MEF BUSINESS NEWS 13 MARCH 2024 US inflation exceeded expectations for a second month in February, driven by increases in prices for used cars, air travel, and clothing. The core consumer price index rose by 0.4% from January and 3.8% from the previous year, while the overall CPI increased by 0.4% from January and 3.2% from a year ago. These figures reinforce the Federal Reserve’s cautious approach to interest rate cuts. ———————————- While in Europe ECB Governing Council member Pierre Wunsch stated that policymakers may need to lower borrowing costs before being certain inflation will reach the 2% target. He emphasized the need to act soon based on the downward trend in inflation, suggesting a decision could be made shortly. ———————— UK unemployment rose to 3.9% in January, up from 3.8% in December, while wage growth slowed to 5.6% from 5.8% —reflecting a larger impact from the recession in the last half of 2023. Economists had expected unemployment to remain flat and wage growth to slow to 5.7%. Pay excluding bonuses also dipped from 6.2% to 6.1%. Additionally, advertised vacancies fell by 43,000. ——————— Signa’s luxury unit, co-owner of London’s Selfridges, proposes a 30% repayment to creditors in its restructuring plan, Bloomberg reports citing a document it has seen. Initial repayment stands at 30%, with potential additional payments from asset sales. The administrator acknowledges €3.1 billion out of €10.8 billion in creditor claims. Signa administrator is awaiting a creditor vote on March 18 in Vienna. ———————— Meanwhile, the creditor committee rejected selling Signa’s Austrian properties to Schoeller Group, complicating the restructuring efforts. Negotiations ongoing on selling assets like Park Hyatt hotel and Golden Quarter. Deal with Schoeller would address loan claims and aid in selling German properties. Signa, which controlled Austrian billionaire’s Rene Benko’s empire, is imploding in one of the largest real estate failures since the global financial crisis. ———————— Cathay Pacific reported its highest annual profits in over a decade, as demand rebounds. Net profit in 2023 was of $1.25 billion. The surge in travels following the easing of pandemic restrictions in China contributed to the turnaround from the previous year’s loss.Cathay expects to reach 80% of pre-pandemic passenger flights by the second quarter of this year. ————————- Global dividends hit a record $1.66 trillion in 2023, with a 5% increase driven largely by the banking sector, a Janus Henderson research revealed. The asset management group expects another record high in 2024, up 3.9% from the previous year. ————————- ————————- MEF MOBILE NEWS 13 MARCH 2024 DreamSmart Group, the smartphone maker turned AI developer, is planning a Hong Kong IPO valued at over $2.1 billion. Owned by Zhejiang Geely, it’s targeting up to $2.8 billion valuation. Founded as Meizu, it was a pioneer in China’s smartphone industry. Discussions ongoing, details may change. ———————————- Italy’s government is closely monitoring the situation in Telecom Italia, recognizing the pressure it faces on the stock market. Prime Minister Giorgia Meloni acknowledged the complexity of the issue, expressing concern about potential destabilizing effects. The plummeting prices raise the possibility of dismantling the national incumbent. Notably, not all assets are safeguarded by the so called “golden power” rule, the special power of the Italian government to limit or stop foreign direct investments and corporate transactions involving Italian strategic assets. The market capitalization of Telecom Italia has dwindled to 3.2 billion euros for ordinary shares and 1.3 billion euros for savings shares. This is overshadowed by the value of the share in Tim Brasil alone, which now exceeds Telecom Italia’s entire market capitalization. The shares debacle coincided with Tim’s management presenting a three-year plan to analysts, including the potential sale of the operator’s network to the US fund KKR by summer. ————————— Verizon’s 2023 Consumer Connections Report highlighted TikTok and YouTube as top mobile apps, with a 129% increase in total mobile network traffic. US users spent approximately 1 hour 42 minutes daily on TikTok, 1 hour on YouTube, and 39 minutes on Facebook. Video accounted for 47% of mobile traffic, and city-level monthly mobile smartphone usage increased by 34%. —————————- CyberProtonics has teamed up with TELCLOUD to integrate quantum encryption technology into TELCLOUD’s services for sectors like emergency services and banking. The partnership ensures secure phone calls for millions of TELCLOUD customers, with CyberProtonics’ encryption offering fast speed and high performance without operational burdens. ————————— Viasat and Deutsche Telekom expanded Viasat’s European Aviation Network ground network to improve in-flight broadband in the Eastern Mediterranean. Three new ground stations supplement over 300 existing sites. AEGEAN offers free Wi-Fi on Airbus A320 and A321 flights, benefiting over one million passengers since 2022. ————————— BT Group partnered with Broadpeak to enhance its MAUD live content streaming solution, targeting better quality and reliability. Broadpeak’s nanoCDN multicast ABR system will integrate into BT’s routers, improving efficiency by grouping individual streams. Trials for the upgraded offering are slated for later this year. —————————- —————————- MEF TECH NEWS 13 MARCH 2024 Today the European Union Parliament is poised to pass the AI Act, the landmark legislation regulating artificial intelligence. In the absence of any legislation from the US, the EU Act could set the tone for how AI is governed in the Western world. While some companies fear it’s too strict and others argue it’s not comprehensive enough, the Act aims to address concerns about bias, privacy, and risks associated with AI. It includes bans on using AI for emotion detection in workplaces and schools, and introduces the first regulations on generative AI tools like ChatGPT. ——————- And Apple will permit iPhone apps to be downloaded directly from developers’ websites for the first time, complying with European regulators. The move, announced yesterday, follows developer pressure to distribute software outside the App Store, posing a threat to Apple’s $85 billion services business. Developers can offer only their own apps on an alternative app store and directly promote to customers. Effective immediately for European customers, this marks a rare instance of government officials forcing significant changes to Apple’s platform and business practices. —————— TikTok plans to exhaust all legal challenges before considering any divestiture from its Chinese parent company, ByteDance, Bloomberg reports citing people familiar with the matter. The company is responding to the latest US legislation targeting the app. A sale is seen as a last resort for ByteDance, requiring approval from the Chinese government, which opposes forced sales. TikTok’s CEO lobbied against the bill on Capitol Hill, which advanced through a key committee and faces a vote in the US House of Representatives. The company will continue to advocate its case in the Senate, where the bill lacks co- sponsorship. —————— It sounds like a Sci-fi book or film but it isn’t. Physical Intelligence, a startup founded by robotics and AI experts, aims to bridge the gap between AI and physical machines. With a universal model, the company plans to add high-level intelligence to various robots and machines, expanding their capabilities beyond traditional tasks. CEO Karol Hausman., in a an interviews with Bloomberg News envisioned their software empowering any physical device for diverse applications. —————— SiFive, a chip designer rivaling Arm, aims to increase its licensing revenue to $60 million this year, with $180 million in lifetime royalty deals. The company faced a net operating loss of $113.1million. Like Arm, SiFive earns revenue mainly from licensing and royalty agreements, where customers pay for chip blueprints and technology access, along with royalties for product use. ——————- Japanese startup Space One, backed by Canon, suffered a setback as its first rocket, the Kairos, failed to reach space. The lightweight rocket exploded shortly after liftoff. The company stated that a self-destruct order was issued about five seconds after launch. No injuries were reported, and all debris fell within the compound. An investigation will determine the cause, affecting future launches.
MEF BUSINESS NEWS 13 MARCH 2024 US inflation exceeded expectations for a second month in February, driven by increases in prices for used cars, air travel, and clothing. The core consumer price index rose by 0.4% from January and 3.8% from the previous year, while the overall CPI increased by 0.4% from January and 3.2% from a year ago. These figures reinforce the Federal Reserve’s cautious approach to interest rate cuts. ———————————- While in Europe ECB Governing Council member Pierre Wunsch stated that policymakers may need to lower borrowing costs before being certain inflation will reach the 2% target. He emphasized the need to act soon based on the downward trend in inflation, suggesting a decision could be made shortly. ———————— UK unemployment rose to 3.9% in January, up from 3.8% in December, while wage growth slowed to 5.6% from 5.8% —reflecting a larger impact from the recession in the last half of 2023. Economists had expected unemployment to remain flat and wage growth to slow to 5.7%. Pay excluding bonuses also dipped from 6.2% to 6.1%. Additionally, advertised vacancies fell by 43,000. ——————— Signa’s luxury unit, co-owner of London’s Selfridges, proposes a 30% repayment to creditors in its restructuring plan, Bloomberg reports citing a document it has seen. Initial repayment stands at 30%, with potential additional payments from asset sales. The administrator acknowledges €3.1 billion out of €10.8 billion in creditor claims. Signa administrator is awaiting a creditor vote on March 18 in Vienna. ———————— Meanwhile, the creditor committee rejected selling Signa’s Austrian properties to Schoeller Group, complicating the restructuring efforts. Negotiations ongoing on selling assets like Park Hyatt hotel and Golden Quarter. Deal with Schoeller would address loan claims and aid in selling German properties. Signa, which controlled Austrian billionaire’s Rene Benko’s empire, is imploding in one of the largest real estate failures since the global financial crisis. ———————— Cathay Pacific reported its highest annual profits in over a decade, as demand rebounds. Net profit in 2023 was of $1.25 billion. The surge in travels following the easing of pandemic restrictions in China contributed to the turnaround from the previous year’s loss.Cathay expects to reach 80% of pre-pandemic passenger flights by the second quarter of this year. ————————- Global dividends hit a record $1.66 trillion in 2023, with a 5% increase driven largely by the banking sector, a Janus Henderson research revealed. The asset management group expects another record high in 2024, up 3.9% from the previous year. ————————- ————————- MEF MOBILE NEWS 13 MARCH 2024 DreamSmart Group, the smartphone maker turned AI developer, is planning a Hong Kong IPO valued at over $2.1 billion. Owned by Zhejiang Geely, it’s targeting up to $2.8 billion valuation. Founded as Meizu, it was a pioneer in China’s smartphone industry. Discussions ongoing, details may change. ———————————- Italy’s government is closely monitoring the situation in Telecom Italia, recognizing the pressure it faces on the stock market. Prime Minister Giorgia Meloni acknowledged the complexity of the issue, expressing concern about potential destabilizing effects. The plummeting prices raise the possibility of dismantling the national incumbent. Notably, not all assets are safeguarded by the so called “golden power” rule, the special power of the Italian government to limit or stop foreign direct investments and corporate transactions involving Italian strategic assets. The market capitalization of Telecom Italia has dwindled to 3.2 billion euros for ordinary shares and 1.3 billion euros for savings shares. This is overshadowed by the value of the share in Tim Brasil alone, which now exceeds Telecom Italia’s entire market capitalization. The shares debacle coincided with Tim’s management presenting a three-year plan to analysts, including the potential sale of the operator’s network to the US fund KKR by summer. ————————— Verizon’s 2023 Consumer Connections Report highlighted TikTok and YouTube as top mobile apps, with a 129% increase in total mobile network traffic. US users spent approximately 1 hour 42 minutes daily on TikTok, 1 hour on YouTube, and 39 minutes on Facebook. Video accounted for 47% of mobile traffic, and city-level monthly mobile smartphone usage increased by 34%. —————————- CyberProtonics has teamed up with TELCLOUD to integrate quantum encryption technology into TELCLOUD’s services for sectors like emergency services and banking. The partnership ensures secure phone calls for millions of TELCLOUD customers, with CyberProtonics’ encryption offering fast speed and high performance without operational burdens. ————————— Viasat and Deutsche Telekom expanded Viasat’s European Aviation Network ground network to improve in-flight broadband in the Eastern Mediterranean. Three new ground stations supplement over 300 existing sites. AEGEAN offers free Wi-Fi on Airbus A320 and A321 flights, benefiting over one million passengers since 2022. ————————— BT Group partnered with Broadpeak to enhance its MAUD live content streaming solution, targeting better quality and reliability. Broadpeak’s nanoCDN multicast ABR system will integrate into BT’s routers, improving efficiency by grouping individual streams. Trials for the upgraded offering are slated for later this year. —————————- —————————- MEF TECH NEWS 13 MARCH 2024 Today the European Union Parliament is poised to pass the AI Act, the landmark legislation regulating artificial intelligence. In the absence of any legislation from the US, the EU Act could set the tone for how AI is governed in the Western world. While some companies fear it’s too strict and others argue it’s not comprehensive enough, the Act aims to address concerns about bias, privacy, and risks associated with AI. It includes bans on using AI for emotion detection in workplaces and schools, and introduces the first regulations on generative AI tools like ChatGPT. ——————- And Apple will permit iPhone apps to be downloaded directly from developers’ websites for the first time, complying with European regulators. The move, announced yesterday, follows developer pressure to distribute software outside the App Store, posing a threat to Apple’s $85 billion services business. Developers can offer only their own apps on an alternative app store and directly promote to customers. Effective immediately for European customers, this marks a rare instance of government officials forcing significant changes to Apple’s platform and business practices. —————— TikTok plans to exhaust all legal challenges before considering any divestiture from its Chinese parent company, ByteDance, Bloomberg reports citing people familiar with the matter. The company is responding to the latest US legislation targeting the app. A sale is seen as a last resort for ByteDance, requiring approval from the Chinese government, which opposes forced sales. TikTok’s CEO lobbied against the bill on Capitol Hill, which advanced through a key committee and faces a vote in the US House of Representatives. The company will continue to advocate its case in the Senate, where the bill lacks co- sponsorship. —————— It sounds like a Sci-fi book or film but it isn’t. Physical Intelligence, a startup founded by robotics and AI experts, aims to bridge the gap between AI and physical machines. With a universal model, the company plans to add high-level intelligence to various robots and machines, expanding their capabilities beyond traditional tasks. CEO Karol Hausman., in a an interviews with Bloomberg News envisioned their software empowering any physical device for diverse applications. —————— SiFive, a chip designer rivaling Arm, aims to increase its licensing revenue to $60 million this year, with $180 million in lifetime royalty deals. The company faced a net operating loss of $113.1million. Like Arm, SiFive earns revenue mainly from licensing and royalty agreements, where customers pay for chip blueprints and technology access, along with royalties for product use. ——————- Japanese startup Space One, backed by Canon, suffered a setback as its first rocket, the Kairos, failed to reach space. The lightweight rocket exploded shortly after liftoff. The company stated that a self-destruct order was issued about five seconds after launch. No injuries were reported, and all debris fell within the compound. An investigation will determine the cause, affecting future launches.