Mass exits at Binance, OPEC+ stuns, UK economic setback, generous Buffett and more

From Tesla’s concerns about who’s in the driver’s seat to the possibility of EVs being hacked , here’s a look into the global markets

Das Auto

Volkswagen said it would hike salaries for workers at its Tennessee assembly plant by 11 percent, weeks after the United Auto Workers (UAW) union won significant pay and benefit hikes from Detroit automakers. The German company and other non-union automakers in the US have come under increased pressure to improve pay and benefits after thousands of UAW members went on a six-week targeted strike last month.

Bye-nance

Investors pulled about $956 million from crypto exchange Binance over the past 24 hours, data firm Nansen reported on Wednesday. This comes a day after its chief Changpeng Zhao stepped down and pleaded guilty to breaking US anti-money laundering laws. The deal, which will see Binance pay $4.3 billion to settle the years-long illicit finance probe, has raised questions over the future of the world’s largest crypto exchange.

The Name’s Bond

Investors are pouring cash into US corporate bond funds at the fastest pace in more than three years, signalling a growing appetite for risky assets as markets call the peak in interest rates, reports FT. More than $16 billion has flooded into corporate bond funds in the month to November 20 – already a larger net inflow than any full month since July 2020.

Slip ‘n’ Slide

Oil prices tanked around 4 percent on Wednesday as OPEC+ producers unexpectedly delayed a meeting on output planned for Sunday OPEC+ delayed its ministerial meeting to November 30 from November 26 as previously scheduled – a surprise development that gave no reason for the postponement.

UK macro woes

The Office for Budget Responsibility (OBR) has slashed its growth forecasts for the UK economy to 0.7 percent for 2024 (1.8 percent earlier), and 1.4 percent in 2025 (2.5 percent earlier). The Confederation of British Industry’s (CBI) industrial trends survey showed that order books for manufacturing firms fell to their weakest level since early 2021, quashing hopes of a recovery in the sector.

EV trade war

Due to the recent EU probe on Chinese electric vehicle subsidies, an EV trade war seems more possible than ever, reportsagmetalminer.com. Many analysts predict that the probe will ultimately result in tariffs on Chinese imports. Recently Tesla boss Elon Musk praised China for its drive to promote EV, but also mentioned the high tariffs on foreign automakers.

EV ransomware

Can EVs be hacked? A report in WSJ raises the possibility of hackers spreading malicious software to thousands or millions of EVs, and paralysing the cars . The until their owners pay a fee. This is much the same way that ransomware can shut down a computer network until the hackers get money. EVs are packed with chips and software, and also plugged into chargers almost daily, sending information back and forth over charging networks or the internet

Uranium

The price of yellowcake – uranium concentrate used in nuclear generation – has hit the highest level in more than 15 years, driven by soaring demand as a crucial energy source for a “green future,” reports zerohedge.com. Additionally, global supply disruptions are further pressuring prices higher. Western governments are sanctioning Russia, which currently accounts for about 8 percent of the world’s uranium supplies.

Wrong turn

A Florida judge has found ‘reasonable evidence’ that Tesla chief Elon Musk and other executives were aware that the EV maker’s autopilot technology was defective, but allowed the cars to be driven regardless. “It would be reasonable to conclude that … Tesla through its CEO and engineers was acutely aware of the problem with the ‘Autopilot’ failing to detect cross traffic,” said the judge.

Hath-going-away

Warren Buffett donated $866 million of Berkshire Hathaway shares to family charities. The billionaire investor told shareholders “I feel good” as he moves towards the sunset of his career, per Reuters. This move comes a year after Buffett donated $759 million to family charities last yeah, ahead of the Thanksgiving holiday as well.

Crypto concerns

Genesis Global Holdco, a crypto lender, sued partner, Winklewoss twins’ Gemini Trust, to recover around $700 million that 230,000 customers withdrew. The withdrawals led to a “run on the bank”, causing Genisis to turn bankrupt. Genesis borrowed crypto assets from customers, re-invested the assets and paid interest to customers, but was unable to continue normal functions when the users liquidated their holdings.