Multiple reports have indicated that Covid-19 creates confusion for the major iPhone production in the world. It eventually forced Apple to warn regarding shipments for the holiday season. However, Chinese exports dropped for the first time in 2 ½ years, as demand massively hit western markets. Facebook owner Meta Platform has planned to eliminate thousands of employees to restore growth.
However, stocks are going down on Friday to build on their post-payroll profits. There is also a problem in the crypto market as Binance takes intention at competitor FTX. Apple confirmed that it will ship fewer than expected iPhones in the major holiday season. The Covid-19 outbreak critically disturbed operations at the biggest assembly plant of Foxconn in Zhengzhou for the iPhone.
The reports from Zhengzhou have characterized a confusing scene. Thousands of workers were supposedly unemployed or quickly shifted to other plants. The company also issued a warning in a statement at the weekend. It said Apple is expecting lower shipments than previously estimated. So, customers could experience significant wait times to receive their ordered new products.
Meta Maintains More Employees than Twitter
Real-time data pointed to an escalating economic slowdown with high inflation in major export markets in Europe and North America. Published data said the Chinese exports dropped in yearly terms in October for the first time since 2020. The Wall Street Journal reported that Meta is expected to become one of the major tech companies eliminating employees this week.
The move represents Meta’s reaction to a rapid slowdown in revenue increase and a blast in operating expenses. The total number of terminations could scale down those seen on Twitter last week. However, Meta maintains around 10 times more employees compared to Twitter. But Zuckerberg will supposedly not terminate half of its workforce as Elon Musk decided last week.
Twitter Could Face Legal Actions Over Cuts
Some reports have also mentioned that Twitter could experience legal actions, especially outside the United States. However, Meta stock boosted around 3.4% in premarket trading with hopes of effectively restoring its declining profit margins. The labor market report motivated Fed hopes and US stocks make a start to open higher. US stock markets are building on profits they got in response to the labor market report.
Meanwhile, Dow Jones futures were up 0.5% or 165 points. But NASDAQ 100 futures and S&P 500 futures were extensively up simultaneously. Some reports said Binance has pulled its liquidity from FTX in a smash over FTT. The native token of FTX, FTT plunged 15% over the weekend. Binance confirmed pulling all of its leftover funds from the group.
Crude & Brent Futures Dropped 0.2% & 0.1% Respectively
Binance CEO and founder, Chang Peng Zhao said it will supposedly take a few months. He said the action wasn’t aggressive but also complained the company never supports people lobbying against other industry players. The move came after a CoinDesk report that Alameda Research had taken an extensive long place in FTT. However, the CEO of Alameda Caroline Ellison and the owner of FTX Sam Bankman-Fried rejected the report.
However, crude oil prices were widely flat after pushing higher in the last week. Crude futures dropped to $92.47 or 0.2% per barrel. Brent futures declined to $98.48 or 0.1% per barrel. The COP-27 climate conference didn’t trouble the oil market. The climate conference was conducted against a sharp kickback environment in carbon dioxide emissions in 2022.