MEF BUSINESS NEWS 3 DECEMBER 2024 French bonds and stocks dropped after Marine Le Pen’s party backed a no-confidence vote against Prime Minister Michel Barnier’s government. The spread between 10-year French and German bonds rose to 89 basis points, its highest since 2012. The euro fell over 1%, and the CAC 40 index briefly dropped 1.2%. Barnier’s attempt to push through his budget without a parliamentary vote failed to secure Le Pen’s support, deepening political instability. Analysts now expect the government to fall, with the bond spread potentially reaching 100 basis points. The crisis also threatens efforts to reduce France’s ballooning deficit, which is projected to hit 6.1% of GDP. Le Pen’s demands for changes to the budget could dilute fiscal tightening, keeping bond spreads elevated in the near term. The so spread is a measure of how risky is to own a country’s debt. ————————————————— China’s central bank governor, Pan Gongsheng, confirmed that the PBOC will maintain supportive monetary policies in 2025, focusing on boosting liquidity and lowering borrowing costs amid challenges like a potential US trade war. The yuan hit a one-year low as traders anticipated weaker growth. The PBOC has already cut interest rates and reserve requirements, with more reductions expected. Pan also announced changes to the M1 money supply definition to better reflect economic activity, though M1 growth is still expected to remain negative. ——————————————————— Carlos Tavares’s departure from Stellantis underscores the growing challenges faced by automakers in transitioning to electric vehicles. Once a dominant figure in the industry, Tavares’s aggressive cost-cutting strategies, which were effective during the merger of Fiat Chrysler and PSA, faltered as Stellantis faced declining market share and struggles in key markets like the US. The company is now focused on survival, navigating a complex shift to electric vehicles while rethinking its approach to adapt to the rapidly changing auto industry. ——————————————————- DBS Group Holdings has expanded its wealth management team to serve wealthy Russians, hiring two Russian-speaking bankers in recent months, Bloomberg reports. This brings the total to at least nine, as the bank targets a market many rivals, like UBS and HSBC, are retreating from due to sanctions risks. While Russian assets make up a small portion of DBS’s S$401 billion in private banking, its growth contrasts with the cutbacks seen at other institutions. ——————————————————— —— —— MEF MOBILE NEWS 3 DECEMBER 2024 In Australia, Telecommunications providers will be required to block or flag scam texts under new rules from the Albanese Government. A mandatory SMS Sender ID Register, managed by ACMA, will target unregistered senders impersonating trusted entities like banks and government agencies. Launching in late 2025, the register will enforce verification standards for telecoms. T he initiative is part of a broader effort to hold banks and social media platforms accountable for user safety, with Meta introducing new verification measures in February. SMS remains the most common method for scams. ————————— Orange has launched My AI Pro, a generative AI tool for professional messaging aimed at freelancers, SMEs, and business owners. The service simplifies email management with intuitive features integrated into messaging platforms, making AI accessible even to users without technical expertise. Available at no extra cost through Orange’s Pro internet offers, My AI Pro will receive ongoing updates through 2025. The tool is designed to enhance efficiency for professionals without the need for advanced AI knowledge. ———————————— The enhancement of submarine cable resilience has been prioritized through the launch of the International Advisory Body by the International Telecommunication Union (ITU) and the International Cable Protection Committee(ICPC). The initiative aims to protect the submarine cables that carry over 99% of global data exchanges, a critical part of internet, commerce, and digital services. Submarine cables are vulnerable to human activities, such as fishing and anchoring, and natural hazards, causing 150–200 faults annually. The Advisory Body will work to improve cable protection by promoting best practices for governments and industry, ensuring timely repairs, and reducing damage risks. Its focus on international collaboration is key to safeguarding this essential digital infrastructure —————————————————- BT Group has signed a seven-year, £1.29 billion deal with the UK Home Office to provide mobile services for the Emergency Services Network (ESN). The contract, effective December 2, ensures BT will maintain coverage for over 300,000 users, using EE’s network and expanding connectivity for first responders. BT will also manage the Home Office’s Air-to-Ground network, coverage for the London Underground, and key tunnels, plus lead the UK’s largest rollout of indoor coverage for public safety. The contract runs until 2032, with a one-year extension option. The ESN project, originally set for completion in 2020, has faced significant delays and cost overruns since its 2015 launch. —— —— MEF TECH NEWS 3 DECEMBER 2024 SpaceX is in talks to sell insider shares that could boost its valuation to $350 billion, up from $255 billion just last month, Bloomberg reports citing people familiar with the matter. This would make the company the most valuable private startup globally. The secondary offering would allow employees and early investors to sell shares, providing liquidity. The valuation surge reflects broader growth in Elon Musk’s empire, with Tesla’s stock up 42% since the U.S. election. Musk’s net worth has risen to $353 billion, and at $350 billion, SpaceX would rival some of the world’s largest publicly traded companies. ———————————————— A Delaware judge has again rejected Elon Musk’s 2018 pay deal, despite shareholder approval in June. Judge Kathaleen McCormick ruled that Tesla’s board was overly influenced by Musk when granting the original $56 billion package, now worth $101.5 billion. McCormick stated the shareholder vote couldn’t ratify the deal. Tesla is expected to appeal to the Delaware Supreme Court. If a new deal is proposed, it would be more costly for the company, though the rejection reduces dilution for other shareholders. ———————————————- Intel’s sudden leadership shakeup with CEO Pat Gelsinger’s departure opens the door for the company to explore strategic options, including those Gelsinger had previously resisted. The board has been weighing options like a potential breakup of Intel’s operations, private equity deals, or a sale of assets, areas Gelsinger had opposed while focusing on his plan to restore Intel’s competitiveness in chip manufacturing. With Gelsinger’s exit following board pressure, investment banks like Morgan Stanley and Goldman Sachs are now advising Intel on its future direction, potentially in a more open environment under new leadership. One avenue could be selling or spinning off parts of the business, including Intel’s factory and ———————————————— Amazon Web Services (AWS) is rolling out new data center technologies to improve energy efficiency, including advanced cooling systems, renewable diesel for backup generators, and optimized server racks to reduce unused power. AWS is also introducing liquid cooling for high-performance chips like those from Nvidia. The company plans to invest $75 billion this year in servers, chips, and cooling to support its cloud services. At its re:Invent conference, AWS is expected to unveil new AI chips aimed at competing with Nvidia. ———————————————- US shoppers spent up to $13.5 billion online on Cyber Monday, slightly exceeding Adobe’s forecast of $13.2 billion. The strong showing was attributed to consumers waiting for deeper discounts and using buy-now-pay-later options for big-ticket items. The day capped off a strong Cyber Week, with total spending from Thanksgiving through Cyber Monday reaching $40.6 billion, a 7% increase from last year. Despite early discounts on Black Friday, many still viewed Cyber Monday as the best day for top deals. Popular categories included toys, apparel, electronics, and personal care. Adobe expects total online sales for November and December to reach $240 billion, up 8.4% from 2023. —— ——
MEF BUSINESS NEWS 3 DECEMBER 2024 French bonds and stocks dropped after Marine Le Pen’s party backed a no-confidence vote against Prime Minister Michel Barnier’s government. The spread between 10-year French and German bonds rose to 89 basis points, its highest since 2012. The euro fell over 1%, and the CAC 40 index briefly dropped 1.2%. Barnier’s attempt to push through his budget without a parliamentary vote failed to secure Le Pen’s support, deepening political instability. Analysts now expect the government to fall, with the bond spread potentially reaching 100 basis points. The crisis also threatens efforts to reduce France’s ballooning deficit, which is projected to hit 6.1% of GDP. Le Pen’s demands for changes to the budget could dilute fiscal tightening, keeping bond spreads elevated in the near term. The so spread is a measure of how risky is to own a country’s debt. ————————————————— China’s central bank governor, Pan Gongsheng, confirmed that the PBOC will maintain supportive monetary policies in 2025, focusing on boosting liquidity and lowering borrowing costs amid challenges like a potential US trade war. The yuan hit a one-year low as traders anticipated weaker growth. The PBOC has already cut interest rates and reserve requirements, with more reductions expected. Pan also announced changes to the M1 money supply definition to better reflect economic activity, though M1 growth is still expected to remain negative. ——————————————————— Carlos Tavares’s departure from Stellantis underscores the growing challenges faced by automakers in transitioning to electric vehicles. Once a dominant figure in the industry, Tavares’s aggressive cost-cutting strategies, which were effective during the merger of Fiat Chrysler and PSA, faltered as Stellantis faced declining market share and struggles in key markets like the US. The company is now focused on survival, navigating a complex shift to electric vehicles while rethinking its approach to adapt to the rapidly changing auto industry. ——————————————————- DBS Group Holdings has expanded its wealth management team to serve wealthy Russians, hiring two Russian-speaking bankers in recent months, Bloomberg reports. This brings the total to at least nine, as the bank targets a market many rivals, like UBS and HSBC, are retreating from due to sanctions risks. While Russian assets make up a small portion of DBS’s S$401 billion in private banking, its growth contrasts with the cutbacks seen at other institutions. ——————————————————— —— —— MEF MOBILE NEWS 3 DECEMBER 2024 In Australia, Telecommunications providers will be required to block or flag scam texts under new rules from the Albanese Government. A mandatory SMS Sender ID Register, managed by ACMA, will target unregistered senders impersonating trusted entities like banks and government agencies. Launching in late 2025, the register will enforce verification standards for telecoms. T he initiative is part of a broader effort to hold banks and social media platforms accountable for user safety, with Meta introducing new verification measures in February. SMS remains the most common method for scams. ————————— Orange has launched My AI Pro, a generative AI tool for professional messaging aimed at freelancers, SMEs, and business owners. The service simplifies email management with intuitive features integrated into messaging platforms, making AI accessible even to users without technical expertise. Available at no extra cost through Orange’s Pro internet offers, My AI Pro will receive ongoing updates through 2025. The tool is designed to enhance efficiency for professionals without the need for advanced AI knowledge. ———————————— The enhancement of submarine cable resilience has been prioritized through the launch of the International Advisory Body by the International Telecommunication Union (ITU) and the International Cable Protection Committee(ICPC). The initiative aims to protect the submarine cables that carry over 99% of global data exchanges, a critical part of internet, commerce, and digital services. Submarine cables are vulnerable to human activities, such as fishing and anchoring, and natural hazards, causing 150–200 faults annually. The Advisory Body will work to improve cable protection by promoting best practices for governments and industry, ensuring timely repairs, and reducing damage risks. Its focus on international collaboration is key to safeguarding this essential digital infrastructure —————————————————- BT Group has signed a seven-year, £1.29 billion deal with the UK Home Office to provide mobile services for the Emergency Services Network (ESN). The contract, effective December 2, ensures BT will maintain coverage for over 300,000 users, using EE’s network and expanding connectivity for first responders. BT will also manage the Home Office’s Air-to-Ground network, coverage for the London Underground, and key tunnels, plus lead the UK’s largest rollout of indoor coverage for public safety. The contract runs until 2032, with a one-year extension option. The ESN project, originally set for completion in 2020, has faced significant delays and cost overruns since its 2015 launch. —— —— MEF TECH NEWS 3 DECEMBER 2024 SpaceX is in talks to sell insider shares that could boost its valuation to $350 billion, up from $255 billion just last month, Bloomberg reports citing people familiar with the matter. This would make the company the most valuable private startup globally. The secondary offering would allow employees and early investors to sell shares, providing liquidity. The valuation surge reflects broader growth in Elon Musk’s empire, with Tesla’s stock up 42% since the U.S. election. Musk’s net worth has risen to $353 billion, and at $350 billion, SpaceX would rival some of the world’s largest publicly traded companies. ———————————————— A Delaware judge has again rejected Elon Musk’s 2018 pay deal, despite shareholder approval in June. Judge Kathaleen McCormick ruled that Tesla’s board was overly influenced by Musk when granting the original $56 billion package, now worth $101.5 billion. McCormick stated the shareholder vote couldn’t ratify the deal. Tesla is expected to appeal to the Delaware Supreme Court. If a new deal is proposed, it would be more costly for the company, though the rejection reduces dilution for other shareholders. ———————————————- Intel’s sudden leadership shakeup with CEO Pat Gelsinger’s departure opens the door for the company to explore strategic options, including those Gelsinger had previously resisted. The board has been weighing options like a potential breakup of Intel’s operations, private equity deals, or a sale of assets, areas Gelsinger had opposed while focusing on his plan to restore Intel’s competitiveness in chip manufacturing. With Gelsinger’s exit following board pressure, investment banks like Morgan Stanley and Goldman Sachs are now advising Intel on its future direction, potentially in a more open environment under new leadership. One avenue could be selling or spinning off parts of the business, including Intel’s factory and ———————————————— Amazon Web Services (AWS) is rolling out new data center technologies to improve energy efficiency, including advanced cooling systems, renewable diesel for backup generators, and optimized server racks to reduce unused power. AWS is also introducing liquid cooling for high-performance chips like those from Nvidia. The company plans to invest $75 billion this year in servers, chips, and cooling to support its cloud services. At its re:Invent conference, AWS is expected to unveil new AI chips aimed at competing with Nvidia. ———————————————- US shoppers spent up to $13.5 billion online on Cyber Monday, slightly exceeding Adobe’s forecast of $13.2 billion. The strong showing was attributed to consumers waiting for deeper discounts and using buy-now-pay-later options for big-ticket items. The day capped off a strong Cyber Week, with total spending from Thanksgiving through Cyber Monday reaching $40.6 billion, a 7% increase from last year. Despite early discounts on Black Friday, many still viewed Cyber Monday as the best day for top deals. Popular categories included toys, apparel, electronics, and personal care. Adobe expects total online sales for November and December to reach $240 billion, up 8.4% from 2023. —— ——
