Every week we bring you the world’s biggest business, currency, and travel stories. This week: OPEC agrees to cut production; Deutsche Bank may need a bailout; Wells Fargo’s fraud; and BlackBerry finally abandons the smartphone.
OPEC could cut production
OPEC shocked markets by announcing that the organization had reached an agreement to cut oil output for the first time since 2008. The deal is still in the preliminary stages, and it is unclear by how much each country will reduce production. More details will emerge in November, but considering the tensions between Iran and Saudi Arabia, the news is hugely positive. Overproduction is the primary cause of the fall in oil prices which caused the Canadian dollar to fall. Less production means higher prices, which could mean a stronger loonie.
Deutsche Bank Bailout?
American regulators have demanded that Deutsche Bank pay $14 billion as a result of issues regarding mortgage backed securities. The demand has prompted rumours that the German bank has been forced to seek a bailout from the German government, a claim that Deutsche Bank denies. Deutsche Bank was already forced to sell Abbey Life insurance for $1.2 billion to cover its low capital levels.
Wells Fargo admitted to making over 2 million bogus accounts in order to reach sales targets. John Stumpf, the company’s chief executive, lost his $41 million bonus and stock awards as a result. Wells Fargo has fired more than 5,000 employees as a result of the scandal, and Stumpf has been forced to answer questions in Congress.
A Google autonomous car was stuck by a van which ran a red light, resulting in what officials had described as the worst accident so far – however almost all accidents have been a result of user error. Google’s 58 autonomous cars have already tallied up over 120,000 miles of driving.
Oh no Yahoo
Yahoo announced that 500 million emails were hacked in 2014, but only discovered the breach this summer.
Blackberry’s overripe decision
Blackberry has finally dropped out of the smartphone market. It will instead focus on software development and outsource the phone design and manufacturing. Since leading the way in the smartphone industry at the beginning of the 2000’s, BlackBerry has suffered a precipitous fall in market share to around just 1%.
Alberta Bounce Back
According to a forecast from TD, Alberta will rebound from its current slump caused by the collapse of oil prices, to lead the provinces in GDP growth over the next two years. Oil prices look poised to rise; not to pre oil slump levels, but enough to justify investment in the oil sands. GDP growth should hit 2% or higher in 2017 and 2018.
Last week the minimum wage in Ontario was increased to $11.40, up from $11.25 making it one of the highest minimum wages levels in the country. Alberta meanwhile has increased its minimum wage by a full dollar from $11.20 to $12.20.
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