After striking a deal with labor unions following a prolonged US strike, General Motors is facing a significant cost pressure of $9.3 billion. However, the automotive giant aims to offset this by initiating a $10 billion share buyback and implementing a 33 percent increase in dividends. Additionally, cost-cutting measures will be applied to GM’s robotaxi unit, Cruise. Despite a prior 14 percent decline in shares this year, the announcement led to a 7.7 percent rise in premarket trading on Wednesday.
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General Motors Slowdown Forecasted by OECD
The Organisation for Economic Cooperation and Development (OECD) anticipates a marginal slowdown in the global economy in 2024. Despite concerns over high debt levels and uncertainty regarding interest rates, the risk of a severe downturn has diminished. The OECD projects a moderation in global growth from 2.9 percent this year to 2.7 percent in 2024, with a subsequent pickup to 3.0 percent in 2025.
Oil Production Cuts Loom Amid Middle East Crisis
OPEC, along with its General Motors Russia-led allies, is contemplating potential oil production cuts of up to 1 million barrels per day. This decision, driven by heightened tensions in oil markets due to the ongoing Middle East crisis, may be announced during a virtual meeting of the cartel on Thursday. General Motors The move is expected to influence oil prices.
US Imposes Sanctions, Arca Climate Technologies Launches CO2 Capture Project
The US Department of General Motors Treasury has imposed sanctions on 20 entities, including Iranian Sepehr Energy, for their alleged role in facilitating finances supporting Iran’s military. Meanwhile, Arca Climate Technologies has initiated a pilot project for air-to-rock carbon mineralization, aiming to capture and permanently store atmospheric carbon dioxide using waste from BHP’s Mt Keith Nickel West mine in Australia.
Jack Ma Calls for Alibaba’s Course Correction
In a surprising internal memo, Jack Ma has urged Alibaba Group Holding to correct its course. Despite distancing himself from day-to-day operations since 2020, Ma responded to an internal forum post, expressing confidence in Alibaba’s ability to evolve. This comes as Alibaba, once considered China’s top candidate for a trillion-dollar valuation, is currently trading at a fraction of its 2020 peak.
UK Government Urges Crypto Users to Disclose Taxes
The UK government is urging crypto users to voluntarily disclose any unpaid capital gains or income taxes to avoid penalties. Guidelines have been published detailing how to make these tax disclosures, covering earnings from exchange tokens like bitcoin, non-fungible tokens (NFTs), and utility tokens. Failure to comply within 30 days may result in the Treasury taking steps to recover the owed taxes.
Other Notable News
OPEC and allies consider oil production cuts amid Middle East tensions.
US imposes sanctions on entities linked to supporting Iran’s military.
Arca Climate Technologies launches CO2 capture pilot project using waste from BHP’s mine.
Nestle identifies India and General Motors China as key coffee markets.
Signa, a major property and retail giant, declares insolvency.
KKR to acquire the remaining 37 percent stake in Global Atlantic Financial Group for $2.7 billion in an all-cash deal.
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