The post Asian stocks dip ahead of US jobs data: Nikkei extends decline to 3rd day appeared first on Invezz

The post Microsoft, Google, Boeing join donors list for Trump’s record $170M inauguration fund appeared first on Invezz

Australia has expressed alarm over Meta’s decision to scrap fact-checking operations on Facebook and Instagram in the United States, labelling it a potential threat to democratic integrity.

This step, which replaces professional fact-checkers with community-based posts, has sparked fears of an unchecked surge in false information online.

The country, which has led regulatory efforts against misinformation globally, warns that the decision could have far-reaching consequences, undermining the reliability of digital platforms as sources of accurate information.

The shift in Meta’s strategy comes as nations worldwide grapple with the rapid proliferation of misinformation, a trend exacerbated by digital platforms prioritising engagement over accuracy.

Australia’s response highlights a growing concern: the erosion of trust in online spaces could have profound implications for public discourse, mental health, and the integrity of democratic systems.

A global trend with local implications

The removal of fact-checking by Meta in the US reflects a broader trend of tech companies retreating from responsibilities once heralded as essential safeguards.

In Australia, platforms like Facebook and Instagram serve as primary news sources for millions, amplifying the potential impact of unvetted information.

The absence of rigorous fact-checking mechanisms risks turning these platforms into vectors for harmful disinformation.

Australia has been proactive in countering this challenge.

Recent investments in trusted news organisations, such as the ABC and AAP, underline the government’s commitment to promoting reliable information.

This alone may not be enough to combat the global nature of misinformation, particularly when major platforms deprioritise accountability.

The stakes are high. Disinformation campaigns, ranging from public health conspiracies to politically motivated falsehoods, have demonstrated their ability to destabilise societies.

Without checks in place, Australia faces a potential escalation in the spread of harmful content, further straining efforts to preserve democratic integrity.

Australia’s regulatory balancing act

Australia’s history of challenging tech giants is well-documented.

From pioneering laws mandating payments to news outlets for shared content to proposing age restrictions for social media access, the country has sought to hold platforms accountable.

Legislative efforts have faced hurdles.

For example, attempts to impose fines on social media companies for failing to curb misinformation were shelved due to insufficient parliamentary support.

Despite these challenges, Australia continues to advocate for stronger digital safeguards.

The decision by Meta adds urgency to these efforts, with officials reiterating the need for global cooperation in addressing the spread of false information.

Australian authorities view independent fact-checking as essential to curbing the manipulation of public opinion and protecting the democratic process.

Meta’s move stands in stark contrast to these values, with critics accusing the platform of prioritising cost-cutting over societal responsibility.

While the company claims its new approach will empower communities, many fear it will only amplify echo chambers, where opinions are reinforced without the filter of factual accuracy.

Meta’s decision has reignited debates over the responsibilities of tech companies in managing the content on their platforms.

While private companies have the right to determine their operational strategies, the societal implications of their choices demand scrutiny.

In Australia, the decision has intensified calls for international standards to ensure platforms uphold democratic principles.

Australia’s own fact-checking infrastructure, including AAP FactCheck, remains robust for now, unaffected by Meta’s US decision.

However, the evolving landscape of digital misinformation underscores the need for vigilance.

Governments, civil society, and tech companies must work together to prevent the erosion of trust in information systems.

The post Australia calls Meta’s fact-checking decision a threat to democracy appeared first on Invezz

Billionaire tech mogul Elon Musk has held private discussions with allies about how British prime minister Sir Keir Starmer could be unseated before the next general election, according to a report by The Financial Times.

Musk, the world’s richest man and key confidant of US president-elect Donald Trump, is probing how he and his right-wing allies can destabilise the UK Labour government beyond the aggressive posts he has issued on his social media platform X, the people briefed on the matter said, according to FT.

“His view is that western civilisation itself is threatened,” one of the people added.

Some associates reported that Musk sought information about whether it might be possible to gather support for alternative British political movements— notably the rightwing populist Reform UK party — to effect a change in the British leadership.

Musk looks to Reform UK but wants to replace Nigel Farage

The billionaire’s focus has shifted to the Reform UK party, a right-wing populist group experiencing a surge in support.

Opinion polls suggest 22% of the public back the party, up from 14% in July, putting it close behind the Labour Party at 28% and the Conservatives at 24%.

However, over the weekend Musk shockingly distanced himself from Reform UK leader Nigel Farage, and declared that Farage “doesn’t have what it takes” to lead the party effectively.

Instead, Musk is reportedly exploring potential replacements, including MP Rupert Lowe, and enquired about mechanisms to replace Farage, people in the know said.

Farage, while downplaying the fallout, has emphasized his intention to maintain ties with Musk, signaling his continued presence in UK politics despite Musk’s criticisms.

Musk’s criticisms of Starmer’s record escalate

Musk’s critique of Starmer has intensified in recent weeks, particularly regarding the handling of grooming scandals in UK towns.

Musk accused Starmer, a former director of public prosecutions, of being “complicit” in systemic failures related to child sexual exploitation.

Safeguarding Minister Jess Phillips was also targeted, with Musk calling her a “rape genocide apologist.”

Starmer rejected Musk’s allegations, accusing those spreading misinformation of prioritizing personal agendas over victims.

Phillips, in turn, stated that Musk’s attacks have endangered her life, adding a personal dimension to the unfolding controversy.

Matt Goodwin, a rightwing political commentator, said Musk — and other Americans — had become “fascinated” by the grooming gangs scandal in the UK over the past week in part because “it’s so horrific”. 

But he said he also believed it was because Musk has “an instinctive distrust of the Labour government and Keir Starmer”.

Labour responds: Starmer stands firm

Amid Musk’s growing criticism, Labour leader Keir Starmer remains defiant.

He said on Monday that those “spreading lies and misinformation” were not interested in victims but rather “themselves”.

Phillips accused Musk of endangering her life.

Musk’s foray into UK politics raises questions about the influence of global billionaires in domestic political systems.

With Reform UK emerging as a stronger player and Musk’s criticism of Labour intensifying, the road to the next general election could be shaped by an unusual mix of transatlantic power and populist rhetoric.

The Labour government’s response to these challenges will be crucial in defining its political resilience and ability to counter external destabilization efforts.

The post Elon Musk explores moves to unseat Starmer before next UK elections, FT reports appeared first on Invezz

A fast-moving wildfire freshly tore through the Hollywood Hills early Thursday, threatening a region synonymous with the American film industry.

The blaze added to the strain on millions of Los Angeles residents already grappling with devastating fires that have decimated entire neighborhoods and turned the skies into a smoky, ember-filled haze.

At least five lives have been lost, and tens of thousands remain under mandatory evacuation orders or warnings.

The wildfires have scorched over 27,000 acres—an area nearly the size of 20,000 football fields.

Among the largest are the Palisades and Eaton fires, which together have destroyed more than 2,000 structures.

Both rank as the most destructive wildfires in Los Angeles history.

Pacific Palisades bears the brunt of the destruction

Apart from the loss of life and property, the economic costs of wildfires are rising by billions.

AccuWeather on Wednesday estimated that the economic costs would reach up to $57 billion.

That’s more than triple the forecaster’s assessment of the wildfires in Hawaii in 2023 ($14 billion to $16 billion), but less than the 2020 West Coast wildfires ($130 billion to $150 billion).

“This is already one of the worst wildfires in California history,” Jonathan Porter, AccuWeather’s chief meteorologist, said in a press release sent to Euronews Business on Thursday.

“Should a large number of additional structures be burned in the coming days, it may become the worst wildfire in modern California history based on the number of structures burned and economic loss,” he added.

Upscale areas like Pacific Palisades, with a median home value of around $2 million, have borne the brunt of the destruction.

Pacific Palisades is one of the top 25 most expensive zip codes in the nation, said Firas Saleh, director of North American wildfire models at Moody’s, a global research and analysis firm.

Shares in Edison International, the utility serving Los Angeles, dropped 10% amid investor fears of potential liabilities, echoing past legal battles that cost other utilities billions.

Hollywood halts as flames threaten productions

The entertainment industry, a cornerstone of the Los Angeles economy, has come to a standstill.

Productions for major TV shows, including Grey’s Anatomy, NCIS, and Jimmy Kimmel Live!, have been suspended.

High-profile events such as Oscar nominations and the Critics Choice Awards have been postponed, while Disney’s Burbank headquarters and NBCUniversal’s Universal Studios Hollywood theme park temporarily shut down.

The fires’ impact on Hollywood extends beyond economic losses, threatening the region’s identity as a global entertainment hub.

Home insurance crisis deepens

The California state has been battling to keep insurers from abandoning the market, especially after wildfires in 2017 and 2018 erased 25 years of industry profits.

However, the recent blazes could accelerate this retreat, pushing already high insurance premiums even higher.

JPMorgan analysts said in a “very preliminary estimate to help investors gauge the likely impact” that they believed insured losses “could approach $10bn” based on an assessment of the affected area.

Specialist insurance companies focused on the most expensive homes faced high payouts, JPMorgan said in a note to clients, with Allstate, Travelers and Chubb among the most exposed carriers in the state. Chubb has a particular focus on high-net-worth properties.

Between 2019 and 2024, over 100,000 Californians lost their coverage. State Farm, one of the state’s largest insurers, cut 70% of its policies in the Santa Monica Mountains area alone last summer.

As private options dwindle, many homeowners have been forced to rely on the California FAIR plan, a state-backed last-resort insurance program.

However, if the plan requires additional funding, it can draw on private insurers operating in the state, potentially driving up rates for all policyholders statewide.

RenaissanceRe and ArchCapital are among the reinsurers exposed to the wildfires, JPMorgan said, but analysts at the bank predicted that their losses would be lower than those for similar events prior to 2023.

The post How many billions will California fires cost the US economy? appeared first on Invezz

The operator of the global clothing chain Uniqlo reported first-quarter results on Thursday that, while showing a rise in profits, fell slightly short of analyst expectations.

A sharp decline in profit in China overshadowed strong sales in its home market of Japan, highlighting the complexities of balancing global growth in a dynamic retail environment.

Fast Retailing announced that its operating profit rose 7.4% to 157.6 billion yen ($996.84 million) in the three months ending November, compared to the same period a year earlier.

However, this figure was slightly below a consensus forecast of 160 billion yen from six analysts polled by LSEG.

Despite the mixed results, Fast Retailing maintained its full-year operating profit forecast of 530 billion yen, putting the company on track for a fourth consecutive year of record earnings.

Uniqlo: a bellwether for consumer spending

Known for its affordable, durable fleeces, and cotton shirts, Fast Retailing has long been considered a key indicator for consumer spending in both Japan and, more recently, China, where it operates over 900 Uniqlo stores.

While domestic sales have been bolstered by a surge in duty-free shopping, fueled by a tourism boom and a weak yen, sales growth in China has cooled down, prompting the company to reassess its strategy in the region.

China strategy and global Expansion

In response to the slower growth in China, Fast Retailing is scaling back new store openings and adopting a “scrap-and-build” approach to revitalize underperforming locations with redesigned stores.

The previous year’s record results were driven by improved profit margins and increased international brand awareness.

However, the company remains vulnerable to changes in weather patterns and shifts in consumer fashion preferences.

While Japanese sales were boosted by cold weather in December, increasing demand for thermals, unseasonably warm temperatures in China resulted in flat sales for October and November.

The company has also seen positive results in North America and Europe, where it is currently mounting an aggressive expansion strategy in pursuit of its ambition to become the world’s No. 1 clothing brand.

This was exemplified by the opening of five new Uniqlo stores in Texas in October.

Wage hikes set pacesetter in home market

In its home market, Fast Retailing has become a pacesetter for wages in the service industry.

Keen to retain valued employees, the company announced on Wednesday that it will institute a significant increase in pay for its Japanese employees.

This comes on the heels of a similar hike in 2023, which helped to break the pattern of stagnation in the nation’s wage outlook.

Wages for full-time headquarters and sales staff will rise by as much as 11% from March, while annual salaries for new employees will increase by about 10%, according to the company.

The post Uniqlo operator sees Q1 profit rise amid sluggish China performance appeared first on Invezz

Rolls-Royce CEO Chris Brownridge, like many importers, is aware of President-elect Donald Trump’s plans to impose a range of tariffs on various countries.

However, he remains unperturbed, citing that business has rarely been better for the luxury carmaker, whose products start at $370,000.

The company’s resilience, particularly in the face of potential trade barriers, underscores the unique dynamics of the ultra-luxury market.

Record sales driven by bespoke commissions

The automaker, now celebrating its 121st year, sold over 5,000 vehicles in 2024, achieving its third-highest sales year ever.

This success comes even though the company released updated Cullinan SUV and Ghost sedan models midway through the year, a move that typically slows sales as customers wait for newer versions.

However, this had little impact on Rolls-Royce’s performance.

The company noted that its bespoke commissions, where clients pay premium prices for one-off customizations like specialized stitching or custom clocks integrated into the dash, are a rapidly growing part of its business.

Bespoke orders jumped 10% year over year and Rolls-Royce is heavily investing in this area, spending $370 million to expand such offerings and increase the number of Private Offices (client lounges) globally, where customers design their custom creations.

Bespoke means more time, revenue, and profit

“What we saw was a real increase in demand for our bespoke motorcars,” Brownridge told Yahoo Finance in an interview.

So we saw a real increase in the level of requests coming from our clients for motorcars with features which are very specific and personal to that particular client. And that’s coming off the back of our network of private offices.

For Rolls-Royce, bespoke customizations mean more time to create these unique automobiles, as well as increased revenue and profit.

Although Rolls doesn’t reveal its margin figures for these commissions, generally, customizations generate higher profit margins than standard builds.

Potential tariff impact on the US market

One potential challenge for Rolls-Royce’s growth plans, particularly in the US, which is the company’s largest market, is the threat of tariffs on international goods, particularly luxury goods.

“If you put a tariff on the price of a good, it’s going to have some impact on the demand, … and if it’s a luxury good, there could be higher price elasticity. That’s certainly what I’d expect at Rolls-Royce,” Brownridge said, implying that an increase in price would likely affect demand.

For example, a 10% tariff could raise Rolls-Royce prices by $50,000 or even $100,000 for cars that are customized and optioned in the $1 million range.

Even for Rolls-Royce’s ultra-high-net-worth clientele, such a significant added expense is not desirable.

Global reach provides resiliency

Despite the threat of tariffs, Brownridge remains largely optimistic.

“We’re not dependent on any one market, we have clients in every corner of the world, and that’s the way we run our business,” Brownridge stated.

“But notwithstanding that, the USA is a really important market for us and I think we’re in a great position irrespective of what happens with tariffs,” he added.

This highlights the company’s confidence in its diverse global client base and the enduring appeal of its brand.

The post Trump tariffs? No problem, says Rolls-Royce CEO appeared first on Invezz