Category Archives: Business

The latest news of the International economy, economies of Europe, Asia, US. Business News, World Market News, World Business, Global Business Trade

The world’s largest cinema chain will start accepting cryptocurrency

The largest cinema chain AMC Entertainment will begin to accept several types of cryptocurrency as payment. The network’s director Adam Aron announced this in his Twitter account.

“Cryptocurrency enthusiasts, you probably know that AMC cinemas will be accepting bitcoins by the end of 2021. I can confirm today that when we do, we will similarly accept Ethereum, Litecoin, and Bitcoin Cash,” Adam Aron wrote.

It became known in August that the network’s most popular currency, Bitcoin, would be available to pay at movie theaters. The new payment option will be available by the end of this year. AMC is going to provide all of its cinemas with the necessary technology to accept cryptocurrency. Management of the network hopes that payment in digital coins will increase sales during the coronavirus pandemic.

Accepting cryptocurrency as payment will begin and American mortgage lender United Wholesale Mortgage. The company’s customers will be able to pay their mortgages in bitcoins by the end of 2021. Like the AMC cinema chain, the firm also hopes to accept other cryptocurrencies, including Ethereum.

However, experts question the viability of using cryptocurrencies in everyday transactions. “People aren’t buying bitcoins to spend them. To me, it’s still not a very established currency in the sense that it’s more of an investment for the future or something we might want to have in the future,” said Swissquote Bank senior analyst Ipek Ozkardeskaya.

El Salvador was the first country to accept bitcoin as legal tender. After that, the rate of the most popular cryptocurrency collapsed and protests began in the country. Citizens are worried about the high volatility of bitcoin, as well as the possibility that digital coins can be used for fraudulent transactions. The government of El Salvador promised that it will make the use of cryptocurrency safe and protect citizens from rate hikes. At the time of publication, bitcoin was worth $47,900.

Taliban announced the restoration of the work of banks

The new head of the central bank of Afghanistan, Mohammad Idris, said that the banking sector is in “good condition and complete security”. The government is trying to assure local businesses that financial life in the country will recover, despite the loss of foreign exchange reserves of the central bank, writes Bloomberg.

“Given the economic situation in the country, all banks […] and companies, including retailers, will soon again conduct operations in the usual manner and on a regular basis and conduct their business with full confidence, “Idris said in a statement on the official website of Da Afghanistan Bank. However, after the banks opened in August, the Central Bank ordered them to limit the number of withdrawals to $200 per week for each client.

Idris ‘ statement came a day after the Taliban requested additional humanitarian assistance from the international community. The United Nations has announced that it is ready to provide more than $1.2 billion in emergency aid to Afghanistan to allow the country to recover from two decades of war.

After learning about the seizure of power by the Taliban, the International Monetary Fund and other Western organizations suspended programs to support the Afghan economy, which is very dependent on foreign injections. They explained their decision by saying that they cannot transfer funds until the new government has received international recognition. In addition, the Taliban were denied access even to the country’s national reserve — the United States froze the assets of the Central Bank of Afghanistan on the accounts of its banks.

Despite the Taliban’s assurances about the normalization of the financial sector, experts are wary about the future of the Afghan economy. At the end of August, former German diplomat and UN official Hans-Jakob Schindler, who worked on sanctions against the Taliban, said that the country’s prospects are “terrible” and the economy is threatened with the collapse in the coming weeks. Residents are faced with a sharp jump in food prices and are forced to worry about how to feed their family and pay for housing.

Oil prices rise because of a new hurricane in the U.S.

Tropical Storm Nicholas has strengthened to a Category 1 hurricane on the Saffir-Simpson scale and will soon hit the U.S.

Global oil prices for benchmark grades are rising moderately as a new hurricane approaches the Gulf of Mexico, while oil producers in the region have not yet recovered from Hurricane Ida. This is evidenced by trading data on Tuesday, September 14.

Thus, November futures on Brent grew by $0.58 (0.79%) to $74.09 per barrel on London’s ICE Futures exchange. By the end of Monday trading, these contracts grew by $0.59 (0.8%) to $73.51 per barrel, the highest level since July 30.

The price of WTI futures for October grew by $0.58 per barrel to $71.03 per barrel at NYMEX. Those contracts rose $0.73 (1.1%) to $70.45 a barrel on Monday, the highest since August 3.

The spread between current Brent and WTI contracts is now $3.06 in favor of Brent.

The day before it became known that Tropical Storm Nicholas will soon hit the US states of Louisiana and Texas, although the US has not yet recovered from Hurricane Ida.

And today, the U.S. National Hurricane Watch reported that Storm Nicholas has strengthened to a Saffir-Simpson Scale Category 1 hurricane. At the moment, the maximum wind speed within the elements is 33.3 m/s. The hurricane is about 75 km southwest of the port city of Freeport and is moving northeast at about 17 kph.

US President Joe Biden has already signed a decree declaring an emergency situation in the state of Louisiana due to the approach of Nicholas and ordered to provide local authorities with federal aid.

The UK is facing a dairy crisis

A shortage of drivers after Brexit has disrupted milk supply chains in the UK

The UK is experiencing a crisis in the dairy industry amid a shortage of workers after Brexit. The shortage of drivers and warehouse employees forced farmers to throw out products and jeopardized the assortment in stores, writes the Independent.

The collected milk spoils even on farms, as there is no one to take it to enterprises and supermarkets. The National Union of Farmers (NFU) considers the situation on the labor market “unstable” and fears its further deterioration. The representative of the organization said that many farms have to either reduce supplies or get rid of products.

Milk and More have already had to refuse many customers to deliver dairy products to their homes due to a shortage of warehouse employees and truck drivers. Another logistics company working with dairy products shared with NFU that for the first time in 27 years it is experiencing difficulties in finding employees.

The situation has become noticeably worse in the last two months, and now even a small shortage of personnel can stop the flow of raw milk to dairies and endanger the country’s food industry. In the next couple of months, supply disruptions are likely to become noticeable, and British retailers will be left without dairy products.

Farmer Henry Bloxham works at the Moors Covert farm in Stafford and under the terms of the contract can only sell milk to one company. Recently, this company could not find a driver to transport the goods and asked to throw out the batch. Bloxham admitted that production costs are constantly growing and do not pay off. He added that the winter will be difficult if milk prices are not raised.

David Potts, director of the Morrisons supermarket chain, warned that a shortage of staff and rising commodity prices will inevitably lead to a rise in the price of products on store shelves and a shortage of them. He noted a significant reduction in the supply of animal feed, soda, drinking water, chips, and some types of wine.

Before Brexit, cargo transportation, agriculture, and food production were mainly engaged in migrants from the European Union. Now it has become more difficult for them to enter the country, and companies cannot hire employees for the vacant places.

Food producers are calling on the government to allow temporary work visas — this is the fastest way to cope with the crisis in the labor market and establish supply chains for the busy winter holiday season. However, the authorities of the country do not agree to such measures and advise companies to look for local staff.

The lack of drivers forces farmers to throw away more than just milk. The Scots had to destroy a huge crop of broccoli and cauliflower, as there was no one to transport the vegetables to the refrigeration enterprises.

There is a crisis in the smartphone market

Indian electronics manufacturer Jio has postponed the release of a smartphone jointly developed with Google due to a shortage of microchips, Reuters reports. Previously, experts and manufacturers have repeatedly predicted a crisis in the smartphone market due to this global problem.

It was planned that the budget phone JioPhone Next will appear on the Indian market on September 10, but the launch was postponed until November. At this time, the country is going through the holiday season, when Indians make expensive purchases, including electronics. It is planned to improve the development and make it even cheaper in two months. Jio also expects that the shortage of semiconductors will be reduced during this time.

However, the current crisis, according to the most optimistic forecasts of experts, may continue until the second quarter of 2022. The fact is that semiconductor manufacturers have focused on supplies to the automotive industry — the industry has been most affected by the shortage of microchips caused by the coronavirus. Tesla, Toyota, Volvo, and other car manufacturers have been forced to reduce or suspend production. At the same time, the mass transition to remote work has increased the demand for laptops and phones, and their manufacturers are faced with a growing shortage of chips.

Apple’s main partner in the assembly of devices warned that in the third quarter of 2022, fewer electronics will be released than in the spring, while autumn is traditionally the peak of activity of the global electronics industry. A decline in production will lead to a decrease in sales. Samsung has said that it will probably have to significantly reduce production. Qualcomm, one of its main suppliers of semiconductors, said that it could not meet the demand for its products. It is expected that the release of a smaller number of phones will lead to their rise in price.