Category: World news

Reed Hastings vows to ‘set a better example’ in memo regretting PR chief’s racial slur

The head of Netflix has told his staff he needs to “set a better example” after sacking the company’s head of communications for twice using the “N-word” during work meetings.

Reed Hastings, the video streaming company’s founder, told staff in a memo he had decided to “let go” of Jonathan Friedland for using the racial slur in a “descriptive” sense.

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Financial links to Hong Kong mean that Chinese slowdown could have serious UK impact

The Bank of England has warned that the health of China’s economy poses a greater risk to the UK’s financial stability than previously realised.

New analysis from the Bank has found that a sharp economic slowdown in China would have a serious impact on the UK. If China’s credit boom blows up, Britain would suffer serious economic harm, it says, adding: “China’s credit boom is now one of the largest and longest running ever recorded. Indeed, rapid credit expansions, such as China’s, have typically preceded financial crises.”

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Bourbon whiskey, Levi’s and Harley-Davidson on list as EU measures comes into force

Donald Trump has threatened to widen the mounting trade dispute between US and the EU by imposing tariffs on European cars, after Brussels made good on its threat of retaliatory levies on American products including bourbon whiskey, Levi’s jeans and Harley-Davidson motorbikes.

Raising the stakes in the tit-for-tat exchange of import tariffs threatening to spark a global trade war, the US president tweeted in response to the EU tariffs which came into effect late on Thursday: “If these Tariffs and Barriers are not soon broken down and removed, we will be placing a 20% Tariff on all of their cars coming into the U.S. Build them here!”

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Delegates at Vienna meeting say talks were fraught – Brent crude rises 2%

Major oil producers have agreed to pump more crude to help reduce prices and prevent a supply shortage, in a significant reversal of Opec’s strategy of curbing output over the past 18 months.

After a fraught meeting in Vienna in which Iran was initially at odds with a Saudi-led drive to boost production, ministers settled on a target they said would increase output by around 1m barrels per day (bpd).

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Tech firm says relationship was in violation of the company’s non-fraternization policy, which applies to all managers

Intel chief executive Brian Krzanich is resigning after the company learned of a consensual relationship that he had with an employee.

The company, one of the world’s largest makers of semiconductors, said that the relationship was in violation of the company’s non-fraternization policy.

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Advertising tycoon says he was treated unfairly and blames a high-level leak for his exit

Sir Martin Sorrell has used his first public appearance since being forced to leave the advertising group WPP to criticise the board of his former company, dismiss suggestions that he paid for a sex worker on company expenses, and complain he was not treated fairly.

“What has happened could have come out significantly differently,” he said. “I’ll just leave it at that. There were other courses of action which were open to the company, which they did not take.”

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Mercedes-Benz maker expects the tit-for-tat tariff spat to hit car sales

The Mercedes-Benz maker Daimler has become the first major company to issue a profit warning after being hit by the escalating trade war between the US and China.

The German carmaker said on Wednesday night that it expected profits this year to be “slightly below the previous year’s level”. It had previously pencilled in a slight rise.

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Found guilty of fraud, Drumm’s case related to banking transactions during the financial crisis

The former chief executive of Anglo Irish Bank, David Drumm, has been sentenced to eight years in jail but will serve six, over transactions conducted during the 2008 financial crisis.

The decision at Dublin circuit criminal court comes two weeks after Drumm, 51, was found guilty of conspiracy to defraud and false accounting. The case related to banking transactions he was involved in at the height of banking crisis. By circulating deposits between Anglo and Irish Life & Permanent (IL&P), the bank created the impression that its deposits were €7.2bn (£6.3bn) larger than was actually the case. He has acknowledged a “huge error in judgment”.

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Burger King’s Russian division has apologized for a social media campaign offering free burgers for life to women who get pregnant by football stars

Burger King has apologized for a poor-taste ad campaign posted on its official Russian social media account.

On Tuesday the burger chain announced a promotion on VK, the Russian equivalent of Facebook, offering women 3 million Russian roubles ($47,000) and a lifetime supply of Whoppers if they get impregnated by football players competing in the World Cup.

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Twice as much beer made in Belgium is being exported as drank by domestic consumers

Twice as much Belgian beer is being exported as consumed domestically, with drinkers increasingly turning their backs on one of Belgium’s most celebrated products.

The average Belgian drinks about 240 250ml glasses of domestically produced beer a year, compared with about 440 such glasses in the mid-1980s.

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Platforms could have to seek licences for videos after European parliament action

YouTube stars from Taylor Swift to Ed Sheeran, Beyonce and Jay-Z could be in line for big paydays after the video giant lost a crucial vote in Brussels over new copyright laws that will force it to pay billions of dollars in fees for users watching music videos.

For years the music industry has argued that YouTube exploits the lack of legal protection around music videos being viewed on its service to pay minimal amounts to artists and labels when they are viewed. The music industry has lobbied that this “value gap” between the true worth of the music videos and what YouTube decides to pay needs to be addressed with legislation.

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Virtual coins stolen by hackers, exposing risks of trading the digital asset

The South Korean cryptocurrency exchange Bithumb said 35bn won ($31.5m) worth of virtual coins were stolen by hackers, the second local exchange targeted in just over a week as cyber thieves exposed the high risks of trading the digital asset.

Bithumb said in a notice on its website that it had stopped all trading after ascertaining “some cryptocurrencies worth about 35 billion won were seized between late yesterday and early morning today”.

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Company plans to abolish one in four executive and middle management roles

Telstra has announced plans to cut 8,000 jobs in a major restructure.

It wants to split its infrastructure assets into a new wholly owned business unit in preparation for a potential demerger, or the entry of a strategic investor, in a post-national broadband network rollout world. The new business unit will be called Telstra InfraCo.

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Landmark research finds profit-shifting is driving global reduction in headline tax rates, not competition

A landmark study has found multinational corporations are shifting roughly $16bn in profits out of Australia into tax havens every year.

It has also found the steady decline in corporate tax rates globally since the 1980s has not been driven by countries competing harder for productive capital and pushing corporate tax rates down, despite what politicians say.

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Markets dropped across the world after Trump threatened to impose $200bn more in levies on Chinese goods

The trade dispute between the US and China escalated on Tuesday, with a senior Trump official accusing China of “theft” and Beijing accusing the US of blackmail.

The news roiled global stock markets as investors feared that escalating tensions could trigger an international trade war.

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