Top international headlines: JPMorgan sues Tesla for flagrant breach of contract
Uncertainty ahead for the world economy, Amazon cuts of Visa credit cards and more.
The world economy faces an uncertain period, while six of the world’s most vital industrial metals face constrained supply. JPMorgan takes Tesla to court over breach of a 2014 contract while Amazon announces its decision to no longer accept Visa credit cards on its platform. Over in Asia, Japan prepares to release a record stimulus package, surpassing the 2020 Covid-19 financial injection.
JPMorgan sues Tesla
JPMorgan has sued Tesla for $162.2 million (R2,507 million), accusing Elon Musk’s electric car company of “flagrantly” breaching a 2014 contract relating to stock trading options that Tesla sold to the bank.
The suit centres on a dispute over how JPMorgan repriced its Tesla warrants as a result of Musk’s notorious 2018 tweet that he was considering taking the carmaker private, reports the Guardian
World economy faces uncertain period
The heads of two global banks have predicted an uncertain time ahead for the world economy as inflation rises and persists.
The world may see “uncomfortably high” rates of inflation for one to three years, UBS Group’s Axel Weber said at the Bloomberg New Economy Forum and inflation is getting a lot more structural, according to DBS Group CEO Piyush Gupta.
Prices for energy, raw materials and transport have surged as economies emerge from lockdowns and supply chains come under pressure.
Industrial metals in tight supply
For the first time in more than a decade, six of the world’s most vital industrial metals are flashing a rare synchronised warning over tight supply, as logistical turmoil and strong demand spark anxiety among buyers, according to a Bloomberg report.
From aluminium to zinc, spot prices for base metals on the London Metal Exchange are all soaring above futures – a condition known as backwardation – for the first time since 2007.
Plunging exchange inventories, delays in the supply chain, increasing demand for industrial commodities and production challenges are driving buyers to pay a premium for metal.
Amazon cuts off Visa credit cards
Amazon says it will stop accepting Visa credit cards issued in the UK from next year because of the high transaction fees charged by the payment processor.
The e-commerce giant will continue to accept Visa debit cards, Mastercard and Amex credit cards, and Eurocard, the company said in a note to its customers.
"We are very disappointed that Amazon is threatening to restrict consumer choice in the future," a Visa spokesperson said in a statement, according to a Reuters report.
Japan to unleash record stimulus package
Japan's economic stimulus package, which is set to be approved by the cabinet, will be a record 55.7 trillion yen (R7,527 billion) on a fiscal expenditure basis, Nikkei has learned.
The package will surpass the previous high set in 2020 in response to the Covid-19 pandemic.