MEF BUSINESS NEWS 7 OCTOBER 2024 Oil futures saw the biggest jump in over a year, driven by rising geopolitical risks and a sharp reversal in market sentiment. The Middle East conflict has spurred concerns about supply disruptions, leading traders to hedge against price spikes. Just weeks ago, traders were bearish on crude due to concerns about weak demand and rising supply, but the recent escalation has flipped the market, with traders now seeking protection against higher prices. Brent crude December future contract, one of the market’s benchmarks, was priced 77.6% this morning. ——————————————————- In the US, the no-landing scenario, where the US economy keeps growing, inflation reignites and the Fed has little room to cut rates, made a strong comeback after Friday’s blowout payrolls report. With the fastest job growth in six months, a drop in unemployment and rising wages, Treasury yields surged as investors reversed bets on a large cut in the last year. The US economy is now a little bit more volatile, with a decline in prices than in the first two weeks . This unexpected data has reignited concerns about economic overheating, disrupting a rally in Treasuries and pushing short-term yields higher, as traders now worry that aggressive rate cuts may be off the table. ———————————————— The EU’s decision to impose tariffs on Chinese electric vehicles has heightened trade tensions, with Beijing expected to retaliate soon. China, which previously threatened tariffs on EU brandy and launched investigations into pork and dairy, has multiple options for response. After 10 EU member states voted in favor of the tariffs, 5 against and 12 abstained, China warned the move would hurt Chinese business confidence and pledged to take action to protect its interests. ——————————————- Rio Tinto has approached Arcadium Lithium for a potential acquisition, marking its biggest move in over a decade to expand in energy transition metals. Financial details were not disclosed. Arcadium has a $3.3 billion market value. Investors are concerned about the timing of Rio’s bid, as large miners cautiously return to takeovers after past costly mistakes. —————————————————- Activist investor Starboard Value has taken a $1 billion stake in Pfizer, urging the drugmaker to improve its performance. Pfizer’s market value, about $162 billion, has fallen significantly since its COVID-19 vaccine success. Its shares are down nearly 50% from the 2021 peak. Starboard has enlisted former Pfizer executives Ian Read and Frank D’Amelio to help drive changes. CEO Albert Bourla faces a new crisis. Pressure as Pfizer grapples with declining COVID-19 vaccine sales and competition for key drugs, while its first weight-loss pill attempt underperformed against rivals. Starboard’s exact plans remain unclear. MEF MOBILE NEWS 7 OCTOBER 2024 Telecom Italia’s board has granted the company authorization to enter into negotiations with the Italian government and Retelit, who have jointly submitted a €700 million non-binding offer to acquire Sparkle, Telecom Italia’s submarine cable unit. The decision marks a key step toward potentially finalizing a deal with the negotiations aimed at reaching a binding offer by November 30. The non-binding offer remains valid until October 15. Sparkle plays a strategic role in Italy’s telecommunications infrastructure, handling international data traffic through its vast network of submarine cables. Retelit, a telecom and digital infrastructure provider, and the Italian government likely view Sparkle as an asset of national importance due to its critical infrastructure. ——————————————————- A Chinese government-backed hacking group, Salt Typhoon, breached the security of several major US telecom companies, including AT&T and Verizon, potentially accessing sensitive data related to law enforcement wiretaps. The attack appears to be a new threat to the international security of telecoms companies. The attack is likely to be tied to ongoing US cases involving Chinese government agents accused of harassing individuals in the US. The FBI, alongside investigators from Microsoft and a Google subsidiary, is working on the case, though US cybersecurity agents reportedly face a manpower disadvantage compared to their Chinese counterparts. ———————————————- Vodafone Idea, (VI) has been able to expand its partnership with Ericsson by awarding significant 4G and 5G contracts, allowing Ericsson to extend its network share in India. Ericsson will upgrade VI’s 4G network and deploy 5G in telecom circles where it already operates, including Delhi, Kerala and Rajasthan, expanding its footprint. This collaboration — Ericsson says in a press release — marks a new milestone in their long-standing relationship focused on enhancing India’s digital infrastructure. Ericsson will deploy energy-efficient Ericsson radio system products, like mid-band MIMO radios, to improve VI’s network performance. ——————————————- Vodafone Group has been recognized among the top 1% of companies for its environmental, social, and governance (ESG) performance by independent evaluator EcoVadis. The company improved its ESG rating by three points to 83 out of 100, positioning it within the top tier of 130,000 companies across 220 countries. Vodafone attributes its progress to initiatives focused on climate action, including efforts to reduce carbon emissions and secure renewable energy from various sources. The company’s climate transition plan, announced in May, aims to decarbonize both its internal operations and value chain. EcoVadis’ evaluation assesses four key areas: environment, labour and human rights, ethics, and sustainable procurement. Vodafone emphasizes that it considers environmental factors when selecting suppliers and requires them to have their own carbon reduction targets and reporting mechanisms. ————————————- MEF TECH NEWS 7 OCTOBER 2024 Hurricane Helene has revealed a significant vulnerability in the semiconductor supply chain, following flooding in Spruce Pine, North Carolina, which halted production of ultra-pure quartz essential for chip manufacturing. This region produces about 90% of the world’s ultra-pure quartz, used to create crucibles for high-grade silicon in semiconductors. The flooding, which occurred last weekend, poses a risk of long-term production interruptions that could impact the supply of crucial components for various electronics, including smartphones, computers, and solar panels. This disruption comes amid soaring demand for servers to support artificial intelligence, which is already outpacing the supply of advanced chips. ————————————————————- Google’s stronghold on the nearly $300 billion search advertising market is weakening, with its share expected to drop below 50% next year for the first time in over a decade, according to eMarketer. While Google currently commands 50.5% of the market with a growth rate of 7.6%, rivals like Amazon, projected to capture 22.3% of the market this year with 17.6% growth, are making significant inroads. Emerging competitors, such as TikTok, are challenging Google by allowing brands to target ads based on user search queries. Additionally, the AI search startup Perplexity, backed by Jeff Bezos, plans to introduce advertising with its AI-generated answers, further intensifying competition. As advertisers seek more options, Google faces increasing pressure from these rivals, reshaping the search ad landscape. ————————————————————— Meta has introduced Movie Gen, a new AI model capable of generating realistic video and audio clips based on user prompts, aiming to compete with startups like OpenAI and ElevenLabs. The model can create videos of animals and people using real photos to depict actions, as well as generate synced background music and sound effects. For instance, it can modify existing footage, such as adding pompoms to a runner in the desert or transforming a dry parking lot into a water-splashed scene. Videos can be up to 16 seconds long, with audio lasting up to 45 seconds. Meta’s tests suggest Movie Gen performs well compared to rivals like Runway, OpenAI, and Kling. —— ——

MEF BUSINESS NEWS 7 OCTOBER 2024 Oil futures saw the biggest jump in over a year, driven by rising geopolitical risks and a sharp reversal in market sentiment. The Middle East conflict has spurred concerns about supply disruptions, leading traders to hedge against price spikes. Just weeks ago, traders were bearish on crude due to concerns about weak demand and rising supply, but the recent escalation has flipped the market, with traders now seeking protection against higher prices. Brent crude December future contract, one of the market’s benchmarks, was priced 77.6% this morning. ——————————————————- In the US, the no-landing scenario, where the US economy keeps growing, inflation reignites and the Fed has little room to cut rates, made a strong comeback after Friday’s blowout payrolls report. With the fastest job growth in six months, a drop in unemployment and rising wages, Treasury yields surged as investors reversed bets on a large cut in the last year. The US economy is now a little bit more volatile, with a decline in prices than in the first two weeks . This unexpected data has reignited concerns about economic overheating, disrupting a rally in Treasuries and pushing short-term yields higher, as traders now worry that aggressive rate cuts may be off the table. ———————————————— The EU’s decision to impose tariffs on Chinese electric vehicles has heightened trade tensions, with Beijing expected to retaliate soon. China, which previously threatened tariffs on EU brandy and launched investigations into pork and dairy, has multiple options for response. After 10 EU member states voted in favor of the tariffs, 5 against and 12 abstained, China warned the move would hurt Chinese business confidence and pledged to take action to protect its interests. ——————————————- Rio Tinto has approached Arcadium Lithium for a potential acquisition, marking its biggest move in over a decade to expand in energy transition metals. Financial details were not disclosed. Arcadium has a $3.3 billion market value. Investors are concerned about the timing of Rio’s bid, as large miners cautiously return to takeovers after past costly mistakes. —————————————————- Activist investor Starboard Value has taken a $1 billion stake in Pfizer, urging the drugmaker to improve its performance. Pfizer’s market value, about $162 billion, has fallen significantly since its COVID-19 vaccine success. Its shares are down nearly 50% from the 2021 peak. Starboard has enlisted former Pfizer executives Ian Read and Frank D’Amelio to help drive changes. CEO Albert Bourla faces a new crisis. Pressure as Pfizer grapples with declining COVID-19 vaccine sales and competition for key drugs, while its first weight-loss pill attempt underperformed against rivals. Starboard’s exact plans remain unclear. MEF MOBILE NEWS 7 OCTOBER 2024 Telecom Italia’s board has granted the company authorization to enter into negotiations with the Italian government and Retelit, who have jointly submitted a €700 million non-binding offer to acquire Sparkle, Telecom Italia’s submarine cable unit. The decision marks a key step toward potentially finalizing a deal with the negotiations aimed at reaching a binding offer by November 30. The non-binding offer remains valid until October 15. Sparkle plays a strategic role in Italy’s telecommunications infrastructure, handling international data traffic through its vast network of submarine cables. Retelit, a telecom and digital infrastructure provider, and the Italian government likely view Sparkle as an asset of national importance due to its critical infrastructure. ——————————————————- A Chinese government-backed hacking group, Salt Typhoon, breached the security of several major US telecom companies, including AT&T and Verizon, potentially accessing sensitive data related to law enforcement wiretaps. The attack appears to be a new threat to the international security of telecoms companies. The attack is likely to be tied to ongoing US cases involving Chinese government agents accused of harassing individuals in the US. The FBI, alongside investigators from Microsoft and a Google subsidiary, is working on the case, though US cybersecurity agents reportedly face a manpower disadvantage compared to their Chinese counterparts. ———————————————- Vodafone Idea, (VI) has been able to expand its partnership with Ericsson by awarding significant 4G and 5G contracts, allowing Ericsson to extend its network share in India. Ericsson will upgrade VI’s 4G network and deploy 5G in telecom circles where it already operates, including Delhi, Kerala and Rajasthan, expanding its footprint. This collaboration — Ericsson says in a press release — marks a new milestone in their long-standing relationship focused on enhancing India’s digital infrastructure. Ericsson will deploy energy-efficient Ericsson radio system products, like mid-band MIMO radios, to improve VI’s network performance. ——————————————- Vodafone Group has been recognized among the top 1% of companies for its environmental, social, and governance (ESG) performance by independent evaluator EcoVadis. The company improved its ESG rating by three points to 83 out of 100, positioning it within the top tier of 130,000 companies across 220 countries. Vodafone attributes its progress to initiatives focused on climate action, including efforts to reduce carbon emissions and secure renewable energy from various sources. The company’s climate transition plan, announced in May, aims to decarbonize both its internal operations and value chain. EcoVadis’ evaluation assesses four key areas: environment, labour and human rights, ethics, and sustainable procurement. Vodafone emphasizes that it considers environmental factors when selecting suppliers and requires them to have their own carbon reduction targets and reporting mechanisms. ————————————- MEF TECH NEWS 7 OCTOBER 2024 Hurricane Helene has revealed a significant vulnerability in the semiconductor supply chain, following flooding in Spruce Pine, North Carolina, which halted production of ultra-pure quartz essential for chip manufacturing. This region produces about 90% of the world’s ultra-pure quartz, used to create crucibles for high-grade silicon in semiconductors. The flooding, which occurred last weekend, poses a risk of long-term production interruptions that could impact the supply of crucial components for various electronics, including smartphones, computers, and solar panels. This disruption comes amid soaring demand for servers to support artificial intelligence, which is already outpacing the supply of advanced chips. ————————————————————- Google’s stronghold on the nearly $300 billion search advertising market is weakening, with its share expected to drop below 50% next year for the first time in over a decade, according to eMarketer. While Google currently commands 50.5% of the market with a growth rate of 7.6%, rivals like Amazon, projected to capture 22.3% of the market this year with 17.6% growth, are making significant inroads. Emerging competitors, such as TikTok, are challenging Google by allowing brands to target ads based on user search queries. Additionally, the AI search startup Perplexity, backed by Jeff Bezos, plans to introduce advertising with its AI-generated answers, further intensifying competition. As advertisers seek more options, Google faces increasing pressure from these rivals, reshaping the search ad landscape. ————————————————————— Meta has introduced Movie Gen, a new AI model capable of generating realistic video and audio clips based on user prompts, aiming to compete with startups like OpenAI and ElevenLabs. The model can create videos of animals and people using real photos to depict actions, as well as generate synced background music and sound effects. For instance, it can modify existing footage, such as adding pompoms to a runner in the desert or transforming a dry parking lot into a water-splashed scene. Videos can be up to 16 seconds long, with audio lasting up to 45 seconds. Meta’s tests suggest Movie Gen performs well compared to rivals like Runway, OpenAI, and Kling. —— ——