November 28, 2022 - Economic Insider

Adidas Starts an Inquiry to Alleged Harassment by Ye

Brandon Scott on November 28, 2022

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Adidas confirmed it is opening an inquiry in response to allegations of abuse he made to Yeezy staff members while working with the company.

Ye reportedly exposed his workers to pornographic and sexually explicit content. It continued for a while. Ye would show the material during staff meetings with Yeezy and target the female employees. Adidas promised to look into the issue.

The business, though, still needs to confirm its assertions. The anonymous group made the accusations against Ye in a published Rolling Stones piece. Adidas also committed to resolving the issue.

“It is currently unclear whether the accusations made in an anonymous letter are true. However, we take these allegations very seriously and have decided to launch an independent investigation of the matter immediately to address the allegations,” said the company.

The story also mentioned a group that wrote to Adidas with complaints about how senior executives disregarded their accusations. The Adidas employees accused the authorities of delaying in taking action and refusing to provide an apology to the harassed individuals.

Adidas is still waiting on a response from Ye’s side on the accusations made against the singer. The probe comes after Ye’s employment with the firm was terminated due to his anti-Semitic comments.

Adidas terminating the contract with Ye

Many people urged to “cancel” Ye after he made antisemitic comments. Numerous businesses, including Adidas, dissolved their alliance with Ye due to the calls.

Companies like Gap and Foot Locker also opted to let Ye go, resulting in him suffering billions of losses. Adidas resigned in October, calling his behavior “unacceptable, hateful, and dangerous.”

“Ye’s recent comments and actions have been unacceptable, hateful and dangerous. And they violate the company’s values of diversity and inclusion, mutual respect and fairness,” said Adidas.

“After a thorough review, the company has decided to terminate the partnership with Ye immediately, end production of Yeezy branded products and stop all payments to Ye and his companies. Adidas will stop the Adidas Yeezy business with immediate effect,” it added.

“This is expected to have a short-term negative impact of up to €250 million on the company’s net income in 2022. Given the high seasonality of the fourth quarter. In addition, Adidas is the sole owner of all design rights to existing products and previous and new colorways under the partnership. More information will be given as part of the company’s upcoming Q3 earnings announcement on November 9, 2022,” the statement explained.

Not tolerating violent behavior

Adidas further stated that the brand does not support violent conduct. However, the company intends to investigate the matter as Ye performed the activities while still partnering with the business.

“He (Ye) has, in years past, exploded at women in the room with offensive remarks. And would resort to sexually disturbing references when providing design feedback. So this type of response from a brand partner is one that Adidas employees should never be subjected to. Nor should Adidas leadership ever tolerate,” said the letter addressed to the company.

“No wonder he didn’t want senior business managers in the room. He wanted to continue to use his power to violate you quietly. And threaten your role and existence within the team,” it added.

Calls for Xi Jinping’s Resignation Echoes

Brandon Scott on November 28, 2022

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Xi Jinping now faces bouts of criticism following his admin’s reinstitution of widespread lockdown under the zero-Covid policy.

Protests erupted across the country. And other demonstrators echo calls to remove Xi from his leadership. In Shanghai, protesters lit a fire symbolic of the people’s dissent against Xi’s administrative decision.

A couple of weeks ago, the strict Covid measures of the country led to the blockage of firefighters from reaching fire victims. The fire in Urumqi, the capital of Xinjiang, left ten dead. And people blame the death on Covid measures.

Many people disliked the idea of another lockdown. The country went under a strict lockdown for two months over the spring. And the prospect of another lockdown seems unviable to businesses, workers, and citizens alike.

However, Chinese authorities think the lockdown is essential due to the possible adverse effects of a Covid breakout within the nation’s economic hubs. According to the National Health Commission, China recorded 40,052 new local cases. And these could become a jumpstart for Covid to affect the nation again.

“Practices have proven that our Covid measures can stand the test of history. They are scientific and effective. Perseverance prevails,” said a piece published in a Chinese newspaper.

Demonstrations against Xi

Shanghai demonstrators frequent the streets of the city. The citizens expressed anger over the administration’s consecutive imposition of the lockdown, leading to more economic suffering among businesses and workers.

The incident in Urumqi even more, intensifies the anger. In light of the incident, many citizens gathered for a candlelight vigil. However, authorities intervened, and a clash between the forces began.

“We need to be braver! Am I breaking the law by holding flowers? We Chinese need to be braver! So many of us were arrested yesterday. Are they without a job or a family? We should not be afraid,” a man said.

“Every conscientious Chinese should be here. Of course, they don’t have to voice their opinions, but I hope they can stand with us,” said another demonstrator.

“We don’t want lockdowns, and we want freedom! Freedom of expression, freedom of the press, freedom of arts, freedom of movement, and personal freedoms. Give me back my freedom,” crowds shouted in Guangzhou, a city in southern China.

The economy is affected

After the lockdown began, the Chinese stock market and the yuan’s value plummeted. According to experts, the negative response might mean investors fear the possible heat between the government and protests across the country.

In addition, the Central Bank of China cut the cash for lenders for the second time this year.

“Cutting the RRR now is just like pushing on a string, as we believe the real hurdle for the economy is the pandemic rather than insufficient loanable funds,” said the analysts from Nomura.

“In our view, ending the pandemic [measures] as soon as possible is the key to the recovery in credit demand and economic growth,” they added.

“For China’s official institutions, there are no easy paths. Accelerating reopening plans when new Covid cases are rising is unlikely, given the low vaccination coverage of the elderly. But, on the other hand, mass protests would deeply tilt the scales in favor of an even weaker economy and likely be accompanied by a massive surge in Covid cases, leaving policymakers with a considerable dilemma,” SPI Asset Management’s Innes said.

Wefox CEO Slams Tech Firms for Firing Staff

Raymond Walter on November 28, 2022

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Wefox CEO, a multibillion-dollar digital insurance firm located in Europe, attacks other tech companies for cutting off thousands of workers.

According to Julian Teicke, widespread layoffs of employees would not benefit those struggling to make ends meet in the face of rising prices. Due to financial difficulties, several businesses, including Meta, Twitter, and Amazon, announced the termination of a sizeable portion of their personnel. Layoffs, in the opinion of the businesses, will enable each to deal with the dreadful state of the world economy.

Wefox CEO Teicke expressed his disappointment with how his colleagues handled the issue. Many venture capitalists believe the best action is reducing expenses and laying off employees. Recruiting must be frozen, and companies must drastically reduce the workforce to balance the growing costs of resources.

“I’m a little disgusted by statements like, ‘never miss a good crisis’ [or] ‘we have to cut the fat,'” said Teicke in an interview.

According to Doug Leone of Sequoia Capital, investors need to create plans to cope with the economy’s issues in the most effective ways. Leone contends that in the upcoming years, people with the necessary crisis management skills will fare better than others.

“You have a great opportunity in front of you if you play your cards right. You have an opportunity to pass ten cars. So do not waste a good recession,” he said.

Wefox CEO unimpressed with others

Sebastian Siemiatkowski, the CEO of Klarna, claimed that he considers himself “lucky” even though his business cut thousands of employees earlier this year. Siemiatkowski said that 90% of those fired had, in fact, already secured new employment. So he views himself as fortunate for that reason. But because of their poor management, the Wefox CEO still needs to be more fond of others.

“If we would have done that today, that probably, unfortunately, would not have been the case,” said Siemiatkowski.

“These are people that have maybe quit other jobs to join your business. These are people that have maybe moved to other places because of you. And these are people that have maybe ended romantic relationships,” Teicke said.

A significant responsibility

Wefox CEO acknowledged that managers and CEOs have a powerful impact on their workers’ life, perhaps to raise his concerns. However, he added that CEOs have a responsibility to safeguard their workers. And today, with everyone experiencing economic troubles, it has become much more noticeable.

“I believe CEOs have to do everything in their power to protect their employees. I haven’t seen that in the tech industry, and I’m disgusted by that. These are humans. I don’t believe in mass layoffs. We’re going to focus on performance but not on mass layoffs,” he said.

Wefox won’t dismiss staff, claims Teicke. Furthermore, he adds that his business has become “crisis-resistant” by preparing for the most catastrophic case. Finally, Teicke added that Wefox must research the macroeconomic situation to maintain its viability despite challenges in the European economy.

House Republicans Slam TikTok Over Security Concerns

Patrick Cooper on November 28, 2022

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Global content-sharing platform TikTok faces another round of criticism, this time under the lens of House Republicans.

According to them, TikTok deliberately misled congress about how the company handled the data of its US-based users. The complainants wrote to TikTok CEO Shou Zi Chew and amplified the issues raised earlier by US lawmakers.

In addition, the letter highlighted the national security concerns that TikTok poses to the US. Experts contend that Republican members of the House will echo the calls to put TikTok under fire, having gained the majority of the House of Representatives.

“Both claims appear to be misleading at best, and at worst, false,” said Comer and McMorris Rodgers.

“Americans deserve answers about how TikTok knowingly allows China to access their data, and E&C Republicans will continue to demand those answers,” said Sean Kelly, the spokesperson for Rodgers.

“One immediate next step is to pass the American Data Privacy and Protection Act this Congress. This would require companies like TikTok to alert users if their personal information is being stored or accessed in countries like China. And give people the option to stop that information from being shared,” Kelly added.

US officials grow concerned about how TikTok could use the US-based user data for their benefit. For example, Virginia Democratic Senator Mark Warner said that TikTok poses an “enormous threat” because it can obtain data. It also allegedly influences the content that US users see.

“That is a distribution model that would make RT, Sputnik. Or some of the Russian propaganda models pale in comparison,” Warner said.

TikTok repeatedly denies the allegations

TikTok management repeatedly dismissed the allegations thrown at them. It said that the company would “satisfy all national security concerns.” They further said that ByteDance, its Chinese-owned parent company, have no US data access since it remains stored in the US.

TikTok Chief Operating Officer Vanessa Pappas appeared in front of the Senate. She then answered the questions thrown to them by authorities.

“Will TikTok commit to cutting off all data and data flows to China, China-based TikTok employees, ByteDance employees? Or any other party in China that might have the capability to access information on US users?” asked Senator Rob Portman.

“Again, we take this incredibly seriously in terms of upholding trust with US citizens and ensuring the safety of US user data,” Pappas said.

“As it relates to access and controls, we are going to be going above and beyond in leading initiative efforts with our partner, Oracle, and also to the satisfaction of the US government through our work with [the Committee on Foreign Investment in the United States], which we do hope to share more information on,” she added.

Cutting data from China

Amid criticisms, Pappas promised TikTok would cut off “all data and metadata flows to China.” However, she ensured the Senate panel that Chinese authorities do not influence US users’ content algorithms.

Although Chinese employees have access to the data, Pappas said that she will not “give that data to China.” Moreover, she denied the existence of a ‘Master Admin’ who has access to all data of US users.

“Those allegations were not found. There was talk [in the article] of a master account, which does not exist at our company,” she said.

Colorado Gay Bar Shooter Kills Five, Families Mourn for Victims

Leilani Zimmerman on November 28, 2022

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An armed man entered an LGBTQ nightclub in Colorado and started firing into the crowd, leading to the death of five people.

The gunman, Anderson Lee Aldrich, 22, faces several offenses, including five counts of first-degree murder and five counts of bias-motivated crime. Following an emergency call, the police managed to catch the culprit at midnight. The inquiry is still underway, according to Colorado Springs Police Chief Adrian Vasquez. Despite efforts at interrogation, the suspect declined to give a statement.

“I haven’t heard that he has not been cooperative, just simply that he has determined not to speak to investigators,” said Vazquez.

The police said the shooter was equipped with two weapons: a pistol and a long rifle. The man pulls out a long gun and starts shooting at the crowd. The location of the suspect’s gun purchase is still unknown to the authorities. Owner of the Colorado club Matthew Haynes claimed to have seen the gunman enter the building with “tremendous firepower.” Around 11:56 PM, onlookers contacted 911 to report the incident; a minute later, the police showed up, and they took the culprit under their custody.

The savior of the incident in Colorado

However, the army veteran who stood up for the tavern’s patrons was honored by the police. Rich Fierro was the first to react at the scene of the crime and put an end to the shooter’s rage. He said in an interview that he controlled the situation because of his quick reflexes. However, he claimed that the need to defend his family and others around him ultimately drove him to face the armed man.

“It’s the reflex. Go! Go to the fire. Stop the action. Stop the activity. Don’t let anyone get hurt. I tried to bring everybody back. There were five people that I could not help. And one of which was family to me. I’m going to see that guy in court. And that guy’s going to see who did him,” he said.

“At least two heroic people inside the club confronted and fought with the suspect and were able to stop the suspect. We owe them a great debt of thanks. I have never encountered a person who had engaged in such heroic actions and who was so humble about it. He said to me, ‘I was trying to protect my family,” said Vasquez.

“He saved dozens and dozens of lives. Stopped the man cold. Everyone else was running away, and he ran toward him,” recounted the shop owner.

The bar’s significance

The victims’ families, friends, and relatives gathered in the area shortly after the catastrophe. Given what occurred and the location of the incident, the resultant atmosphere was grim. The Colorado gay club gave the LGBTQ community a space to express themselves and a sense of freedom. It also allowed heterosexual people to witness the joy of socializing with the LGBTQ Community. Unfortunately, sorrow and anxiety now replaced freedom and enjoyment.

“In a world that can be so dark and so angry, it’s that one place that feels like home. We’re able to unwind and forget about our troubles with work, family, and society. Because of Club Q, we’re able to make friends that turn into family and be accepted for our true selves,” said Jewels Park.

“The LGBTQIA+ community has undergone so much bigotry and hatred already. To have our safe place ripped from us and to lose members of our community is a whole other type of hurt,” she added.

Tattoo Artist will Raise Funds to Support Trans Community

Raymond Walter on November 28, 2022

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Tattoo artist Cedre Csillagi launched the A Thousand Pansies project to raise funds and give them to the trans community in the United States.

Through the project, Csillagi aims to tattoo 1,000 pansies to a thousand individuals. The master behind the initiative came out as queer during his high school years in Texas. According to Csillagi, he grew upset by legislation that targeted trans and nonbinary people. People who want to get the pansy tattoo to need to apply and undergo a selection process. The selected individuals must send $500 to a chosen charity. Those with more finances can give it to others who cannot afford to pay for Csillagi’s tattoo.

“I landed on the flower because of its reclamation – queer reclamation of it. It is a flower that was used originally as a derogatory term. I feel so energized by it and so inspired by everyone I tattoo. People want to help and be a part of something bigger,” Csillagi said.

“As a queer person growing up in the south, I experienced firsthand the effects of homophobia, which influenced my choice to seek out and build community in the Bay Area,” said Csillagi in an Instagram post.

“After the recent legislative attacks on the queer and trans community, I envisioned creating a tattoo that would be a marking of love, alliance, and protection. So I created a custom pansy tattoo design with the vision of spreading this unifying icon throughout the Bay Area and beyond.”

A positive response

When Csillagi launched the program, he thought it would gain traction slower. However, many responded to the initiative and Csillagi is booked until 2024, tattooing those who contacted the page. Eleven people have received the tattoo, including Piper Kerman, Kate Schatz, and Mia Birdsong. In addition, chef Preeti Mistry got a tattoo from Csillagi before, and now that he reached out to her for the project, she responded well.

“Just Sunday morning, we had a reminder of how important it is to fight back against this continued hate speech and legislation that leads to the type of violence we experienced recently. So there are folks organizing against us, and we have to support all of our community,” Mistry said.

Author and activist Mia Birdsong urged others to support the project and said people need to consider the community.

“We live through a time of unprecedented violence against and attempted erasure and dehumanization of transgender people. Right-wing propaganda machines are working hard to convince us that transgender people claiming their identities is somehow harmful to others,” Birdsong said.

Receiving the tattoo

Participating in the project will mean helping several LGBTQ organizations. The Knights and Orchids Society became the first organization to receive the funds raised by A Thousand Pansies. The organization serves the LGBTQ community in Alabama. Through the project, Csillagi hopes to change the lives of people. He said it enlivens her to think that his craft helps others in need, especially the marginalized sector.

“We all try to make a huge difference, but we don’t know how much difference we make. So this feels like grassroots, on-the-ground activism that’s tangible,” concluded Csillagi.

OECD says UK Underperformed Compared to Other Countries

Leilani Zimmerman on November 28, 2022

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The Organisation for Economic Co-operation and Development (OECD) said that the UK lags behind other developed nations in terms of economic performance.

Statistics show that the UK’s gross domestic product shrank by 0.4% from 2019 to 2022. Other member-nations of the OECD saw a 3.7% growth within the same period. The G-7 nations, which include Canada, Germany, France, Japan, Italy, the US, and the UK, all saw economic growth except the UK. The mismanagement of former UK Prime Minister Liz Truss exacerbates the poor performance of the UK.

“We think this happens mostly because of investment and consumption. Knowing the UK faces a difficult fiscal situation, we welcome what the government has done in the latest statement,” said Alvaro Pereira, the chief economist from the OECD.

“We think that it is very important to maintain fiscal prudence. And at the same time that you’re able to boost or try to introduce some kinds of reforms. To address some of the issues that have been plaguing the United Kingdom for a while. And that is very low productivity,” he added.

In response to the dismal economic conditions of the UK, Finance Minister Jeremy Hunt unveiled the expenditure plan of the country. The plan runs counter to the former proposal presented by Truss, which drew public backlash and ultimately led to her resignation.

OECD expects more problems

The OECD released the Global Economic Outlook report, predicting that the world will slow down next year. However, the report added that the global economy will avoid the impending recession, with a cumulative growth of 2.2% in 2023 and 2.7% in 2014. OECD Secretary-General Mathias Cormann said that countries must pour their resources into fixing their current economic problems.

“(The) world is facing substantial headwinds and substantial risks over the horizon. (And) countries also need to take bold step. To address some of the longer-term challenges to lay the foundation for a stronger and more resilient economy,” Cormann said.

“We are facing a very challenging environment. I think one of the most dramatic pictures we have in our outlook is exactly how much countries are spending. In terms of energy as a percentage of GDP. And you can see that right now for OECD countries. It’s close to 18%, which is as high as we’ve seen in the oil crisis in the 70s and 80s,” Pereira added.

“We are facing a very large energy shock right now, which is lowering growth at the same time that it’s fueling inflation.”

The energy problem

The energy crisis exacerbates the economic problem of countries worldwide. The OECD fears that if market prices soar, countries will feel the grave consequence of the supply cuts in energy.

“We expect that not only in the US but other parts of the world. So the decisiveness of monetary policy will start to have more and more of an impact. Therefore, our central forecast sees inflation peaking in many countries in the mid-half of next year or late this year. But mostly next year,” Pereira added.

“Particularly in 2024, we start having inflation rates much closer to target. So there is some light at the end of the tunnel. But we need not let go of monetary and fiscal tightening working hand in hand.”

Taylor Swift Completes Historic AMA Run

Hazel Adams on November 28, 2022

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At the 50th American Music Awards on Sunday at the Microsoft Theater in Los Angeles, Taylor Swift made another unprecedented career streak.

Producing the program was a joint effort between ABC and Dick Clark Productions. Wayne Brady presided over the show. The American Music Awards have recognized and honored the top musical and theatrical performances for the past 50 years. The night’s top nomination recipient was Puerto Rican musician Bad Bunny, who received eight nominations overall. His victories included Favorite Male Latin Artist and Favorite Latin Album.

Taylor, though, went down in history as the AMA’s most honored Artist. With 40 victories throughout her career, she is now the Artist with the most accolades from the organization. She won all her nominations during the 50th awards ceremony, including the Artist of the Year honor, which is the most coveted AMA award.

Taylor thanking her fans

When the musician accepted her trophy on stage, she thanked her supporters. She claims that the support of her followers worldwide gives her the drive and inspiration to keep creating music that stirs emotions.

“In the past few years, I have released more music than I did in the decade preceding that. And I feel like that’s down to the fact that you, the fans, made it clear that you wanted to hear lots of music. I found that the more music I made [and] the more music I put out, the happier I was,” she said.

“I have the fans to thank, essentially, for my happiness. So I love you more than I can say. And I cannot express how unbelievable it is that I get to do this and that you still care. So, thank you, underlined with 13 exclamation points.”

Her legendary AMA run comes on the heels of the recent triumph of her Midnights album. Taylor’s album helped it become the Spotify song with the most streams. She also won every Top 10 position on the Billboard list, making her the only Artist to do it with tracks from a single album.

Below are the other roll of winners at the AMA:

Artist of the year

Taylor Swift

New artist of the year

Dove Cameron

Collaboration of the year

Elton John & Dua Lipa, “Cold Heart – PNAU Remix”

Favorite male pop artist

Harry Styles

Favorite female pop artist

Taylor Swift

Favorite pop duo or group

BTS

Favorite pop album

Taylor Swift, “Red (Taylor’s Version)”

Favorite pop song

Harry Styles, “As It Was”

Favorite music video

Taylor Swift, “All Too Well (Taylor’s Version)”

Favorite male country artist

Morgan Wallen

Favorite female country artist

Taylor Swift

Favorite country group or duo

Dan & Shay

Favorite male hip-hop artist

Kendrick Lamar

Favorite female hip-hop artist

Nicki Minaj

Favorite hip-hop song

Future ft. Drake & Tems, “Wait For U”

Favorite male R&B artist

Chris Brown

Favorite female R&B artist

Beyoncé

Favorite rock artist

Machine Gun Kelly

Favorite rock song

Måneskin, “Beggin’

Favorite male Latin artist

Bad Bunny

Favorite female Latin artist

Anitta

Favorite Afrobeats Artist

Wizkid

Favorite K-pop artist

BTS

Other non-televised Favorite winners:

Dance/electronic artist: Marshmello

Gospel artist: Tamela Mann

Inspirational artist: for KING & COUNTRY

Latin duo or group: Yahritza Y Su Esencia

Touring artist: Coldplay

Country album: Taylor Swift “Red (Taylor’s Version)”

Hip-hop album: Kendrick Lamar “Mr. Morale & The Big Steppers”

Latin album: Bad Bunny “Un Verano Sin Ti”

R&B album: Beyoncé “Renaissance”

Rock album: Ghost “Impera”

Soundtrack: “ELVIS”

Country song: Morgan Wallen “Wasted On You”

Latin song: Sebastián Yatra “Dos Oruguit