Business

Another economic forecast has painted a grim picture for global growth, shining a spotlight on the impact on developing economies. The World Bank's Global Economic Prospects report cuts forecasts for 95 percent of advanced economies and nearly 70 percent of emerging market and developing economies. David Malpass, World Bank Group President, told FRANCE 24 that high levels of inflation in Europe and the US "transmit into the developing countries", especially when it comes to energy and fertiliser prices.

Prime Minister Elizabeth Borne is scheduled to unveil Emmanuel Macron's cornerstone reform later on Tuesday. The government argues the system is currently financially unsustainable and will need more contributions going forward. In this show, we look at what Borne's key measures are (raising retirement age, ending specialised pension schemes) and check whether or not the system is as unsustainable as the government says it is.

On Sunday, tens of thousands of travelers flew in and out of China without having to submit to stringent centralised quarantine requirements. The change in policy is raising hope in neighboring countries that this will signal the return of Chinese tourists. Holiday bookings have already increased and markets are trading higher on the news, but as we explain, it will take some time for travel to return to what it was before the pandemic.

China is gearing up for the Lunar New Year, which falls on January 22. The New Year travel rush, known as "Chunyun", begins this weekend. Authorities estimate that 2.1 billion passenger trips will be made during the period, doubling from last year. But the travel rush is set to be highly unpredictable, amid a surge in Covid cases. Plus, the US antitrust regulator proposes a new rule that would enable employees to work for a rival company after leaving their jobs.

E-commerce giant Amazon has announced it will lay off 18,000 people. CEO Andy Jassy says the cuts will mostly affect the human resources teams and the Amazon Stores operations, and will represent around 6 percent of the company's 300,000 corporate workforce. This comes after similar layoff plans took place at Meta, Twitter and Salesforce. Also in the show, the annual tech event CES kicks off in Las Vegas, presenting the world's latest innovations. We take a closer look at one of them: the hands-free, self-driving baby stroller.

France's cost-of-living crisis shows signs of stabilising, as inflation dropped from 7.1 percent to 6.7 percent in December. It's among the lowest levels in the eurozone, but many households and businesses are still struggling. French bakers are asking for more financial aid, with the cost of flour up a staggering 45 percent. Also in the show: UK Prime Minister Rishi Sunak vows to tackle inflation and the recession, and Facebook's parent company Meta faces a €390 million fine in Ireland.

The founder and former CEO of the cryptocurrency exchange FTX appeared in a New York court for an arraignment hearing on Tuesday. Sam Bankman-Fried's lawyers maintained his innocence amid accusations he misappropriated customer and investor funds. The trial is set for October 2 and Bankman-Fried could still change his plea. Also in the show, Microsoft recognises its first ever labour union in the US. Plus, the French government's plans for pension reform are met with united opposition from trade unions.

The electric car maker Tesla has been hit hard by supply chain issues linked to China's zero-Covid policy and is now facing a slump in consumer demand. Despite Tesla making record deliveries in 2022, the figures fell short of Wall Street expectations. The group's share price plunged 65 percent last year, as investors were concerned that CEO Elon Musk was too distracted by his acquisition of Twitter. Also in the show, France's prime minister says raising the retirement age to 65 is negotiable ahead of pension reform talks with unions. We end by looking at the business of hiring "virtual" people in China.

Kristalina Georgieva, the managing director of the International Monetary Fund, is warning that this year will be tougher than the last and that the war in Ukraine, rising inflation and higher interest rates will weigh heavily on the global economy. She expects the EU to be particularly hard hit, with half of its members seeing declines in growth. Also in this edition, Croatia bids farewell to the kuna and joins the eurozone. Plus, we look at Japan's incentives to entice families to leave Tokyo for smaller towns.

The US central bank has raised its benchmark rate to its highest level in 15 years, although at a slower clip than previously. Federal Reserve Chair Jerome Powell argues that while inflation has dipped, it is still too high to warrant a change in monetary policy. Also on the show, the US Senate unanimously passes a bill that would ban federal employees from using TikTok on their work phones or devices over data security fears. Finally, James Cameron's "Avatar: The Way of Water" is set for a blockbuster opening weekend in the US.