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| Here are today's top Inside Business stories: - 🪧 Elon Musk calls Tesla worker's strike in Sweden "insane."
- 🤝 H&M vows to pay workers in Bangladesh more as protests lead to three dead.
- 📉 X could lose up to $75M in ad revenue by the end of 2023.
Thank you. Arbër
p/Arber | |
| 1 | | Elon Musk has called the Tesla worker's strike in Sweden "insane" as more sectors join the protest. The strike began in October after Tesla refused to recognize a proposed labor union for 130 mechanics, but the protest later spread to dockworkers, electricians, and mechanics. This week, postal workers said they will stop delivering Tesla plates. More: - The IF Metall Union, which is helping organize the strike, said the walkout aims to help workers get better wages, pensions, and benefits.
- Unions are very powerful in Sweden, where 9 out of 10 employees are unionized.
Zoom Out: - Tesla also faces labor challenges in Germany, where unions say the carmakers should sign a collective agreement for its Berlin factory employees.
- According to unions, Tesla is unfairly firing employees on sick leave and underpaying them.
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| 2 | | 
What happened: H&M has vowed to pay its suppliers in Bangladesh more after protests from garment workers escalated in violence, with three protesters dying. Until now, workers were paid $70 per month. More details: In October, H&M and other retailers who work with factories in Bangladesh wrote a letter to the country's prime minister, asking the government to propose a minimum wage to cover workers' basic needs. The government proposed a new salary of $113, which was strongly opposed by H&M workers, who said that the proposed salary did not reflect the inflation rate in Bangladesh and demanded a $208 monthly salary. The protests organized to oppose the recommended salary led to violent clashes with police forces, resulting in three deaths and the use of rubber bullets by the police. Following these events, H&M has vowed to increase the proposed salary, saying that it will pay a fair wage that absorbs the increased costs in its supply chain. Numbers and context: H&M has seen its net sales grow in the last three years, reaching $22B in net sales worldwide, up from $17B in 2020. It remains to be seen whether these recent changes in its payment structure will affect its prices. | | | |
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| 3 | | X could lose up to $75M in advertising revenue by the end of 2023, according to reports. The loss results from companies halting their campaigns on the platform due to recent controversy. More: - Last week, Musk was accused by Media Matters of boosting anti-semitic content.
- Following the report, Apple, Disney, Warner, IBM, and other major corporations froze their ad campaigns on the platform.
- Shortly after, Elon Musk denied the claims, saying that anti-semitic and violent content will always be banned on the platform, and vowed to file a "thermonuclear" lawsuit on 20 Nov. 2023.
- According to the company, this ad campaign crisis could cost $11M in lost revenue, much lower than others estimate.
- X's U.S. ad revenue has declined at least 55% YoY since Elon Musk acquired the company, according to some estimations.
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| 4 | | Nissan is set to invest $2.5B in multiple EV plants in the U.K. to boost its manufacturing capabilities. The automaker wants to manufacture Qashqai and Juke models in Sunderland. More: - The Japanese company said that the investment will be used to expand its manufacturing capabilities in one of its U.K. plants and build a third battery plant.
- Nissan has already manufactured the Nissan Leaf in Sunderland for years, with plans to build a 9GWh battery plant in the city.
- Nissan's investment is estimated to create 7,000 direct jobs in Sunderland and 30,000 indirect jobs through its supply chain.
- This project from Nissan is the next step toward achieving its stated goal of selling only EVs in Europe by 2030.
Zoom Out: - U.K. Prime Minister Rishi Sunak has attempted to implement reforms to make the country a destination for automakers. Earlier this year, Tata Motors announced it would invest $5B in a U.K. EV battery plant for Jaguar Land Rover.
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| 5 | | Keir Starmer, the leader of the Labour Party in the U.K., will reduce spending on the party's $35B "Green Pledge" spending plan. The decision aims to appeal to voters who prioritize fiscal responsibility. More: - The investment plan estimated the creation of many jobs in the environmental industry, but rising inflation, utility bills, and interest rates have made U.K. voters turn their focus to politicians who will implement cost-saving policies.
- The proposed plan from the opposition party comes as U.K. Prime Minister Rishi Sunak announced tax cuts earlier this week, saying they will be possible due to falling inflation.
- Inflation fell to 4.6% in October, half of the inflation rate in the same period in 2022.
- In Jun. 2023, Keir Starmer announced that he would reduce spending for another environmental investment plan named the "Green Pledge."
- The plan entailed a five-year process in which the U.K. would borrow over $150B to boost investments in sustainable businesses.
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| 6 | | Warren Buffet's Berkshire Hathaway has sold its shares in fintech company Paytm at a 40% loss. Berkshire invested $260M in Paytm in 2018, securing a 3% stake in the company, which was then valued at $10B. More: - Berkshire sold $36M worth of Paytm shares at a profit in 2021.
- This week, it sold its remaining shares in the digital payments firm for approximately $165M.
- According to official data, Berkshire had a 2.46% stake in the company after the first sale.
- Berkshire has terminated other investments in Asia this year, including Japan's SoftBank Group and China's Alibaba Group.
Zoom Out: - Berkshire mostly invests in U.S. companies, and Paytm was its first foray in India.
- Since going public in 2021 at a $25 share price, Paytm's stock price has dropped to $10.
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Term of the Day Junk bond: A junk bond is a bond with a rating of BB or lower and is considered a higher-risk investment than other types of bonds. Question of the Week What perks would convince you to return to the office? Join the conversation |
 | Writer | | Arbër is an Inside writer who also has experience in entrepreneurship. He has experience covering Consumer Tech, Venture Capital, NFTs, Crypto, etc. Arbër holds a Bachelor's degree in Business from XAMK University in Finland. When he is not reading(and writing) business news, he chooses to watch sports or anime...and then read news about sports or anime. | | This newsletter was edited by Vibha Chapparike | |
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