MEF BUSINESS NEWS 19 JUN 2025 Oil prices are swinging as markets brace for a potential U.S. strike on Iran—an escalation that could trigger global supply shocks and drive prices higher, in particular if the Strait of Hormuz is disrupted. The key waterway handles 20% of the world’s oil, and any conflict could sharply tighten supplies. Brent crude hovered near $77, WTI above $75, as volatility spiked and traders priced in a $10 geopolitical risk premium. Donald Trump, after meeting top advisers, hinted at possible military action but gave no clear signal. According to the Wall Street Journal, he has privately approved of attack plans but has withheld the final order. And as if that wasn’t enough, pushing up the price of oil, there are also worrying data about the stocks. Crude inventories also dropped by 11.5 million barrels last week. ——————————- Stocks slid worldwide as markets brace for higher inflation and delayed rate cuts, fueled by rising Middle East tensions and a hawkish tone from the Fed. Analysts warn that a U.S. strike on Iran could worsen global inflation, and complicate central bank easing. —————————— The Federal Reserve has held interest rates steady at 4.25% to 4.5% amid signs of slowing growth and higher consumer prices, driven by the Trump administration’s tariffs and the geopolitical tensions. While the Fed still sees two rate cuts before year-end, policymakers are increasingly divided—10 expect cuts, 7 foresee none. The split reflects deep uncertainty over how tariffs will impact prices and the broader economy. Chair Jerome Powell said the Fed will wait for clearer data before adjusting policy. New forecasts show inflation rising to 3%, growth slowing to 1.4%, and unemployment ticking up to 4.5%, in the U.S. ———————- Italy’s bank merger wave is stalling, threatening to derail broader European consolidation and weaken investor confidence in politically sensitive markets — Bloomberg reports. Political pushback, legal uncertainty, and shareholder clashes have frozen most major deals, with only one takeover finalized so far. Mediobanca postponed a key vote on its Banca Generali bid, while UniCredit’s attempted takeover of Banco BPM faces government-imposed restrictions and legal hurdles. Even state-backed mergers like Monte Paschi’s push for Mediobanca face resistance. With ECB decisions pending and Rome still holding key stakes, Italy’s banking future remains gridlocked. —————————- HSBC may soon mandate all staff to return to the office at least three days a week, aligning its global workforce under one policy. Currently, rules vary by business line, but CEO Georges Elhedery is pushing for consistency as managers express frustration over low in-office attendance. The move would follow UK peers like Barclays, though stop short of Wall Street’s five-day demands. The shift complicates HSBC’s downsizing plans after leaving Canary Wharf for smaller offices near St. Paul’s. With thousands of desks now needed, HSBC may rent space again — despite its earlier exit from the area. —— —— MEF MOBILE NEWS 19 JUN 2025 Malaysia has filed its first civil lawsuit against Telegram, targeting two channels—“Edisi Siasat” and “Edisi Khas”—for spreading harmful, unverified content that threatens public trust in institutions. Despite repeated warnings, Telegram, led by CEO Pavel Durov, failed to act, prompting the Malaysian court to issue an interim injunction blocking the channels. The move reflects growing global pressure on Telegram over weak content moderation, as regulators struggle to balance free speech and public safety on encrypted messaging apps. Similar legal challenges in France underscore the rising tension. Malaysia’s case could set a precedent, signaling tougher regulation ahead for mobile messaging platforms worldwide. —————————— Meta’s $14.3 billion investment in data-labeling startup Scale AI is shaking up the AI training ecosystem. The deal has triggered a surge in demand for rival services like Snorkel AI, Labelbox, and Turing, as companies seek to diversify and protect their AI data from Meta’s growing influence. OpenAI, for example, is phasing out its work with Scale, turning to other providers for more specialized data to support advanced AI models. Scale, led by CEO Alexandr Wang, generated $870 million in revenue last year but now faces increased competition and scrutiny. The shift signals a broader change in AI development, highlighting the rising value—and complexity—of data-labeling services critical to building next-gen AI on mobile and beyond. ———————— Vodafone has named Microsoft executive Pilar López as its next Chief Financial Officer. She’ll join in October as CFO designate before officially taking over in December, replacing Luka Mucic, who is leaving to lead Germany’s largest landlord, Vonovia. López brings experience from senior roles at Microsoft, including COO for Western Europe. Her appointment marks another leadership move as Vodafone continues a major turnaround under CEO Margherita Della Valle, following recent divestments and the UK merger with Three. —————————— The GSMA’s chief, Vivek Badrinath, is urging mobile operators to finish what they started with 5G before chasing 6G dreams. Speaking at MWC Shanghai, he emphasized that fully deploying standalone 5G—especially its programmable, low-latency capabilities—is key to unlocking real growth, particularly as AI places mounting demands on mobile networks. China leads this charge: China Mobile’s 5G-Advanced network now spans 300 cities, while China Unicom and China Telecom are driving industrial AI gains. Badrinath also spotlighted the GSMA’s Open Gateway API push, now backed by carriers covering nearly 80% of global connections—aimed at opening networks and accelerating cross-sector innovation. ————————— And in Shanghai, Honor CEO James Li called for a global open AI alliance to break silos and accelerate progress toward smarter devices. Arguing that no company can tackle AI’s challenges alone, Li urged the industry to follow the GSMA Open Gateway model—standardizing APIs and forming an end-to-end ecosystem. He said this is key to adapting to fast-changing user demands. Honor’s AI platform already connects across Huawei, Apple, and other brands, using intelligent transfer tools. But to reach the next AI level—and eventually artificial general intelligence—Li says industry-wide collaboration is essential to unlock seamless, everyday AI on mobile. —————————— The mobile industry is cutting emissions even as usage soars—but not fast enough. According to the GSMA’s latest Mobile Net Zero report, operational emissions dropped 8% from 2019 to 2023, despite a 9% rise in mobile connections and quadrupled data traffic. China alone saw a 4% emissions drop in 2024, thanks to a surge in renewables—crucial progress from the world’s largest mobile market. Still, the industry must double its pace to cut emissions 7.5% yearly through 2030 to stay on track for net zero by 2050. Operators are greening networks, but Scope 3 supply chain emissions—and circularity—are now key to sustainable mobile growth. —— —— MEF TECH NEWS 19 JUN 2025 Microsoft plans to cut thousands of jobs, primarily in sales, as part of ongoing cost control efforts amid heavy investment in artificial intelligence infrastructure —- Bloomberg reports citing people familiar with the matter. The layoffs are expected to be announced in early July, following the close of its fiscal year. While sales roles will be most affected, other departments may see reductions as well. These cuts follow a previous round in May that eliminated 6,000 positions, mostly from product and engineering. In April, Microsoft indicated it would shift more SMB software sales to third-party firms, signaling a broader restructuring of customer-facing functions. As the company allocates tens of billions toward AI, including data centers and servers, leadership has emphasized the need to maintain financial discipline in other areas. Microsoft had 228,000 employees at the end of June 2024, including 45,000 in sales and marketing. ——————— Eutelsat has secured a 10-year agreement with the French government to provide satellite servfor the country’s military, a deal worth up to €1 billion. The contract grants the French Armed Forces priority access to Eutelsat’s OneWeb low-Earth orbit (LEO) satellite constellation and includes ongoing operational, security, and upgrade support to ensure military-grade reliability. This development significantly strengthens Eutelsat’s position as Europe’s key alternative to Elon Musk’s Starlink, especially amid growing political tensions and concerns about dependence on US-controlled space infrastructure. The deal also bolsters Eutelsat’s efforts to raise funding to sustain and expand the OneWeb constellation, which it acquired for $3.4 billion in 2023. Eutelsat’s CEO, Jean-François Fallacher, is now racing to secure further investments to help OneWeb close the gap with Starlink’s rapid expansion. France and other European nations are expected to support Eutelsat as it becomes strategically vital to the continent’s sovereign space and defense ambitions. ———————————- Alibaba will open a second data center in South Korea by the end of June, deepening its investment in artificial intelligence and cloud computing. The expansion is part of a previously announced ¥380 billion ($52.9 billion) commitment to AI and cloud infrastructure. The company cited strong demand from South Korean businesses for cloud and AI services as the driving force behind the new facility. Since entering the South Korean market in 2022 with a data center in Seoul, Alibaba Cloud has served clients such as Univa and Snow, a Naver subsidiary, who use its foundational AI models. With 87 availability zones in 29 regions, Alibaba remains China’s largest cloud provider. The move comes as it intensifies efforts to compete in the global AI race, launching multiple large language models under its Qwen3 line and identifying AI as a core business focus. Meanwhile, global competitors are also ramping up in South Korea. SK Telecom and AWS are set to begin construction in August on a 103-megawatt AI data center in Ulsan, designed to house 60,000 GPUs, aiming to become the country’s largest AI-specific facility. —————————- White House AI and crypto czar David Sacks warned China is just two years behind the U.S. in chip design and is effectively bypassing export controls. He cited China’s DeepSeek AI model as proof of rapid progress and urged a more balanced U.S. approach to chip restrictions. Sacks cautioned that overregulation could help Huawei gain global dominance. He also welcomed Senate approval of stablecoin legislation, saying it would boost confidence and adoption in digital finance.

MEF BUSINESS NEWS 19 JUN 2025 Oil prices are swinging as markets brace for a potential U.S. strike on Iran—an escalation that could trigger global supply shocks and drive prices higher, in particular if the Strait of Hormuz is disrupted. The key waterway handles 20% of the world’s oil, and any conflict could sharply tighten supplies. Brent crude hovered near $77, WTI above $75, as volatility spiked and traders priced in a $10 geopolitical risk premium. Donald Trump, after meeting top advisers, hinted at possible military action but gave no clear signal. According to the Wall Street Journal, he has privately approved of attack plans but has withheld the final order. And as if that wasn’t enough, pushing up the price of oil, there are also worrying data about the stocks. Crude inventories also dropped by 11.5 million barrels last week. ——————————- Stocks slid worldwide as markets brace for higher inflation and delayed rate cuts, fueled by rising Middle East tensions and a hawkish tone from the Fed. Analysts warn that a U.S. strike on Iran could worsen global inflation, and complicate central bank easing. —————————— The Federal Reserve has held interest rates steady at 4.25% to 4.5% amid signs of slowing growth and higher consumer prices, driven by the Trump administration’s tariffs and the geopolitical tensions. While the Fed still sees two rate cuts before year-end, policymakers are increasingly divided—10 expect cuts, 7 foresee none. The split reflects deep uncertainty over how tariffs will impact prices and the broader economy. Chair Jerome Powell said the Fed will wait for clearer data before adjusting policy. New forecasts show inflation rising to 3%, growth slowing to 1.4%, and unemployment ticking up to 4.5%, in the U.S. ———————- Italy’s bank merger wave is stalling, threatening to derail broader European consolidation and weaken investor confidence in politically sensitive markets — Bloomberg reports. Political pushback, legal uncertainty, and shareholder clashes have frozen most major deals, with only one takeover finalized so far. Mediobanca postponed a key vote on its Banca Generali bid, while UniCredit’s attempted takeover of Banco BPM faces government-imposed restrictions and legal hurdles. Even state-backed mergers like Monte Paschi’s push for Mediobanca face resistance. With ECB decisions pending and Rome still holding key stakes, Italy’s banking future remains gridlocked. —————————- HSBC may soon mandate all staff to return to the office at least three days a week, aligning its global workforce under one policy. Currently, rules vary by business line, but CEO Georges Elhedery is pushing for consistency as managers express frustration over low in-office attendance. The move would follow UK peers like Barclays, though stop short of Wall Street’s five-day demands. The shift complicates HSBC’s downsizing plans after leaving Canary Wharf for smaller offices near St. Paul’s. With thousands of desks now needed, HSBC may rent space again — despite its earlier exit from the area. —— —— MEF MOBILE NEWS 19 JUN 2025 Malaysia has filed its first civil lawsuit against Telegram, targeting two channels—“Edisi Siasat” and “Edisi Khas”—for spreading harmful, unverified content that threatens public trust in institutions. Despite repeated warnings, Telegram, led by CEO Pavel Durov, failed to act, prompting the Malaysian court to issue an interim injunction blocking the channels. The move reflects growing global pressure on Telegram over weak content moderation, as regulators struggle to balance free speech and public safety on encrypted messaging apps. Similar legal challenges in France underscore the rising tension. Malaysia’s case could set a precedent, signaling tougher regulation ahead for mobile messaging platforms worldwide. —————————— Meta’s $14.3 billion investment in data-labeling startup Scale AI is shaking up the AI training ecosystem. The deal has triggered a surge in demand for rival services like Snorkel AI, Labelbox, and Turing, as companies seek to diversify and protect their AI data from Meta’s growing influence. OpenAI, for example, is phasing out its work with Scale, turning to other providers for more specialized data to support advanced AI models. Scale, led by CEO Alexandr Wang, generated $870 million in revenue last year but now faces increased competition and scrutiny. The shift signals a broader change in AI development, highlighting the rising value—and complexity—of data-labeling services critical to building next-gen AI on mobile and beyond. ———————— Vodafone has named Microsoft executive Pilar López as its next Chief Financial Officer. She’ll join in October as CFO designate before officially taking over in December, replacing Luka Mucic, who is leaving to lead Germany’s largest landlord, Vonovia. López brings experience from senior roles at Microsoft, including COO for Western Europe. Her appointment marks another leadership move as Vodafone continues a major turnaround under CEO Margherita Della Valle, following recent divestments and the UK merger with Three. —————————— The GSMA’s chief, Vivek Badrinath, is urging mobile operators to finish what they started with 5G before chasing 6G dreams. Speaking at MWC Shanghai, he emphasized that fully deploying standalone 5G—especially its programmable, low-latency capabilities—is key to unlocking real growth, particularly as AI places mounting demands on mobile networks. China leads this charge: China Mobile’s 5G-Advanced network now spans 300 cities, while China Unicom and China Telecom are driving industrial AI gains. Badrinath also spotlighted the GSMA’s Open Gateway API push, now backed by carriers covering nearly 80% of global connections—aimed at opening networks and accelerating cross-sector innovation. ————————— And in Shanghai, Honor CEO James Li called for a global open AI alliance to break silos and accelerate progress toward smarter devices. Arguing that no company can tackle AI’s challenges alone, Li urged the industry to follow the GSMA Open Gateway model—standardizing APIs and forming an end-to-end ecosystem. He said this is key to adapting to fast-changing user demands. Honor’s AI platform already connects across Huawei, Apple, and other brands, using intelligent transfer tools. But to reach the next AI level—and eventually artificial general intelligence—Li says industry-wide collaboration is essential to unlock seamless, everyday AI on mobile. —————————— The mobile industry is cutting emissions even as usage soars—but not fast enough. According to the GSMA’s latest Mobile Net Zero report, operational emissions dropped 8% from 2019 to 2023, despite a 9% rise in mobile connections and quadrupled data traffic. China alone saw a 4% emissions drop in 2024, thanks to a surge in renewables—crucial progress from the world’s largest mobile market. Still, the industry must double its pace to cut emissions 7.5% yearly through 2030 to stay on track for net zero by 2050. Operators are greening networks, but Scope 3 supply chain emissions—and circularity—are now key to sustainable mobile growth. —— —— MEF TECH NEWS 19 JUN 2025 Microsoft plans to cut thousands of jobs, primarily in sales, as part of ongoing cost control efforts amid heavy investment in artificial intelligence infrastructure —- Bloomberg reports citing people familiar with the matter. The layoffs are expected to be announced in early July, following the close of its fiscal year. While sales roles will be most affected, other departments may see reductions as well. These cuts follow a previous round in May that eliminated 6,000 positions, mostly from product and engineering. In April, Microsoft indicated it would shift more SMB software sales to third-party firms, signaling a broader restructuring of customer-facing functions. As the company allocates tens of billions toward AI, including data centers and servers, leadership has emphasized the need to maintain financial discipline in other areas. Microsoft had 228,000 employees at the end of June 2024, including 45,000 in sales and marketing. ——————— Eutelsat has secured a 10-year agreement with the French government to provide satellite servfor the country’s military, a deal worth up to €1 billion. The contract grants the French Armed Forces priority access to Eutelsat’s OneWeb low-Earth orbit (LEO) satellite constellation and includes ongoing operational, security, and upgrade support to ensure military-grade reliability. This development significantly strengthens Eutelsat’s position as Europe’s key alternative to Elon Musk’s Starlink, especially amid growing political tensions and concerns about dependence on US-controlled space infrastructure. The deal also bolsters Eutelsat’s efforts to raise funding to sustain and expand the OneWeb constellation, which it acquired for $3.4 billion in 2023. Eutelsat’s CEO, Jean-François Fallacher, is now racing to secure further investments to help OneWeb close the gap with Starlink’s rapid expansion. France and other European nations are expected to support Eutelsat as it becomes strategically vital to the continent’s sovereign space and defense ambitions. ———————————- Alibaba will open a second data center in South Korea by the end of June, deepening its investment in artificial intelligence and cloud computing. The expansion is part of a previously announced ¥380 billion ($52.9 billion) commitment to AI and cloud infrastructure. The company cited strong demand from South Korean businesses for cloud and AI services as the driving force behind the new facility. Since entering the South Korean market in 2022 with a data center in Seoul, Alibaba Cloud has served clients such as Univa and Snow, a Naver subsidiary, who use its foundational AI models. With 87 availability zones in 29 regions, Alibaba remains China’s largest cloud provider. The move comes as it intensifies efforts to compete in the global AI race, launching multiple large language models under its Qwen3 line and identifying AI as a core business focus. Meanwhile, global competitors are also ramping up in South Korea. SK Telecom and AWS are set to begin construction in August on a 103-megawatt AI data center in Ulsan, designed to house 60,000 GPUs, aiming to become the country’s largest AI-specific facility. —————————- White House AI and crypto czar David Sacks warned China is just two years behind the U.S. in chip design and is effectively bypassing export controls. He cited China’s DeepSeek AI model as proof of rapid progress and urged a more balanced U.S. approach to chip restrictions. Sacks cautioned that overregulation could help Huawei gain global dominance. He also welcomed Senate approval of stablecoin legislation, saying it would boost confidence and adoption in digital finance.