headlines...by halloapp

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12-05-2023

TECH

• AT&T has selected Ericsson over Nokia for a $14 billion network revamp, causing Nokia’s stock to plummet.

• Meta and IBM have partnered to launch the AI Alliance, an industry body focused on open innovation and open science in AI. The alliance aims to advance areas such as AI trust, validation metrics, and open-source AI models. Over 50 organizations are involved in the initiative.

• Ofcom has proposed that UK porn sites use age verification measures, such as face scanning or photo ID, to prevent children from accessing explicit content. Privacy concerns have been raised. The regulations are expected to be enforced in 2025.

• IBM has introduced Quantum System Two, a new quantum computing chip, and outlined a roadmap for the development of larger quantum machines by 2033.

• Twilio, a communications company, will lay off around 5% of its workforce, or approximately 300 employees, to achieve profitable growth.

• Call center software provider Five9 Inc. is exploring a potential sale, including discussions with Zoom, two years after a failed takeover deal.

• Apple has requested an exemption or delay from India’s proposed law requiring universal charging ports on existing iPhones, citing manufacturing and production concerns.

• Nvidia plans to partner with Japanese firms to build semiconductor plants in Japan to meet the demand for AI processors.

• Harvard University is accused of suppressing a whistleblower’s research on Facebook’s disinformation after receiving a $500 million donation from Mark Zuckerberg.

• Intel has won an appeal to overturn a $2.18 billion patent-infringement verdict against VLSI Technology, with a new trial ordered.

MEDIA

• Spotify is laying off 1,500 employees, or 17% of its workforce, to reduce costs amid an economic slowdown.

• Israel intensifies its bombing in Gaza, causing mass casualties and displacement, as it expands its ground offensive further south.

• Spanish media outlets have filed a €550 million ($598 million) lawsuit against Meta Platforms, accusing the company of violating data protection laws and engaging in unfair competition in the advertising market. The lawsuit claims that Meta used personal data without user consent, giving it an unfair advantage.

• Expelled ex-congressman George Santos joins Cameo, selling personalized videos for $200 after being expelled from Congress.

• At 78 years old, Brenda Lee’s ”Rockin’ Around the Christmas Tree” tops the Billboard Hot 100 chart, breaking records.

• The Premier League has sold its UK broadcast rights for £6.7 billion to Sky Sports and TNT Sports, making it the richest deal in UK sports media history. The new deal will start in the 2025/26 season and will include increased live game coverage. Amazon Prime Video has lost its rights in this deal.

• A check signed by Steve Jobs in 1976 to Radio Shack is expected to sell for over $20,000 at auction.

• Māori party MPs sparked a translation debate by using a word that can mean both “Charles” and “skin rash” to describe King Charles III during the opening of parliament. Indigenous Māori lawmakers protested the oath to the king, while thousands of protesters rallied against perceived racist policies of the new government.

• YouTuber Trevor Daniel Jacob sentenced to 6 months in prison for staging a plane crash in California for a YouTube video, destroying evidence, and obstructing investigation.

CONSUMER

• German retailers have low expectations for Christmas sales due to weak demand, while UK retailers struggle with weak sales and rising prices.

• Jonathan Anderson, creative director of Loewe, wins Designer of the Year at the Fashion Awards in London. Other winners include Maxmilian Davis and Martine Rose.

• Italian luxury group Ermenegildo Zegna plans to achieve over 10% annual sales growth and double profit growth after acquiring Tom Ford Fashion.

• The global digital textile printing inks market is expected to reach USD 3,793 million by 2030, with Europe leading the market. The global market for technical textiles is projected to reach $276.8 billion by 2030.

• Lakehouse Global Growth Fund and Baron Fifth Avenue Growth Fund both highlight MercadoLibre as a promising investment opportunity in their investor letters.

REAL ESTATE

• Fewer prospective homebuyers are waiting for home prices and interest rates to fall, indicating acceptance of current market conditions.

• Mortgage refinance rates have declined, with the average rate for a 30-year fixed mortgage at 7.59% and 15-year fixed at 6.84%.

• China’s visa-free travel policy for select European countries and Malaysia has led to a 39% increase in daily average tourist numbers.

• Hong Kong court grants China Evergrande a two-month extension to negotiate with foreign investors over defaulted debt, postponing liquidation petition.

ECONOMIC

• President Biden’s request for $106 billion in supplemental funding, including aid for Ukraine, remains stuck in Congress. Ukraine’s President Zelenskiy will address the Senate to appeal for quick approval of emergency military aid. The White House warns that military funding for Ukraine is running out, which could hinder their defense against Russia.

• Wall Street analysts have lowered Q4 earnings forecasts for S&P 500 companies, but the market remains optimistic about 2024 earnings. Stifel’s chief equity strategist, Barry Bannister, predicts the S&P 500 will reach 4,650 by mid-2024, driven by a shift to cyclical value sectors. RBC Capital Markets strategist Lori Calvasina predicts the S&P 500 could reach 5,300 points next year. However, there are concerns about inflation, interest rates, and potential yield curve inversion. The S&P 500 is close to reaching new all-time highs, with resistance at the 4,600 level. BofA predicts the S&P 500 to reach 5,000 by the end of 2024.

• The Supreme Court is hearing the case of Moore v. U.S., which challenges a tax provision and could impact proposed wealth taxes and the current tax system. Former GOP speaker Paul Ryan warns of potential consequences.

• Israeli authorities are investigating claims of possible insider trading and profiting from Israeli securities before the October 7 Hamas attack.

• The London Stock Exchange experienced multiple outages, disrupting trading in small-cap stocks, with investigations ongoing.

• US factory orders fell 3.6% in October, the largest monthly drop in three and a half years, due to weakening demand for durable goods and transportation equipment. French industrial production also declined by 0.3% in October.

• UK government plans to reduce immigration by raising salary thresholds for work visas and implementing restrictions on bringing family members.

• Swiss private bank Banque Pictet has admitted to helping US taxpayers hide $5.6 billion from the IRS and will pay $122.9 million in fines.

CRYPTO

• US cryptocurrency firms, including Coinbase, have spent a record $18.9 million on lobbying in 2023 to repair their reputation and address regulatory scrutiny.

• Riot Platforms buys 66,000 bitcoin miners from MicroBT for $290.5M, aiming to ramp up hash rate and expand operations.

• Itaú Unibanco, Brazil’s largest bank, has introduced a cryptocurrency trading service, starting with Bitcoin and Ethereum, and plans to expand to other assets.

• El Salvador’s President affirms they will not sell their bitcoin holdings, as the country’s investment is now profitable, gaining $3.6 million.