what’s happening and what to expect in the future

In recent days, the US market has seen a significant decline in the shares of the largest companies. The situation has affected the gaming industry and computer hardware manufacturers. It got to the point that the head of Intel began to quote the Bible on social networks. In this article, we will understand what happened in the global market and how this situation will affect ordinary people.

The Scottish economist Adam Smith wrote in the 18th century that crises in capitalism are inevitable. Any economic growth will sooner or later stop, after which it will take some time to recover. A striking example is the financial crisis of 2008, the consequences of which were not recovered until 2013. Such situations have happened before and will certainly happen in the future. And although the economy normalizes after a while and returns to its previous level, during the crisis companies close their doors, people are laid off and plans for the future usually collapse. It is especially difficult for those who have loans and other financial obligations.

The conditions for a new crisis have been palpable for a long time. You have probably heard the news about the downsizing of game companies and the liquidation of studios. Major publishers understood that difficult times were ahead and tried to prepare for them in advance. After the growth that comes with the development of artificial intelligence and the recovery from the pandemic, the economy has entered a phase of technological instability, which can be called a harbinger of a crisis.

On August 5, the currency markets collapsed. It all started in Japan, where the main Nikkei 225 index of Tokyo fell by 12.4%. Markets in other countries followed suit. The main reason is the fear of a recession in the US against the background of weak macro statistics. In America itself, however, the decline in the main indices S&P 500, Dow Jones and NASDAQ Composite was less than that of Japan and amounted to about 3%. The loss of the Moscow Exchange index is slightly lower: 2.42%

According to many experts, it is too early to talk about the decline of the US economy. Moreover, the Federal Reserve is expected to cut interest rates in September, which will support the market. And the current situation is largely caused by investor panic, and not by objective reasons. Whether they are right or wrong, we will find out in the coming months. Note that on the morning of August 6, at the time of writing this article, the indices had already recovered somewhat from the fall.

The most difficult situation is at Intel, specialized in the production of processors. Since the beginning of the year, the value of its shares has fallen by 57%, with the most significant drop from August 1 to 2 and amounting to 35%. Most likely, this is just the beginning, and recent events on the currency exchanges will only aggravate the situation.

The crisis at Intel is caused by a combination of poor quality Intel Core processors that often fail, the suspension of dividend payments, the reorganization of several divisions and a resulting 15% reduction in staff.

On the evening of August 4, Intel CEO Pat Gelsinger published a quote from the Bible instead of a clear explanation of the situation. In Russian, it reads: “Let your eyes look straight and your eyelashes be straight toward you. Consider the path for your feet, and let all your ways be sure.” To be honest, prayer in this situation sounds like an expression of weakness and desperation. It is not surprising that they answer him in the spirit of “Abandon hope, all you who enter here.” This line from Dante Alighieri’s Divine Comedy is written above the gate leading to hell.

A similar situation is happening at Ubisoft. Announcements Star Wars Outlaws and Assassin’s Creed: Shadows did not cause an increase, but a decrease in the shares of the French company. Journalists mainly praise future projects, while ordinary users are skeptical about them. But they are the target group that should spend money on new Ubisoft games. Interestingly, the transfer of the location of the new “Assassin” to Japan was intended to attract its market, but players from the Land of the Rising Sun are critical of the project for gross violations of historical reality.