Copenhagen experiences fashion boom, bacteria delays Olympic swimming, workers burnt out by AI, and more
News from July 25 - August 1, 2024
Gold In High Demand
Worries over US government debt have sparked a record gold rush among wealthy families, driving Q2 demand to unprecedented levels. Private gold purchases soared nearly fivefold to 329 tonnes, contributing to a record high price of $2,483.60 per ounce.
Fears over fiscal deficits and potential interest rate cuts are pushing these buyers towards the safe haven asset.
Central bank gold buying surged in the first half of the year, though it saw a 39% drop in Q2. Additionally, inflows into gold-backed ETFs have increased, highlighting a broad shift towards gold amidst economic uncertainty.
Source
Copenhagen Experiences Fashion Boom
Copenhagen's fashion scene is gaining global attention with brands like Saks Potts, renowned for its fur-trimmed coats and blend of style and functionality. Founded by Barbara Potts and Cathrine Saks, it exemplifies the city's unique fashion approach.
Other brands, like Ganni and Stine Goya, are acclaimed for their bold styles and sustainability efforts.
This Danish fashion surge, characterized by innovative designs and affordable luxury, is positioning Copenhagen as a major player in the global fashion industry.
Source
Temu Merchants Angry at Platform
Temu, the online marketplace challenging rivals like Shein and Amazon, faces backlash from Chinese suppliers over a shift to a "semi-managed" model, requiring merchants to handle shipping and delivery costs.
This change is driven by concerns over potential US and EU tax law changes and aims to improve delivery times. Suppliers complain about increased risks and aggressive pricing tactics.
Despite the controversy, Temu expects significant growth, with projected sales of $54 billion this year, up from an estimated $17bn in 2023.
Source
Bulletin Board
- Bacteria Delays Olympic Swimming. Paris Olympics organizers postponed the men's triathlon due to high bacteria levels in the Seine, caused by sewage overflow after heavy rains. This decision challenges the €1.4bn infrastructure upgrade meant to clean the river for events. The rescheduled race and women's triathlon now hinge on improved water quality. If conditions remain unsafe, the events may be further delayed or converted into duathlons, disappointing athletes and organizers who touted the Seine's readiness for the games. Source
- Meta Pays Texas $1.4 Billion. Meta will pay Texas $1.4 billion to settle claims of unlawfully harvesting biometric data from millions of residents. This is the largest settlement ever obtained from an action brought by a single US state. The company shut down the system in 2021 amid legal issues. Attorney General Ken Paxton: “Any abuse of Texans’ sensitive data will be met with the full force of the law.” Despite the lawsuit, Meta is planning future business investments in Texas. Source
- Starbucks CEO Faces Problems. Starbucks CEO Laxman Narasimhan faces declining sales, union disputes, and pressure from activist investors. Former CEO Howard Schultz's critical comments add to internal challenges. Former senior executive: “Starbucks is his baby. He just can’t let it go and hand it over fully to someone else." Additionally, competition in China and fallout from the Israel-Hamas conflict are exacerbating Starbucks' struggles to regain its market position. Investor dissatisfaction is rising, highlighting the urgent need for Narasimhan to navigate these challenges effectively. Source
- Woman’s Health App Valued at $1 Billion. Flo Health has secured $200 million from General Atlantic, becoming the first fully digital female health start-up valued over $1 billion. The app will use the funds to enhance features for the 450 million women experiencing perimenopausal or menopausal symptoms annually. CEO Dmitry Gurski aims to deliver personalized experiences for users of all ages. The funding highlights growing investor interest in the $36 billion women’s healthcare market. Flo, with nearly 5 million subscribers, expects subscription revenue to exceed $200 million this year. Source
- Workers Burnt Out By AI. A new study reveals that AI is burdening employees with more work and stress, contradicting executives' expectations. Despite 96% of C-suite executives believing AI would enhance productivity, only a quarter had AI training programs in place. The study also found that 77% of employees using AI felt it increased their workload, leading to burnout. Additionally, 71% of full-time workers reported burnout, with 65% struggling to meet demands. One-third of workers are considering quitting due to overwork and stress. Source
Disclaimer: This blog offers insights into international business and global events for informational purposes only. It is not intended as investment or business advice. WeavePay is not liable for any decisions made based on the content provided.
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