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Bitcoin (BTC) price expects record this week

Bitcoin (BTC) is set to hit an all-time high high before the end of the week, says Markus Thielen, head of research at 10x. “It is always important to track price movements over the weekend, even if it was attempted [liquidate] There are no sellers due to the leveraged long positions,” Thielen said in a note titled “Everyone will be surprised by Bitcoin’s price action this week.” The cryptocurrency hit a record in euro terms on Monday and was at press time on Tuesday trading at around $66,839, less than 3% below its all-time high in dollar terms of $69,000 reached in November 2021. The broader CoinDesk 20 Index (CD20) was 4.7% higher. Another rally could be on the way, according to Laurent Kssis, a crypto ETP specialist at CEC Capital. Buying pressure appears to be strong among retail investors as they view recent Bitcoin exchange-traded funds (ETF) spot inflows as an important moment of momentum. “The inflows are still very supportive and not quite over yet, which could and could continue to push the price higher in the cryptocurrency markets,” he said.

Deutsche Börse, the operator of Germany's largest stock exchange, has started a crypto spot trading platform for institutional clients, the company said in a statement on Tuesday. DBDX offers a fully regulated ecosystem for trading, settlement and custody of crypto assets, the company said. Trading on DBDX is initially based on a request for quotation (RFQ), followed by multilateral trading. Deutsche Börse will operate the trading venue and Crypto Finance will provide settlement and custody services.

Baanx, a cryptocurrency payments specialist authorized by the UK Financial Conduct Authority (FCA), has done so behaved $20 million in Series A funding round, the company announced on Tuesday. The investment, which included Ledger, the Tezos Foundation, Chiron and the British Business Bank, brings the crypto payments provider's total funding to over $30 million. London-based Baanx, which operates the Ledger card product, recently signed a three-year partnership with Mastercard for the UK and Europe. Big legacy payments companies like Mastercard and Visa are quietly exploring things like Ethereum payments, stablecoins and the Web3 world of non-custodial wallets – areas where Baanx offers seamless connectivity.

Bitcoin (BTC) price expects record this week Read More »

More and more repairs: Your devices are no longer as reliable as they used to be

Due to the lack of reliability of their household appliances, which break down just a few years after purchase, Quebec residents have no choice but to turn to repairers more often, although the costs can be high.

This was the case for Simon St-Pierre, who had to have his refrigerator repaired less than three years after purchasing it. Without warning, the device's compressor gave up the ghost. Not too practical with two small children.

“It's annoying. It should last longer, he says. This is the first time it's happened to me.

“It was explained to me [que] Today's refrigerators have smaller compressors than before. Because they exert more force, it breaks more.”

Appliance repairs have been very busy in recent years.

Since the introduction of electronic parts, household appliances have broken more easily. Photo provided by Daniel Gagné

When he realized that his refrigerator was no longer doing its job, he quickly switched to solution mode. At the end of the race he had to pay a bill of more than $400.

“If you pay more than $2,000 for a product, you shouldn't have to spend $400 a few years later,” he adds. There is no brand that is better than the other. The phenomenon is widespread. It’s a little disappointing.”

Another consumer also had a disturbing experience when his refrigerator decided to quit in January.

  • Listen to the interview with Marie-Ève ​​​​Bergeron, project manager at Protégez-Vous, on Mario Dumont's show about QUB :

On January 13, the brick company gave Vincent Duquette and his wife a repair date in 30 days.

“We panic a little, me and my partner. We're wondering how we're going to survive without a fridge for a month. Then I get an email telling me it won't be until March 8th! Luckily my parents had a small fridge in their garage and they lent it to us while we waited,” he says.

Lack of reliability

Although they cannot provide precise statistics, the four repair companies contacted by Le Journal agree. The unreliability of household appliances is one of the reasons for the increase in the number of calls.

Appliance repairs have been very busy in recent years.

Daniel Gagné believes that household appliances break down much more quickly than before. Photo provided by Daniel Gagné

“When I started 31 years ago, the first repairs only came after 17 years,” says Daniel Gagné, lead technician at Electro Clinic. We’re talking more than three or four years.”

“Over the years, companies have added parts and electronics to the devices. It’s more fragile than before.”

At Patrick Réhel, a repairer with 35 years of experience, the number of calls has increased by 15% in recent years.

“All brands fail in the first five years,” he says. The quality is no longer the same. It’s not as good as it used to be.”

“For example, a hose that was once made of rubber is now made of plastic. It breaks with the snap of a finger.”

The downside of technology

The presence of electronic components makes the appliances even more sensitive, said Sylvain Lebel, president of the Corporation of Household Appliance Technicians of Quebec (CTEQ).

“For this reason, it will break more often,” he points out. Current fluctuations are catastrophic for household appliances.”

“If a customer tells us about outages or recurring outages in their industry, that doesn’t bode well for their equipment.”

Appliance repairs have been very busy in recent years.

Sylvain Lebel, president of the Corporation of Household Appliance Technicians of Quebec, believes that electronics have changed the situation in terms of appliance reliability in recent years. Photo provided by Sylvain Lebel

He also sees customers who don't properly maintain their devices or use them appropriately.

“It’s also about certain manufacturers programming the lifespan of their devices,” mentions Lebel. There’s no point in doing that.”

“You can't screw up your product like that, especially if a customer is paying for an overpriced cooktop. Companies will not risk damaging their reputation.”

Repair or throw away?

Devices older than ten years are more difficult to repair due to the scarcity of available parts.

“I just told a customer that there’s nothing you can do with his refrigerator,” says Patrick Réhel. He had to spend $1,500 to extend the lifespan and he told me that was the price of a new unit.”

When repair costs exceed $1,500, technicians often advise customers to purchase a new unit. Then they are faced with a heartbreaking decision.

“There are many devices that we can no longer repair because the parts are no longer available from our suppliers,” says Asma Makhlouf, who works for Service 2000. “This forces our customers to buy new devices more often.”

–In collaboration with David Descôteaux

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Tesla factory in Germany halts production after suspected arson

March 5, 2024, 11:21 GMT

Updated 1 hour ago

image description,

Firefighters were at the Tesla factory on Tuesday morning to check safety

Tesla halted production at its car factory in the German capital Berlin on Tuesday morning after a suspected arson attack was carried out nearby.

A utility pole near the plant caught fire, causing power outages at the plant and surrounding towns.

Environmental activists protesting the expansion of the site denied responsibility for the fire.

Tesla said workers had been sent home but that the building was in a “safe condition.”

The fire did not reach the electric car maker's factory itself, but burned a power pole and high-voltage cables.

“The constitutional state will react to such an act of sabotage with the utmost severity,” said Brandenburg’s Interior Minister Michael Stübgen.

However, he warned against “hasty speculation” about who was responsible for the alleged arson.

Around 100 environmental activists are currently camping in the forest near the factory and protesting against the expansion.

Robin Wood, one of the environmental groups in the forest, told the BBC it had “nothing to do with the fire”.

Tesla wants to double the size of its factory – the only one in Europe – but demonstrators are against it because it would require felling surrounding trees.

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Protesters have set up treehouses in the forest near the factory

The Tesla factory currently produces around 500,000 cars a year – the company owned by Elon Musk wants to double this number.

“We cannot currently say when production can be expected to resume,” Tesla said in a statement to AFP news agency.

Tesla factory in Germany halts production after suspected arson Read More »

The FTQ and the Solidarity Fund are forcing the Finance Minister to bend

Big victory for the FTQ and the FTQ Solidarity Fund. They managed to push back the Legault government and its Finance Minister Eric Girard on their decision to prevent taxpayers with “high incomes” of $112,655 and above from benefiting from the attractive tax credits when investing in labor from this year 2024' Medium.

In fact, Finance Minister Eric Girard's office has just announced that the government is postponing for three years the entry into force of this new tax regime, which was intended to prevent “rich” taxpayers in Quebec from taking advantage of the tax relief benefits given to shareholders starting this year of the FTQ Fund and the Fondaction de la CSN.

While Quebec wanted to cut its credit by 15%, Ottawa had to follow suit and also cut its credit by 15%. These cuts will ultimately not take effect until 2027, giving “high-income” taxpayers three more years to invest up to $5,000 per year in employee funds and benefit from the 30% tax credits (up to $1,500). dollars/year).

  • Listen to the economy part with Michel Girard above QUB :

What a beautiful coincidence

You should know that on January 24, the two most senior leaders of the FTQ trade union center, President Magali Picard and Secretary General Denis Bolduc, registered as lobbyists to meet François Legault, Eric Girard and the members of their respective companies. With what lobbying mandate? “Removal of the taxable income cap ($112,656) for eligibility for the 15% provincial tax credit for employee funds,” says the Carrefour Lobby Québec website.

Why did the Legault government want to prohibit high-income taxpayers in Quebec from benefiting from 30% tax credits on RRSP contributions from the Fonds FTQ and Fondaction CSN?

“This change, effective from tax year 2024, will provide access to the tax credit to approximately 60,000 savers whose taxable income is less than or equal to the threshold for the final taxable income bracket,” we explained in Treasury Secretary Eric Girard's March 2023 budget.

Since there are annual caps on share subscriptions in the two workers' funds, the Legault government assumed that by preventing the “rich” from investing in them with the intention of benefiting from tax credits, enough space would be freed up for 60,000 new savers with modest incomes Provide the opportunity to invest in employee funds.

According to the latest tax statistics (year 2020) published by the Quebec Ministry of Finance, this year around 86,200 taxpayers with incomes of $100,000 or more had invested part of their savings in employee funds, i.e. about $355 million. I calculated that they had shared $53.2 million in provincial tax credits and of course the same amount in federal tax credits, for a total of $106 million in savings. Taxes on their contributions to employee funds.

  • Listen to the economy part with Michel Girard above QUB :

Why is Quebec moving backwards?

The senior leaders of the FTQ and the FTQ Solidarity Fund made an offer that François Legault and his financier Eric Girard could not refuse!

What offer? The FTQ Solidarity Fund will invest heavily in housing if the government postpones for several years the entry into force of the regulation that prohibits high-income taxpayers from redeeming tax credits from employees' funds.

Deal done! As evidence: “In order to allow employee funds to attract more capital to increase their investments, especially in housing, the entry into force of this regulation is postponed for three years,” says the press release from the office of Minister Eric Girard.

And Janie C. Béïque, President and CEO of the Fonds de solidarité FTQ, added regarding the three-year postponement of the rule prohibiting the rich from investing in the fund: “The fund will thus be able to transfer its shares to the benefit of to increase socio-economic development, particularly by investing millions of dollars more this year in the construction of new housing in Quebec. »

In fact, we are talking about an investment by the Fonds de solidarité FTQ of at least $100 million in the construction of new housing.

This shows that the contribution of the “rich” to workers’ funds makes it possible to invest meaningfully in Quebec’s economy.

The FTQ and the Solidarity Fund are forcing the Finance Minister to bend Read More »

New beginning in the management of Ivanhoé Cambridge

The wave of resignations at the top of Ivanhoé Cambridge, the real estate subsidiary of the Caisse de dépôt etplacement du Québec (CDPQ), continues. This time it concerns Christian Daumann, as the head of his office in Berlin found out The newspaper.

For five days, since March 1, the former Ivanhoé Cambridge strongman in Germany has been acting as CEO of the German operations of QSix, a major real estate company based in London with offices in Amsterdam and Berlin. In a press release, QSix praises his extensive experience, his contact book and his enviable political connections.

Christian Daumann was commissioned by the Caisse's real estate subsidiary in September 2019 with, among other things, the task of opening an official branch of Ivanhoé Cambridge in Berlin. Under his leadership, Ivanhoé's portfolio in that country tripled and accounted for more than 10% of its European portfolio ($20 billion).

Ivanhoe is silent

The circumstances of his departure last November and the treatment Mr. Daumann has received since then are now jealously kept secret by Ivanhoé's Montreal management as the latter endures one of the worst crises in its history.

Resignations follow one another at Ivanhoé Cambridge, the real estate subsidiary of the Caisse de dépôt etplacement du Québec.  After announcing the departures of its CEO Nathalie Palladitcheff and its number one in Europe and Asia-Pacific Karim Habra, Ivanhoé confirmed to us yesterday the departure of Christian Daumann, head of its activities in Germany.

Christian Daumann, former Vice President Investments at Ivanhoé Cambridge in Germany. Photo: Ivanhoe Cambridge Photo Ivanhoe Cambridge

On Monday, Ivanhoé Cambridge refused to grant us an interview on the subject. However, his management confirmed via email Mr. Daumann's departure and his intention to continue his activities in that country.

“There are currently three Ivanhoé Cambridge employees based in Germany and we would like to reiterate that this country remains an important location for us,” the company responded.

Resignations follow one another at Ivanhoé Cambridge, the real estate subsidiary of the Caisse de dépôt etplacement du Québec.  After announcing the departures of its CEO Nathalie Palladitcheff and its number one in Europe and Asia-Pacific Karim Habra, Ivanhoé confirmed to us yesterday the departure of Christian Daumann, head of its activities in Germany.

Nathalie Palladitcheff, CEO of Ivanhoé Cambridge ARCHIVE PHOTO, QMI AGENCE

On the other hand, CDPQ's real estate department has not given an answer about the future of its Berlin office (will it remain open?). Nor with regard to the intention to find a successor to head the Berlin office.

The same veil was served to us in response to the following questions: Did Mr. Daumann leave of his own accord? Did he receive a severance package? If yes, how much please? The only answer was a six-word sentence: “We have nothing to add.”

Third start

Confirmation of this departure comes at a time when anxiety is at its peak among the 490 Ivanhoé Cambridge employees still working in Montreal and elsewhere around the world. The announced integration of the organization into the Caisse de dépôt gives rise to fears of the worst.

Resignations follow one another at Ivanhoé Cambridge, the real estate subsidiary of the Caisse de dépôt etplacement du Québec.  After announcing the departures of its CEO Nathalie Palladitcheff and its number one in Europe and Asia-Pacific Karim Habra, Ivanhoé confirmed to us yesterday the departure of Christian Daumann, head of its activities in Germany.

The CEO of the Caisse de dépôt etplacement du Québec, Charles Emond. Archive photo, Francis Halin

Two weeks ago, while presenting the 2023 financial results, Caisse de dépôt president Charles Emond warned that there would be significant layoffs in the coming months.

After announcing the repatriation of its activities within the CDPQ, the parent company, President and CEO Nathalie Palladitcheff, announced her resignation in January. The latter will leave her position at the end of April without severance pay, according to a press release. Ms Palladitcheff has so far refused to talk about her professional future.

Resignations follow one another at Ivanhoé Cambridge, the real estate subsidiary of the Caisse de dépôt etplacement du Québec.  After announcing the departures of its CEO Nathalie Palladitcheff and its number one in Europe and Asia-Pacific Karim Habra, Ivanhoé confirmed to us yesterday the departure of Christian Daumann, head of its activities in Germany.

Karim Habra, former Head of Europe and Co-Head of Asia Pacific, Ivanhoé Cambridge Photo: Ivanhoe Cambridge Photo Ivanhoe Cambridge

Last week we also announced the resignation of Karim Habra, Ivanhoé Cambridge's head of Europe and Asia Pacific. Based in Paris, he was responsible for 76 employees in Paris, London, Berlin, Sydney, Singapore, Shanghai and Mumbai.

Ivanhoé claims his departure was voluntary and no severance payment was officially paid to him. Just like Mr. Daumann, whom he himself had appointed to manage the company's activities in Germany, Mr. Habra has not yet been replaced.

Real estate assets of the Caisse de dépôt etplacement du Québec

  • CDPQ's total assets*: $434 billion
  • Ivanhoé Cambridge Real Estate Assets: 77 billion dollars

*Total value, including Ivanhoé Cambridge portfolio, as of December 31, 2023.

Source: CDPQ and Ivanhoe Cambridge

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Biden will create a joint FTC-DOJ task force to crack down on “unfair and illegal pricing.”

Federal Trade Commission Chairwoman Lina Khan testifies before a House Judiciary Committee hearing on oversight of the Federal Trade Commission on Capitol Hill on July 13, 2023 in Washington, DC.

Kevin Worm | Portal

“We are pleased to co-chair the President’s new Strike Force on Unfair and Illegal Pricing, building on the FTC’s extensive work to promote competition and combat unlawful business practices that drive up costs for Americans.” FTC Chairwoman Lina Khan told reporters on a call Monday.

Jonathan Kanter, assistant attorney general for antitrust, will co-chair the task force with Khan.

“Here at the Department of Justice, we are taking on some of the most powerful corporations in the world so we can improve the lives of American families,” Kanter said on the call.

Jonathan Kanter, Assistant Attorney General for the Justice Department's Antitrust Division, arrives at the federal courthouse in Washington, DC on September 12, 2023.

Kevin Dietsch | Getty Images

On Tuesday afternoon, Biden will convene the sixth formal meeting of the White House Competition Council, a group of senior officials across the government tasked with rooting out anticompetitive practices across a wide range of industries.

“Over the last year, supply chains have returned to normal and inflation has fallen,” Lael Brainard, director of the National Economic Council, said on the call. “Some companies are not passing these savings on to consumers…President Biden is fed up with corporate practices that unfairly increase costs for consumers, and he is taking action.”

Before the council meeting, the Consumer Financial Protection Bureau will publish a final rule to reduce late fees on credit cards. The Department of Agriculture will also publish final protections for farmers from potentially discriminatory processing practices.

The announcements and meeting are part of Biden's ongoing crusade against companies' pricing practices, which he believes are unfair. The White House believes they directly contribute to the public perception that the economy is doing poorly, even though data objectively points to a strong U.S. economy.

“The Competition Council and its members have worked to reduce the cost of everything from hearing aids to asthma inhalers to epi-pens to air travel,” Brainard said.

Federal Reserve Vice Chair Lael Brainard speaks during an interview in Washington, DC, Monday, November 14, 2022.

Andrew Harrer | Bloomberg | Getty Images

However, the question remains as to exactly what measures regulators can take to crack down on companies that exercise their pricing power more aggressively than others.

“Across these agencies, there are dozens of laws that can come into play in certain situations when high prices harm consumers,” a senior administration official said on Monday’s conference call. “And it depends on how and when.”

Biden has pointed to “price gouging” and “shrinkflation” as two examples of corporate pricing strategies that keep profits high even as wholesale and transportation costs fall.

But two months into the election year, the narrative of a strong economy may finally be gaining traction among voters who have not yet given Biden credit for the economy's soft landing. Instead, they blamed him for the increased cost of living following the pandemic.

Four new surveys released over the weekend pointed to signs of growing economic optimism among respondents.

Still, the polls showed Biden trailing his likely opponent in November, twice-impeached former President Donald Trump, in a hypothetical head-to-head contest.

Biden will create a joint FTC-DOJ task force to crack down on “unfair and illegal pricing.” Read More »

How much does owning a chalet really cost?

The stay-at-home order imposed during the pandemic has led many to relocate outside the city. This led to an increase in demand for chalets, which was reflected in a sharp increase in prices. Even properties in poor condition were often offered at inflated prices.

Owning a second home isn't cheap. Here is a brief summary of the costs involved. You must weight these amounts according to the characteristics of the property, i.e. the type of construction, the location, the distance to travel, etc. This way you can assess whether it fits your budget.

What the purchase costs

  • Assessment report: Document to determine the market value of the chalet. These costs are generally borne by the financial institution that wants to ensure the real value of the property.
  • Inspection before purchase: If you miss viewing the chalet, it is like buying with your eyes closed, you are taking a big risk. The cost is between $600 and $900.
  • Water analysis: If the holiday home is not connected to a municipal water distribution network but to an underground source, carry out a drinking water analysis. The cost is around $100.
  • Septic installation: If the chalet is not connected to a wastewater recovery network, carry out a septic tank inspection. The cost of this process depends on the type of installation.
  • Notary: Fees for a simple transaction range from $900 to $1,500.
  • CMHC Insurance: If your down payment is less than 20% of the purchase price, you will need to purchase CMHC insurance, with a premium ranging from 0.6% to 4.5% of the mortgage amount.
  • Household contents insurance: The amount of the premium depends on the coverage selected.
  • Transfer tasks: Commonly known as the welcome tax, the tax varies depending on the municipality and the price paid.

To hold it

  • Property tax and school tax: The amounts are determined according to the municipal valuation of the land and the building.
  • Maintenance and repairs: Costs required to keep the holiday home in good condition.
  • Services: Electricity, gas, internet and other services required.
  • Condominium fees: If the chalet is part of a condominium complex, budget for the costs of maintaining the common areas.
  • Snow removal costs: Some home insurance companies require the fire department to have access to the property at all times.
  • Landscaping and lawn mowing costs.

to live in

  • Heating and air conditioning: Depending on the seasons, energy sources are used to ensure the comfort of the rooms.
  • Housekeeping: Costs to ensure the cleanliness of the premises, especially if the chalet is rented.
  • Renovation: Expenses to carry out modernization or improvement work in terms of comfort and aesthetics.
  • Traveling expenses: Costs for travel to and from your primary residence.

Other property-related costs

  • Administrative and advertising fees: Costs that you will have to bear if you use the services of a company that takes care of the rental of the chalet.
  • Legal fees: If you ever need to resolve a dispute or need legal advice regarding the property.
  • Income tax, accounting service: If you rent the chalet, just like when selling it, you will need to prepare an income and expense statement that you can include in your tax return.

Diploma

You need to be very careful when purchasing a chalet, especially if it has not been built recently.

When purchasing, seriously consider the rental option. The tourism industry, heavily supported by Quebec government advertising campaigns, experiences strong growth in both summer and winter. “Quebec is expected to welcome almost 100 million tourists in 2026,” said Ms. Proulx, tourism minister for La Belle province. Obviously, the cabin in Canada remains an irresistible attraction in Europe, especially for our French cousins. Take advantage of it!

Advice

► Be careful of crowds when looking for a chalet.

► Add a pre-purchase inspection clause to the offer submitted to the seller.

► Keep all invoices and receipts for your expenses that you include with your tax return

► Before buying a chalet you like, talk to the neighbors to find out more about the location, surroundings, etc.

How much does owning a chalet really cost? Read More »

Sea shares are rising after big spending helps the company fight TikTok

(Bloomberg) – Sea Ltd. posted its highest gain in more than a month after the company reported adjusted quarterly profit and a better-than-expected outlook for 2024, suggesting the company is making progress in fending off stubborn rivals such as TikTok and Alibaba's Lazada.

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U.S. stocks rose as much as 14% before closing up about 5.6%, their highest since August. E-commerce gross merchandise volume, or the value of goods sold, rose a better-than-expected 29%. Sea now forecasts GMV will rise in the “high teens” this year, which will help it report earnings before interest, taxes, depreciation and amortization.

The results allay some concerns about the prospects for online retail arm Shopee, which competes with ByteDance Ltd.'s TikTok, Alibaba Group Holding Ltd.'s Lazada. and newer entrants like Temu in a slowing Southeast Asian market. In December, TikTok relaunched its hit shopping app in Indonesia after it signed a deal with GoTo Group's e-commerce division Tokopedia, creating a partnership that threatens Shopee's dominance.

“This shows management’s confidence in maintaining market share while spending wisely,” said Alicia Yap, an analyst at Citigroup. “In addition to the gradual reduction in shipping subsidies, improving monetization rates through higher commission rates and increasing advertising revenues are also contributing to the rapid turnaround in Ebitda.”

Despite strong results, the sea is sinking after the rally: Street Wrap

Southeast Asia's largest internet company posted adjusted earnings before interest, taxes, depreciation and amortization of $126.7 million in the fourth quarter ended December. While that's a 74% decline from last year due to marketing spending, it's still above the $88 million forecast by analysts. Sales rose 4.8%, also exceeding estimates.

The story goes on

Read more: Sea, Grab face slowest online growth in Southeast Asia in years

But marketing costs remain high, said Nathan Naidu, an analyst at Bloomberg Intelligence. Aggressive promotions from TikTok Shop, Shein and PDD Holdings Inc. Temu prompted Sea to invest in live shopping in particular, Naidu wrote in a note.

Although growth rates are significantly lower than a few years ago, the results show Shopee is still attracting shoppers as online shopping continues to grow in popularity among more than 650 million people.

“We have seen a more stable competitive landscape in recent quarters,” Chief Financial Officer Tony Hou said in a conference call. “Even with the most intense competition in recent quarters, we have been able to gain market share while improving our unique economics.”

Sea's other major company, gaming arm Garena, is benefiting from continued demand for its hit title Free Fire. Last month, Free Fire reached more than 100 million daily active users and Sea said the game's users and bookings will grow in “double digits” this year. Still, the gaming division's fourth-quarter revenue fell 46.2% to $510.8 million without a new blockbuster hit.

Read more: Sea's road to profit is paved by layoffs and single-ply toilet paper

To cope with intense competition, Sea Chief Executive Officer Forrest Li said in August he planned to increase investment in Shopee. He's ramping up efforts to expand his live-streaming division, an aggressive move that could squeeze margins and trigger a price war with TikTok and Alibaba. He argued that this was necessary to defend his market share.

Since then, investors have been looking for clues as to whether Sea might be sacrificing its margins to fend off deep-pocketed rivals TikTok and Temu.

In 2022, Sea launched an aggressive cost-cutting campaign to turn a profit, focusing on the bottom line as revenue growth slowed from previous years' triple-digit percentages. The company froze salaries and cut spending by hundreds of millions of dollars to achieve positive cash flows.

What Bloomberg Intelligence says:

Sea's renewed acceleration of investment in Southeast Asian e-commerce appears necessary to defend its market share against encroachments from TikTok Shop and Pinduoduos Temu. This should bring revenue growth back up to speed after a deliberate slowdown to reach break-even, but will likely put downward pressure on profits, particularly as digital banks ramp up.

-Nathan Naidu, Analyst

Click here to research

– With support from Molly Schütz.

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