MEF BUSINESS NEWS 10 DECEMBER 2024 Chinese stocks and bonds surged today after the government pledged to adopt “moderately loose” monetary policies to revive growth in the world’s second-largest economy. The CSI 300 stock index jumped as much as 3.3% at the opening bell before closing 1.4% higher, while yields on 10-year government bonds fell to a record low reflecting expectations of further central bank rate cuts. The market rally followed a meeting of the politburo, chaired by President Xi Jinping, where leaders promised “unconventional” measures to stabilize the stock market and property sector. They also announced plans for “more proactive” fiscal policy and efforts to “vigorously boost consumption.” The moves come as Beijing grapples with slowing growth. Trade data for November showed a 3.9% year-on-year drop in imports, the steepest decline since February, while consumer prices rose just 0.2%, underscoring deflationary pressures. ——————————————— Rupert Murdoch’s effort to modify the family trust and secure control of the media empire for his eldest son, Lachlan, has been halted by a Nevada court. The sealed ruling, disclosed over the weekend, found Rupert and Lachlan acted in “bad faith” in seeking changes that would sideline Lachlan’s siblings, a source familiar with the case told the Financial Times. The decision, seen as a major win for Murdoch’s other children—James, Elisabeth, and Prudence—prevents them from losing influence over the multibillion-dollar enterprise after Rupert’s death. In a joint statement, the three siblings welcomed the ruling and expressed hope for repairing family ties. —————————————— South African politicians and activists have criticized McKinsey’s $122 million settlement over bribery at state firms Eskom and Transnet, calling it insufficient to address corruption. The consulting firm admitted to paying bribes between 2012 and 2016 to secure contracts, contributing to the near-collapse of both companies during the Zuma presidency. The funds will be shared by US and South African authorities, but critics demand stronger action against systemic corruption. —————————————————— Meanwhile, McKinsey is reducing new partner admissions to about 200, half the number from recent years, as it seeks to streamline its leadership amid slowing demand for consulting services, the Wall Street Journal reports citing people familiar with the matter. With 3,000 partners among 45,000 employees, the firm launched a task force to address governance issues, including leadership term limits. Global Managing Partner Bob Sternfels emphasized individualized evaluations over quotas. —— —— MEF MOBILE NEWS 10 DECEMBER 2024 The CEOs of Comcast and T-Mobile warned of weaker fourth-quarter results, sparking declines in their stocks and other broadband providers. Comcast shares fell 9.2% to $39.16, becoming the S&P 500’s worst performer on Monday. CEO David Watson revealed the company expects to lose over 100,000 broadband subscribers this quarter. ——————————- J.P. Morgan upgraded Nokia to “Overweight” from “Neutral,” citing expected growth in telecom investments and an expanded partnership with Microsoft. The bank increased Nokia’s price target to €6.05, reflecting confidence in its 2025 profit potential. Nokia is set to benefit from renewed U.S. telecom spending, a 5G investment wave in India, and its strengthened role in Microsoft’s cloud infrastructure, recently renewing a multi-year Azure contract spanning over 30 countries — Jp Morgan analysts underscores. Additionally, Nokia signed a deal with Deutsche Telekom to deploy Open RAN at 3,000 German sites and continues to grow in defense markets, particularly with NATO allies. Meanwhile, Microsoft is advancing its AI offerings, unveiling autonomous “agents” and integrating its AI assistant, Copilot, across Windows and Microsoft 365 to enhance user productivity. —————————— U.S. agencies will brief House lawmakers today about China’s alleged cyber espionage campaign, “Salt Typhoon,” targeting American telecommunications firms to steal call data and metadata, officials told media. The FBI, ODNI, FCC, NSC, and CISA will participate in the classified briefing, following a similar session with senators last week. The White House confirmed that at least eight U.S. telecom firms were affected, compromising metadata from many Americans. While the White House declined further comment, Democratic Senator Ron Wyden said he is drafting legislation, and Senator Bob Casey expressed concern, noting Congress may not act on the issue until next year. ———————————————— Orange has partnered with La Poste to repurpose network equipment used in the Paris 2024 Olympics, aiming to reduce digital waste and environmental impact. Starting in 2025, 90% of Wi-Fi terminals, 78% of switches, and other telecom gear will be installed across La Poste locations, including Nantes’ Maison de l’Innovation, supporting over 800 IT staff. The equipment, used briefly during the games, has been rigorously tested for durability. Both companies align this initiative with their shared goal of achieving net-zero carbon by 2040. Orange Business CEO Aliette Mousnier-Lompre called it a showcase of technical expertise, while La Poste’s Philippe Bajou emphasized its commitment to sustainable digitalization. —— —— MEF TECH NEWS 10 DECEMBER 2024 Experts say a major technical breakthrough in quantum computing, claimed by Google, could pave the way for full-scale systems by the decade’s end. Google announced it had addressed the instability of quantum systems, a critical challenge, and detailed a more powerful quantum chip integral to the milestone. First revealed informally in August, the findings were published Monday in Nature, drawing comparisons to the 1942 demonstration of the first man-made nuclear chain reaction—another theoretical achievement requiring years of technological progress. The breakthrough signals growing optimism in the pursuit of practical quantum computers. ——————————————- China has launched an antitrust investigation into U.S. chip giant Nvidia, signaling deepening tensions with the U.S. over advanced technologies like artificial intelligence. The probe, reported by state media, alleges violations of China’s anti-monopoly law and examines Nvidia’s compliance with commitments made during its $6.9 billion acquisition of Mellanox in 2020, a deal pivotal to Nvidia’s expansion into data centers and high-performance computing. Nvidia’s AI chips dominate the global market, but U.S. export controls have limited the sale of its advanced GPUs to China, fueling a black market for the technology. Analysts suggest the investigation may be politically motivated, coinciding with escalating U.S.-China tech competition. Last week, the U.S. tightened export restrictions on advanced chips, prompting Beijing to retaliate with an embargo on critical materials, impacting Nvidia’s local competitors like Huawei. ————————————————- Omnicom will acquire Interpublic in a stock deal worth over $13 billion, forming the world’s largest advertising business with combined 2023 net revenue exceeding $20 billion. The merger, confirmed Monday, brings together iconic agencies like TBWA Worldwide and McCann Worldgroup, whose clients include Amazon, PepsiCo, and Volkswagen. The deal aims to strengthen the company’s position against tech giants Google and Meta, which are leveraging generative AI to expand into creative brand development—a key area for traditional ad agencies. ———————————————— Games Workshop has finalized an agreement with Amazon Content Services for exclusive film and series adaptations of its Warhammer 40,000 universe. The deal also allows Amazon the option to license rights to the Warhammer fantasy universe after initial productions. While financial terms remain undisclosed, Games Workshop cautioned fans that content development could take years. The U.K.-based company reaffirmed its fiscal year guidance through June 1.

MEF BUSINESS NEWS 10 DECEMBER 2024 Chinese stocks and bonds surged today after the government pledged to adopt “moderately loose” monetary policies to revive growth in the world’s second-largest economy. The CSI 300 stock index jumped as much as 3.3% at the opening bell before closing 1.4% higher, while yields on 10-year government bonds fell to a record low reflecting expectations of further central bank rate cuts. The market rally followed a meeting of the politburo, chaired by President Xi Jinping, where leaders promised “unconventional” measures to stabilize the stock market and property sector. They also announced plans for “more proactive” fiscal policy and efforts to “vigorously boost consumption.” The moves come as Beijing grapples with slowing growth. Trade data for November showed a 3.9% year-on-year drop in imports, the steepest decline since February, while consumer prices rose just 0.2%, underscoring deflationary pressures. ——————————————— Rupert Murdoch’s effort to modify the family trust and secure control of the media empire for his eldest son, Lachlan, has been halted by a Nevada court. The sealed ruling, disclosed over the weekend, found Rupert and Lachlan acted in “bad faith” in seeking changes that would sideline Lachlan’s siblings, a source familiar with the case told the Financial Times. The decision, seen as a major win for Murdoch’s other children—James, Elisabeth, and Prudence—prevents them from losing influence over the multibillion-dollar enterprise after Rupert’s death. In a joint statement, the three siblings welcomed the ruling and expressed hope for repairing family ties. —————————————— South African politicians and activists have criticized McKinsey’s $122 million settlement over bribery at state firms Eskom and Transnet, calling it insufficient to address corruption. The consulting firm admitted to paying bribes between 2012 and 2016 to secure contracts, contributing to the near-collapse of both companies during the Zuma presidency. The funds will be shared by US and South African authorities, but critics demand stronger action against systemic corruption. —————————————————— Meanwhile, McKinsey is reducing new partner admissions to about 200, half the number from recent years, as it seeks to streamline its leadership amid slowing demand for consulting services, the Wall Street Journal reports citing people familiar with the matter. With 3,000 partners among 45,000 employees, the firm launched a task force to address governance issues, including leadership term limits. Global Managing Partner Bob Sternfels emphasized individualized evaluations over quotas. —— —— MEF MOBILE NEWS 10 DECEMBER 2024 The CEOs of Comcast and T-Mobile warned of weaker fourth-quarter results, sparking declines in their stocks and other broadband providers. Comcast shares fell 9.2% to $39.16, becoming the S&P 500’s worst performer on Monday. CEO David Watson revealed the company expects to lose over 100,000 broadband subscribers this quarter. ——————————- J.P. Morgan upgraded Nokia to “Overweight” from “Neutral,” citing expected growth in telecom investments and an expanded partnership with Microsoft. The bank increased Nokia’s price target to €6.05, reflecting confidence in its 2025 profit potential. Nokia is set to benefit from renewed U.S. telecom spending, a 5G investment wave in India, and its strengthened role in Microsoft’s cloud infrastructure, recently renewing a multi-year Azure contract spanning over 30 countries — Jp Morgan analysts underscores. Additionally, Nokia signed a deal with Deutsche Telekom to deploy Open RAN at 3,000 German sites and continues to grow in defense markets, particularly with NATO allies. Meanwhile, Microsoft is advancing its AI offerings, unveiling autonomous “agents” and integrating its AI assistant, Copilot, across Windows and Microsoft 365 to enhance user productivity. —————————— U.S. agencies will brief House lawmakers today about China’s alleged cyber espionage campaign, “Salt Typhoon,” targeting American telecommunications firms to steal call data and metadata, officials told media. The FBI, ODNI, FCC, NSC, and CISA will participate in the classified briefing, following a similar session with senators last week. The White House confirmed that at least eight U.S. telecom firms were affected, compromising metadata from many Americans. While the White House declined further comment, Democratic Senator Ron Wyden said he is drafting legislation, and Senator Bob Casey expressed concern, noting Congress may not act on the issue until next year. ———————————————— Orange has partnered with La Poste to repurpose network equipment used in the Paris 2024 Olympics, aiming to reduce digital waste and environmental impact. Starting in 2025, 90% of Wi-Fi terminals, 78% of switches, and other telecom gear will be installed across La Poste locations, including Nantes’ Maison de l’Innovation, supporting over 800 IT staff. The equipment, used briefly during the games, has been rigorously tested for durability. Both companies align this initiative with their shared goal of achieving net-zero carbon by 2040. Orange Business CEO Aliette Mousnier-Lompre called it a showcase of technical expertise, while La Poste’s Philippe Bajou emphasized its commitment to sustainable digitalization. —— —— MEF TECH NEWS 10 DECEMBER 2024 Experts say a major technical breakthrough in quantum computing, claimed by Google, could pave the way for full-scale systems by the decade’s end. Google announced it had addressed the instability of quantum systems, a critical challenge, and detailed a more powerful quantum chip integral to the milestone. First revealed informally in August, the findings were published Monday in Nature, drawing comparisons to the 1942 demonstration of the first man-made nuclear chain reaction—another theoretical achievement requiring years of technological progress. The breakthrough signals growing optimism in the pursuit of practical quantum computers. ——————————————- China has launched an antitrust investigation into U.S. chip giant Nvidia, signaling deepening tensions with the U.S. over advanced technologies like artificial intelligence. The probe, reported by state media, alleges violations of China’s anti-monopoly law and examines Nvidia’s compliance with commitments made during its $6.9 billion acquisition of Mellanox in 2020, a deal pivotal to Nvidia’s expansion into data centers and high-performance computing. Nvidia’s AI chips dominate the global market, but U.S. export controls have limited the sale of its advanced GPUs to China, fueling a black market for the technology. Analysts suggest the investigation may be politically motivated, coinciding with escalating U.S.-China tech competition. Last week, the U.S. tightened export restrictions on advanced chips, prompting Beijing to retaliate with an embargo on critical materials, impacting Nvidia’s local competitors like Huawei. ————————————————- Omnicom will acquire Interpublic in a stock deal worth over $13 billion, forming the world’s largest advertising business with combined 2023 net revenue exceeding $20 billion. The merger, confirmed Monday, brings together iconic agencies like TBWA Worldwide and McCann Worldgroup, whose clients include Amazon, PepsiCo, and Volkswagen. The deal aims to strengthen the company’s position against tech giants Google and Meta, which are leveraging generative AI to expand into creative brand development—a key area for traditional ad agencies. ———————————————— Games Workshop has finalized an agreement with Amazon Content Services for exclusive film and series adaptations of its Warhammer 40,000 universe. The deal also allows Amazon the option to license rights to the Warhammer fantasy universe after initial productions. While financial terms remain undisclosed, Games Workshop cautioned fans that content development could take years. The U.K.-based company reaffirmed its fiscal year guidance through June 1.