Twitter-Threads Lawsuit Incoming
Twitter has threatened to sue Meta Platforms (META.O) over its new Threads platform in a letter sent to Facebook parent’s CEO Mark Zuckerberg by Twitter’s lawyer Alex Spiro. Spiro, in his letter, accused Meta of hiring former Twitter employees who “had and continue to have access to Twitter’s trade secrets and other highly confidential information,” News website Semafor first reported.
Bank of Canada To Raise Rates By 25 Basis Points
The Bank of Canada will raise interest rates by a quarter-point for a second straight meeting to 5.00% on July 12 following a 5-month pause earlier this year and then hold well into 2024, according to a majority of economists. While that is the new expected peak rate, this same group of economists had called 4.50% the top before the BoC’s surprise June move.
BOJ Policy In View As Base Salaries Jump Significantly
Japan’s nominal base salary grew at the fastest pace in 28 years, according to government data, adding fuel to the debate over when the central bank will unwind its ultra-loose monetary stimulus. Global financial markets have been closely watching Japan’s wage data, as Bank of Japan Governor Kazuo Ueda regards pay growth as a key gauge to consider in deliberations about a shift in policy.
Today’s News
Semiconductors are the talk of the world right now. Gallium and germanium, in particular has been the highlight of the week as the recent China restrictions have sent the world into a frenzy. As it stands, the country produces well over 95 percent of the world’s supply for gallium and germanium, a critical material for making semiconductors.
However, Chinese experts have warned that the surge of demand and rapid depletion of natural resources may pose a threat to industry as we know it.
This was one of the main factors in China’s decision to impose immediate restrictions on the aforementioned materials. This also acts as a means to protect the country’s limited resources and safeguard national security all at once.
The imposition of restrictive exports of the materials does not target any specific country.
Meanwhile, the world reacted as such:
U.S. Consults Allies Over Export Restrictions
The U.S. has exclaimed that it “firmly” opposes the export restrictions announced by China. “These actions underscore the need to diversify supply chains. The United States will engage with our allies and partners to address this and to build resilience in critical supply chains,” the Commerce Department spokesperson said in an emailed statement.
The abrupt announcement of controls from Aug 1 has sent companies scrambling to secure their application, supplies and bumped up prices.
Congo Ramps Up Germanium Production
The Democratic Republic of Congo’s Gecamines are aiming to produce 30 metric tons of germanium a year at a plant which is nearing completion, claimed the state-owned copper and cobalt producer yesterday.
Starting in September, the plant at Big Bill slag in Lubumbashi will process waste material from the tailings site and germanium could be available in the market from October onwards, expressed Gecamines’ Chairman Guy Robert Lukama.
“The move by China will create some scarcity in the market, which means that our germanium which is not yet committed could have more value,” he added.
Volkswagen Gears Up For A Deal
Volkswagen is monitoring the metal markets after China imposed export restrictions on gallium and germanium which are used in semiconductors and electric vehicles (E.V.) while other chipmakers played down fears of shortages.
The move, which came just days before U.S. Treasury Secretary Janet Yellen arrived in Beijing on Thursday for a visit, has also prompted more companies to rethink their reliance on the world’s second largest economy.
