Highlights of the week of July 31 - August 6
This past week was marked by major economic events and a major tragedy in Asia.
U.S. credit rating downgraded
During the night of August 1 to 2, Fitch downgraded the credit rating of the United States from AAA to AA+. The reason for the downgrade is the uncontrolled accumulation of public debt. However, Fitch points out not only that but also that the country's policy does not provide for medium-term measures to reduce it.
A downgrade of one level is not critical enough to set off alarm bells. Some financial analysts believe that this is more a case of increased caution on the part of rating agencies after the events of 2008 when inflated indicators prevented them from seeing the real picture.
Investors in bonds should be concerned as their portfolios will now need to be rebalanced, but for others, there will be no significant changes.
The "Big Resignation" is over
Experts note that the phenomenon that began in America in 2021 has almost come to an end. The mass movement that caused 41 million people to quit their jobs in the United States alone in 2021 and another 50 million in 2022 has spread to Europe.
Recent studies show that employee turnover and layoffs are gradually returning to pre-pandemic levels. Of course, it's impossible to say that such a massive movement, covering almost the entire world, has simply come to an end. But there is a downward trend.
Significant improvements in working conditions are largely responsible for this. Employers are much more interested in maintaining and normalizing physical and mental health. Companies are investing heavily in maintaining stability in the workplace.
Work itself has also become more flexible. Options for part-time or fully remote work have emerged. Mass retraining is another related phenomenon. During the pandemic and the heyday of remote work, people were actively changing specialties to those that would help them earn money from home.
There's also general job satisfaction. It is growing due to the combined effect of all the above factors. In Luxembourg, however, the situation is different: job satisfaction has been declining for the last 8 years.
The train derailed in Pakistan
Railroad derailments are not rare in Pakistan. The transportation network here is as old as that in neighboring India.
Another tragedy occurred today 275 kilometers from Karachi, the largest city in southern Pakistan. The Hazara Express overturned near the Sahara station in Nawabshah. Eight coaches were derailed from the tracks.
Initial investigations indicate that the train was traveling at the permitted speed, but the real cause of the disaster is still unknown. Officials say 30 people were killed and at least 80 injured in the accident.
The injured are being taken to the nearest hospitals. Rescue operations continue at the site.
