In a significant move amid Venezuela’s ongoing political crisis, the United States has imposed sanctions on 16 top officials connected to President Nicolás Maduro’s regime.

Among those targeted is Caryslia Rodríguez, President of the Constitutional Chamber of the Venezuelan Supreme Court.

The sanctions are part of the US response to the disputed presidential elections, which many believe were marred by fraud and suppression.

The sanctions aim to pressure the Maduro government, which is accused of undermining free and fair elections.

The US has recognized opposition candidate Edmundo González as the legitimate winner of the election, a stance that has further escalated tensions between Venezuela and the international community.

Controversy surrounding Venezuela’s election

The election, held over a month ago, has been surrounded by controversy.

Edmundo González, the opposition candidate, claimed victory but was forced to leave Venezuela amid threats and repression.

Maduro’s government has refused to acknowledge his win, leading to widespread condemnation from international observers.

US Secretary of State Antony Blinken openly declared support for González, condemning Maduro’s “anti-democratic measures” and signaling the US’s continued commitment to promoting democratic values in Venezuela.

The sanctions aim to reaffirm this stance, applying pressure on Maduro’s government to ensure a fair electoral process.

Sanctioned officials involved in electoral suppression

According to the US Department of the Treasury, the sanctions primarily target senior officials from Venezuela’s National Electoral Council (CNE) and Supreme Court.

These individuals are accused of manipulating the election process and altering results.

Additionally, military and intelligence officers involved in acts of intimidation, arbitrary arrests, and media censorship have also been sanctioned.

These measures send a clear message: the US will not tolerate the erosion of democratic principles in Venezuela.

The country’s deteriorating human rights situation under Maduro’s leadership is a central concern for the US and its allies.

Global reactions to this sanction

The international community has responded in a variety of ways.

While the European Union and several Latin American nations have expressed support for the US sanctions, others have criticized them as an overreach into Venezuela’s sovereignty.

González recently met with the Spanish Congress, seeking to solidify international backing for his victory.

The US and its allies appear to be forming a united front, standing against authoritarianism in Venezuela. Additional visa restrictions on Maduro’s allies have further isolated the regime, aiming to cut off critical resources and legitimacy.

The mounting global pressure reflects a deepening crisis in Venezuela, with sanctions now playing a pivotal role in the battle over the country’s democratic future.

The post US sanctions 16 Venezuelan officials as controversial election sparks international tensions appeared first on Invezz

Despite Rivian Automotive Inc. (NASDAQ: RIVN) surpassing Wall Street expectations in its latest quarterly report, the electric vehicle (EV) maker remains at serious financial risk.

Joe McCabe, President and CEO of AutoForecast Solutions, has warned that Rivian is “one or two programs away from bankruptcy.”

While the company reaffirmed its production guidance for the year, McCabe’s statement highlights the precarious position Rivian finds itself in as it burns through cash at an alarming rate.

Rivian’s struggles: billion-dollar losses continue

Rivian’s financial performance is deeply concerning, with the company losing over $1 billion per quarter.

In Q2, Rivian reported a year-over-year increase in net losses, from $1.2 billion to $1.46 billion.

This translates to a staggering $43,000 loss per vehicle sold. Even with its electric vehicles priced starting at $70,000, Rivian is struggling to cover its high production costs, leading to delays in key projects.

One such setback is the suspension of plans to build a $5 billion plant in Georgia, initially intended for next-generation vehicles.

The news caused Rivian’s stock to plummet to a historic low of $8.40 in April, further underscoring the company’s financial difficulties.

Rivian stock faces pressure

Rivian’s financial challenges are compounded by external risks, including the upcoming 2024 US presidential election.

McCabe suggests that if Donald Trump is re-elected, potential rollbacks on key components of the Inflation Reduction Act, including tax credits for electric vehicles, could create significant headwinds for Rivian.

Additionally, persistent concerns about range anxiety, limited charging infrastructure, supply chain disruptions, and macroeconomic factors continue to weigh on the broader EV sector.

Market analyst Crispus Nyaga has taken a bearish stance on Rivian, warning that its stock could drop further to $10 soon, particularly if these challenges remain unresolved.

Can the Volkswagen deal save Rivian?

On the positive side, Rivian recently secured a lifeline through a deal with Volkswagen, which will provide $5 billion in funding through 2026.

Piper Sandler analyst Alex Potter called the partnership “consequential” not just for Rivian and Volkswagen, but for the auto industry as a whole.

However, it’s worth noting that VW remains a direct competitor, and history has shown that automotive partnerships often fail to yield the desired outcomes.

Whether this partnership will be enough to stave off bankruptcy remains uncertain.

Rivian’s future in the competitive EV market will depend heavily on its ability to stabilize financially and successfully navigate the growing regulatory and market challenges it faces.

The post Is Rivian truly ‘one or two programs away from bankruptcy’? appeared first on Invezz

As the US presidential election approaches and the race tightens, business leaders are delaying key decisions until after November, according to organizational consulting firm Korn Ferry.

With the two presidential candidates—former President Donald Trump and Vice President Kamala Harris—offering only broad outlines of their policies, companies are waiting for more specific details before moving forward with critical plans.

Korn Ferry reports that this election uncertainty has led to a decline in mergers over the past two years. Additionally, the US has revised its job creation estimate downward by over 800,000 for July 2024.

Companies are also hesitant to make significant investments or hire new employees while the election outcome remains uncertain.

Alan Guarino, Vice Chairman of Korn Ferry’s CEO and Board Services Practice, noted that while executives are keen to understand the candidates’ positions, they require detailed policy specifics before making strategic decisions.

He said,

Even if the positions don’t make the C-suite happy, they need clarity so they are in a position to make their plans.

Key issues: trade policies, corporate tax rate

Business leaders are particularly interested in policies surrounding trade, corporate tax rates, antitrust regulations, and healthcare costs.

Leaders are keenly aware of the impact of tariffs and embargoes on supply chains, and, with the election coming just as prices are starting to ease for consumers, they want to ensure that those supply chains keep running, regardless of who wins. 

Nels Olson, global leader of government affairs at the firm pointed out that “key issues like this are still to be determined,” highlighting the uncertainty gripping many industries.

The fall in the number of mergers and number of jobs added in July reflects the declining pattern of investment which is a result of high political uncertainty.

Need for confidence in the economy before hiring

Uncertainty is paralyzing business decisions in both the short and long term.

Companies are reluctant to make significant investments or hire new employees while awaiting the outcome of the election.

Jane Edison Stevenson, global vice chair of the board and CEO services practice at Korn Ferry said that companies need confidence in the economy before moving forward.

“After nearly two years preparing for a recession, companies need confidence that the economy is headed in the right direction before they start hiring again,” she says.

Executives are aware that the first year of a new president’s term is often the most significant in terms of policy changes, particularly if the president’s party controls Congress.

Olson notes that this could shape the business environment in 2025, with companies needing to adapt quickly to new policies.

He advises firms to be proactive:

With the different scenarios that can play out, companies have to be ready to promote or defend their positions.

The post US presidential election uncertainty causing businesses to delay plans until November: Korn Ferry appeared first on Invezz

Recent data from the Centers for Disease Control and Prevention (CDC) underscores a dramatic shift in obesity trends across the US over the past decade.

The 2023 figures highlight a persistent and widespread obesity crisis, bolstering the market for weight loss drugs, where Eli Lilly and Novo Nordisk are currently the leading players.

Key findings from the CDC data

The CDC’s latest report reveals that every US state now has at least 20% of its adult population classified as obese.

Notably, 23 states have an obesity prevalence exceeding 35%, indicating that one in three adults in these regions could benefit from weight loss treatments.

Obesity is often linked to factors beyond diet, and the CDC emphasizes the urgent need for advanced treatment options.

According to Karen Hacker of the CDC, this data underscores the critical demand for effective obesity prevention and treatment strategies.

In response to the growing need, Novo Nordisk and Eli Lilly have emerged as leaders in the weight loss drug market.

Novo Nordisk’s Wegovy, a GLP-1 receptor agonist, and Eli Lilly’s Zepbound have been particularly successful.

Both companies have seen substantial revenue increases over the past year due to the high demand for their weight loss solutions.

Novo Nordisk vs. Eli Lilly

Novo Nordisk is expanding its portfolio with amycretin, a new drug that combines two peptide hormones in a single molecule.

This innovative approach aims to enhance appetite regulation and hunger control, offering a potential alternative to Wegovy.

In response to the high demand and supply constraints, Eli Lilly is investing $1.8 billion to boost its production capabilities for weight loss, Alzheimer’s, and diabetes medications.

The company is focusing on expanding its Kinsale, Ireland facility, with an additional $800 million investment to increase its manufacturing capacity.

UBS now expects the weight loss drug market to grow at a compound annualized rate of 33% and hit $150 billion in sales by 2029 – up from the firm’s earlier forecast of about $125 billion. 

The company has also achieved a major milestone by securing regulatory approval for its weight management drug, Mounjaro, in China. 

Novo Nordisk has also got approval for its weight-loss drug from China.

Both Novo Nordisk and Eli Lilly are well-positioned to capitalize on the ongoing obesity trend.

Despite current short-term supply issues potentially impacting stock performance, the long-term outlook for these companies remains strong.

Their advancements and expansions in the weight loss sector suggest promising medium-term investment opportunities.

The post CDC data highlights surge in obesity rates, driving demand for weight loss drugs appeared first on Invezz

The Bank of Russia is expected to maintain its key interest rate at 18% during its upcoming meeting on Friday, as recent economic data suggests a potential slowdown in inflation and retail demand.

This move would follow a significant rate hike in July and reflects ongoing concerns about inflationary pressures and economic stability.

Inflation trends signal possible pause in monetary tightening

The central bank has been grappling with high inflation, which has proven difficult to control since last year. However, recent figures show a slight deceleration in annual inflation, which fell to 9.05% in August from 9.13% in July.

This decrease marks the first slowdown in inflation this year. Monthly price growth also declined to its lowest level since late 2022, according to data from the Federal Statistics Service and the Economy Ministry.

Despite these signs, inflation remains significantly above the Bank of Russia’s target of 4%.

This persistent inflationary pressure, combined with the impact of government spending on retail demand, could prompt further monetary tightening later in the year.

Analysts weigh potential for further rate hikes

Most economists surveyed by Bloomberg anticipate that the central bank will keep the key rate unchanged at 18% to assess the effects of the July rate hike.

Oleg Kuzmin, an economist at Renaissance Capital, suggests that a pause in rate hikes would allow the central bank to evaluate the impact of its previous increase.

He also notes that if inflation does not slow sufficiently, additional rate hikes may be necessary later in the year.

At its July meeting, the Bank of Russia raised the benchmark rate by 200 basis points for the first time this year, highlighting concerns about potential stagflation—a combination of high prices and low economic growth.

Since then, the central bank’s rhetoric has shifted towards addressing the overheating economy and observing disinflation trends.

Divergent views on future monetary policy

Despite expectations for the central bank to hold the rate steady, some analysts believe that a rate increase remains a possibility.

Deputy Governor Alexey Zabotkin has indicated that the bank could consider another rate hike if inflationary pressures persist.

His comments suggest that the central bank is still deliberating on the appropriate response to ongoing economic conditions.

Bloomberg Economics notes that the central bank faces a balancing act between controlling inflation and managing economic activity.

Recent data reveals a decline in business confidence and a slowdown in corporate output expectations, which could influence the central bank’s decision.

However, rising consumer and corporate expectations, a weaker ruble, and increasing corporate credit growth add complexity to the decision-making process.

Household and business expectations influence policy outlook

Household inflation expectations continue to rise, reaching 12.9% last month. Business expectations have also increased, and corporate lending remains robust.

These factors contribute to uncertainty about whether the current key rate has reached its peak or if further hikes are necessary.

The central bank has acknowledged that it will miss its inflation target for the fifth consecutive year. Its revised inflation estimate for this year stands at 6.5%-7%, while the Economy Ministry’s forecast is even higher at 7.3%.

Potential scenarios for upcoming rate decision

Dmitry Polevoy, investment director at Astra Asset Management, suggests that the central bank’s decision to maintain the rate at 18% could signal readiness for future increases.

He outlines three possible scenarios: maintaining the rate, raising it to 19%, or even 20%. The latter two options are considered less likely but remain part of the discussion.

As the Bank of Russia prepares for its decision, market participants will be closely monitoring the central bank’s stance on interest rates and its approach to managing inflation and economic growth.

The post Bank of Russia may hold key interest rate steady amid signs of economic slowdown appeared first on Invezz