MEF BUSINESS NEWS 18 SEPTEMBER 2024 Germany’s Finance Ministry remains committed to selling its entire stake in Commerzbank AG, despite UniCredit SpA’s recent offer to buy all available shares, according to sources. While the ministry oversees the stake, any further sales require unanimous approval from a government committee, which includes officials from Chancellor Olaf Scholz’s office. It is unclear if the chancellery aligns with the ministry’s stance on the sale. Germany’s ruling coalition has previously agreed to fully divest from Commerzbank, aiming for the best possible price, even if it means UniCredit could acquire more shares, the sources said. The finance ministry will analyze the situation before deciding its next steps. ———————————————— UniCredit SpA is preparing to seek regulatory approval to increase its stake in Commerzbank AG to as much as 30%, as CEO Andrea Orcel explores a potential takeover. The Italian bank is expected to file its application with the European Central Bank (ECB) in the coming days, according to a source. This move could bring Orcel closer to acquiring Commerzbank, as hitting the 30% threshold under German law would require a formal takeover bid. Last week, UniCredit disclosed a 9% stake in Commerzbank, with Orcel acknowledging that a full takeover is a possibility, though he may sell the stake if the deal’s economics aren’t favorable. The ECB, which has long advocated for cross-border mergers in the eurozone banking sector, appears supportive of the potential deal, with ECB President Christine Lagarde noting that such mergers align with the goals of European financial integration. The ECB will evaluate UniCredit’s business plan and financial capability before approving the request. The application gives UniCredit flexibility to increase its stake if necessary, according to the bank’s earlier statements. ——————————————- The size of the Federal Reserve’s interest rate cut this week won’t be a game changer for global investors, though risks from China’s slowdown continue to weigh on their minds, according to participants at a regional forum. Bridgewater Associates founder Ray Dalio told Bloomberg Television what the Fed will do this week “doesn’t make a difference” over the longer term as policymakers will ultimately need to keep real interest rates low to allow servicing of mounting debts. The Fed is anticipated to cut rates Wednesday, with forecasts split between a quarter- or half-point reduction. ————————————- Davide Campari-Milano, the maker of Aperol, announced the resignation of CEO Matteo Fantacchiotti, less than a year after his appointment, citing personal reasons. Fantacchiotti had taken over in April, succeeding longtime CEO Bob Kunze-Concewitz. In the interim, Campari has appointed Chief Financial Officer Paolo Marchesini and General Counsel Fabio Di Fede as co-CEOs. Both will also join a leadership transition committee led by Kunze-Concewitz. —— —— MEF MOBILE NEWS 18 SEPTEMBER 2024 The United States is urging Vietnam to avoid Chinese cable-laying firm HMN Technologies and other Chinese companies in its plans to build 10 new undersea cables by 2030, sources with knowledge of the talks told Reuters. Vietnam’s five major ageing subsea connections that link it to the global internet have suffered repeated failures, making new cables a top government priority. Since January, U.S. officials and companies have held at least a half-dozen meetings with Vietnamese and foreign officials and business executives to discuss the Southeast Asian nation’s cable strategy, according to seven people involved in or briefed about the talks. ————————————————- The GSMA, alongside 19 telecom operators, has unveiled a Responsible AI (RAI) Maturity Roadmap to guide the safe and effective adoption of AI technology. Key backers include Axiata, Deutsche Telekom, Orange, Telefónica, and Telstra, with support from operators like Globe Telecom, MTN, Turkcell, True, and Vodafone. Developed with insights from McKinsey, which estimates AI could add up to $680 billion to the telecom sector over the next 15-20 years, the roadmap aligns with global AI ethics standards, including those from OECD and UNESCO. ———————————————— The UK telecom market, valued at USD 38.44 billion in 2023, is projected to reach USD 52.01 billion by 2029, growing at a 5.01% CAGR, according to a new Research and Market study. The market, covering services like phone, internet, and TV, is driven by the rollout of 5G and the expansion of fiber-optic broadband. 5G promises faster speeds, lower latency, and new applications like IoT and smart technologies, but its deployment faces infrastructure and spectrum challenges. Meanwhile, rising demand for high-speed internet is pushing the growth of fiber-optic networks, supported by government initiatives, though the shift from copper systems requires significant investment and coordination. These advancements are crucial for enhancing connectivity and supporting digital transformation across industries. —————————————————— The AI in Telecommunications market, valued at approximately $2.36 billion in 2023, is projected to expand at a robust 43.1% CAGR through 2032, according to a new Report Ocean study. The report highlights significant trends, drivers, and challenges shaping the sector, including data privacy concerns and a shortage of skilled AI professionals. The integration of AI is transforming telecom operations by optimizing network performance, automating tasks, and personalizing customer service. This trend is driven by the need for advanced network management and cost efficiency. Notably, North America leads in market revenue due to its advanced telecom infrastructure, while Asia Pacific is expected to experience the fastest growth, driven by rapid technological advancements in countries like China and India. The use of streamlined AI application development is also accelerating the deployment of tailored AI solutions within telecom firms, enhancing operational efficiency and innovation. —— —— MEF TECH NEWS 18 SEPTEMBER 2024 The front page story in every newspaper today has a connection with technology. Hundreds of pagers used by Hezbollah operatives exploded across Lebanon, injuring nearly 2,800 people and killing nine. The blasts involved pagers manufactured by Taiwan’s Gold Apollo that had recently been shipped to the group. Hezbollah had previously advised its fighters to switch from smartphones to pagers due to security concerns. Robert Graham of Errata Security suggested that while it’s theoretically possible for hackers to trigger such explosions through malicious code, this would be highly complex. Graham posited a more plausible scenario: that the pagers were intercepted and rigged with explosives before reaching Hezbollah. Pagers, despite their decline in popularity, are still used in sectors like healthcare for their reliability and long battery life. —————————————- Microsoft is calling for greater “clarity and consistency” in US export controls that have delayed the shipment of advanced AI chips to the Middle East, the Financial Times reports. The company, which invested $1.5 billion in Abu Dhabi-based AI firm G42, aims to leverage the UAE firm to access growing AI markets in Africa and Asia. However, US restrictions on AI chip exports to the region, due to concerns over potential technology leaks to China, have hindered progress. Microsoft has yet to secure the necessary licenses for some shipments. Brad Smith, Microsoft’s president, expressed hope for emerging clarity on the export control regime from the US government. —————————————- BlackRock, Microsoft, and UAE-backed MGX are launching a $30 billion AI infrastructure fund to build data centers and power infrastructure in the U.S. The fund, called the Global AI Infrastructure Investment Partnership, aims to leverage up to $100 billion with debt financing. It addresses the high energy demands of AI technologies and will draw capital from pension funds and insurance companies seeking steady returns. If successful, it will be BlackRock’s largest alternative investment fund to date. ——————————— California has introduced three new laws to combat election-related deepfakes, with Governor Gavin Newsom signing them into effect on Tuesday. One law will be active for the 2024 presidential election, while the others may influence broader regulatory trends. The laws, aimed at banning or labeling AI-generated misinformation, could face legal challenges from social media firms and free speech advocates. This move reflects a growing state and national effort to regulate deepfakes, with California also considering legislation for AI safety testing before public release. ———————— Intuitive Machines announced on Tuesday that it has secured a NASA contract potentially worth up to $4.82 billion. The contract covers communication and navigation services for missions in near space, including areas from Earth’s surface to beyond the Moon. The firm-fixed-price, multiple-award contract has a five-year base period, ending September 30, 2029, with a five-year extension option running to September 30, 2034. It includes incrementally funded task orders totaling $150 million. Following the announcement, Intuitive Machines’ shares surged 37% to $7.41 in after-hours trading. The contract will see the company deploy lunar relay satellites and support NASA’s Artemis campaign for establishing a long-term lunar presence. —— ——

MEF BUSINESS NEWS 18 SEPTEMBER 2024 Germany’s Finance Ministry remains committed to selling its entire stake in Commerzbank AG, despite UniCredit SpA’s recent offer to buy all available shares, according to sources. While the ministry oversees the stake, any further sales require unanimous approval from a government committee, which includes officials from Chancellor Olaf Scholz’s office. It is unclear if the chancellery aligns with the ministry’s stance on the sale. Germany’s ruling coalition has previously agreed to fully divest from Commerzbank, aiming for the best possible price, even if it means UniCredit could acquire more shares, the sources said. The finance ministry will analyze the situation before deciding its next steps. ———————————————— UniCredit SpA is preparing to seek regulatory approval to increase its stake in Commerzbank AG to as much as 30%, as CEO Andrea Orcel explores a potential takeover. The Italian bank is expected to file its application with the European Central Bank (ECB) in the coming days, according to a source. This move could bring Orcel closer to acquiring Commerzbank, as hitting the 30% threshold under German law would require a formal takeover bid. Last week, UniCredit disclosed a 9% stake in Commerzbank, with Orcel acknowledging that a full takeover is a possibility, though he may sell the stake if the deal’s economics aren’t favorable. The ECB, which has long advocated for cross-border mergers in the eurozone banking sector, appears supportive of the potential deal, with ECB President Christine Lagarde noting that such mergers align with the goals of European financial integration. The ECB will evaluate UniCredit’s business plan and financial capability before approving the request. The application gives UniCredit flexibility to increase its stake if necessary, according to the bank’s earlier statements. ——————————————- The size of the Federal Reserve’s interest rate cut this week won’t be a game changer for global investors, though risks from China’s slowdown continue to weigh on their minds, according to participants at a regional forum. Bridgewater Associates founder Ray Dalio told Bloomberg Television what the Fed will do this week “doesn’t make a difference” over the longer term as policymakers will ultimately need to keep real interest rates low to allow servicing of mounting debts. The Fed is anticipated to cut rates Wednesday, with forecasts split between a quarter- or half-point reduction. ————————————- Davide Campari-Milano, the maker of Aperol, announced the resignation of CEO Matteo Fantacchiotti, less than a year after his appointment, citing personal reasons. Fantacchiotti had taken over in April, succeeding longtime CEO Bob Kunze-Concewitz. In the interim, Campari has appointed Chief Financial Officer Paolo Marchesini and General Counsel Fabio Di Fede as co-CEOs. Both will also join a leadership transition committee led by Kunze-Concewitz. —— —— MEF MOBILE NEWS 18 SEPTEMBER 2024 The United States is urging Vietnam to avoid Chinese cable-laying firm HMN Technologies and other Chinese companies in its plans to build 10 new undersea cables by 2030, sources with knowledge of the talks told Reuters. Vietnam’s five major ageing subsea connections that link it to the global internet have suffered repeated failures, making new cables a top government priority. Since January, U.S. officials and companies have held at least a half-dozen meetings with Vietnamese and foreign officials and business executives to discuss the Southeast Asian nation’s cable strategy, according to seven people involved in or briefed about the talks. ————————————————- The GSMA, alongside 19 telecom operators, has unveiled a Responsible AI (RAI) Maturity Roadmap to guide the safe and effective adoption of AI technology. Key backers include Axiata, Deutsche Telekom, Orange, Telefónica, and Telstra, with support from operators like Globe Telecom, MTN, Turkcell, True, and Vodafone. Developed with insights from McKinsey, which estimates AI could add up to $680 billion to the telecom sector over the next 15-20 years, the roadmap aligns with global AI ethics standards, including those from OECD and UNESCO. ———————————————— The UK telecom market, valued at USD 38.44 billion in 2023, is projected to reach USD 52.01 billion by 2029, growing at a 5.01% CAGR, according to a new Research and Market study. The market, covering services like phone, internet, and TV, is driven by the rollout of 5G and the expansion of fiber-optic broadband. 5G promises faster speeds, lower latency, and new applications like IoT and smart technologies, but its deployment faces infrastructure and spectrum challenges. Meanwhile, rising demand for high-speed internet is pushing the growth of fiber-optic networks, supported by government initiatives, though the shift from copper systems requires significant investment and coordination. These advancements are crucial for enhancing connectivity and supporting digital transformation across industries. —————————————————— The AI in Telecommunications market, valued at approximately $2.36 billion in 2023, is projected to expand at a robust 43.1% CAGR through 2032, according to a new Report Ocean study. The report highlights significant trends, drivers, and challenges shaping the sector, including data privacy concerns and a shortage of skilled AI professionals. The integration of AI is transforming telecom operations by optimizing network performance, automating tasks, and personalizing customer service. This trend is driven by the need for advanced network management and cost efficiency. Notably, North America leads in market revenue due to its advanced telecom infrastructure, while Asia Pacific is expected to experience the fastest growth, driven by rapid technological advancements in countries like China and India. The use of streamlined AI application development is also accelerating the deployment of tailored AI solutions within telecom firms, enhancing operational efficiency and innovation. —— —— MEF TECH NEWS 18 SEPTEMBER 2024 The front page story in every newspaper today has a connection with technology. Hundreds of pagers used by Hezbollah operatives exploded across Lebanon, injuring nearly 2,800 people and killing nine. The blasts involved pagers manufactured by Taiwan’s Gold Apollo that had recently been shipped to the group. Hezbollah had previously advised its fighters to switch from smartphones to pagers due to security concerns. Robert Graham of Errata Security suggested that while it’s theoretically possible for hackers to trigger such explosions through malicious code, this would be highly complex. Graham posited a more plausible scenario: that the pagers were intercepted and rigged with explosives before reaching Hezbollah. Pagers, despite their decline in popularity, are still used in sectors like healthcare for their reliability and long battery life. —————————————- Microsoft is calling for greater “clarity and consistency” in US export controls that have delayed the shipment of advanced AI chips to the Middle East, the Financial Times reports. The company, which invested $1.5 billion in Abu Dhabi-based AI firm G42, aims to leverage the UAE firm to access growing AI markets in Africa and Asia. However, US restrictions on AI chip exports to the region, due to concerns over potential technology leaks to China, have hindered progress. Microsoft has yet to secure the necessary licenses for some shipments. Brad Smith, Microsoft’s president, expressed hope for emerging clarity on the export control regime from the US government. —————————————- BlackRock, Microsoft, and UAE-backed MGX are launching a $30 billion AI infrastructure fund to build data centers and power infrastructure in the U.S. The fund, called the Global AI Infrastructure Investment Partnership, aims to leverage up to $100 billion with debt financing. It addresses the high energy demands of AI technologies and will draw capital from pension funds and insurance companies seeking steady returns. If successful, it will be BlackRock’s largest alternative investment fund to date. ——————————— California has introduced three new laws to combat election-related deepfakes, with Governor Gavin Newsom signing them into effect on Tuesday. One law will be active for the 2024 presidential election, while the others may influence broader regulatory trends. The laws, aimed at banning or labeling AI-generated misinformation, could face legal challenges from social media firms and free speech advocates. This move reflects a growing state and national effort to regulate deepfakes, with California also considering legislation for AI safety testing before public release. ———————— Intuitive Machines announced on Tuesday that it has secured a NASA contract potentially worth up to $4.82 billion. The contract covers communication and navigation services for missions in near space, including areas from Earth’s surface to beyond the Moon. The firm-fixed-price, multiple-award contract has a five-year base period, ending September 30, 2029, with a five-year extension option running to September 30, 2034. It includes incrementally funded task orders totaling $150 million. Following the announcement, Intuitive Machines’ shares surged 37% to $7.41 in after-hours trading. The contract will see the company deploy lunar relay satellites and support NASA’s Artemis campaign for establishing a long-term lunar presence. —— ——