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The World
Stagflation danger sees the World Bank cut the 2022 global growth outlook to 2.9%, stating that the pain of high inflation, slow growth could persist for years with potentially destabilizing consequences for low- and middle-income economies. “The world economy is again in danger,” President David Malpass said in the foreword of the latest edition of the lender’s Global Economic Prospects report released Tuesday. “It is facing high inflation and slow growth at the same time. Even if a global recession is averted, the pain of stagflation could persist for several years -- unless major supply increases are set in motion.” (Bloomberg)
U.S. Treasury Secretary Janet Yellen told senators that she expected inflation to remain high and the Biden administration would likely increase the 4.7% inflation forecast for this year in its budget proposal. During a Senate Finance Committee hearing, Yellen said that the United States was dealing with "unacceptable levels of inflation," but that she hoped price hikes would soon begin to subside. (Reuters)
Angela Merkel said she had “nothing to apologize for” over her policy towards Moscow as Germany’s former chancellor denied that she had “appeased” Vladimir Putin in her efforts over the years to ease tensions between Russia and Ukraine. Merkel was giving her first interview since stepping down as chancellor in December last year. It was also the first time she has been quizzed publicly over her policies towards Putin. (Financial Times)
IBM plans to wind down its business in Russia and lay off its workforce in the country, after suspending operations there in March 2022. (Engadget)
North Korea could conduct a seventh nuclear test at "any time" and has shown no interest in returning to negotiations, the U.S. Special Representative for North Korea said. (Reuters)
Unemployment system plagued by delays, fraud and racial gaps during pandemic, says watchdog agency. The U.S. Government Accountability Office issued a pair of reports critiquing shortfalls in the nation’s unemployment benefit system during the Covid-19 pandemic. Among them were delayed payments, elevated fraud and “substantial” disparities in benefit receipt along racial and ethnic lines. (CNBC)
Architecture review: The new LaGuardia is haunted by the mistakes of its past. An $8 billion overhaul has transformed the long-reviled New York airport. But LaGuardia’s troubled history can’t be fully overcome. (Bloomberg)
Vaccine trial gives hope to pancreatic cancer sufferers: A pioneering vaccine developed using the same mRNA technology as Covid jabs has raised hopes of a cure for pancreatic cancer. Half of patients given the vaccine, designed to prevent cancer returning after surgery, remained free of the disease 18 months later. Pancreatic cancer is the deadliest common cancer, with 90 per cent of patients dying within two years of diagnosis. (The Times)
Economy
Market optimists make the case that 2022 will end on a high note: As corporate leaders increase their grim pronouncements about the future, there are still market economists who see stocks heading higher in the second half of this year and who say the US could sidestep a recession. Like all good statisticians, they have numbers to prove this. Longtime bull Neil Dutta, head of economics at Renaissance Macro Research, for example, pointed to factors that are still returning to normal after the pandemic lockdowns, including labor participation rates and demand for durable goods, which drove prices higher. As life continues to settle down, he said, the Federal Reserve may find it easier to battle inflation. (Bloomberg)
Target warned its profit would drop because it needs to cancel orders with vendors and offer discounts to clear out unwanted goods, the latest sign of the sudden mismatch between supply and demand inside America’s stores. Big retailers benefited over the past two years from the pandemic rush to buy patio furniture, laptops and home décor, as shoppers were buoyed by savings and government stimulus checks. Now many of those same stores are grappling with a swift reversal of buying behavior, with consumers spending less on goods in favor of services and necessities such as food and fuel. (Wall Street Journal)
Commercial real estate is showing the first signs of cooling in more than a year, disrupted by rising interest rates that are already causing some deals to collapse. Property sales were $39.4 billion in April, which was down 16% compared with the same month a year ago, according to MSCI Real Assets. The decline followed 13 consecutive months of increases. (Wall Street Journal)
Hedge funds posted negative performance in May, accentuating their losses this year to almost 3%, as investors positioned for a potential recession. (Reuters)
The U.S. trade deficit narrowed by the most in nearly 9-1/2 years in April as exports jumped to a record high, putting trade on course to contribute to economic growth this quarter. The sharp decline reported by the Commerce Department on Tuesday reversed March's surge and suggested that trade could be shifting back to a more normal pattern. (Reuters)
California aims to slash insulin prices and challenge Big Pharma: Gov. Gavin Newsom wants to spend $100 million to make insulin affordable to millions with diabetes under a new generic drug label, CalRx. But state health officials have not answered key questions such as how cheaply insulin could be produced and what patients would pay. (Los Angeles Times)
Technology
Regulators in Brussels have agreed a long-awaited deal that will force companies such as Apple to use a common charger for smartphones and laptop computers. The agreement follows more than a decade of discussions as regulators argued such a device was needed to counter electronic waste and curb the number of chargers consumers have to carry. The new law will come into effect in 2024 and will see USB Type-C become the common charging port for devices such as cameras and mobile phones. The move will have a particular impact on Apple’s iPhones, which use a Lightning cable while Android-based devices already use the new standard. (Financial Times)
Apple just killed the password — for real this time: So how does it work? Passkeys replace your tired old passwords by creating new digital keys using Touch ID or Face ID, Apple’s vice president of internet technologies, Darin Adler, explained at WWDC. When you are creating an online account with a website, you can use a Passkey instead of a password. “To create a Passkey, just use Touch ID or Face ID to authenticate, and you’re done,” Adler said. When you go to log in to that website again, Passkeys allow you to prove who you are by using your biometrics rather than typing in a passphrase (or having your password manager enter it for you). (Wired)
iOS 16 beta code includes multiple references to an always-on display, a rumored feature for the iPhone 14 Pro and iPhone 14 Pro Max coming later in 2022. (9to5Mac)
Apple is turning your iPhone into fintech service taking on PayPal, Affirm and more. (CNBC)
Apple announced dozens of new features for the next versions of iOS, iPadOS, WatchOS and MacOS in its two-hour WWDC 2022 keynote—plus a redesigned MacBook Air! WSJ’s Joanna Stern headed to Cupertino and boiled down the news. (Wall Street Journal)
PayPal begins letting users in the US move cryptocurrency from and to external wallets and exchanges, after they complete a new identity verification process. (TechCrunch)
A senior Chinese economist at a government-run research group called on authorities to seize Taiwan Semiconductor Manufacturing Co. if the US hits China with sanctions on par with those leveled against Russia. “If the US and the West impose destructive sanctions on China like sanctions against Russia, we must recover Taiwan,” said Chen Wenling, chief economist at the China Center for International Economic Exchanges. (Bloomberg)
Shared micromobility company Bird plans to layoff 23% of its staff. (TechCrunch)
Smart Links
These are the world’s 20 most expensive cities for expats. (Bloomberg)
Wells Fargo pauses diversity rules for hiring after sham-interviews report. (Bloomberg)
Australian regulator sues Airbnb for allegedly misleading customers on pricing. (Reuters)
Parts of Southern California used 26% more water in April, despite conservation pleas. (Los Angeles Times)
Lyft plans to build a hybrid network of autonomous and driver vehicles. (CNBC)
Japan's Q1 GDP revised up to 0.5% annualized contraction. (Nikkei Asia Review)
Dustin Johnson quits PGA, joins Phil Mickelson on Saudi-backed tour. (Washington Post)