MEF BUSINESS NEWS 20 MAY 2025 Donald Trump’s push to extend his 2017 tax cuts is stoking new fears over US debt, just as Moody’s has downgraded the country’s credit rating. The proposed bill, which also slashes social spending, could raise the federal debt by over $3 trillion by 2034. Analysts warn it could drive the debt-to-GDP ratio to a record 125%, far beyond current projections. Investors are reacting — long-term Treasury yields spiked, with the 30-year hitting its highest level since 2023. Critics say the US is headed for a fiscal cliff unless spending is reined in or revenues rise. Some warn that global appetite for US debt is cooling. ——————————————— JPMorgan CEO Jamie Dimon warned that the worst effects of Trump’s tariffs may still be ahead. Speaking at the bank’s investor day, Dimon called the current tariffs “pretty extreme,” saying markets are dangerously complacent. He predicts a possible 10% stock selloff as companies like Walmart and GM raise prices or pull earnings forecasts. Dimon also warned of a looming credit crunch and questioned central banks’ ability to respond. His message: brace for economic pain that’s not yet priced in. ——————————————— A fragile US-China trade truce has done little to ease uncertainty for American businesses, according to the Financial Times. After Trump’s sudden tariff hikes, companies like Stonemaier Games report scaled-back holiday plans, warning of lasting cost pressures. Despite a short-term market rebound, inflation fears persist, especially with the removal of duty-free import rules. Moody’s downgrade and concern over rising deficits add to the gloom, with Main Street businesses and consumers bracing for higher prices and weaker growth. ——————————————— Prime Minister Keir Starmer says Britain is “back on the world stage” after striking a major trade reset with the EU. The deal, announced in London with EU chief Ursula von der Leyen, includes cheaper food and energy, faster travel, and youth visas. But critics slammed a key concession: giving EU fishers access to British waters for 12 more years. Starmer insists it’s a win-win for jobs and exports. The pact also boosts UK access to EU defence and climate funds—and marks the third big trade deal for Britain this month. ——————————————— Some details: the UK-EU deal removes many health checks on food exports, helping small businesses sell their products to the EU again, though customs declarations remain. British students may rejoin Erasmus and a youth mobility scheme will let young people work or study in the EU for limited periods. The UK gains access to EU defense funds and police databases for crime fighting. Migration cooperation improves with shared info on small boat crossings. Musicians still face visa issues, and e-gate airport access for Brits may come by 2026. Both sides aim to link carbon trading systems for climate goals. ———————————————— CATL, the world’s largest electric-vehicle battery maker, surged 14% in its Hong Kong debut after raising HK$35.7 billion ($4.6 billion) in the biggest global listing this year. Despite being blacklisted by the Pentagon over alleged military ties, which the company denies, investors focused on CATL’s strong market position and growth potential. Supplying top automakers like Tesla and Volkswagen, CATL holds a 38% market share. The funds will fuel a $7.6 billion expansion in Europe, where profit margins are higher. The listing boosts Hong Kong’s capital markets and shows CATL’s push to expand internationally amid US-China tensions. ————————————- Meanwhile, Honda is cutting its electric vehicle investment by over $20 billion, now planning to spend ¥7 trillion ($48.3 billion) through fiscal 2031, down from the earlier ¥10 trillion target. The reduction reflects a shift in its electrification strategy announced last year, which initially aimed at heavy spending on EVs and software over the decade. —— —— MEF MOBILE NEWS 20 MAY 2025 Vodafone expects flat profits this year as competition heats up in its key German market. Despite strong revenue growth last quarter, new regulations limiting bundled broadband and TV services are pressuring its largest market. Vodafone is also feeling the pinch in Portugal with new budget rivals entering. CEO Margherita Della Valle is focusing on transforming Vodafone through strategic moves like merging with Three in the UK, aiming to strengthen its position across mobile and broadband services in Europe’s evolving mobile ecosystem. —————————————— Altice France is weighing a sale of a controlling stake in its mobile operator SFR, potentially valuing the company at around 30 billion euros including debt — Bloomberg reports citing people familiar with the matter. Interested buyers include French rivals like Orange, Bouygues, and Iliad, as well as Middle Eastern telecom groups and private equity firms. The move comes as Altice restructures its heavy debt load and looks to sharpen focus on core assets. Any deal could reshape the French mobile market but would face regulatory hurdles aimed at preserving competition and keeping prices in check for consumers. ——————————————— Verizon just won FCC approval for its $20 billion acquisition of Frontier Communications—boosting fixed-line infrastructure across the U.S. But here’s the twist: the greenlight came after Verizon agreed to drop its diversity, equity, and inclusion (DEI) initiatives. FCC Chair Brendan Carr called it a win for “equal opportunity,” sparking debate over regulatory overreach. The move could reshape hiring norms across the mobile and telecom workforce—just as billions are invested in 5G and fiber rollouts. The deal closes in early 2026. ——————————————- Microsoft is now offering Elon Musk’s xAI Grok AI models on its Azure cloud platform, alongside OpenAI’s models, letting developers access both under the same terms. The move helps simplify AI integration for app makers and businesses building mobile and cloud services. Microsoft is also adopting new standards so AI assistants can better communicate, boosting smart features on phones and devices. The company’s strategy reflects a shift toward supporting multiple AI providers, helping developers create more powerful, versatile mobile experiences. ——————————————— Nintendo is teaming up with Samsung to produce the custom Nvidia-designed chips powering the Switch 2, aiming to boost production beyond 20 million units by next March. The shift helps Nintendo secure chip supply amid high demand and eases pressure on Taiwan’s TSMC, the usual leader in contract chipmaking. Samsung’s involvement could speed up manufacturing and improve availability for developers and gamers relying on mobile and cloud-connected consoles. The move highlights how chipmakers and device makers collaborate closely to support the growing mobile gaming ecosystem. —————————- Elon Musk’s Starlink satellite internet service has officially launched in Bangladesh, offering high-speed, low-latency access nationwide. Interim leader Muhammad Yunus called the move a way to safeguard internet access amid political instability. For mobile users, this offers a resilient alternative to disrupted local networks — a potential game-changer for rural and high-end connectivity in South Asia. —— —— MEF TECH NEWS 20 MAY 2025 Xiaomi has begun mass production of its first self-developed advanced mobile chip, the Xring O1, founder Lei Jun revealed today. The chip will debut in the Xiaomi 15S Pro and Pad 7 Ultra, launching this Thursday. It marks a major step in Xiaomi’s vertical integration push—Lei says the company has already spent the equivalent of $1.87B on chip R&D and plans to invest more over 10 years, betting big on mobile chip independence in a geopolitically tense tech landscape. ————————————- At the ongoing antitrust trial, internal Google documents and executive testimonies revealed that Google decided against offering web publishers control over how their content is used to train AI models powering search and AI features. Despite recognizing options to let publishers opt out of AI training or AI-generated search snippets, Google enforced a strict policy requiring all indexed content to feed its AI tools. This approach boosts Google’s dominance in the search ecosystem, where it controls over 90% of traffic, but risks reducing publisher revenue as AI answers reduce clicks to sites. The US Justice Department is pushing for opt-out rights to protect publishers, but Google cites technical complexity as a barrier. ——————————————- AI can be more persuasive than humans in debates, a new study published in Nature Human Behaviour finds. The research from the Swiss Federal Institute of Technology shows that AI like ChatGPT-4 can adapt its arguments based on personal data—often collected via mobile apps and devices—making it especially effective at influencing opinions. This raises big concerns about AI-driven microtargeting in mobile ecosystems, potentially swaying elections and spreading misinformation through personalized messages on smartphones. Experts warn this technology is already being exploited and urge regulators to act quickly. —————————————— Pony AI is under the investor microscope this week as it reports its first full quarter since going public. With no profit yet and a $274M loss last year, the robotaxi pioneer is betting big on its next-gen autonomous fleet. Analysts expect break-even per robotaxi by 2026, full profitability by 2029. Key to the plan: partnerships with Tencent, Uber, and lidar firm Hesai, plus a 70% cost cut on its latest AV system. The stock’s rebounded 300% after April’s crash — now, all eyes are on scaling and regulation as Pony pushes deeper into China, the Middle East, and beyond. —————————————- The US Justice Department has launched a criminal probe into a massive data breach at Coinbase, the top US crypto exchange. Hackers bribed contractors in India to steal sensitive user data, then demanded $20 million in ransom, Coinbase revealed. The company, not under investigation itself, alerted authorities and is cooperating with global law enforcement. The breach, involving names, IDs, and more, may cost Coinbase up to $400 million to fix. UK and Irish regulators are also reviewing the incident. The attack relied on social engineering, not code flaws — a red flag for the whole industry.

MEF BUSINESS NEWS 20 MAY 2025 Donald Trump’s push to extend his 2017 tax cuts is stoking new fears over US debt, just as Moody’s has downgraded the country’s credit rating. The proposed bill, which also slashes social spending, could raise the federal debt by over $3 trillion by 2034. Analysts warn it could drive the debt-to-GDP ratio to a record 125%, far beyond current projections. Investors are reacting — long-term Treasury yields spiked, with the 30-year hitting its highest level since 2023. Critics say the US is headed for a fiscal cliff unless spending is reined in or revenues rise. Some warn that global appetite for US debt is cooling. ——————————————— JPMorgan CEO Jamie Dimon warned that the worst effects of Trump’s tariffs may still be ahead. Speaking at the bank’s investor day, Dimon called the current tariffs “pretty extreme,” saying markets are dangerously complacent. He predicts a possible 10% stock selloff as companies like Walmart and GM raise prices or pull earnings forecasts. Dimon also warned of a looming credit crunch and questioned central banks’ ability to respond. His message: brace for economic pain that’s not yet priced in. ——————————————— A fragile US-China trade truce has done little to ease uncertainty for American businesses, according to the Financial Times. After Trump’s sudden tariff hikes, companies like Stonemaier Games report scaled-back holiday plans, warning of lasting cost pressures. Despite a short-term market rebound, inflation fears persist, especially with the removal of duty-free import rules. Moody’s downgrade and concern over rising deficits add to the gloom, with Main Street businesses and consumers bracing for higher prices and weaker growth. ——————————————— Prime Minister Keir Starmer says Britain is “back on the world stage” after striking a major trade reset with the EU. The deal, announced in London with EU chief Ursula von der Leyen, includes cheaper food and energy, faster travel, and youth visas. But critics slammed a key concession: giving EU fishers access to British waters for 12 more years. Starmer insists it’s a win-win for jobs and exports. The pact also boosts UK access to EU defence and climate funds—and marks the third big trade deal for Britain this month. ——————————————— Some details: the UK-EU deal removes many health checks on food exports, helping small businesses sell their products to the EU again, though customs declarations remain. British students may rejoin Erasmus and a youth mobility scheme will let young people work or study in the EU for limited periods. The UK gains access to EU defense funds and police databases for crime fighting. Migration cooperation improves with shared info on small boat crossings. Musicians still face visa issues, and e-gate airport access for Brits may come by 2026. Both sides aim to link carbon trading systems for climate goals. ———————————————— CATL, the world’s largest electric-vehicle battery maker, surged 14% in its Hong Kong debut after raising HK$35.7 billion ($4.6 billion) in the biggest global listing this year. Despite being blacklisted by the Pentagon over alleged military ties, which the company denies, investors focused on CATL’s strong market position and growth potential. Supplying top automakers like Tesla and Volkswagen, CATL holds a 38% market share. The funds will fuel a $7.6 billion expansion in Europe, where profit margins are higher. The listing boosts Hong Kong’s capital markets and shows CATL’s push to expand internationally amid US-China tensions. ————————————- Meanwhile, Honda is cutting its electric vehicle investment by over $20 billion, now planning to spend ¥7 trillion ($48.3 billion) through fiscal 2031, down from the earlier ¥10 trillion target. The reduction reflects a shift in its electrification strategy announced last year, which initially aimed at heavy spending on EVs and software over the decade. —— —— MEF MOBILE NEWS 20 MAY 2025 Vodafone expects flat profits this year as competition heats up in its key German market. Despite strong revenue growth last quarter, new regulations limiting bundled broadband and TV services are pressuring its largest market. Vodafone is also feeling the pinch in Portugal with new budget rivals entering. CEO Margherita Della Valle is focusing on transforming Vodafone through strategic moves like merging with Three in the UK, aiming to strengthen its position across mobile and broadband services in Europe’s evolving mobile ecosystem. —————————————— Altice France is weighing a sale of a controlling stake in its mobile operator SFR, potentially valuing the company at around 30 billion euros including debt — Bloomberg reports citing people familiar with the matter. Interested buyers include French rivals like Orange, Bouygues, and Iliad, as well as Middle Eastern telecom groups and private equity firms. The move comes as Altice restructures its heavy debt load and looks to sharpen focus on core assets. Any deal could reshape the French mobile market but would face regulatory hurdles aimed at preserving competition and keeping prices in check for consumers. ——————————————— Verizon just won FCC approval for its $20 billion acquisition of Frontier Communications—boosting fixed-line infrastructure across the U.S. But here’s the twist: the greenlight came after Verizon agreed to drop its diversity, equity, and inclusion (DEI) initiatives. FCC Chair Brendan Carr called it a win for “equal opportunity,” sparking debate over regulatory overreach. The move could reshape hiring norms across the mobile and telecom workforce—just as billions are invested in 5G and fiber rollouts. The deal closes in early 2026. ——————————————- Microsoft is now offering Elon Musk’s xAI Grok AI models on its Azure cloud platform, alongside OpenAI’s models, letting developers access both under the same terms. The move helps simplify AI integration for app makers and businesses building mobile and cloud services. Microsoft is also adopting new standards so AI assistants can better communicate, boosting smart features on phones and devices. The company’s strategy reflects a shift toward supporting multiple AI providers, helping developers create more powerful, versatile mobile experiences. ——————————————— Nintendo is teaming up with Samsung to produce the custom Nvidia-designed chips powering the Switch 2, aiming to boost production beyond 20 million units by next March. The shift helps Nintendo secure chip supply amid high demand and eases pressure on Taiwan’s TSMC, the usual leader in contract chipmaking. Samsung’s involvement could speed up manufacturing and improve availability for developers and gamers relying on mobile and cloud-connected consoles. The move highlights how chipmakers and device makers collaborate closely to support the growing mobile gaming ecosystem. —————————- Elon Musk’s Starlink satellite internet service has officially launched in Bangladesh, offering high-speed, low-latency access nationwide. Interim leader Muhammad Yunus called the move a way to safeguard internet access amid political instability. For mobile users, this offers a resilient alternative to disrupted local networks — a potential game-changer for rural and high-end connectivity in South Asia. —— —— MEF TECH NEWS 20 MAY 2025 Xiaomi has begun mass production of its first self-developed advanced mobile chip, the Xring O1, founder Lei Jun revealed today. The chip will debut in the Xiaomi 15S Pro and Pad 7 Ultra, launching this Thursday. It marks a major step in Xiaomi’s vertical integration push—Lei says the company has already spent the equivalent of $1.87B on chip R&D and plans to invest more over 10 years, betting big on mobile chip independence in a geopolitically tense tech landscape. ————————————- At the ongoing antitrust trial, internal Google documents and executive testimonies revealed that Google decided against offering web publishers control over how their content is used to train AI models powering search and AI features. Despite recognizing options to let publishers opt out of AI training or AI-generated search snippets, Google enforced a strict policy requiring all indexed content to feed its AI tools. This approach boosts Google’s dominance in the search ecosystem, where it controls over 90% of traffic, but risks reducing publisher revenue as AI answers reduce clicks to sites. The US Justice Department is pushing for opt-out rights to protect publishers, but Google cites technical complexity as a barrier. ——————————————- AI can be more persuasive than humans in debates, a new study published in Nature Human Behaviour finds. The research from the Swiss Federal Institute of Technology shows that AI like ChatGPT-4 can adapt its arguments based on personal data—often collected via mobile apps and devices—making it especially effective at influencing opinions. This raises big concerns about AI-driven microtargeting in mobile ecosystems, potentially swaying elections and spreading misinformation through personalized messages on smartphones. Experts warn this technology is already being exploited and urge regulators to act quickly. —————————————— Pony AI is under the investor microscope this week as it reports its first full quarter since going public. With no profit yet and a $274M loss last year, the robotaxi pioneer is betting big on its next-gen autonomous fleet. Analysts expect break-even per robotaxi by 2026, full profitability by 2029. Key to the plan: partnerships with Tencent, Uber, and lidar firm Hesai, plus a 70% cost cut on its latest AV system. The stock’s rebounded 300% after April’s crash — now, all eyes are on scaling and regulation as Pony pushes deeper into China, the Middle East, and beyond. —————————————- The US Justice Department has launched a criminal probe into a massive data breach at Coinbase, the top US crypto exchange. Hackers bribed contractors in India to steal sensitive user data, then demanded $20 million in ransom, Coinbase revealed. The company, not under investigation itself, alerted authorities and is cooperating with global law enforcement. The breach, involving names, IDs, and more, may cost Coinbase up to $400 million to fix. UK and Irish regulators are also reviewing the incident. The attack relied on social engineering, not code flaws — a red flag for the whole industry.