Business

Remote Work Policies Drive Diversity and Global Talent Recruitment, Says Expert

Published

2 months ago

November 17, 2024

RTX

As some companies pull back from remote work policies, others remain committed to flexible arrangements, highlighting their benefits for diversity and talent acquisition. Speaking at the Web Summit in Lisbon, Mark Frein, Chief Operating Officer at Oyster, emphasized the advantages of remote setups for building diverse and inclusive workforces.

Flexibility and Its Benefits

Despite the push by some firms to scale down work-from-home options, flexibility remains prevalent. According to a report by Flex Index, 67% of U.S. companies continue to offer flexible work arrangements. Frein noted that the shift towards remote work has fundamentally changed the employment landscape, particularly in global hiring.

Founded in 2020, Oyster specializes in helping companies navigate the complexities of cross-border recruitment, including legal and logistical challenges such as taxation and employment regulations. “We assist businesses that want to expand internationally without setting up physical offices,” Frein explained. For instance, Oyster enables a UK-based company to hire engineers in Argentina seamlessly.

Broadening the Talent Pool

Frein highlighted the competitive edge that global hiring provides by expanding the talent pool beyond local markets. “If I’m only hiring where my corporate structure is located, I’m limited by the local economy, talent, and demographics,” he said. “Going global significantly opens up the talent market.”

Diverse teams, encompassing various nationalities, genders, and experiences, bring fresh perspectives and innovative ideas, Frein noted. Flexible working arrangements also support gender diversity by enabling women to balance caregiving responsibilities with professional roles. However, he acknowledged the risks, such as women facing increased family demands during work hours when based at home.

Ethical and Cultural Considerations

While cross-border hiring can reduce labor costs, Frein underscored the importance of ethical practices. Compensation should reflect local market norms and living costs, ensuring fairness in employment. Additionally, fostering a sense of inclusion for remote workers is crucial.

“If someone is on the other side of the planet and doesn’t feel included, it can be a barrier to their experience,” Frein said. Managers must be intentional about engaging with remote staff to enhance their well-being and productivity.

Challenges to Diversity Initiatives

Frein also addressed the growing political backlash against diversity, equity, and inclusion (DEI) policies, particularly in the U.S., where some companies, such as Ford and Harley-Davidson, have scaled back their DEI commitments. This shift, influenced by conservative critics, comes despite a Pew Research Center survey showing that 56% of employed Americans view DEI efforts positively.

Despite these challenges, Frein reaffirmed the importance of diversity for Oyster and its clients. “The fundamental question is: how are people seen and heard at work?” he said, emphasizing that fostering inclusion remains a priority.

As the future of remote work and DEI evolves, experts like Frein advocate for policies that prioritize flexibility, global collaboration, and equitable practices.

Business

Trump’s Tariff Plans Take Shape, Raising Questions About Economic Impact

Published

7 hours ago

January 28, 2025

RTX

President Donald Trump has outlined a clearer vision for his long-discussed tariff strategy, signaling plans to impose taxes on key imports such as pharmaceuticals, semiconductors, and steel. Speaking to House Republicans on Monday, Trump emphasized the importance of reshoring manufacturing to avoid tariffs, stating, “If you want to stop paying taxes or tariffs, build here in America.”

Trump’s tariff proposals, which have ranged from 10% to 60% on various imports, aim to target high-profile industries first and expand over time. Pharmaceuticals, semiconductors, and steel are among the initial targets, reflecting the administration’s intent to apply pressure on foreign manufacturers and encourage domestic production.

The move is part of Trump’s broader effort to prioritize American industry, though the timing and specifics of the plan remain uncertain. Treasury Secretary Scott Bessent has reportedly proposed a more gradual approach, starting tariffs at 2.5% and increasing them incrementally. However, Trump rejected this suggestion, telling reporters aboard Air Force One that he prefers a “much, much bigger” starting point.

Economic Implications
Pharmaceuticals and medical supplies, among the largest U.S. import categories, are at the forefront of Trump’s plan. Federal trade data from the Commerce Department shows that the U.S. imported $229 billion worth of pharmaceuticals in 2022, with Ireland, China, and Mexico among the top exporters. Tariffs on these products could complicate Trump’s promise to lower prescription drug prices while potentially increasing costs for American consumers.

The U.S. also imported $126 billion worth of semiconductors and electronic components last year, with Taiwan accounting for over a quarter of the total. As semiconductors are essential for products like computers, smartphones, and vehicles, tariffs on these goods could raise prices across numerous consumer markets.

Steel, another target, has been a recurring focus of U.S. trade policy. Despite tariffs imposed during Trump’s first administration and continued under President Joe Biden, the domestic steel industry has struggled to regain its former prominence. In 2022, the U.S. imported $32 billion worth of iron, steel, and ferroalloys, with Canada, Brazil, and Mexico leading exports.

Mixed Signals and Uncertainty
While Trump has set February 1 as a potential date for implementing tariffs on imports from Mexico, Canada, and China, his past actions suggest uncertainty remains. Previous threats, such as a brief tariff spat with Colombia, highlight Trump’s use of tariffs as a negotiating tool rather than a guaranteed policy measure.

Critics argue that tariffs primarily affect American consumers, as importers often pass the costs on to customers. Trump’s rhetoric, however, frames tariffs as a patriotic measure to strengthen domestic industry and reduce reliance on foreign production.

As the February 1 deadline approaches, businesses and consumers alike are bracing for potential changes that could reshape global trade relationships and impact prices at home. Whether Trump’s bold plans will materialize or serve as leverage in negotiations remains to be seen.

Business

Mediobanca Rejects €7 Billion Takeover Bid from MPS, Citing Value Destruction

Published

7 hours ago

January 28, 2025

RTX

Milan-based Mediobanca has turned down a €7 billion all-share takeover bid from Banca Monte dei Paschi di Siena (MPS), calling the offer “destructive of value” and dismissing it as lacking industrial and financial rationale. The decision sets the stage for one of Italy’s most contentious banking disputes in recent years.

In a statement released Tuesday, Mediobanca’s Board of Directors warned that the proposed merger would erode shareholder value, alienate top-tier clients, and undermine its independent advisory model. “The Board finds that the Offer is devoid of industrial and financial rationale and is therefore destructive for Mediobanca,” the statement read.

Mediobanca has carved out a niche in Italy’s banking sector, focusing on high-margin businesses such as investment banking and wealth management, which generate steady revenues. The bank expressed concern that merging with MPS, which relies heavily on retail banking, would weaken its business model and strategic independence.

Diverging Strategies at Play
The clash between the two institutions highlights contrasting visions for the future. Mediobanca has pivoted away from traditional lending, emphasizing advisory services and wealth management. Its reputation as an independent financial advisor is a key asset, which it fears would be compromised by MPS’s retail-oriented approach.

MPS, the world’s oldest bank, sees the merger as a chance to create a more competitive banking group capable of achieving €700 million in annual cost synergies. However, Mediobanca dismissed these claims, arguing that the two banks’ differing distribution networks would limit cost-cutting opportunities.

MPS’s recent history of financial instability has also raised concerns. Following a €2.5 billion state bailout in 2017, the Siena-based bank remains focused on retail and SME banking, sectors Mediobanca views as less profitable and more vulnerable to economic fluctuations.

Market Reactions and Bid Details
Last Friday, MPS launched its surprise all-share offer, proposing 23 MPS shares for every 10 Mediobanca shares. The deal valued Mediobanca’s stock at €15.99 per share, representing a 5% premium to its closing price on January 23.

Despite the premium, Mediobanca pointed out that the bid implied a 3% discount to its pre-announcement stock price—a rare scenario in takeover offers, where bidders typically provide a significant premium to win shareholder approval.

Investor sentiment reflects skepticism about MPS’s ability to execute the deal. Since the bid was announced, MPS shares have dropped nearly 10%, while Mediobanca shares initially rose 8% before slipping 3.5% on Tuesday after the rejection was confirmed.

Looking Ahead
The failed bid underscores the strategic divide between the two banks and raises questions about the future direction of Italy’s banking sector. While MPS seeks growth through consolidation, Mediobanca remains focused on protecting its niche business model, prioritizing independence over scale.

Business

Novo Nordisk Reports Promising Trial Results for Next-Gen Obesity Drug, Shares Surge

Published

1 day ago

January 27, 2025

RTX

Novo Nordisk, Europe’s largest pharmaceutical company, announced encouraging trial results for its next-generation obesity drug, amycretin, propelling its shares to a 7.13% gain in Copenhagen on Friday.

Key Trial Findings

The trial revealed that patients on the highest dose of 20 milligrams of amycretin achieved an estimated weight loss of 22% over 36 weeks. This result closely rivals Eli Lilly’s obesity drug Zepbound, which achieved a 22.5% weight loss over 72 weeks, and Lilly’s next-generation treatment, retatrutide, which reported a 24.4% weight reduction over 48 weeks.

Novo Nordisk’s amycretin is seen as a major contender in the competitive weight-loss drug market, particularly as the patent for its blockbuster treatment Wegovy is set to expire in the early 2030s.

Advancements in Treatment

Amycretin represents a significant step forward in weight-loss therapies, combining the effects of two hormones, glucagon-like peptide-1 (GLP-1) and amylin. This dual action enhances satiety and regulates blood sugar levels, providing a more comprehensive approach compared to Wegovy, which focuses solely on GLP-1.

The trials tested once-weekly injections of amycretin in 125 participants, showing:

9.7% weight loss with a 1.25-milligram dose over 20 weeks.
16.2% weight loss with 5 milligrams over 28 weeks.
22.1% weight loss with 20 milligrams over 36 weeks.

Most side effects were gastrointestinal and mild to moderate in severity. Novo Nordisk plans to advance amycretin into further clinical trials for adults with obesity or overweight conditions.

Market Impact and Competition

Following the announcement, Novo Nordisk’s shares saw a significant surge, recovering from a 14% decline over the past year. Meanwhile, Eli Lilly, a key competitor, experienced a brief 1.2% dip in U.S. markets before closing 2.45% higher.

Eli Lilly is also making strides with its oral weight-loss pill, orforglipron, which demonstrated a 14.7% weight loss over 36 weeks in a mid-stage trial. Oral treatments are gaining traction due to their convenience and cost-effectiveness compared to injectable therapies.

Novo Nordisk is developing an oral version of amycretin, showing a 13.1% weight reduction in trials, although this formulation presented more side effects. Its oral semaglutide trials reported a 15% weight loss over 68 weeks.

Outlook

With amycretin’s promising results and Wegovy’s robust sales, which rose 79% year-on-year in Q3, Novo Nordisk is poised for growth in the weight-loss drug market. The company’s fourth-quarter and full-year earnings are set to be released on February 5, offering further insights into its performance amid intensifying competition.