This week in business news, we're covering a range of topics from corporate leadership changes to international economic goals and the growing threat of online fraud. Let's dive in.
Kroger CEO Resigns After Conduct Inquiry
Rodney McMullen, the chair and CEO of Kroger, the largest US grocery chain, has resigned. This follows an internal investigation into his personal conduct, which Kroger stated was unrelated to the company's business operations. However, the investigation concluded that McMullen's conduct was inconsistent with Kroger's business ethics policy. An interim CEO and chair have been named, though their identities have not yet been released. Kroger also recently released their Q4 earnings, showing mixed results. While the company beat earnings per share (EPS) expectations, revenue fell, indicating a resilient performance amidst ongoing economic challenges.
“The Board takes ethics very seriously,” a Kroger spokesperson said. “We are committed to upholding the highest standards of conduct in all our business dealings.”
China Aims for 5% Growth Despite US Tariff Pressure
China is setting an ambitious economic growth target of 5% for 2025, defying pressure from US tariffs. Beijing also aims for a 4% GDP budget deficit, supported by a 'special action plan' designed to fuel consumption. This plan is seen as a strategic move to bolster the domestic economy and mitigate the impact of international trade tensions.
The focus on boosting consumption highlights China's shift towards a more domestically driven growth model. Whether they can reach that goal given current global headwinds remains to be seen.
Deepfakes and Crypto: A Growing Threat
A massive fraud network operating from Georgia has been exposed for using deepfakes, cash, and cryptocurrency to scam over 6,000 people, including vulnerable nursing home residents and pensioners. The scammers reportedly conned savers out of $35 million.
The use of deepfakes is particularly alarming, as it allows scammers to impersonate real people and create highly convincing fake advertisements. Broadcaster Ben Fogle recently highlighted a deepfake of himself from ITV’s *This Morning* circulating on Facebook and advertising crypto as a scam. "Not sure I need to highlight this," Fogle posted on Instagram, "but the deepfake of me... advertising crypto is a scam."
This case serves as a stark reminder of the increasing sophistication of online fraud and the importance of vigilance in protecting oneself from these scams. Always be skeptical of online advertisements, especially those involving cryptocurrency or investment opportunities, and verify the authenticity of any information before making a financial decision.