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Federal Reserve facing criticism from Bernanke and Yellen about their policies

In the last one year, the Federal Reserve officials of the United States have been becoming more and more open about everything that the monetary policy is not able to do for the growth of the economy. In the month of November for instance, the chair of Fed Jay Powell had made a suggestion that Congress must consider the ways of helping in training the workers or making it easier for the women to exist in the labor force. Ben Bernanke and Janet Yellen who are the Former chairs of the Fed are now sending one more message. In case a downturn is on the horizon, there may be a chance that the Fed will not be able to deal with it alone. The monetary policy although it does have a role to play meaningfully in the future slowdowns, there is a likelihood that this role is not going to be sufficient in the future as per Yellen who had been addressing a conference of the economists in San Diego this Sunday. Powell has been pleading for the structural policies which increase the ability of America to be growing over the longer-term despite the business cycle upturns and downturns. In contrast, Bernanke and Yellen have been concerned about the policies being cyclical and their ways of responding to a possible recession. That is because there is a decreased scope of any monetary stimulus. The natural rate of interest of United States which is the rate without intervention is higher than what it is in Europe and also in Japan. This reflects the higher economic growth levels in the United States although the rate has fallen in the last few decades to 0.6% in the end of 2019.

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Prices of Gold see a rise with tensions escalating

The prices of gold were at a level which was close to being a high of seven years on this Monday as the tensions escalated between Iran and United States and made the safe haven very attractive and in demand while palladium saw a rise of over $2000 level to reach a new peak.

Analysts have said that it is more of the anticipation regarding what might occur between Iran and United States as this is now being reflected in the markets. The uncertainty is impacting the markets even more as the investors are not sure. They also feel that if this issue is something that remains in the arena of politics and accusations are traded back and forth and threats are made then the impact on gold may not be one that lasts.

The bullion is seen often as an investment that is made as an alternative when there are times of financial and political uncertainty. The prices of gold have seen a gain of 3% after a top military commander of Iran had been killed in an airstrike on Friday which led to the widespread fears that a wider conflict of Middle East is imminent and that had prompted the investors to invest in safe havens over the risky assets.

The markets of equity had given up on the gains in the New Year amidst the tensions of Middle East intensifying will ye which is another safe haven saw a surge to a high of three months against dollar.

The president of United States had promised a major retaliation in the event of Iran hitting back and had also threatened the sanctions against the Middle East country.

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Leidos To Take Over Dynetics In A Deal Worth $1.65 Billion

Recently, defense contractor Leidos stated that it is obtaining Dynetics for $1.65 Billion since it looks for growth opportunities in hypersonics, autonomy, space solutions, and highly-developed sensors. Dynetics would become an entirely-owned unit of Virginia-based Leidos and will accelerate the company’s expansion in Alabama, where Dynetics is located. In the latest call with financiers, Leidos officials stated that Dynetics must add almost $1 Billion in yearly revenue in 2020 without irritating Leidos’ low rate of assets expenditures. Roger Krone, Leidos Chief Executive, and Chairman, asserted, “With Dynetics we are adding novel capabilities in higher-growth domains, generating opportunities to expand in attractive and complementary segments, counting hypersonics, space, and weapons solutions.”

Leidos anticipates the acquisition to close in the first quarter of the next year. Hypersonics and space solutions include around 25% of Dynetics’ proceeds. Kristina Hendrix, Dynetics Spokeswoman, stated that Dynetics—as a private firm—does not reveal its yearly revenue. Dynetics is developing the USA (Universal Stage Adapter) for NASA’s SLS (Space Launch System) and present structural requirement testing for ULA’s (United Launch Alliance) Vulcan rocket. Apparently, Dynetics is also providing the propulsion system to Astrobotics’ Peregrine lunar lander and is helping Maxar Technologies in developing the PPE (Power and Propulsion Element) for NASA’s Lunar Gateway space station.

On a similar note, lately, Leidos was in news for receiving FAA’s (Federal Aviation Administration) FFSP (Future Flight Services Program) agreement. Leidos was awarded a follow-on prime deal by the FAA to carry on serving the general aviation society under the FFSP agreement. Under this contract, Leidos would be helping the FAA to achieve its dream to makeover and modernize the delivery of flight briefing services by decreasing program expenditures, offering technology developments, and by joining hands with the broader aviation community.

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A Multimedia Business Girlboss Is Acquired By Attention Capital

The female-focused multimedia business, Girlboss, is being acquired by a new company, Attention Capital, which purchases, develops, and clambers up media brands. Girlboss was established by Sophia Amoruso and will be joining the Attention Capital as a founder partner. The deal terms are yet not disclosed but the company has stated that 100% of business is being acquired by Attention Capital. In 2017, $3.1 Million was raised by Girlboss from Lightspeed Venture Partners in venture capital funding

This latest release signifies the second exit by Amoruso, although her Nasty Gal transaction was more of a salvation feat. Nasty Gal saw a developing phase from a small eBay shop to a fashion giant with a pint when it witnessed over $300 Million in sales. Eventually, the firm also witnessed a decline and in 2016, a Chapter 11 bankruptcy protection was filed after obtaining $65 Million during its functioning of 10 Years.

Nasty Gal was procured for $20 Million in 2017. Amoruso, in the interim, was directing a new and analogous venture-supported business, which took life from #GIRLBOSS, her book’s success, which the firm stated has sold over 500,000 copies since its release in 2014. In a statement, Amoruso stated, “Girlboss is developed on the notion of powering expansion through the community.”

Managing Partner and Co-founder of Attention Capital, Ashlyn Gentry, said, “Girlboss is a globally recognized brand that is reclassifying what it signifies to be entrepreneurial—it is not merely establishing your own business, it is about taking risks, making a career switch, seeking for that next role, and taking measures into the unfamiliar.”

Likewise, a majority share in Smartly.io Solutions Oy, a social video advertising technology provider, will be bought by Providence Equity Partners LLC as the private-equity company bets that more marketing dollars will be spent by the brands on Facebook in addition to other social platforms. €200 million will be invested by Providence in Smartly.io located in Helsinki, valuing the firm at €300 Million, as per the resources.