globalEDGE Blog - Page 124

Following the loss of over $90 million from two banks, officials around the world are sounding the alarm on an integral part of the day to day operations in the international banking industry. The Swift network was created as a message system for banks to authenticate the transfer of money between accounts internationally. Hackers were able to infiltrate the networks of Bangladesh’s central bank in February and subsequently used Swift to steal $81 million from the central bank’s account with the New York Federal Reserve. A second attack on a bank in Ecuador netted the attackers an additional $12 million. The ability to hack Swift has prompted calls for reforms in the international banking industry, along with increased security measures among banks worldwide.

The recent Takata airbag recall is the largest in United States history with over sixty million recalls. This recall affects numerous car companies, including Toyota, Tesla, BMW, Ford, and Honda, among others. Cars manufactured within the last fifteen years are at risk, therefore, approximately one in five cars on the road today are affected by the recall. With demand for new airbags skyrocketing and supply devastatingly low, drivers are left wondering what to do next.

We have already discussed some of the potential negative effects of the United Kingdom's withdrawal from the European Union, specifically on employment throughout the entire EU. The possible adverse consequences were highlighted again by the U.S. Federal Reserve chairwoman Janet Yellen and the Organization for Economic Co-operation and Development (OECD).

Have you visited the globalEDGE Business Beat recently? The Business Beat, hosted by Tomas Hult, is a great way learn about current topics related to international business and covers a wide variety of interesting topics. The latest topics include globalization in the Greater Lansing area, infrastructure development, Vector Marketing, and entrepreneurship. Check out the globalEDGE Business Beat page today!

On Wednesday, June 1, 2016, Uber gained $3.5 billion from Saudi Arabia, the largest cash infusion ever made in a private company. Venture capital investing has been growing in the Middle East where countries such as Turkey, Egypt and Saudi Arabia are turning to transportation companies, including Careem, Lyft, EasyTaxi and Uber, to boost their economy.

Wildfires in Canada have halted oil production, causing oil to drop for the fourth day in a row, making this the longest stretch of declining oil in over a month. Around 1 million barrels a day were halted due to the continuous wildfires over the course of May. The 5,000 square kilometer forest wildfire, nicknamed “the beast” has taken many shifts in directions, which has caused these fires to be more difficult to contain. However, municipal authorities in Alberta stated on May 20th that conditions were improving and mandatory evacuations orders for seven oil-sands worker camps have been lifted, and operations are underway again.

It has been in the news a lot, many countries trying to increase bilateral trade, but it seems that Russia is one country taking the initiative to a higher level. Russia has a goal of increasing its bilateral trade with China, Pakistan, and Ethiopia.

Three years ago, popular global brands such as H&M, Walmart, and Gap pledged to improve safety conditions in factories overseas following a multitude of deaths due to poor labor conditions. Despite the time frame, many human rights groups believe that these promises have not been kept, and more progress is needed. Safety in working environments in Bangladesh remains poor, while global retailers continue to reap the benefits of a less expensive work force.

On May 26, the price of the bitcoin began to surge, hitting a value of $467.50. Throughout the weekend, the currency continued its dramatic trajectory, spiking at $570 before settling around $530. This amounts to a sudden increase of 21% in the midst of a consistent, if low, period for the currency. While these values are far below bitcoin's one-time peak of $1,151, they are the highest prices the digital currency has reached since 2014. That same year marked a heavy blow for the bitcoin, bottoming it out at low rates that remained in force over the past year. Now, investors are indicating promise in the currency once again: Over the weekend, daily global transactions equated to $134,056,000, with over 15 million bitcoins in supply.

China's Commerce Ministry is upset over a massive duties increase on imports of corrosion-resistant steel. The U.S. Commerce Department announced a duty of 450%, up from 256%, on flat-rolled steel. The steel in question is typically coated in zinc or aluminum to extend its useful life.