The Gig economy was just killed☠

Good afternoon! Today we will be covering a new acquisition by HP, a big shift in labor rules and continued oil tanker moves in the Red sea.

Reading time: 3 Min

M&A
🖥HP in talks to acquire Juniper Networks.

Hewlett Packard Enterprise (HPE) is reportedly in talks to acquire Juniper Networks in a potential $13 billion deal, aiming to enhance its artificial intelligence (AI) capabilities. The deal, expected to be announced this week, could strengthen HPE's position in the rapidly evolving tech landscape.

The move aligns with HPE's focus on AI, demonstrated by its cloud computing service for AI systems. Juniper, recognized for high-performance networking solutions, including AI-enabled operations and SDN technologies, would complement HPE's portfolio, marking a significant development in the tech industry.

LABOR
👷‍♂️Labor rule shift

The U.S. Department of Labor issued a final rule on Tuesday, requiring companies to treat some workers as employees instead of independent contractors. Expected to increase labor costs for industries relying on contract labor or freelancers, the rule applies when workers are "economically dependent" on a company. It stops short of California's more restrictive laws on independent contracting.

Set to take effect on March 11, the rule replaces a Trump-era regulation that facilitated the classification of workers as independent contractors. Critics argue it will hinder workers' flexibility and lead to litigation. Business groups and Republicans condemned the rule, with Senator Bill Cassidy planning a resolution to repeal it, claiming it would benefit labor unions.

Worker advocates praised the rule for ensuring essential protections for employees. The impact on app-based gig services, such as Uber and Lyft, has drawn significant attention, though these companies suggest it won't alter their business models significantly. The new rule might face legal challenges from trade groups and businesses opposed to its perceived tilt toward classifying workers as employees.

SHIPPING
🚢Stable Red Sea Shipping

Despite rising shipping costs due to attacks by Houthi militants, oil and fuel tanker traffic in the Red Sea remained stable in December, with an average of 76 tankers daily. The attacks have inflated shipping costs, and insurers' premiums but haven't significantly impacted oil flows.

While most shippers prefer the Red Sea route due to affordability, some, like BP and Equinor, are diverting cargoes to the longer route around Africa. Increased shipping costs are expected to boost U.S. crude exports to certain European buyers. Container ship traffic in the area has fallen 28% in December due to the attacks.

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