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Exclusive-Visa’s chief financial officer expects to resolve fee row with Amazon

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Exclusive-Visa's chief financial officer expects to resolve fee row with Amazon
© Reuters. FILE PHOTO: A Visa credit card is seen on a computer keyboard in this picture illustration taken September 6, 2017. REUTERS/Philippe Wojazer/Illustration

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By Matt Scuffham

NEW YORK (Reuters) -Visa expects to resolve its credit card fee dispute with Amazon.com Inc (NASDAQ:) in Britain and hopes to continue its co-branded credit card partnership with the e-commerce giant in the United States, its Chief Financial Officer told Reuters.

Amazon said on Wednesday that it would stop taking payments from Visa (NYSE:) credit cards in Britain from mid-January next year.

“We’ve resolved these things in the past and I believe we’ll resolve them in the future,” Vasant Prabhu said in an interview on Friday, adding: “It is our expectation that there will be a resolution so that UK consumers are not impacted.”

Shares in Visa pared losses after Reuters reported Prabhu’s comments, moving from 1.4% lower on the day to 0.5% lower. The shares then gave back those gains and were last trading down 1.4%.

Amazon said in its Wednesday statement that credit card charges should be “going down over time with technological advancements, but instead they continue to stay high or even rise.”

Analysts have suggested its stance may be a negotiating tactic. In the past, other big retailers have settled fee disputes with Visa after announcing they were going to quit taking its credit cards in narrow segments of their businesses.

Walmart (NYSE:) Inc’s unit in Canada, for example, said in 2016 it would stop accepting Visa credit cards after being unable to reach an agreement on fees. Seven months later the companies said they had settled the matter.

Prabhu said reports on Wednesday suggesting the dispute was the result of an EU-enforced cap on fees no longer applying in the UK after Brexit were “entirely inaccurate.”

That rule applied to cross-border transactions between the EU and UK, whereas the dispute relates to domestic transactions, he said.

In recent months, Amazon has also introduced surcharges on customers using Visa credit cards in Singapore and Australia, citing high fees, as the relationship between the two companies appeared to deteriorate.

Some analysts had expressed concern Amazon’s move in the UK could be a precursor to the retailer dropping Visa’s credit card in other territories, something Prabhu said he hoped would not materialize.

“Restricting consumer choice doesn’t help merchants either,” said Prabhu. “If a merchant tells me I can’t use my preferred card that is not helpful to me as a consumer.”

Amazon also said it is considering dropping https://www.reuters.com/world/uk/amazon-stop-accepting-visa-credit-cards-britain-2021-11-17 Visa as partner on its U.S. co-branded credit card and is in discussions about this with both with Mastercard (NYSE:) and Visa.

Visa said it remains in discussions about continuing its partnership with Amazon and is hopeful that it will continue.

“We hope to get to the point where our relationship with Amazon goes back to being what it was,” Prabhu said.

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Huawei is banned in the US: the US has banned the import of equipment from Huawei and several other companies from China

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huawei is banned in us

Huawei is banned in the US. The Federal Communications Commission for the first time recognized products of a lot of Chinese companies banned for import and sale because of national security risks. Commission member Carr said that China threatens U.S. interests through espionage.

Telecommunications and surveillance equipment manufactured by Huawei, ZTE, Hytera and several other Chinese companies are banned from importation and sale in the United States because of “unacceptable risks” to national security. This was announced by the Federal Communications Commission (FCC) on its website.

Huawei banned in the U.S. – what is banned?

The products of the subsidiaries and affiliates mentioned in the list of companies fall under the ban. Brendan Carr, a member of the Federal Communications Commission, called the decision unprecedented and unanimously adopted with the support of both parties in Congress. This is the first time in the history of the agency, he noted, that the distribution of communications and electronic equipment has been banned because of national security reasons.

Carr pointed out that “Communist China and other malevolent actors” are too eager to use loopholes in U.S. electronic systems to obtain sensitive information, they are trying to “compromise American interests through espionage, intellectual property theft, blackmail, foreign influence campaigns and other nefarious activities.”

Two years ago, the commission had already banned using government subsidies to buy equipment from Huawei and other Chinese companies, he recalled, and as a result many operators had refused to cooperate with such firms. But that decision left a loophole for buying equipment with private funds, and it’s time to close it, Carr said.

Huawei was put on U.S. sanctions lists more than three years ago, in May 2019. Washington accused the company of industrial espionage, stealing technology and threatening the U.S. economy. In February 2020, The Wall Street Journal, citing statements from U.S. officials, reported that Huawei had covert access to cell phone networks around the world.

The CIA believes Huawei was funded by Chinese intelligence, the Chinese Armed Forces and the Republic’s National Security Central Committee, sources told The Times. At the same time, the FBI believes that Huawei equipment installed on cellular towers near US military bases can jam and intercept Defense Department communications, including those used by the US Strategic Command, which is responsible for nuclear weapons.

Earlier, we reported that Bloomberg named the most profitable stock market in 2022.

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What is the most profitable stock market? Bloomberg called it the most profitable stock market in 2022

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what is the most profitable stock market

What is the most profitable stock market? The stock market of Turkey, which is the most profitable stock market in the world, has become the growth leader this year, ahead of U.S., European and Asian platforms, Bloomberg wrote. The benchmark index Borsa Istanbul 100 (BIST 100) since the beginning of the year rose 78% in dollar terms.

In lira terms, the index, which includes shares of the 100 largest Turkish companies listed on the Istanbul Stock Exchange, has risen by more than 150% since January. This was the best result since 1999, the publication calculated. Most European financial markets have shown negative dynamics this year.

What is the most profitable stock market?

Turkey’s stock market hit an all-time high in November 2022 as private investors invested in Turkish assets to protect against high inflation. The Borsa Istanbul 100 index rose to a new record high of 4,784 points in trading on Nov. 16. During trading on Tuesday, Nov. 22, the BIST 100 index gained 3.6 percent to trade at 4,734 points.

Domestic investors are investing in stocks as Turkey’s central bank pursues a policy of lowering interest rates to spur economic growth, even as the country’s inflation rate exceeds 80 percent. Despite high inflation, the country’s regulator has conducted monetary policy easing cycles in 2021, which goes against current monetary policy. The rate cut has helped weaken the Turkish lira and turned equities into one of the few income-generating havens for investors.

Inflation in Turkey surpassed 85% in October for the first time in 25 years, and while the country’s central bank predicts it could fall to 65.2% by year’s end, price growth remains among the highest in the world.

Stocks have become favorites of Turkish investors. The number of stock trading accounts opened by private investors rose 32% this year to 3.1 million as of Nov. 18, according to Turkey’s Central Securities Depository.

According to Evren Kirikoglu, founder of Istanbul-based Sardis Research Consultancy, Turkish stocks are likely to remain attractive to investors for at least the first half of next year, even as inflation in the country begins to decline.

Earlier we reported that the U.S. stock market was up more than 1% for the day.

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US stock market news today: U.S. stock market closed with more than a percent gain

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US stock market news today. U.S. stock indices closed Tuesday, trading up more than 1 percent in anticipation of the Federal Reserve’s (Fed) November meeting minutes.

US stock market analysis

The Dow Jones Industrial Average gained 397.82 points (1.18 per cent) and was up 34098.1 points. Intel Corp (NASDAQ:INTC) and Salesforce (NYSE:CRM) Inc (+3%) were the top gainers among the index components. Only three of the 30 companies in the index’s calculation finished with losses, including shares of Walt Disney Co (NYSE:DIS), which fell 1.4 percent.

Standard & Poor’s 500 rose 53.64 points (1.36%) to 4,003.58 points. The Nasdaq Composite added 149.9 points (1.36%) to 11174.41 points.

The Fed minutes will be released tonight. At its last meeting, the Fed once again raised the rate by 75 basis points and hinted at the possibility of a slowdown in rate hikes at later meetings.

On Monday, Federal Reserve Bank of Cleveland and San Francisco governors Loretta Mester and Mary Daly signaled that the Fed would slow the pace of interest rate hikes next month, while stressing that the need for further policy tightening remains.

Senior strategist at B. Riley Wealth Management Art Hogan recalled that the U.S. market will be closed Thursday due to the Thanksgiving holiday, and many traders will take Friday off, so trading volumes this week will be lower than usual.

“Under such conditions, moves in both directions are often particularly pronounced,” he said.

Market participants were also assessing corporate news.

Earlier we reported that stock markets in Europe are changing in different directions.

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