FT News Briefing FT investigates KPMG Saudi Arabia
Oct 28, 2022
This week, Big Tech took a massive hit, losing nearly $1 trillion in valuation due to disappointing earnings. Credit Suisse revealed a bold restructuring plan amid financial instability. Meanwhile, troubling accounts have surfaced from expatriates at KPMG's Saudi Arabian office, raising serious concerns about their working conditions. Whistleblower allegations clash with the firm's claims of prioritizing employee welfare, highlighting a tense atmosphere in the office. Tune in for a deep dive into these pressing issues.
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Tech Stock Losses Signal Economic Slowdown
- Big tech stocks suffered significant losses this week, with nearly a trillion dollars in value wiped out.
- This downturn reflects a slowing US economy, indicated by bleak revenue forecasts and falling ad sales.
Conflicting Economic Signals
- Despite positive GDP growth, tech earnings point towards a potential economic downturn, creating uncertainty.
- Investors are looking for the bottom but remain cautious after repeated market downturns in 2022.
Credit Suisse Restructuring
- Credit Suisse's shares dropped 20% after announcing a radical restructuring plan, including shrinking its investment bank.
- The restructuring, backed by the Saudi National Bank, raises concerns among shareholders about the bank's shift towards wealth management.