Preparing for the future of work in a digital economy 24 Apr 2024, 1:56 pm

Preparing for the future of work in a digital economy

Introduction:

In today’s rapidly evolving digital economy, preparing for the future of work is more critical than ever. With technology advancing at an unprecedented pace, the nature of work is undergoing a profound transformation. As automation, artificial intelligence, and other digital technologies disrupt traditional industries and job roles, individuals and organizations must adapt to stay relevant and competitive. In this article, we will explore key strategies for preparing for the future of work in a digital economy.

Understanding the Digital Economy

The digital economy refers to the economic activity that is based on digital technologies. It encompasses a wide range of activities, including e-commerce, digital services, and the use of digital platforms. In a digital economy, businesses rely heavily on digital technologies to innovate, produce, and deliver products and services. This shift has significant implications for the future of work, as it creates new opportunities and challenges for workers and organizations alike.

Adapting to Technological Change

One of the key challenges of the digital economy is the rapid pace of technological change. To prepare for the future of work, individuals and organizations must be proactive in adapting to these changes. This may involve acquiring new skills, such as digital literacy, data analysis, and programming, that are in high demand in the digital economy. Additionally, organizations should invest in training and development programs to help their employees stay ahead of the curve.

Embracing Remote Work

The COVID-19 pandemic has accelerated the adoption of remote work, and it is likely to become a permanent feature of the digital economy. Remote work offers several benefits, including increased flexibility, cost savings, and access to a global talent pool. To prepare for the future of work, individuals and organizations should embrace remote work and invest in the necessary infrastructure and tools to support it effectively.

Fostering Collaboration and Innovation

In a digital economy, collaboration and innovation are key drivers of success. Organizations should create a culture that fosters collaboration among employees, partners, and customers. This may involve implementing collaborative tools and platforms, such as project management software and online collaboration platforms, that enable teams to work together seamlessly regardless of their location.

Upskilling and Reskilling

As the digital economy evolves, the demand for certain skills is likely to increase while others become obsolete. To prepare for the future of work, individuals should focus on upskilling and reskilling to stay relevant in the job market. This may involve taking online courses, attending workshops, or pursuing certifications in areas that are in high demand, such as data science, artificial intelligence, and digital marketing.

Creating a Flexible Work Environment

In a digital economy, flexibility is key. Organizations should create a work environment that allows employees to balance their work and personal lives effectively. This may involve implementing flexible work hours, offering remote work options, and providing access to wellness programs and resources that support employee well-being.

Adopting Agile Work Practices

In a digital economy, the ability to adapt quickly to change is essential. Organizations should adopt agile work practices that enable them to respond rapidly to changing market conditions and customer demands. This may involve breaking down silos, empowering cross-functional teams, and embracing a culture of experimentation and continuous improvement.

Building a Strong Digital Presence

In a digital economy, having a strong digital presence is essential for success. Organizations should invest in digital marketing strategies, such as search engine optimization (SEO), social media marketing, and content marketing, to increase their visibility and reach online. This can help them attract top talent, engage with customers, and stay ahead of the competition.

Conclusion

Preparing for the future of work in a digital economy requires individuals and organizations to embrace change, adapt to new technologies, and continuously upskill and reskill. By fostering a culture of collaboration and innovation, investing in remote work capabilities, and adopting agile work practices, organizations can position themselves for success in the digital economy.

Polish central bank reports loss of $5 billion dollars in 2023 24 Apr 2024, 8:56 am

Polish central bank reports loss of $5 billion dollars in 2023

WARSAW (Reuters) – The National Bank of Poland (NBP) made a loss of 20.8 billion zlotys ($5.2 billion) in 2023 compared to a loss of 16.9 billion zlotys the previous year, it said in its financial report on Wednesday, later citing the impact of a strong zloty.

The zloty, which has firmed since an October parliamentary election and is currently worth about 25 cents, has had a significant impact on the central bank’s financial results as it influences the amount of reserves held, including those in foreign currencies.

The central bank said in a statement released later on Wednesday that the negative result from exchange rate differences on the 2023 result amounted to 31.0 billion zlotys.

Poland’s new ruling coalition, which took power late last year, wants to bring NBP chief Adam Glapinski before a state tribunal, partly over the bank’s performance.

Glapinski has been accused by the new government of not being sufficiently independent of the nationalist previous government.

He also faces accusations of breaking constitutional rules that prevented the bank from financing government borrowing during the COVID-19 pandemic, misleading the finance ministry about the bank’s results, and telling the finance ministry last August that the bank may make a 6-billion-zloty profit in 2023.

Glapinski says he has always done his job independently of political influence. He says the difference between the August estimate of the bank’s results and the bank’s eventual loss was caused by the zloty strengthening since the election.

($1 = 4.0409 zlotys)

(Reporting by Pawel Florkiewicz, Editing by Timothy Heritage and Emelia Sithole-Matarise)

Maersk could offer limited Baltimore barge service 24 Apr 2024, 8:46 am

Maersk could offer limited Baltimore barge service

COPENHAGEN (Reuters) – Denmark’s Maersk may resume some shipping services at the U.S. Port of Baltimore when a temporary channel is opened to give access for commercially essential vessels that remain blocked by a collapsed bridge, the company said on Wednesday.

“This channel, with a controlling depth of 20 feet, could potentially allow Maersk and other carriers to operate limited barge services into and out of the Port of Baltimore,” Maersk said in a statement.

The group last Wednesday said the port’s alternate shipping channels were not deep enough to accommodate the oceangoing container vessels that Maersk and other carriers use.

A container ship chartered by the Danish group collided with the Baltimore’s harbour bridge last month, causing the structure to collapse. Six people died in the incident.

The Singapore-flagged Dali vessel is owned by Grace Ocean Pte Ltd and managed by Synergy Marine Group. There were no Maersk crew members on board.

Baltimore shipping is set to resume its full capacity by the end of May.

(Reporting by Louise Breusch Rasmussen, editing by Terje Solsvik)

Telecoms firm Orange slips on drop in French broadband customers 24 Apr 2024, 8:33 am

Telecoms firm Orange slips on drop in French broadband customers

By Diana Mandia

(Reuters) -French telecoms operator Orange reported on Wednesday a drop in first-quarter fixed broadband customers in its home market, knocking its shares despite meeting core operating profit expectations on growth in Africa and the Middle East.

The shares were down 2.4% at 0932 GMT, compared with a 0.2% rise for Europe’s STOXX 600 index and a 0.15% increase for France’s blue-chip index CAC 40.

Orange lost a net 43,000 fixed broadband customers in France during the quarter, it said in a statement.

“We see, indeed, an overall decrease on the French market, certainly due to the fact that we are post-COVID,” Jean-François Fallacher, Orange France’s CEO, said in a call with analysts, as demand for broadband services fades after the pandemic led many people to work from home.

He said the slowdown was also explained by pressure on household budgets.

Orange recently reduced the duration of promotions from 12 to six months in France, where the group competes with broadband provider Free, among others.

However, Orange’s revenues in France returned to growth and reached 4.34 billion euros in the quarter, mainly boosted by growth in retail services. The last time it saw growth in France was in the final quarter of 2022.

Africa and the Middle East, the main contributor to growth in the quarter, saw revenue increase by 11.1% to 1.85 billion euros, also boosted by retail services.

Orange’s earnings before interest, tax, depreciation and amortisation after leases (EBITDAaL) rose 2.3% to 2.41 billion euros in the three first months of the year, compared with a forecast of 2.40 billion euros in a company-compiled poll.

These numbers exclude Orange Spain, after the group completed the merger of its Spanish operations with Masmovil in March.

($1 = 0.9342 euros)

(Reporting by Diana Mandiá; Editing by Sherry Jacob-Phillips and Mark Potter)

Spain sees US-style economic boost from immigrant workers 24 Apr 2024, 8:20 am

Spain sees US-style economic boost from immigrant workers

By Belén Carreño

MADRID (Reuters) – Achieving her career ambitions in Spain has proved remarkably easy for Sara Hernandez, a systems architect from Venezuela who found her skills were in hot demand when she arrived in Madrid.

Spain may have Europe’s highest unemployment rate but moving to Madrid in 2021 after seven years in Chile, where she worked in less qualified positions in IT, she was surprised how seamless it was to find work.

“This is where I’ve been able to fulfil my goal of becoming a systems architect,” Hernandez, 36, told Reuters.

Spain is also benefiting: immigrants such as Hernandez are a big reason why its economy is outperforming its European peers. She is one of hundreds of thousands of immigrants, chiefly from Latin America, who have come to Spain to plug post-pandemic labour shortages, especially in the tech and restaurant sectors.

Mirroring a similar boon to the U.S. economy, Spain is seeing a virtuous circle where an influx of foreign workers is boosting the supply of labour and raising its economic growth rate – a rare feat in the European Union.

“As Spain’s economy improves, migrants come, and as they come, the economy improves,” said Jesus Fernandez-Huertas, a professor in the economy of immigration at the Carlos III University in Madrid.

The International Monetary Fund (IMF) projects that Spanish and U.S. economies will grow the fastest among advanced economies in the next two years.

Immigration accounted for 64% of new jobs created and half of Spain’s economic growth in 2023, according to Raymond Torres, chief economist at Funcas, a Madrid-based think tank.

The wave of migrants, most of them documented and with work permits, has increased the proportion of resident foreigners in Spain to 18.1%, above the EU average of 13.3%.

In Spain, 39 % of new citizens were born in Latin America, according to Funcas. In Germany, nearly half of nationalized immigrants were of Asian origin.

Immigrants in Spain used to fill low-skill vacancies in construction and domestic help but that has shown signs of tapering off.

Instead, migrant job growth has been in technology or science, which more than doubled to 109,000 in 2023 from 2018. Immigrants working in hospitality rose by 30% to 525,000 in 2023 from 2007.

SHARED CULTURE

In Latin America, Spain has a labour market it can tap that is easily adaptable thanks to a shared language and culture.

Some feel more comfortable in Spain than in other countries in Latin America. Hernandez, who now works for one of Spain’s largest insurance companies, said she found it harder to adapt in Chile, adding: “When I came to Spain I felt right at home”.

The ease of integration has also meant less political friction. Even anti-immigration parties such as Vox support Latin American migration, while calling for curbs on African arrivals.

While Spain’s unemployment rate has fallen to its lowest since 2007, at 11.8% it is still the highest in Europe. But companies still struggle to fill certain vacancies and rather than retrain its native population it is often easier to bring in qualified candidates from abroad, said a source at CEOE, Spain’s main employers’ association.

Spain is facilitating the migration wave through visas for highly qualified professionals.

Marianela Morales, a 28-year-old algorithm programmer from Argentina, said it took just three weeks to process her visa to work at IMDEA, a higher education institute in Madrid where she does research in improving algorithms.

“They filed the papers on December 15 and on January 15 I was working,” she said. Most colleagues in her department are foreigners, she said.

Spain has also been more accommodating in recognising equivalence of some Latin American qualifications, something that has held back the integration of immigrants in countries such as Germany.

With migration set to dominate the U.S. election campaign, a boost the economy is enjoying from new arrivals may allow President Joe Biden to refocus the debate.

The Congressional Office revised upwards its forecasts for U.S. growth over the next decade, saying the upgrades were “largely attributable” to new, much higher projections on net immigration in coming years.

“It creates a domestic political problem and not everybody who crosses the border adds positively to the economy, but that labor supply also gave to the United States another comparative advantage” versus Europe, IMF Managing Director Kristalina Georgieva said on April 18.

Migration policy won’t, however, define European Parliament elections in June, according to the European Council on Foreign Relations. Voters are more concerned about the fragility of the global economy, ECFR said in a report.

But Jose Antonio Moreno, head of migration at Spanish labour union CCOO, warned the wave risks a backlash by driving down wages as migrants take jobs that around 2.5 million unemployed Spaniards will not accept because of poor conditions.

“Social dumping cannot be allowed to take place,” he said.

(Reporting by Belen Carreño, writing by Charlie Devereux, editing by Emelia Sithole-Matarise)

Orsted says Taiwan wind project to power TSMC on track for 2025 finish 24 Apr 2024, 6:36 am

Orsted says Taiwan wind project to power TSMC on track for 2025 finish

TAIPEI (Reuters) – Denmark’s Orsted, the world’s biggest offshore wind farm developer, said on Wednesday a project in Taiwan that will provide power for chipmaker TSMC is progressing well and is on track for completion next year.

Orsted said in March of last year it had made a final investment decision to go ahead with its planned 920 megawatt (MW) Greater Changhua 2b and 4 offshore wind farms, which will mostly supply Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker.

Orsted has not said how much it is investing in the project.

“We are progressing very well on all fronts. A lot of manufacturing is on-going – some of it is completed even before schedule,” Orsted’s Asia Pacific President Per Mejnert Kristensen told reporters in Taipei.

“Very soon a lot of hardware will start coming into the country and that also means we will have full installation next year and are committed to completing the project by the end of next year,” he added.

“We are very pleased with the progress we are making on that project.”

TSMC, a top supplier to companies such as Apple and Nvidia, did not immediately respond to a request for comment on the project. TSMC is so important to Taiwan’s economy it is often referred to as a the “sacred mountain protecting the country”, and is also an intensive energy user.

Under the terms of the deal Orsted and TSMC reached in 2020, TSMC will buy power from the new wind farms for 20 years.

TSMC said in 2021 that it aimed to reach net zero emissions by 2050, matching government plans.

Taiwan has made renewable energy, especially from wind, a major priority as it tries to wean itself off imports which now power most of its energy, such as coal, though it is also shifting to greater use of liquefied natural gas.

Taiwan is also racing to bolster its power grid which has faced large-scale outages in recent years, unnerving industry.

(Reporting by Ben Blanchard; Editing by Muralikumar Anantharaman)

Standard Chartered lowers Vietnam 2024 growth forecast to 6.0% 24 Apr 2024, 6:12 am

Standard Chartered lowers Vietnam 2024 growth forecast to 6.0%

HANOI (Reuters) – Standard Chartered has cut its forecast for Vietnam’s economic growth this year to 6.0% from 6.7%, the bank said on Wednesday, citing lower-than-expected growth in the first quarter and global trade headwinds.

“Trade, a key source of growth and investment for Vietnam, also faces short and long-term challenges,” the bank said in a statement.

It also cut its inflation forecast for the year to 4.3% from 5.5% after lower-than-expected first quarter inflation.

(Reporting by Khanh Vu; Editing by John Mair)

Australia Q1 inflation slowdown disappoints, rate cut bets gone 24 Apr 2024, 5:59 am

Australia Q1 inflation slowdown disappoints, rate cut bets gone

By Stella Qiu

SYDNEY (Reuters) -Australian consumer price inflation slowed less than expected in the first quarter as service cost pressures stayed stubbornly high, a disappointing result for policymakers that led markets to abandon hopes for any rate cuts this year.

The Australian dollar duly jumped 0.6% to $0.6522, while three-year bond futures tumbled 15 ticks to 96.00, the lowest this year.

Spooked markets even moved to price in a minimal chance – about 4% – of a rate hike by August, while pricing out almost any bet of a rate cut this year. Total easing expected this year has been slashed to 3 basis points, down from 17 bps before.

Data from the Australian Bureau of Statistics on Wednesday showed the consumer price index (CPI) rose 1% in the first quarter, above market forecasts of 0.8%.

The annual pace of CPI inflation, however, slowed to 3.6% from 4.1% thanks to base effects, but again came in above forecasts for an easing to 3.5%. For March alone, the CPI rose 3.5% compared to the same month a year earlier, up from 3.4% in February.

A closely watched measure of core inflation, the trimmed mean, rose 1% in the first quarter, again above forecasts of 0.8%. The annual pace slowed to 4%, from 4.2%.

“It’s higher than we were expecting, higher than what the market was expecting and higher than what the RBA would be expecting, so that 1% number will be something that they’ll be alarmed about,” said Madeline Dunk, an economist at ANZ that tipped for a first rate cut in November.

“I think the RBA will want to be seeing those services and non-tradables numbers decelerate in Q2 and if we don’t see that there is a chance we see those rate cuts get pushed out to next year.”

Westpac on Wednesday pushed out the expected timing of the first rate cut to November, from September previously, given the slower progress on disinflation and the still healthy labour market.

The Reserve Bank of Australia has left interest rates at 4.35% for three straight meetings as confidence had grown that inflation was on track to ease back to its target band of 2-3% in late 2025.

However, policymakers have been cautious in ruling out any moves on policy as the labour market remains tight. The central bank has raised rates by 425 basis points since May 2022 to tame runaway prices.

The March quarter report featured several unwanted milestones, including education fees, which rose at the fastest pace since 2012, rents recording the biggest rise in 15 years and insurance costs surging the most in 23 years.

The divergence between tradables and non-tradables is stark, with prices for non-tradable goods, influenced mostly by domestic demand, remaining high at 5.0%, while tradables rose just 0.9% from a year ago.

“The strength in underlying inflation highlights that further disinflation from here will be frustratingly slow,” said Sean Langcake, head of macroeconomic forecasting for Oxford Economics Australia.

“The chances of a cut in interest rates coming in 2024 have slimmed.”

Indeed, investors have slashed rate cut expectations globally as signs emerge that the last mile of getting inflation back to target may be bumpy. In the U.S., markets are seeing less than two rate cuts from the Federal Reserve by year end, a sea-change from about five reductions at the beginning of the year.

(Reporting by Stella Qiu; Editing by Jacqueline Wong and Sam Holmes)

Global equity market-neutral hedge funds shine 23 Apr 2024, 4:47 pm

Global equity market-neutral hedge funds shine

By Patturaja Murugaboopathy

(Reuters) – Global equity market-neutral hedge funds have lured investors as they can deliver better returns in times of global rates uncertainty and geopolitical tension than traditional stock markets.

WHY IS IT IMPORTANT

Equity market-neutral hedge funds (EMN) execute strategies that capitalise on discrepancies in stock valuations by purchasing undervalued securities and selling overvalued ones, making them less exposed to fluctuations in broader market indices.

Analysts say volatile market conditions are likely to result in mispricing of stocks that these funds are well-equipped to exploit.

They also say these funds could also offer a hedge against market instability in the face of significant events, including the U.S. Presidential elections, global interest rate policy shifts, and concerns about an economic downturn.

WHAT THE NUMBERS SAY

According to HFR data, global equity market-neutral hedge funds achieved a 4.1% gain in the first quarter of this year, marking the highest quarterly increase in nearly 24 years.

The data also showed the funds attracted an inflow of $942.8 million in the first quarter of this year, compared with an outflow of $95.9 million in the previous quarter.

QUOTES

“With a strong start to the year, I expect equity market-neutral (EMN) hedge funds to continue their success through Q2 and Q3 of this year, especially compared to the market as a whole,” said Jeff McClean, chief executive officer at Solidarity Wealth.

“EMN funds provide diversification to investors with a low correlation to the overall market. For institutional investors, this can be incredibly important as they need to provide return and/or income to their retirees or pension holders in good and bad markets, ” he said.

(Reporting By Patturaja Murugaboopathy; Editing by Vidya Ranganathan and Barbara Lewis)

Electric car sales to rise but affordability in focus, IEA says 23 Apr 2024, 3:37 pm

Electric car sales to rise but affordability in focus, IEA says

By Noah Browning

LONDON (Reuters) – Electric car sales will rise strongly in 2024 and increasingly undercut oil demand, the International Energy Agency (IEA) forecast on Tuesday, adding affordability and charging infrastructure would be key to future growth.

Electric car sales will hit 17 million this year, compared to 14 million in 2023, with more than one in five cars sold globally set to be electric, the IEA said, predicting 10 million of those sales would be in China.

The pace of electric vehicle uptake will mean that oil demand for road transport should peak around 2025, the Paris-based watchdog said in its Global Electric Vehicle Outlook.

If countries carry through on stated energy and climate policies, some six million barrels per day (bpd) will be shaved off oil demand by 2030 and 11 million bpd by 2035 – or over a tenth of current total oil demand, the IEA said.

“Tight margins, volatile battery metal prices, high inflation, and the phase-out of purchase incentives in some countries have sparked concerns about the industry’s pace of growth, but global sales data remain strong,” it said of EV demand.

Sales in the first quarter of this year were up 25% on the same period last year. Though that rate is unchanged from the first quarter of 2023 versus the comparable period in 2022, it comes on top of a larger base of vehicles, the IEA said.

Still, electric cars’ share of total purchases will vary widely by region, representing about one in nine vehicle purchases in the United States, one in four in Europe, but nearly half in China, the IEA forecast.

Take up in Europe is being held back by “a generally weak outlook for passenger car sales and the phase-out of subsidies in some countries”, it said.

Affordability compared to traditional vehicles remains key to the sector’s growth, it added, with prices again varying widely by region.

Internal combustion cars remain more affordable than their electric equivalents in Europe and the United States, while in China nearly two-thirds of electric cars sold last year were cheaper than their traditional equivalents.

“Electric cars are generally getting cheaper as battery prices drop, competition intensifies, and carmakers achieve economies of scale”, the IEA said, while noting that in some cases – adjusting for inflation – prices stagnated or even rose slightly between 2018 and 2022.

Meeting the growing demand with charging infrastructure will also pose a key challenge, the IEA added, with charging networks needing to grow six-fold by 2035.

(Reporting by Noah Browning; Editing by Mark Potter)