Day: 13 November 2023

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Xbox gaming platform goes offline

System outage

Microsoft has confirmed problems with accessing its Xbox gaming platform and Teams messaging app in the UK and Europe have now been resolved.

More than 1500 people in the UK reported issues with Xbox Live, according to the outage tracker Downdetector. A similar number also said there were problems with the Teams app.

It left some who had purchased the latest game in the Call of Duty series unable to play. But Microsoft said this had since been fixed.

An artificial increase in synthetic network traffic – whatever that is

On X, Microsoft said the services were impacted by ‘an artificial increase in synthetic network traffic’. Could someone please explain to me what this actually means…? Microsoft went on to say: ‘We’ve made configuration changes to remediate impact and after monitoring the service, we’ve confirmed the issue is now resolved.’ Microsoft previously said it had ‘identified some anomalies within our network infrastructure’. Really, what do these explanations actually explain?

Problem unique to UK & Europe

The problem was unique to customers in the UK and Germany, Microsoft had said earlier on Friday, but it was also reported, on social media, that people in Sweden, Finland and Poland had been unable to access services.

There were reports from both of these countries on Downdetector, as well as other European countries.

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Ex-NatWest boss loses out on £7.6 million pay deal after Farage fiasco

Ex bank boss pay-deal

Dame Alison Rose, the former chief executive of NatWest Group, will lose out on £7.6m after she admitted to discussing the closure of Nigel Farage’s bank account with a BBC journalist.

Another word for getting the sack?

She ‘resigned’ from the banking group in July 2023, after the former Ukip leader complained about a BBC report that claimed his accounts with Coutts, a private bank owned by NatWest, were closed for commercial reasons.

Apology

The BBC later apologised and amended its story, saying that it had checked with a senior source, whom Dame Alison later confirmed was herself, that Mr Farage’s accounts were closed because he fell below Coutts’s wealth threshold.

The Information Commissioner’s Office (ICO) initially suggested that Dame Alison had breached data privacy laws by confirming Mr Farage’s banking arrangements, but later issued a formal apology, saying it was ‘incorrect’ and that it had not investigated her.

Pay deal of £2.4 million

Dame Alison will receive her £2.4 million fixed pay package but will not benefit from share awards and bonuses she had previously been entitled to. 

‘I’m sorry you didn’t get your full pay deal of £10 million – but I guess £2.4 million will help with Christmas this year’.

Her saga reportedly wiped £850m off the value of NatWest Group. The long-term damage to the bank and banking sector likely hasn’t been fully realised yet.

It’s about trust and privacy, isn’t it?

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UK economy flatlines

UK flatlined

The U.K. economy flatlined in the third quarter, initial figures showed Friday 10th November 2023.

Gross domestic product (GDP) showed zero quarterly growth in the three months to the end of September 2023, following an increase of 0.2% in the previous quarter. In annual terms, the UK’s Q3 GDP was 0.6% higher than in the same period in 2022.

Services sector output dropped 0.1% on the quarter, but the decline was offset by a 0.1% increase in construction performance, while the production sector flatlined.

U.K. Chancellor of the Exchequer Jeremy Hunt said high inflation remains the ‘single greatest barrier to economic growth’ in the country, with the consumer price index remaining at 6.7% year-on-year in September 2023.

UK economy flatlines as inflation sticks at 6.7% year-on-year as at September 2023.

‘The best way to sustainably grow our economy right now is to stick to our plan and knock inflation on its head’, Hunt reportedly said.

It’s useful to know the government have a plan, even though they were very late to the inflation party! Guess they were sidetracked with all the other parties at No.10!

‘The Autumn Statement will focus on how we get the economy growing healthily again by unlocking investment, getting people back into work and reforming our public services so we can deliver the growth our country needs’.

Up until September 2023, the Bank of England (BoE) raised interest rates 14 consecutive times to try to influence the UK ‘product and service’ price climb.

Red flags

Interest rates are now at a 15-year high of 5.25%, and are expected to remain high for some time to come. Bank Governor Andrew Bailey reportedly said last week it was ‘much too early’ to be considering rate cuts.

Thank you Governor Baily – it so comforting and reassuring to know that the very people who missed the red inflation flags are still in charge of policy.

Transitory?

Remember, the BoE and others originally suggested inflation would be transitory – I suppose it is, if given years to move back down. What did you think was going to happen after all that borrowing and the country crawling back to work after the pandemic.

Nice job guys! Don’t forget to collect your paycheque on the way out!

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Moody’s cuts U.S. outlook to negative

U.S. credit rating stable to negative

Moody’s, a credit rating agency, lowered its ratings outlook on the United States to negative from stable.

This means that Moody’s sees a higher risk of a downgrade in the future, which could affect the borrowing costs and confidence of the U.S. government.

Moody’s actions

The main reasons for Moody’s action are the rising deficits and debt levels of the U.S., as well as the continued political polarization that hampers effective policymaking. Moody’s also cited the impact of the Covid-19 pandemic and the recent failures of some U.S. banks as factors that have worsened the environment for the U.S. government and the banking system in general.

Warning!

Moody’s warned that the U.S.’s deficits are likely to remain ‘very large’. It also warned that ‘continued political turmoil or polarization’ in Congress further increases the risk the U.S. will not be able to reach consensus on a fiscal plan to slow the decline in debt affordability‘.

Moody’s still maintains a triple ‘A’ (AAA) credit rating on the U.S. government debt, which is the highest possible rating, but warns of the challenges and uncertainties that the U.S. faces in restoring its fiscal strength and stability.

The ‘AAA‘ rating is at risk.

U.S. government on brink of shutdown, again

The federal government is on the brink of another shutdown, with just a week left for the Republican-led House, Democratic-led Senate and Biden White House to reach a breakthrough on funding.

U.S. debt is at an all-time high!