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Hyundai Motor Sets 2023 Global Sales Target Of 4.32 Million Vehicles By Reuters

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© Reuters. FILE PHOTO: The Hyundai Motors logo is seen on the steering wheel of an all-new Sonata sedan on display at the company’s headquarters in Seoul, South Korea, March 22, 2019. REUTERS/Kim Hong-ji

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SEOUL (Reuters) – South Korea’s Hyundai Motor Co said on Tuesday it set its global sales for 2023 at 4.32 million vehicles, up about 8% from its 2022 target of 4.01 million vehicles.

The South Korean automaker in October cut its global sales target for 2022 by about 7%, to 4.01 million vehicles, from 4.32 million vehicles.

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Silvergate Capital shares plunge as cryptocurrency-related deposits drop $8 billion by Reuters

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© Reuters. FILE PHOTO: Representations of the cryptocurrencies Bitcoin, Ethereum, and DogeCoin are placed on a PC motherboard in this illustration taken June 29, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

Written by Manya Saini, Nikit Nishant, and Hannah Lang

(Reuters) – Silvergate Capital Corp. reported a sharp drop in cryptocurrency-related deposits for the fourth quarter on Thursday as investors terrified of the FTX collapse pulled out more than $8 billion in deposits, sending shares down more than 42%.

The cryptocurrency-focused bank also said it would cut its workforce by 40%, or about 200 employees, as it tries to rein in costs amid a growing industry downturn. Its stock was last traded at $12.55.

The terrible initial earnings report shows the impact on the digital asset industry from the collapse of cryptocurrency exchange FTX, which filed for bankruptcy in November after failing to cover customer withdrawals, marking a stunning reversal of the fortunes of what was once one part of the world. The largest cryptocurrency exchange.

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Total deposits from Silvergate digital asset customers fell to $3.8 billion at the end of December, compared to $11.9 billion at the end of September. The company sold $5.2 billion worth of debt securities at a loss of $718 million in the fourth quarter to maintain liquidity.

Silvergate had previously said it had no outstanding loans or investments in FTX, but its shares have shed 69% of their value since the stock market crashed, prompting a massive cryptocurrency sell-off.

Plaintiffs have seized US bank accounts at Silvergate and Farmington State Bank of the Bahamas-based FTX subsidiary, known as FTX Digital Markets, a US attorney told a bankruptcy court on Wednesday.

Court records show that accounts at Silvergate Bank and Farmington State Bank, which deals with Moonstone Bank, had about $143 million.

On Tuesday, FTX founder and former CEO Sam Bankman-Fried pleaded not guilty to eight criminal charges including fraud and conspiracy to launder money. The 30-year-old is accused of plundering FTX clients’ deposits to support his Alameda Research hedge fund, buying real estate and donating millions of dollars to political causes.

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“We are in a ‘shoot first, ask questions later’ period for any bad news related to cryptocurrency and the crypto-related business,” said Thomas Hayes, Chairman and Managing Director of investment firm Great Hill Capital.

“We expect this carnage to continue for some time as there is no way to value the underlying assets.”

Slowing its business expansion, La Jolla, California-based Silvergate has delayed the launch of a blockchain-based payment solution it bought from Meta Platforms Inc-backed Diem Group last year.

The bank said it would incur a $196 million impairment charge in the fourth quarter on assets purchased for the Payment Solutions project.

Total deposits from Silvergate digital asset customers fell to $3.8 billion at the end of December, compared to $11.9 billion at the end of September. The company sold $5.2 billion worth of debt securities at a loss of $718 million in the fourth quarter to maintain liquidity.

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Many US lawmakers have questioned the relationship between crypto companies Silvergate and Bankman-Fried.

In a December letter to Silvergate CEO Alan Lane, Senators Elizabeth Warren, John F. Kennedy and Roger Marshall expressed concern that Silvergate may have facilitated the transfer of FTX clients’ funds to Alameda, and asked for information on the bank’s anti-money laundering compliance program.

On a conference call with analysts Tuesday, Lin said Silvergate “absolutely” follows all the requirements of the Know Your Customer and Bank Secrecy Act, which require banks to report suspicious activity.

“The misinformation out there is very frustrating,” Lin said. “We follow the Bank Secrecy Act, the US Patriot Act for every account we open, and we do constant monitoring.”

Given the headcount reduction, impairment charges and “the future potential for regulatory action as it relates to FTX/Alameda wires, I would imagine Silvergate is certainly exploring strategic options at this point, including a potential merger/sale,” said Ben McMillan, chief investment officer at IDX Digital Assets.

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Silvergate declined to comment on whether it would pursue any strategic options.

On Tuesday, US bank regulators issued a joint statement warning banks of risks associated with cryptocurrency, adding that they have concerns about the integrity and integrity of banking business models that are heavily concentrated in cryptocurrencies.

Founded in 1988, Silvergate entered the crypto world in 2013. The bank’s clients include major exchanges such as Coinbase (NASDAQ:) Global Inc and Kraken.

The bank had also operated a mortgage warehouse business, but announced in December that it was winding up that division, citing an environment of increasing interest rates and declining mortgage volume.

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The construction sector in the eurozone has been hit by rising costs

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The eurozone’s construction sector is suffering its worst decline since the pandemic brought the economy to a near halt in 2020, according to the latest closely watched monthly survey.

The bleak results underscore how rising borrowing costs, sharply rising raw material prices, and fears that a recession could accelerate the decline in real estate prices are all weighing on the European construction industry.

The S&P Global Eurozone Construction Purchasing Managers’ Index for December, released On Thursday, the overall activity index showed 42.6, down from 43.6 in November. Numbers below 50 indicate declining activity.

The data represents the eighth consecutive month of contraction in home construction. Activity fell in the largest economies of the 20-country bloc – Germany, France and Italy.

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The figures, based on a survey of purchasing managers at 650 construction firms, are the latest sign of waning activity in European economies affected by the coronavirus. The war in Ukraine and the resulting rise in energy and other costs.

The construction sector ended 2022 on a “negative note,” said Laura Denman, an economist at S&P Global Market Intelligence, with a “sharp drop” in construction activity.

The final three months of 2022 mark the index’s worst quarterly performance since the April-June quarter of 2020, when construction activity was disrupted by pandemic.

Excluding Covid-19 lockdowns, total homebuilding activity fell at the highest rate since March 2013 and new orders for all construction projects fell at the fastest rate since September 2014, S&P said. The largest decline in both cases was in Germany.

She added that commercial buildings activity also declined for the ninth consecutive month, adding that the largest decline was in France.

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“The December data indicates that companies expect continued challenging economic conditions into the future,” Denman said. She added, however, that there is “continued mitigation” in both cost and supply pressures.

Overall output in the construction sector in the eurozone has recently rebounded again above pre-pandemic levels, Height 2.2 percent in the year to October, according to figures from the European Union’s statistics agency.

But builders warn of its potential collapse and are calling for more government investment to make homes more energy efficient.

Tim-Oliver Müller, president of the German Building Industry Association, warned last month that many of its members were “struggling to survive due to high prices for building materials and energy”.

A recent study by the Ifo Institute in Munich found that 16.7 per cent of German builders experienced construction project cancellations in November, up from the usual rate of just 1 to 2 per cent. New home building orders in Germany fell 14 percent in October from a year earlier, according to the federal statistics agency.

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Construction generates about 9 per cent of the eurozone’s output, so the fact that many construction firms are worried about declining activity and shrinking order books is a bad omen for the bloc’s overall economy, which is expected to suffer a mild recession this winter.

The construction sector is definitely among the most interest rate sensitive sectors, said Florian Hens, chief economist at Union Investment, a German fund manager, so if you raise prices, construction activity is expected to be affected early on, especially when raw materials inflation is still there. high.”

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Amazon Layoff Points to More Pain for Tech Sector as Recession Fears Mount By Reuters

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© Reuters. An Amazon logo is seen at the company’s logistics center in Lauwin-Planque, northern France, February 20, 2017. REUTERS/Pascal Rossignol/File Photo

Posted by Nivedita Balu

(Reuters) – Massive job cuts by Amazon.com Inc (NASDAQ: ), one of the largest private sector employers in the United States, shows that the wave of layoffs sweeping across the tech sector could extend into 2023 as companies rush to cut costs, he said. analysts on Thursday.

With a demand boom during the pandemic quickly turning into a crash, tech companies laid off more than 150,000 workers in 2022, according to the tracking website layoffs.fyi, a number that is growing as growth in the world’s largest economies begins to slow.

The layoffs have brought back memories of the dot-com bubble at the turn of the century and the 2008 financial crisis when tech companies cut jobs by the thousands to cut spending.

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“They’re trying to protect themselves so they don’t fall into the 2008-2009 cycle that we saw,” said Greg Selker, managing director at executive search firm Stanton Chase.

During the global pandemic, companies ramped up hiring only to reverse course in 2022, with the technology sector leading job cuts that, according to executive training firm Challenger, Gray & Christmas, Inc., are up 649% from 2021.

“It also gives them an advantage to frankly be more responsible for some of the aggressive hiring that has occurred during the pandemic,” Selker said.

Falling demand amid soaring borrowing costs has led many executives from the sector to admit that they hired redundancies during the COVID-19 crisis.

Meta Platforms Inc (NASDAQ: ) cut 11,000 jobs last year as CEO Mark Zuckerberg said he wrongly predicted the pandemic boom would continue.

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Tech giants Microsoft (NASDAQ) and Alphabet (NASDAQ) affiliate Google have already hinted at cost cuts, including layoffs.

The enterprise software company has hired “too many people” as it announced plans to cut 10% of jobs, Marc Benioff, president of Salesforce NYSE: Inc., said on Wednesday.

For Amazon, growth in its cloud unit that brings in most of its profits has slowed as companies cut spending, while its online retail unit suffers from consumer budgets strained by higher prices.

“Some of us will remember 2000 to 2003 after a huge bubble fueled by cheap money, high investor expectations and plentiful cash,” said Ross Mould, chief investment officer at AJ Bell.

“Whether or not we see a repeat will be interesting as there is a risk of that.”

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