DOJ to use ‘carrot and stick’ approach on corporate crime
A top Justice Department official has announced new incentives for companies that cooperate with corporate criminal investigations and a $250 million Congressional budget request to expand its work. Deputy Attorney General Lisa Monaco said Thursday there has been a decline in the number of corporate criminal prosecutions over the last decade. To help address that, she is directing every division that prosecutes corporate crime to develop programs that incentivize companies to report misconduct. In some cases, no one will have to plead guilty to criminal charges if the violation was self-reported and the company fixed it. Companies will also be required to come forward more quickly with evidence of suspected misdeeds to get leniency.
For Gen Z, TikTok is the new search engine
TikTok is known for its viral dance videos and pop music. But for Gen Z, the video app is increasingly a search engine, too. More and more young people are using TikTok’s powerful algorithm — which personalizes the videos shown to them based on their interactions with content — to find information uncannily catered to their tastes. That tailoring is coupled with a sense that real people on the app are synthesizing and delivering information, rather than faceless websites. TikTok’s rise as a discovery tool is part of a broader transformation in digital search, which also includes Google, Amazon, Instagam and Snapchat.
Russia’s central bank cuts rates again, citing weak consumer demand
The Russian central bank cut its interest rate again Friday, continuing to move in the opposite direction to most of the world’s major central banks, as policymakers try to buttress the economy against the impact of international sanctions. The bank, led by Elvira Nabiullina, lowered its key interest rate by half a percentage point, to 7.5%, citing a slowdown in consumer price inflation because of weak consumer demand, a strong currency and one-time price readjustments. Russia’s annual rate of inflation fell to about 14%, according to estimates from early September, the bank said.
Royal fans give London tourism a bump amid UK economic woes
Hotels, restaurants and shops are packed as royal fans pour into the heart of London to experience the flag-lined roads, pomp-filled processions and brave a mileslong line for the once-in-a-lifetime chance to bid adieu to Queen Elizabeth II. Visitors crowding into central London from as far away as the U.S. and India for the historic moment are giving a boost to businesses at a time when the British economy is facing a cost-of-living crisis fueled by the highest inflation in four decades and predictions of a looming recession. The overall economic boost might be limited because Monday has been declared a public holiday for the queen’s funeral. But experts said renewed interest in the royal family could sustain tourism demand.
China’s consumer, factory activity improve but still weak
Chinese official data show consumer spending and factory output improved in August but were still weak. Forecasters warned the world’s second-largest economy is vulnerable to disruption from repeated shutdowns of cities to fight virus outbreaks. Housing sales plummeted while prices edged lower. That adds to a slide in real estate activity under pressure from a government campaign to control debt that set off an economic slump in mid-2021. Chinese leaders are trying to prop up economic growth that sank to 2.5% over a year earlier in the first six months of 2022, less than half the official 5.5% target.
Egypt to raise Suez Canal transit fees for ships in 2023
Egypt says it will increase transit fees for vessels, including oil-laden tankers, passing through Suez Canal, one of the world’s most crucial waterways. The Suez Canal Authority said in a statement on Saturday that it will add 15% to the fees for tankers carrying oil and petroleum products, and 10% for dry bulk carriers and cruise ships. The authority’s chief says the hikes will start on January 1. He blamed booming global inflation rates, which have increased the cost of the waterway’s operations, maintenance, and maritime services. About 10% of global trade flows through the Suez Canal, which is a major source of foreign currency to Egypt.
— New York Times and Associated Press