MEF BUSINESS NEWS 12 FEB 2025 Federal Reserve Chair Jerome Powell told the U.S. Senate Banking Committee the central bank is in no hurry to cut interest rates, emphasizing the need for patience as the economy remains strong. He warned that easing policy too quickly could stall inflation progress, while moving too slowly could weaken growth. Markets largely maintained expectations for a rate cut by September. Powell also addressed economic uncertainty linked to President Donald Trump’s trade and immigration policies, which could impact inflation and labor supply. On financial regulation, he reaffirmed the Fed’s commitment to global banking standards. Powell is set to testify before the House Financial Services Committee today. —————————— A benchmark for Chinese technology stocks has surged more than 20% in the past month, entering a bull market as investors flock to China’s internet companies following the AI breakthrough by DeepSeek. The Hang Seng Tech index, which tracks Hong Kong’s 30 largest tech firms, has risen 25% since hitting a low on January 13. The rally reflects renewed foreign investor interest in China after DeepSeek’s AI model sparked a global reappraisal of Chinese tech. —————————— The United States may retaliate against European environmental, social, and governance regulations with “trade tools,” warned Howard Lutnick, Donald Trump’s nominee for commerce secretary. According to Bloomberg, which cites a document posted on the Senate Committee of Commerce, Lutnick criticized the European Union’s Corporate Sustainability Due Diligence Directive, telling Republican senators it unfairly affects American businesses. The directive holds companies responsible for violations in their supply chains and requires large foreign firms to comply if they operate in Europe. —————————————- The European Commission is considering a temporary cap on gas prices as part of a strategy to support heavy industries, the Financial Times reports, citing three people familiar with the matter. European gas prices, now three to four times higher than in the U.S., have surged due to cold weather and weak renewable energy output. However, industry groups warn the move could undermine market trust and drive global gas trade outside the EU. Some member states, including Germany and the Netherlands, remain reluctant to support the proposal. ————————- Italy’s banking system is in an M&A frenzy, with Banco BPM raising its bid for asset manager Anima to €7 per share, up from €6.20. The move aims to expand Banco BPM’s life insurance and asset management business, creating a firm with €220 billion in assets under management. However, Banco is also fending off an unsolicited takeover bid from UniCredit, complicating its pursuit of Anima. CEO Giuseppe Castagna has rejected UniCredit’s offer as too low. The Italian takeover laws restrict strategic moves by companies facing acquisition attempts. —— —— MEF MOBILE NEWS 12 FEB 2025 A Treasury-led consortium submitted a new binding bid for Telecom Italia’s (TIM) subsea cable business, Sparkle, confirming a valuation of 700 million euros, Reuters reports citing sources close to the matter. This follows an earlier offer made in December. Sparkle’s 600,000km cable network, spanning Europe, the Mediterranean, and the Americas, is considered of strategic importance by Italian authorities. TIM extended the deadline for agreeing to the sale until mid-March after financing details were unresolved. The new bid is 50% debt-financed and no longer dependent on financing conditions. TIM’s board will review the proposal and its 2024 earnings strategy today, with the offer valid until February 14. ————————————- Orange has partnered with Mistral AI to advance AI adoption in Europe, aiming to develop optimal network infrastructure for the technology. The two companies will collaborate on R&D, assessing AI’s impact on telecom networks and defining future technological roadmaps. Their goal is to ensure efficient access to advanced AI solutions, addressing connectivity and graphics processing unit (GPU) challenges. In particular, the partnership targets the evolution of telecom infrastructure for omnimodal AI by 2025, which integrates various data types for minimal latency. In addition, Mistral’s AI will be incorporated into Orange’s services like Le Chat Pro and Codestral. The announcement coincided with a two-day AI summit in Paris, where President Macron unveiled plans for €110 billion in AI investments to strengthen Europe’s competitiveness with the US and China. ———————————— Vodafone Business IoT has expanded its Middle East presence through a partnership with Saudi telecom Mobily. The deal allows Vodafone’s customers to access Mobily’s network, providing reliable IoT connectivity across Saudi Arabia. Businesses using Vodafone’s Global SIM+ eSIM service can now benefit from cross-border connectivity. Vodafone’s IoT unit currently partners with over 760 networks worldwide. ———————— Revelations of Israeli spyware abuse have raised concerns about its potential use by the US under Trump, the Guardian reported. WhatsApp said that 90 users were targeted by spyware from Paragon Solutions, sparking fears about the misuse of such technology. Paragon, which licenses its spyware to governments, terminated a contract with Italy for violating terms. The US was linked to the company through a $2 million contract with Immigration and Customs Enforcement, raising concerns about cyberweapons’ use in domestic surveillance. Experts warn of growing risks to civil liberties. ———————————— President Donald Trump may revive his proposal for the US to acquire Nokia or Ericsson, two dominant players in the mobile network equipment sector, according to a Financial Times insight opinion by Richard Milne. The idea was initially suggested in 2020 by Attorney General William Barr, driven by the US’s absence in telecom infrastructure, a critical area for both business and national security. Despite recent profitability struggles, both companies have sought closer ties with the US, and Trump’s proposal could help the US secure a stronger position in the global mobile ecosystem, particularly as it continues to contend with Huawei’s influence, the FT article reads. —— —— MEF TECH NEWS 12 FEB 2025 US Vice President JD Vance warned Europe against over-regulating artificial intelligence, as the US and UK declined to sign a global declaration at the AI Action summit in Paris. The declaration, backed by 60 countries, aims to ensure AI is safe and ethical. Vance argued excessive regulation could stifle innovation and emphasized America’s desire to lead in AI development. He also cautioned against AI deals with “authoritarian regimes.” Meanwhile, European leaders unveiled €200 billion in AI investments but face challenges in balancing innovation with regulation. ————————————— SoftBank swings to a loss ahead of its big AI bet with OpenAI. The company lost ¥369.2 billion ($2.4 billion) in the December quarter, mainly because of a volatile market that hurt its Vision Fund holdings, including stakes in Coupang and Didi. This marks a setback for Masayoshi Son’s plans as he teams up with OpenAI’s Sam Altman to raise $500 billion for the Stargate AI project. Despite the losses, Son is exploring innovative financing options, potentially raising 10% of the total funding via equity and securing the remainder with senior loans. ————————————— Alibaba’s stock jumped as much as 8.6% following reports that it is collaborating with Apple to introduce AI features in China. This marks Alibaba’s largest gain since September, fueled by news that both companies have submitted AI features for approval to China’s cyberspace regulator. The move could secure Alibaba’s AI presence on the iPhone, boosting its stock, which is up more than 30% in 2025. Apple is seeking a strong local partner in Alibaba to compete with rivals like Huawei in the AI smartphone market, as it works to revive its sales in China. ————————————— Apple is renaming the Gulf of Mexico to the Gulf of America on its Maps app, following a directive from US President Donald Trump. This change aligns with the US government’s updated map and follows a similar update by Google Maps. Microsoft’s Bing Maps and MapQuest have not yet made the change. Apple’s update is initially available in the US, with a global rollout expected soon. While Republican lawmakers have praised the change, critics, including users and the Mexican government, have expressed disapproval, arguing that the US cannot unilaterally rename the shared body of water. ————————————— Leading AI assistants, including ChatGPT, Copilot, Gemini, and Perplexity, often generate significant inaccuracies when answering questions about current affairs, according to research by the BBC. Over half of AI-generated answers contained errors such as misidentifying politicians in office, distorting expert advice, and confusing opinions with facts. Examples include wrongly stating that Rishi Sunak and Nicola Sturgeon were still in office, and misrepresenting NHS vaping advice. The findings raised concerns about AI’s ability to provide accurate news
MEF BUSINESS NEWS 12 FEB 2025 Federal Reserve Chair Jerome Powell told the U.S. Senate Banking Committee the central bank is in no hurry to cut interest rates, emphasizing the need for patience as the economy remains strong. He warned that easing policy too quickly could stall inflation progress, while moving too slowly could weaken growth. Markets largely maintained expectations for a rate cut by September. Powell also addressed economic uncertainty linked to President Donald Trump’s trade and immigration policies, which could impact inflation and labor supply. On financial regulation, he reaffirmed the Fed’s commitment to global banking standards. Powell is set to testify before the House Financial Services Committee today. —————————— A benchmark for Chinese technology stocks has surged more than 20% in the past month, entering a bull market as investors flock to China’s internet companies following the AI breakthrough by DeepSeek. The Hang Seng Tech index, which tracks Hong Kong’s 30 largest tech firms, has risen 25% since hitting a low on January 13. The rally reflects renewed foreign investor interest in China after DeepSeek’s AI model sparked a global reappraisal of Chinese tech. —————————— The United States may retaliate against European environmental, social, and governance regulations with “trade tools,” warned Howard Lutnick, Donald Trump’s nominee for commerce secretary. According to Bloomberg, which cites a document posted on the Senate Committee of Commerce, Lutnick criticized the European Union’s Corporate Sustainability Due Diligence Directive, telling Republican senators it unfairly affects American businesses. The directive holds companies responsible for violations in their supply chains and requires large foreign firms to comply if they operate in Europe. —————————————- The European Commission is considering a temporary cap on gas prices as part of a strategy to support heavy industries, the Financial Times reports, citing three people familiar with the matter. European gas prices, now three to four times higher than in the U.S., have surged due to cold weather and weak renewable energy output. However, industry groups warn the move could undermine market trust and drive global gas trade outside the EU. Some member states, including Germany and the Netherlands, remain reluctant to support the proposal. ————————- Italy’s banking system is in an M&A frenzy, with Banco BPM raising its bid for asset manager Anima to €7 per share, up from €6.20. The move aims to expand Banco BPM’s life insurance and asset management business, creating a firm with €220 billion in assets under management. However, Banco is also fending off an unsolicited takeover bid from UniCredit, complicating its pursuit of Anima. CEO Giuseppe Castagna has rejected UniCredit’s offer as too low. The Italian takeover laws restrict strategic moves by companies facing acquisition attempts. —— —— MEF MOBILE NEWS 12 FEB 2025 A Treasury-led consortium submitted a new binding bid for Telecom Italia’s (TIM) subsea cable business, Sparkle, confirming a valuation of 700 million euros, Reuters reports citing sources close to the matter. This follows an earlier offer made in December. Sparkle’s 600,000km cable network, spanning Europe, the Mediterranean, and the Americas, is considered of strategic importance by Italian authorities. TIM extended the deadline for agreeing to the sale until mid-March after financing details were unresolved. The new bid is 50% debt-financed and no longer dependent on financing conditions. TIM’s board will review the proposal and its 2024 earnings strategy today, with the offer valid until February 14. ————————————- Orange has partnered with Mistral AI to advance AI adoption in Europe, aiming to develop optimal network infrastructure for the technology. The two companies will collaborate on R&D, assessing AI’s impact on telecom networks and defining future technological roadmaps. Their goal is to ensure efficient access to advanced AI solutions, addressing connectivity and graphics processing unit (GPU) challenges. In particular, the partnership targets the evolution of telecom infrastructure for omnimodal AI by 2025, which integrates various data types for minimal latency. In addition, Mistral’s AI will be incorporated into Orange’s services like Le Chat Pro and Codestral. The announcement coincided with a two-day AI summit in Paris, where President Macron unveiled plans for €110 billion in AI investments to strengthen Europe’s competitiveness with the US and China. ———————————— Vodafone Business IoT has expanded its Middle East presence through a partnership with Saudi telecom Mobily. The deal allows Vodafone’s customers to access Mobily’s network, providing reliable IoT connectivity across Saudi Arabia. Businesses using Vodafone’s Global SIM+ eSIM service can now benefit from cross-border connectivity. Vodafone’s IoT unit currently partners with over 760 networks worldwide. ———————— Revelations of Israeli spyware abuse have raised concerns about its potential use by the US under Trump, the Guardian reported. WhatsApp said that 90 users were targeted by spyware from Paragon Solutions, sparking fears about the misuse of such technology. Paragon, which licenses its spyware to governments, terminated a contract with Italy for violating terms. The US was linked to the company through a $2 million contract with Immigration and Customs Enforcement, raising concerns about cyberweapons’ use in domestic surveillance. Experts warn of growing risks to civil liberties. ———————————— President Donald Trump may revive his proposal for the US to acquire Nokia or Ericsson, two dominant players in the mobile network equipment sector, according to a Financial Times insight opinion by Richard Milne. The idea was initially suggested in 2020 by Attorney General William Barr, driven by the US’s absence in telecom infrastructure, a critical area for both business and national security. Despite recent profitability struggles, both companies have sought closer ties with the US, and Trump’s proposal could help the US secure a stronger position in the global mobile ecosystem, particularly as it continues to contend with Huawei’s influence, the FT article reads. —— —— MEF TECH NEWS 12 FEB 2025 US Vice President JD Vance warned Europe against over-regulating artificial intelligence, as the US and UK declined to sign a global declaration at the AI Action summit in Paris. The declaration, backed by 60 countries, aims to ensure AI is safe and ethical. Vance argued excessive regulation could stifle innovation and emphasized America’s desire to lead in AI development. He also cautioned against AI deals with “authoritarian regimes.” Meanwhile, European leaders unveiled €200 billion in AI investments but face challenges in balancing innovation with regulation. ————————————— SoftBank swings to a loss ahead of its big AI bet with OpenAI. The company lost ¥369.2 billion ($2.4 billion) in the December quarter, mainly because of a volatile market that hurt its Vision Fund holdings, including stakes in Coupang and Didi. This marks a setback for Masayoshi Son’s plans as he teams up with OpenAI’s Sam Altman to raise $500 billion for the Stargate AI project. Despite the losses, Son is exploring innovative financing options, potentially raising 10% of the total funding via equity and securing the remainder with senior loans. ————————————— Alibaba’s stock jumped as much as 8.6% following reports that it is collaborating with Apple to introduce AI features in China. This marks Alibaba’s largest gain since September, fueled by news that both companies have submitted AI features for approval to China’s cyberspace regulator. The move could secure Alibaba’s AI presence on the iPhone, boosting its stock, which is up more than 30% in 2025. Apple is seeking a strong local partner in Alibaba to compete with rivals like Huawei in the AI smartphone market, as it works to revive its sales in China. ————————————— Apple is renaming the Gulf of Mexico to the Gulf of America on its Maps app, following a directive from US President Donald Trump. This change aligns with the US government’s updated map and follows a similar update by Google Maps. Microsoft’s Bing Maps and MapQuest have not yet made the change. Apple’s update is initially available in the US, with a global rollout expected soon. While Republican lawmakers have praised the change, critics, including users and the Mexican government, have expressed disapproval, arguing that the US cannot unilaterally rename the shared body of water. ————————————— Leading AI assistants, including ChatGPT, Copilot, Gemini, and Perplexity, often generate significant inaccuracies when answering questions about current affairs, according to research by the BBC. Over half of AI-generated answers contained errors such as misidentifying politicians in office, distorting expert advice, and confusing opinions with facts. Examples include wrongly stating that Rishi Sunak and Nicola Sturgeon were still in office, and misrepresenting NHS vaping advice. The findings raised concerns about AI’s ability to provide accurate news