Breaking International Business News and Headlines

Breaking International Business News and Headlines With the latest crisis involving Boeing's 737 jet, the world is once again worried about the company's best-selling family of planes. The incident extends a turbulent period in the history of the company. Companies like Bombardier and Canadian Tire have suspended operations in Russia. Western nations are torn between imposing tough sanctions on Russia in order to deter Putin, and also avoiding any possible blowback. Despite the uncertainty, a shortage of french fries has hit Southeast Asian fast-food chains. ECB President Christine Lagarde turned more hawkish In recent weeks, there has been a lot of talk about the possibility of another ECB rate hike, and it seems that this time around, the ECB President is going to favour a more collegial approach to decision-making, which could lead to more transparency and public voting for the Governing Council members. Previously, the Governing Council was only open to voting in secret, but Christine Lagarde has indicated that she would prefer a more democratic process, including public voting. The current informal voting system is highly opaque and tends to produce unanimity, so it is unlikely that she would make the switch. However, the new ECB President has indicated that she will push for a change, and even the Reserve Bank of Australia has hinted that she may be willing to introduce the latter. After the ECB's policy meeting, the ECB signaled that it expects to raise interest rates by a quarter point in July, but has hinted that the policy maker could raise rates in smaller increments. The ECB has the option to act decisively or remain on hold until further notice. That is why markets are reacting so strongly to this news. While interest rates are still near-historic lows, central banks continue to face worries about ammunition, which could force them to hike rates further. The new ECB President might even need to exert more pressure on euro zone governments to step up their fiscal spending. While Lagarde believes that the European economy is stabilizing, she feels that the euro zone needs monetary support to get back on track. Despite her lack of experience in the central bank, investors expect Lagarde to be a Mario Draghi-style hawk. The ECB has kept policy rates at record lows, but some economists feel that Lagarde's press conference comments were more hawkish than what they actually said in the policy statement. In other words, Lagarde is a hawk, and markets are taking a cue from her. The ECB's new bond-buying program aims to keep the borrowing costs of euro zone countries down. Its actions should help avert further crises and keep pressure on governments to fix their budgets. Meanwhile, bond yields have soared over Germany, the safest haven. However, ECB policymakers are not yet agreeing on the details of the new program. On Thursday, the euro rose to a three-week high against the U.S. dollar, following comments by

ECB President Christine Lagarde. The ECB leader focused on the risks of euro zone inflation overshooting target levels and avoided repeating previous remarks on interest rates in the region. The euro was up more than one percent Thursday, and is on track for its biggest percentage gain since early December 2020. Sri Lanka's government imposed a 2.5 per cent social contribution tax The Cabinet of Sri Lanka has approved the introduction of a 2.5 per cent social contribution tax on all companies with annual turnover of over Rs 120 million. It will apply to all sectors, including manufacturing, imports, wholesalers, retailers, and service providers. It is also proposed to declare Friday as a public holiday for the public sector. However, there are concerns regarding the impact of the proposed tax. Meanwhile, the latest official inflation figures have been released, indicating that Sri Lanka is now experiencing the highest annual inflation rate since 1948. The annualised rate of inflation in May hit 39 per cent, with food inflation increasing to 57 percent. The government's austerity measures are being considered in preparation for the next round of negotiations with the IMF, which is scheduled to begin early this month. In addition to the new tax, the government is also implementing new taxes on certain goods and services. This tax will increase prices of food and basic goods, increasing the cost of living and pushing more people into starvation. Many workers have had to cut down the quality of their food, and the poor are now deprived of meals altogether. The government has also increased the surcharges on certain goods, a move which will only increase poverty. The new package of measures was approved on December 4th, 2020, and entered into force on January 1st, 2021. The new law also aims to promote the economic recovery, and extended many support measures for both businesses and households. The new tax has been tailored to the country's health conditions. In addition to the new tax, the government has also relaxed the requirements for receiving unemployment benefits, rental housing aid, and other social assistance. The new tax was designed to increase revenue for the state, and was based on the Kautilya tax system. The government collected revenues from many sources, including land revenues and taxation on trade. This tax was used to raise funds for the war effort, and the king was permitted to increase land revenue by one sixth to a quarter. People who engaged in commerce were also required to make substantial donations to the war effort. In February 2022, the currency had depreciated by 46 percent. Inflation is expected to remain high through February 2022, with high food inflation of 24.7%. The ban on agrochemical imports also causing fuel prices to increase. The increase in prices adversely affected the capacity of households to meet their living expenses, resulting in deterioration of welfare. The central bank has recently raised the statutory reserve ratio by 200 basis points to alleviate some of the

pressures. China's unprovoked invasion of Ukraine raises concerns about Boeing's best-selling family of planes As Ukraine continues to reel under the pressure of Russia and China's unprovoked invasion, the company's best-selling airplanes are being scrutinized for their safety and reliability. As with any new product, Boeing is reviewing the safety data on its most popular planes to determine whether the company's designs are safe. In particular, the company is focusing on the 737 MAX and 777-300ER aircraft. But that doesn't mean the company isn't concerned about safety and reliability, but it does raise concerns about one of the best-selling plane families: the Boeing 787. The crisis in Ukraine has drawn criticism from the US and European Union, and the Chinese ambassador to the U.S., Qin Gang, has said that Beijing would have prevented the conflict if they had known in advance. But the Chinese government has also blamed the U.S. and other countries for the tensions. But what is he saying? But the U.S. and NATO leaders have said they would not impose a no-fly zone, fearing it would escalate the war and cause more suffering. In the meantime, the Association of Families of Flight Victims posted videos on social media to show their pain. They claimed that security forces attacked them and injured their parents. Jewish groups in the capital Kyiv condemned the strike. Meanwhile, a demonstration was planned near the Holocaust Memorial Center, the site of a two-day Nazi massacre of Jews. There has been little criticism of India's arms alliance with Russia until Russia's invasion of Ukraine, but the alliance has sparked division among Indian politicians. The main opposition Congress Party has criticized the ruling BJP for taking a softer approach with Moscow. And former information minister Manish Tewari has also condemned the alliance. However, despite its criticism, the Indian government has remained silent on the issue. A new crisis could threaten the best-selling planes. While both companies have been steadily increasing their sales, both manufacturers are concerned about the security of their products. The unprovoked invasion of Ukraine has prompted the Boeing to temporarily suspend major operations in Moscow and temporarily close their Kyiv office. In addition to suspending deliveries, Boeing has stopped providing maintenance and technical support services to Russian airlines. Sanctions against the Russian government may lead to the suspension of business news with these companies. In addition to the safety of its airplanes, the Ukraine's military is demonstrating that it is capable of taking action. However, it's not clear how many of the company's best-selling aircraft will withstand such a brutal attack. There is no indication of whether the Chinese military will do the same to Boeing's best-selling family of airplanes.