MEF BUSINESS NEWS 20 MAR 2025 The Federal Reserve has cut its US growth forecast and raised its inflation outlook, citing the impact of President Trump’s tariffs, which Chair Jay Powell said are slowing economic expansion while driving prices higher. Powell stressed there is no rush to adjust interest rates, given the heightened uncertainty surrounding trade policy and its economic effects. The Fed now expects GDP to grow by 1.7% in 2024, down from its previous 2.1% estimate, while forecasting 2.1% growth in 2025. Inflation is projected to reach 2.7% this year, up from the earlier 2.5% estimate. Meanwhile, unemployment is expected to rise to 4.4% by year-end, slightly higher than the 4.3% forecast in December. The central bank held interest rates steady at 4.25%-4.5%. Cutting growth forecast means that the possibility of monetary easing in the next future is still in place. The forecasted raise in inflation might be brief, the central bank signaled. Trump, who has pledged more tariffs and deep spending cuts, is pressuring the Fed to lower borrowing costs, urging Powell to — quote — “do the right thing.” However, concerns over stagflation—slowing growth alongside rising inflation—are growing, as some Fed officials now anticipate no rate cuts at all this year. ———————————— Markets responded positively to the Fed’s decision, with the S&P 500 rising 1.1% and Treasury yields falling. The dollar weakened. Asian stocks climbed, except for China. Oil prices raised. ———————————— The European Commission is investigating whether Chinese electric vehicle maker BYD received unfair subsidies for its plant in Hungary, raising tensions between Brussels and Beijing. If the probe finds improper state aid, BYD could face asset sales, capacity reductions, fines, or demands to repay the subsidy. Hungary, led by Viktor Orbán, has attracted significant Chinese investment, with BYD’s €4bn plant expected to create 10,000 jobs. However, EU officials argue the factory adds little value to the bloc, using Chinese labor and mostly imported parts. This probe follows previous tariffs on Chinese carmakers, as the EU insists companies must adhere to European rules. ———————————- Mercedes-Benz CEO Ola Källenius is confident about the company’s future after unveiling its new CLA sedan, the only new electric vehicle from Mercedes this year. Despite a challenging global market, including a 3% drop in 2024 sales and a 7% decline in China, the company aims to capture a younger audience with the CLA’s advanced AI features, Källenius told Bloomberg News in an interview. The car, priced with a €10,000 premium over Tesla’s Model 3, will also appeal to customers shifting away from Tesla due to concerns over CEO Elon Musk. Källenius acknowledged the tough competition in China, where numerous local brands are vying for attention, but he remains optimistic about Mercedes’ position in the electric vehicle market. The company plans to release over 25 new models in the next two years, half of which will be electric, as it balances combustion and electric engines well into the 2030s. —— —— MEF MOBILE NEWS 20 MAR 2025 The European Commission is cracking down on Apple and Google under the Digital Markets Act, accusing Google of unfairly promoting its own services in search results and restricting app developers on its Play Store. Google argues the rules harm consumers and businesses despite making changes to comply. Meanwhile, Apple is being pushed to improve interoperability of iOS devices with rival products like smartwatches and VR headsets. The enforcement comes amid rising U.S.-EU trade tensions, with Washington viewing these actions as targeting American tech giants. Brussels insists its focus is consumer fairness, not geopolitics. ——————————— Oracle met with top congressional aides on Capitol Hill to discuss its potential role in TikTok’s future as the app faces an April 5 deadline to cut Chinese ties or face a U.S. ban. Lawmakers questioned whether Oracle—already managing TikTok’s U.S. user data—could take full control of the platform. A buy-in from Oracle would shake up the mobile ecosystem, positioning the cloud giant as a major force in social media. This could impact telecom carriers handling TikTok’s massive data traffic and disrupt mobile advertising, challenging Google and Meta’s dominance. But questions remain over whether China would allow TikTok’s key algorithm to change hands. ———————————— Even Vodafone Idea is looking up—literally—as it explores satellite partnerships, including with Starlink, to expand coverage in India’s most remote areas. This comes after Bharti Airtel and Reliance Jio made deals with Elon Musk’s company, whose “space expansion” plans seem to be landing in India quicker than you can say “Starlink.” Vodafone Idea is targeting rural and underserved regions for fixed and mobile services, hoping to beam data where traditional towers don’t dare go. If the deal goes through, expect even more competition in the race to provide data in every corner of India—thanks to Musk’s “out of this world” vision. ———————————— Australia’s Vocus Group, backed by Macquarie, has secured regulatory approval for its $3.3 billion takeover of TPG Telecom’s fibre and fixed network assets. The deal cements Vocus as a major player in underground fibre infrastructure, expanding its reach to nearly 20,000 buildings. The move reshapes Australia’s telecom landscape, boosting fibre capacity for mobile carriers and enterprise networks. As competition intensifies, mobile operators may benefit from enhanced backhaul options, while TPG shifts focus toward its consumer and wireless businesses in an evolving 5G market. ———————————— CityFibre is racing to secure £1.5bn in funding as it pushes to double its customer base to 1 million by year-end, according to the Financial Times. The UK’s largest alternative network provider is banking on acquisitions and a deal with Sky to drive growth, but analysts question whether it can meet such ambitious targets. The struggle highlights growing pressure on the fibre broadband sector, where high interest rates and competition from BT’s Openreach and Virgin Media O2 are squeezing altnets. For mobile operators, CityFibre’s expansion could mean greater 5G backhaul capacity, but consolidation in the fibre market may also reshape telecom partnerships. ————————————- Global recorded music revenues climbed for the tenth straight year, reaching $29.6 billion in 2024, fueled by a 10.6% surge in streaming subscribers to 752 million. As streaming drives mobile data consumption, telcos are poised to benefit from higher demand for 5G and premium data plans. The fastest growth came from emerging markets, signaling new opportunities for mobile operators to bundle music subscriptions with telecom services. Meanwhile, industry leaders are urging policymakers to curb AI’s unauthorized use of copyrighted music, a debate that could shape digital content licensing and mobile entertainment partnerships. —— —— MEF TECH NEWS 20 MAR 2025 Nvidia is set to spend hundreds of billions on U.S.-made chips, as CEO Jensen Huang aligns with the shifting trade winds under Trump’s tariff threats, the Financial Times reports citing an interview with Huang This massive investment could reshape the mobile ecosystem, ensuring AI-driven telecom advancements rely less on Asian supply chains. With Huawei’s AI chip dominance growing, Nvidia’s move to secure local production is not just about resilience—it’s a strategic play to power the next generation of connected devices, 5G networks, and cloud-based mobile services. If all goes to plan, the future of mobile tech might just be “Made in America.” —————————————— SoftBank just dropped $6.5 billion to buy Ampere Computing, adding another AI chipmaker to Masayoshi Son’s ever-growing tech empire. With its eyes set on AI infrastructure, SoftBank is now stacking up chip design, cloud data centers, and even energy solutions—basically trying to own the entire AI ecosystem. Ampere, which builds Arm-based processors for cloud computing, fits right into this strategy. The move also strengthens Arm’s position, especially as it gears up to launch its own chip this year with Meta as an early customer. Meanwhile, Oracle and Carlyle are cashing out of Ampere, signaling SoftBank’s full control. With this deal, SoftBank isn’t just betting on AI—it’s trying to make sure every AI server in the future runs on its technology. And given its $500 billion “Stargate” AI project with OpenAI, Microsoft, and Oracle, Son might just be setting the stage for the next tech superpower. ———————————- China’s AI startup Manycore Tech is expanding its global footprint, setting up local teams in over 10 countries, including the U.S., South Korea, and Indonesia. CEO Victor Huang told Bloomberg in an interview that the company sees strong international demand, particularly for its freemium model. Manycore, a potential rival to Autodesk, is focusing on affordability and optimizing legally available computing power instead of relying on restricted high-end Nvidia chips. The firm recently filed for a Hong Kong IPO after scrapping earlier plans to list in the U.S. ——————————— As previously reported by Bloomberg, Elon Musk’s social media platform, X, has raised about $1 billion in a new equity funding round, bringing the company’s valuation back to $44 billion, in line with the price Musk paid during his 2022 buyout. Musk, the platform’s majority shareholder, was among those who purchased the shares, alongside investors like Darsana Capital and 1789 Capital. This fundraising will help X pay down expensive debt tied to the buyout, including a costly junior loan. Despite some financial hurdles, including a dip in advertising revenue after loosening moderation policies, X’s financials have shown signs of improvement, with $1.2 billion in adjusted earnings for 2024.

MEF BUSINESS NEWS 20 MAR 2025 The Federal Reserve has cut its US growth forecast and raised its inflation outlook, citing the impact of President Trump’s tariffs, which Chair Jay Powell said are slowing economic expansion while driving prices higher. Powell stressed there is no rush to adjust interest rates, given the heightened uncertainty surrounding trade policy and its economic effects. The Fed now expects GDP to grow by 1.7% in 2024, down from its previous 2.1% estimate, while forecasting 2.1% growth in 2025. Inflation is projected to reach 2.7% this year, up from the earlier 2.5% estimate. Meanwhile, unemployment is expected to rise to 4.4% by year-end, slightly higher than the 4.3% forecast in December. The central bank held interest rates steady at 4.25%-4.5%. Cutting growth forecast means that the possibility of monetary easing in the next future is still in place. The forecasted raise in inflation might be brief, the central bank signaled. Trump, who has pledged more tariffs and deep spending cuts, is pressuring the Fed to lower borrowing costs, urging Powell to — quote — “do the right thing.” However, concerns over stagflation—slowing growth alongside rising inflation—are growing, as some Fed officials now anticipate no rate cuts at all this year. ———————————— Markets responded positively to the Fed’s decision, with the S&P 500 rising 1.1% and Treasury yields falling. The dollar weakened. Asian stocks climbed, except for China. Oil prices raised. ———————————— The European Commission is investigating whether Chinese electric vehicle maker BYD received unfair subsidies for its plant in Hungary, raising tensions between Brussels and Beijing. If the probe finds improper state aid, BYD could face asset sales, capacity reductions, fines, or demands to repay the subsidy. Hungary, led by Viktor Orbán, has attracted significant Chinese investment, with BYD’s €4bn plant expected to create 10,000 jobs. However, EU officials argue the factory adds little value to the bloc, using Chinese labor and mostly imported parts. This probe follows previous tariffs on Chinese carmakers, as the EU insists companies must adhere to European rules. ———————————- Mercedes-Benz CEO Ola Källenius is confident about the company’s future after unveiling its new CLA sedan, the only new electric vehicle from Mercedes this year. Despite a challenging global market, including a 3% drop in 2024 sales and a 7% decline in China, the company aims to capture a younger audience with the CLA’s advanced AI features, Källenius told Bloomberg News in an interview. The car, priced with a €10,000 premium over Tesla’s Model 3, will also appeal to customers shifting away from Tesla due to concerns over CEO Elon Musk. Källenius acknowledged the tough competition in China, where numerous local brands are vying for attention, but he remains optimistic about Mercedes’ position in the electric vehicle market. The company plans to release over 25 new models in the next two years, half of which will be electric, as it balances combustion and electric engines well into the 2030s. —— —— MEF MOBILE NEWS 20 MAR 2025 The European Commission is cracking down on Apple and Google under the Digital Markets Act, accusing Google of unfairly promoting its own services in search results and restricting app developers on its Play Store. Google argues the rules harm consumers and businesses despite making changes to comply. Meanwhile, Apple is being pushed to improve interoperability of iOS devices with rival products like smartwatches and VR headsets. The enforcement comes amid rising U.S.-EU trade tensions, with Washington viewing these actions as targeting American tech giants. Brussels insists its focus is consumer fairness, not geopolitics. ——————————— Oracle met with top congressional aides on Capitol Hill to discuss its potential role in TikTok’s future as the app faces an April 5 deadline to cut Chinese ties or face a U.S. ban. Lawmakers questioned whether Oracle—already managing TikTok’s U.S. user data—could take full control of the platform. A buy-in from Oracle would shake up the mobile ecosystem, positioning the cloud giant as a major force in social media. This could impact telecom carriers handling TikTok’s massive data traffic and disrupt mobile advertising, challenging Google and Meta’s dominance. But questions remain over whether China would allow TikTok’s key algorithm to change hands. ———————————— Even Vodafone Idea is looking up—literally—as it explores satellite partnerships, including with Starlink, to expand coverage in India’s most remote areas. This comes after Bharti Airtel and Reliance Jio made deals with Elon Musk’s company, whose “space expansion” plans seem to be landing in India quicker than you can say “Starlink.” Vodafone Idea is targeting rural and underserved regions for fixed and mobile services, hoping to beam data where traditional towers don’t dare go. If the deal goes through, expect even more competition in the race to provide data in every corner of India—thanks to Musk’s “out of this world” vision. ———————————— Australia’s Vocus Group, backed by Macquarie, has secured regulatory approval for its $3.3 billion takeover of TPG Telecom’s fibre and fixed network assets. The deal cements Vocus as a major player in underground fibre infrastructure, expanding its reach to nearly 20,000 buildings. The move reshapes Australia’s telecom landscape, boosting fibre capacity for mobile carriers and enterprise networks. As competition intensifies, mobile operators may benefit from enhanced backhaul options, while TPG shifts focus toward its consumer and wireless businesses in an evolving 5G market. ———————————— CityFibre is racing to secure £1.5bn in funding as it pushes to double its customer base to 1 million by year-end, according to the Financial Times. The UK’s largest alternative network provider is banking on acquisitions and a deal with Sky to drive growth, but analysts question whether it can meet such ambitious targets. The struggle highlights growing pressure on the fibre broadband sector, where high interest rates and competition from BT’s Openreach and Virgin Media O2 are squeezing altnets. For mobile operators, CityFibre’s expansion could mean greater 5G backhaul capacity, but consolidation in the fibre market may also reshape telecom partnerships. ————————————- Global recorded music revenues climbed for the tenth straight year, reaching $29.6 billion in 2024, fueled by a 10.6% surge in streaming subscribers to 752 million. As streaming drives mobile data consumption, telcos are poised to benefit from higher demand for 5G and premium data plans. The fastest growth came from emerging markets, signaling new opportunities for mobile operators to bundle music subscriptions with telecom services. Meanwhile, industry leaders are urging policymakers to curb AI’s unauthorized use of copyrighted music, a debate that could shape digital content licensing and mobile entertainment partnerships. —— —— MEF TECH NEWS 20 MAR 2025 Nvidia is set to spend hundreds of billions on U.S.-made chips, as CEO Jensen Huang aligns with the shifting trade winds under Trump’s tariff threats, the Financial Times reports citing an interview with Huang This massive investment could reshape the mobile ecosystem, ensuring AI-driven telecom advancements rely less on Asian supply chains. With Huawei’s AI chip dominance growing, Nvidia’s move to secure local production is not just about resilience—it’s a strategic play to power the next generation of connected devices, 5G networks, and cloud-based mobile services. If all goes to plan, the future of mobile tech might just be “Made in America.” —————————————— SoftBank just dropped $6.5 billion to buy Ampere Computing, adding another AI chipmaker to Masayoshi Son’s ever-growing tech empire. With its eyes set on AI infrastructure, SoftBank is now stacking up chip design, cloud data centers, and even energy solutions—basically trying to own the entire AI ecosystem. Ampere, which builds Arm-based processors for cloud computing, fits right into this strategy. The move also strengthens Arm’s position, especially as it gears up to launch its own chip this year with Meta as an early customer. Meanwhile, Oracle and Carlyle are cashing out of Ampere, signaling SoftBank’s full control. With this deal, SoftBank isn’t just betting on AI—it’s trying to make sure every AI server in the future runs on its technology. And given its $500 billion “Stargate” AI project with OpenAI, Microsoft, and Oracle, Son might just be setting the stage for the next tech superpower. ———————————- China’s AI startup Manycore Tech is expanding its global footprint, setting up local teams in over 10 countries, including the U.S., South Korea, and Indonesia. CEO Victor Huang told Bloomberg in an interview that the company sees strong international demand, particularly for its freemium model. Manycore, a potential rival to Autodesk, is focusing on affordability and optimizing legally available computing power instead of relying on restricted high-end Nvidia chips. The firm recently filed for a Hong Kong IPO after scrapping earlier plans to list in the U.S. ——————————— As previously reported by Bloomberg, Elon Musk’s social media platform, X, has raised about $1 billion in a new equity funding round, bringing the company’s valuation back to $44 billion, in line with the price Musk paid during his 2022 buyout. Musk, the platform’s majority shareholder, was among those who purchased the shares, alongside investors like Darsana Capital and 1789 Capital. This fundraising will help X pay down expensive debt tied to the buyout, including a costly junior loan. Despite some financial hurdles, including a dip in advertising revenue after loosening moderation policies, X’s financials have shown signs of improvement, with $1.2 billion in adjusted earnings for 2024.