MEF BUSINESS NEWS 17 JANUARY 2025 Scott Bessent, Trump’s nominee for US Treasury Secretary, outlined plans to bolster the economy and confront geopolitical rivals during a heated Senate confirmation hearing. He emphasized extending Trump-era tax cuts, warning of “economic calamity” if they lapse, and supported aggressive sanctions, particularly on Russia’s oil sector, to pressure Moscow over the Ukraine war. Bessent advocated using tariffs to address unfair trade practices, enhance US revenues, and secure favorable deals. He vowed to push China to increase agricultural imports and apply strict export controls on AI, quantum computing, and chips. He predicted inflation would stabilize near the Fed’s 2% target but warned of fiscal constraints limiting the Treasury’s crisis response capacity. His remarks on potential Russian oil sanctions spiked Brent crude prices above $81 per barrel. ———————————— China declared 5% GDP growth for last year, meeting its target amid aggressive stimulus efforts to counter economic challenges. Growth was driven by investment and exports, though consumption remained weak, reflecting uneven performance. Critics point to indicators like low inflation, tax revenue, and online spending that suggest underlying weakness, alongside ongoing real-estate struggles and deflation concerns. Adding to uncertainty, U.S. President-elect Donald Trump has pledged steep tariffs on Chinese imports, potentially impacting China’s export-driven growth. Trump has signaled swift action on trade reforms after his inauguration, aiming to reshape U.S. trade relationships. ————————————- UK retailers experienced a disappointing December, with retail sales volumes dropping 0.3% from November, missing expectations of flat growth. The decline, led by the lowest food sales since 2013, reflected weak consumer spending amid economic challenges. Fourth-quarter sales fell 0.8%, negatively impacting GDP, which grew just 0.1% in November. Prime Minister Keir Starmer has prioritized boosting economic growth to address these issues. —————————————- Rio Tinto and Glencore are exploring a potential merger to create the world’s largest mining company, surpassing BHP Group, Bloomberg reports citing people familiar with the matter. The deal would consolidate top copper assets crucial for decarbonization but faces challenges, including Glencore’s coal focus, cultural differences, and regulatory hurdles. While Rio prioritizes sustainable resources, Glencore’s coal and trading operations may complicate the merger. If successful, the deal could redefine the mining industry and establish a copper powerhouse. —— —— MEF MOBILE NEWS 17 JANUARY 2025 Ericsson and Nokia urged European policymakers to take action at the New Industrial Ambition for Europe summit in Brussels, calling for regulatory reforms and increased investment in advanced technologies like AI, cloud, and 5G. They highlighted 2024 reports by Enrico Letta and Mario Draghi, which emphasized telecom consolidation and stronger R&D. The companies stressed that Europe’s competitiveness is at risk, with Nokia CEO Pekka Lundmark warning it’s “one foot in the morgue.” Both CEOs called for urgent reforms to attract investment and ensure Europe’s technological future. ——————————— The Swiss IoT module company u-blox announced plans to phase out its loss-making cellular business, focusing instead on satellite positioning technology, Wi-Fi, and Bluetooth products. The cellular division, which employs 200 people, reported an adjusted EBIT loss of CHF 15 million ($16 million) in H1 2024. CEO Stephan Zizala explained that after exploring a potential sale, the decision to exit the cellular business aligns with the company’s long-term strategy and will improve operational efficiency. The shift is expected to save CHF 30 million in annual EBIT losses. ——————————— New UK rules now require telecom providers to clearly disclose mid-contract price hikes in exact monetary terms, replacing vague inflation-based increases. From today, contracts must specify fixed price rises, providing transparency and helping consumers avoid unexpected costs. The move follows concerns over “greedflation,” with past increases reaching 17.3%. Regulator Ofcom says the changes will simplify pricing and improve customer choice. ———————————- The wireless telecommunication carrier market, valued at $1.81 trillion in 2024, is projected to reach $3.87 trillion by 2034, growing at 7.9% annually, per Fact.MR. Growth is driven by 5G adoption, IoT applications, and smart city initiatives. Key markets include the U.S. and East Asia, fueled by rising demand for advanced connectivity in sectors like healthcare, manufacturing, and smart homes. Innovations like network slicing and automation enhance efficiency and user experiences, sustaining market expansion. —— —— MEF TECH NEWS 17 JANUARY 2025 SpaceX’s uncrewed Starship rocket exploded during a test flight after separating from its booster. A leak caused excess pressure, leading to the spacecraft’s breakup over the Atlantic. Debris briefly disrupted Caribbean air travel, with the FAA activating safety measures. The booster successfully returned to its launch mount, and SpaceX will review the incident to refine Starship, which aims for reusable orbital flights. ————————————— President-elect Donald Trump is considering an executive order to temporarily allow TikTok to operate in the U.S. despite a pending ban tied to national security concerns over its Chinese ownership, the Washington Post reported. The app, owned by ByteDance, faces a legal mandate to be sold to a non-Chinese entity or be removed from app stores like Apple and Google. An executive order could delay enforcement or instruct non-compliance with the law, though its legality and impact on app stores and cloud providers remain uncertain. ———————————— Nvidia CEO Jensen Huang will miss the inauguration of President-elect Donald Trump on January 20, continuing his tradition of not attending U.S. presidential inaugurations. Huang is visiting East Asia for the Lunar New Year, a trip he typically takes. This sets him apart from other tech leaders like Apple’s Tim Cook, Amazon’s Jeff Bezos, and Tesla’s Elon Musk, who are attending the event. Huang had expressed willingness to meet Trump earlier but had not been invited to his Mar-a-Lago estate. ———————————— Meta’s UK staff, represented by the Prospect union, expressed concerns over the company’s decision to cut fact-checking and diversity programs. The union warned that these changes could impact employee morale and retention. The criticism comes as Meta plans to reduce its global workforce by 5%, potentially affecting 3,600 employees, as part of a shake-up in its performance management system. ———————————- Microsoft has raised prices for its Microsoft 365 subscriptions, citing the integration of advanced AI tools. The family plan now costs $130 per year (up 30%), and the individual plan is $100 (up 43%). These changes, effective immediately for new subscribers and upon renewal for existing ones, mark the first price hike in 12 years. Microsoft, partnering with OpenAI, is embedding AI capabilities like document analysis and content generation into its apps, aiming to justify its significant investment in AI while enhancing productivity tools used by millions daily. ———————————— Sony’s PlayStation canceled two unannounced live-service games at Bend Studio and Bluepoint Games but will keep both studios operational. While Helldivers II succeeded, other live-service efforts, including Concord, have struggled. Sony aims to minimize impacts on staff as it refocuses on new projects amid industry-wide challenges and slowed growth. —— ——

MEF BUSINESS NEWS 17 JANUARY 2025 Scott Bessent, Trump’s nominee for US Treasury Secretary, outlined plans to bolster the economy and confront geopolitical rivals during a heated Senate confirmation hearing. He emphasized extending Trump-era tax cuts, warning of “economic calamity” if they lapse, and supported aggressive sanctions, particularly on Russia’s oil sector, to pressure Moscow over the Ukraine war. Bessent advocated using tariffs to address unfair trade practices, enhance US revenues, and secure favorable deals. He vowed to push China to increase agricultural imports and apply strict export controls on AI, quantum computing, and chips. He predicted inflation would stabilize near the Fed’s 2% target but warned of fiscal constraints limiting the Treasury’s crisis response capacity. His remarks on potential Russian oil sanctions spiked Brent crude prices above $81 per barrel. ———————————— China declared 5% GDP growth for last year, meeting its target amid aggressive stimulus efforts to counter economic challenges. Growth was driven by investment and exports, though consumption remained weak, reflecting uneven performance. Critics point to indicators like low inflation, tax revenue, and online spending that suggest underlying weakness, alongside ongoing real-estate struggles and deflation concerns. Adding to uncertainty, U.S. President-elect Donald Trump has pledged steep tariffs on Chinese imports, potentially impacting China’s export-driven growth. Trump has signaled swift action on trade reforms after his inauguration, aiming to reshape U.S. trade relationships. ————————————- UK retailers experienced a disappointing December, with retail sales volumes dropping 0.3% from November, missing expectations of flat growth. The decline, led by the lowest food sales since 2013, reflected weak consumer spending amid economic challenges. Fourth-quarter sales fell 0.8%, negatively impacting GDP, which grew just 0.1% in November. Prime Minister Keir Starmer has prioritized boosting economic growth to address these issues. —————————————- Rio Tinto and Glencore are exploring a potential merger to create the world’s largest mining company, surpassing BHP Group, Bloomberg reports citing people familiar with the matter. The deal would consolidate top copper assets crucial for decarbonization but faces challenges, including Glencore’s coal focus, cultural differences, and regulatory hurdles. While Rio prioritizes sustainable resources, Glencore’s coal and trading operations may complicate the merger. If successful, the deal could redefine the mining industry and establish a copper powerhouse. —— —— MEF MOBILE NEWS 17 JANUARY 2025 Ericsson and Nokia urged European policymakers to take action at the New Industrial Ambition for Europe summit in Brussels, calling for regulatory reforms and increased investment in advanced technologies like AI, cloud, and 5G. They highlighted 2024 reports by Enrico Letta and Mario Draghi, which emphasized telecom consolidation and stronger R&D. The companies stressed that Europe’s competitiveness is at risk, with Nokia CEO Pekka Lundmark warning it’s “one foot in the morgue.” Both CEOs called for urgent reforms to attract investment and ensure Europe’s technological future. ——————————— The Swiss IoT module company u-blox announced plans to phase out its loss-making cellular business, focusing instead on satellite positioning technology, Wi-Fi, and Bluetooth products. The cellular division, which employs 200 people, reported an adjusted EBIT loss of CHF 15 million ($16 million) in H1 2024. CEO Stephan Zizala explained that after exploring a potential sale, the decision to exit the cellular business aligns with the company’s long-term strategy and will improve operational efficiency. The shift is expected to save CHF 30 million in annual EBIT losses. ——————————— New UK rules now require telecom providers to clearly disclose mid-contract price hikes in exact monetary terms, replacing vague inflation-based increases. From today, contracts must specify fixed price rises, providing transparency and helping consumers avoid unexpected costs. The move follows concerns over “greedflation,” with past increases reaching 17.3%. Regulator Ofcom says the changes will simplify pricing and improve customer choice. ———————————- The wireless telecommunication carrier market, valued at $1.81 trillion in 2024, is projected to reach $3.87 trillion by 2034, growing at 7.9% annually, per Fact.MR. Growth is driven by 5G adoption, IoT applications, and smart city initiatives. Key markets include the U.S. and East Asia, fueled by rising demand for advanced connectivity in sectors like healthcare, manufacturing, and smart homes. Innovations like network slicing and automation enhance efficiency and user experiences, sustaining market expansion. —— —— MEF TECH NEWS 17 JANUARY 2025 SpaceX’s uncrewed Starship rocket exploded during a test flight after separating from its booster. A leak caused excess pressure, leading to the spacecraft’s breakup over the Atlantic. Debris briefly disrupted Caribbean air travel, with the FAA activating safety measures. The booster successfully returned to its launch mount, and SpaceX will review the incident to refine Starship, which aims for reusable orbital flights. ————————————— President-elect Donald Trump is considering an executive order to temporarily allow TikTok to operate in the U.S. despite a pending ban tied to national security concerns over its Chinese ownership, the Washington Post reported. The app, owned by ByteDance, faces a legal mandate to be sold to a non-Chinese entity or be removed from app stores like Apple and Google. An executive order could delay enforcement or instruct non-compliance with the law, though its legality and impact on app stores and cloud providers remain uncertain. ———————————— Nvidia CEO Jensen Huang will miss the inauguration of President-elect Donald Trump on January 20, continuing his tradition of not attending U.S. presidential inaugurations. Huang is visiting East Asia for the Lunar New Year, a trip he typically takes. This sets him apart from other tech leaders like Apple’s Tim Cook, Amazon’s Jeff Bezos, and Tesla’s Elon Musk, who are attending the event. Huang had expressed willingness to meet Trump earlier but had not been invited to his Mar-a-Lago estate. ———————————— Meta’s UK staff, represented by the Prospect union, expressed concerns over the company’s decision to cut fact-checking and diversity programs. The union warned that these changes could impact employee morale and retention. The criticism comes as Meta plans to reduce its global workforce by 5%, potentially affecting 3,600 employees, as part of a shake-up in its performance management system. ———————————- Microsoft has raised prices for its Microsoft 365 subscriptions, citing the integration of advanced AI tools. The family plan now costs $130 per year (up 30%), and the individual plan is $100 (up 43%). These changes, effective immediately for new subscribers and upon renewal for existing ones, mark the first price hike in 12 years. Microsoft, partnering with OpenAI, is embedding AI capabilities like document analysis and content generation into its apps, aiming to justify its significant investment in AI while enhancing productivity tools used by millions daily. ———————————— Sony’s PlayStation canceled two unannounced live-service games at Bend Studio and Bluepoint Games but will keep both studios operational. While Helldivers II succeeded, other live-service efforts, including Concord, have struggled. Sony aims to minimize impacts on staff as it refocuses on new projects amid industry-wide challenges and slowed growth. —— ——