with the total transaction including debt valued at US$1.42 billion.

OpenText shares were up 2.3 per cent and Carbonite were up 24 per cent in morning trading.

Historically, Opentext has focused most of its efforts on the largest enterprise clients.

Speaking to investment analysts, Barrenechea said it will likely take around 18 months to fully integrate the company into OpenText.

The company has a long history of growing through acquisition; OpenText spent nearly US$3 billion between 2013 and the beginning of 2017, including the US$1.62 billion acquisition of Dell EMC, the company’s enterprise content management division.

As of September 30, Carbonite had $405 million in trailing twelve-month revenue.

• Email: jmcleod@nationalpost.com | Twitter:

Let’s block ads! (Why?)

Source link

Continue Reading

Business

Keystone pipeline restarted after breach in North Dakota

Published

on

By

The owner of the Keystone pipeline says the line has returned to service after a breach that leaked an estimated 1.4 million litres of oil in northeastern North Dakota late last month.

TC Energy Corporation says the move follows the approval of its repair and restart plan by the U.S. Pipeline and Hazardous Materials Safety Administration, which ordered the line shut until the Canadian company completed corrective action.

The company says it will operate the pipeline at a reduced pressure with a gradual increase in the volume of crude oil moving through the system.

The line, which began operating in 2011, is designed to carry crude oil from Alberta across Saskatchewan and Manitoba, and through North Dakota, South Dakota, Nebraska, Kansas and Missouri on the way to refineries in Patoka, Ill. and Cushing, Okla.

The spill affected about 2,090 square meters of land near Edinburg, N.D.

TC Energy says it continues to work closely with the U.S. Pipeline and Hazardous Materials Safety Administration and the North Dakota Department of Environmental Quality as it investigates the cause of the breach.

“We appreciate the cooperation and support from local officials, emergency response personnel and commissioners in Walsh County, as well as the landowner who has granted permission to access land for assessment, repair and clean-up activities,” TC Energy said in a statement on Sunday.

“We also want to recognize the continued efforts of our crews, contractors and businesses in the community for their around-the-clock support, which has allowed us to respond quickly and safely to this event.”

The company adds it is communicating plans to its customers and will continue working closely with them as it begins to return to normal operating conditions.

It said on its website that it has observed no significant impacts to the environment.

The pipeline spill and shutdown come as the company seeks to build the US$8-billion Keystone XL pipeline that would carry oilsands oil from Alberta to refineries in Texas.

Let’s block ads! (Why?)

Source link

Continue Reading

Trending