MEF BUSINESS NEWS 11 JUNE 2025 The US and China have agreed on a framework to restart trade in sensitive goods, aiming to ease tensions. The move follows the Geneva consensus that softened duties last month and reflects both sides’ urgency to stabilize economic ties. If endorsed by Presidents Trump and Xi, the deal could mark a turning point in restoring trade flows and investor confidence. After 20 hours of talks in London, US Commerce Secretary Howard Lutnick announced that China will expedite rare earth shipments vital to US defense and auto sectors, while Washington will ease some export controls. Though markets responded cautiously, the pact signals progress on key friction points. Still, major hurdles remain — including fentanyl, overcapacity, and persistent trade imbalances — all of which must be addressed before the 90-day tariff reprieve ends. ———————————————— Donald Trump’s global tariffs will stay in effect, after a federal appeals court ruled ongoing trade talks outweigh the harm to US businesses. The decision gives Trump a legal win and preserves a key economic tool as he pushes for leverage in negotiations with China. If upheld, it could reshape how future presidents use emergency powers on trade. The court paused a lower ruling that found Trump misused a 1977 law to justify tariffs. With arguments set for July 31, the levies—some as high as 50%—will continue for now, hitting imports from China, Mexico, and the EU. ————————————————- Being a bully on trade won’t work long term, warns ECB President Christine Lagarde, as coercive policies risk mutual damage and economic retaliation. Speaking in Beijing, she urged cooperative solutions over protectionism, stressing that tariffs don’t fix imbalances but erode prosperity. While de-risking is here to stay post-pandemic, she said open trade is still vital, especially in a world where supply chains and geopolitics no longer align. ———————————————- The World Bank warns that the Trump-driven trade war will drag down growth in nearly two-thirds of developing countries in 2025, with global trade expansion slowing to just 1.8%. Emerging economies are forecast to grow 3.8%, down from 4.2% in 2024, as globalization reverses course. Sluggish per capita income growth and falling foreign investment now threaten decades of economic progress. Yet despite the gloom, markets are rallying on bets of a weaker dollar and potential tariff rollbacks, with the Brazilian real and Mexican peso each up around 10% this year amid improving fundamentals in key economies. ———————————————- Treasury Secretary Scott Bessent is emerging as a serious contender to replace Jerome Powell as Fed chair when Powell’s term ends in May 2026, Bloomberg reports citing people familiar with the matter. President Trump says a decision is coming “very soon.” While Bessent lacks deep monetary policy credentials, his leadership on Trump’s economic agenda and strong global market trust make him a viable option. Other contenders include Kevin Warsh, Kevin Hassett, and David Malpass. The choice will be closely watched for its impact on Fed independence, especially given Trump’s pressure to cut interest rates amid trade uncertainty. ————————————————- German nuclear fusion start-up Proxima Fusion has raised a record €130 million in Europe’s largest private fusion funding round to date. The company is becoming the continent’s champion of a technology that could shape the future. Spun out of the Max Planck Institute, Proxima is betting on a stellarator design, which it says offers more plasma stability than traditional tokamaks. Backed by Cherry Ventures and Balderton Capital, the company aims to build a model coil by 2027 and a €1 billion demo plant by 2031, seeking government support. CEO Francesco Sciortino warns Europe risks falling behind unless it backs domestic fusion tech at this pivotal stage. —— —— MEF MOBILE NEWS 11 JUN 2025 Meta is finalizing a $14 billion investment in Scale AI and plans to hire its CEO, Alexandr Wang, to lead a major overhaul of its AI efforts — the Wall Street Journal reports citing people familiar with the matter. The move comes as Meta struggles with delays and setbacks in developing its Llama AI models, prompting CEO Mark Zuckerberg to personally recruit new talent. Scale AI, known for data-labeling services that train AI systems, will bring key employees to Meta to boost advanced AI development. The deal could give Meta nearly half ownership of Scale, signaling a big shift as tech giants turn to startups to keep pace in the AI race. With the pressure mounting, this partnership aims to accelerate Meta’s push toward building next-generation AI. —————————— Apple is quietly transforming digital identity with iOS 26 by integrating government-issued IDs into iPhones and enabling secure, permission-based identity sharing across apps. This shift moves identity verification from networks to devices, reducing onboarding friction for mobile operators and opening new opportunities in authentication, eSIM activation, and IoT security. The Mobile Ecosystem Forum (MEF) highlights this as a major shift toward device-centric identity, urging operators to collaborate on interoperable standards and consider adopting Apple’s system for wholesale, roaming, and enterprise services. Notably, this transformation was quietly announced at Apple’s Worldwide Developers Conference, reflecting an industry-wide push toward trusted, device-based authentication. MEF sees this as a critical frontier for innovation in mobile trust, identity-as-a-service, and secure connectivity solutions. —————————— The Central Bank of the UAE has ordered banks to ditch weak authentication like SMS and email one-time passwords to fight rising fraud. This is because scams in the UAE jumped 43% last year, with over 40,000 victims losing thousands on average. Banks must switch to stronger tech like Emirates Facial Recognition, biometrics, and app-based tokens by March 2026. But this shift is tough — legacy systems need major upgrades, and many customers aren’t used to these digital tools yet. Leading banks like Emirates NBD and FAB are already moving toward biometric logins. Experts say future banking will rely on new standards like passkeys and behavioral biometrics for safer, seamless access. Success depends on strong collaboration between banks, tech firms, and telecoms to outsmart threats like SIM swap fraud. —————————- Nintendo Switch 2 sales smashed records with 3.5 million units sold in four days, outpacing the original Switch’s first-month numbers. The strong demand highlights the growing mobile gaming market, where versatile devices let players game anywhere. The surge boosts the gaming sector by balancing out the dominance of big live-service games, keeping innovation alive. But supply shortages and potential tariff-driven price hikes threaten to slow sales. Nintendo is speeding up production and cracking down on resellers, while trade tensions with China pose risks to supply chains and costs. How Nintendo handles these challenges will shape the mobile gaming landscape this year. ———————————— Hong Kong has banned the Taiwanese mobile game Reversed Front: Bonfire under national security laws, accusing it of promoting armed revolution against Beijing. This marks the first time the 2020 security law has been used to block a video game, expanding Hong Kong’s digital controls amid tightening political oversight. Internet providers must now disable access or face fines and jail time, signaling growing risks for game developers and platforms operating in the region. The ban raises concerns about censorship and freedom in Hong Kong’s mobile gaming ecosystem, as authorities warn residents to uninstall the game or face charges of sedition or incitement. —————————— Protests in Los Angeles against immigration raids have been clouded by a surge of fake images and conspiracy theories spreading on social media — the New York Times reports. This disinformation fuels outrage against immigrants and Democrats, while exaggerating the scale of violence to suggest the entire city is in chaos. The false narratives also claim the protests are staged provocations, deepening confusion and tensions. With 700 Marines and 2,000 National Guard troops deployed—some ordered by President Trump without state approval—the misinformation risks inflaming further unrest. Experts warn this online distortion can actually drive more protesters to the streets, worsening the situation. ———————————— Snap is set to relaunch its AI-powered smart glasses, “Specs,” next year to compete with Meta and Apple. This shows a push to expand the mobile ecosystem beyond phones, using AI and augmented reality to change how we access information on the go. Specs will run standalone without needing a phone, powered by Qualcomm chips and advanced AI from OpenAI and Google. Snap aims to make these glasses a full AR workstation, offering immersive experiences and real-time info overlays, moving wearables closer to everyday mobile computing. —— —— MEF TECH NEWS 11 JUN 2025 Amazon’s top security chief is urging lawmakers to back off regulating AI, warning it could “retard progress” and cripple innovation. The push reflects tech giants’ growing fear that heavy oversight will slow the U.S. in its AI race with China. If the U.S. Congress yields to industry pressure, device-level AI services may accelerate unchecked, reshaping mobile ecosystems globally. Steve Schmidt, Amazon’s CSO, told Bloomberg that customer needs—not government rules—should shape AI standards. Meanwhile, a provision buried in Trump’s tax plan would block states from enforcing AI laws, though its future hinges on Senate rules. MEF will track these developments closely for their impact on AI-enabled mobile services. ————————————- GQG’s Rajiv Jain is scaling back AI-linked investments, citing overstated data center demand flagged by Asian utilities. The shift reflects growing caution that the AI boom may be in its later innings, not its early surge. Jain now favors utilities, which he sees as long-term winners in powering AI infrastructure. Speaking at the Morgan Stanley Australia Summit, he noted “double counting” in demand forecasts from hyperscalers. Known for bold calls—like his $1.9B bet on Adani post-Hindenburg—Jain’s fund now sees power generation and transmission as safer plays amid AI hype. ————————- Bullish Global, the crypto exchange backed by Peter Thiel, has filed confidentially for a U.S. IPO, the Financial Times reports. The move signals rising capital market ambitions among crypto firms, as public listings return to the table. If approved, it could mark one of the first major exchange IPOs since the last crypto winter. Bullish is led by former NYSE chief Tom Farley and has over 275 employees with offices worldwide. The company bought crypto news outlet CoinDesk in 2023. ——————————- AI chatbots are cannibalizing Google search traffic, sending publishers into a crisis. Without search referrals, news sites are losing their largest mobile traffic pipeline — and revenues, according to the Wall Street Journal. A post-search internet could force publishers to abandon ad-based models and rebuild direct user ecosystems from scratch. The Journal reports that traffic from organic search has plunged by over 50% for HuffPost and the Washington Post since 2022, as Google’s AI Overviews and new chatbot-style “AI Mode” remove the need for link-clicking. Business Insider cut 21% of staff. Atlantic’s CEO now assumes Google traffic will fall to zero. As chatbots become default in mobile ecosystems, publishers like the Times and Post are rushing to secure loyalty-driven revenue — from newsletters to live events — to survive AI’s disruption
MEF BUSINESS NEWS 11 JUNE 2025 The US and China have agreed on a framework to restart trade in sensitive goods, aiming to ease tensions. The move follows the Geneva consensus that softened duties last month and reflects both sides’ urgency to stabilize economic ties. If endorsed by Presidents Trump and Xi, the deal could mark a turning point in restoring trade flows and investor confidence. After 20 hours of talks in London, US Commerce Secretary Howard Lutnick announced that China will expedite rare earth shipments vital to US defense and auto sectors, while Washington will ease some export controls. Though markets responded cautiously, the pact signals progress on key friction points. Still, major hurdles remain — including fentanyl, overcapacity, and persistent trade imbalances — all of which must be addressed before the 90-day tariff reprieve ends. ———————————————— Donald Trump’s global tariffs will stay in effect, after a federal appeals court ruled ongoing trade talks outweigh the harm to US businesses. The decision gives Trump a legal win and preserves a key economic tool as he pushes for leverage in negotiations with China. If upheld, it could reshape how future presidents use emergency powers on trade. The court paused a lower ruling that found Trump misused a 1977 law to justify tariffs. With arguments set for July 31, the levies—some as high as 50%—will continue for now, hitting imports from China, Mexico, and the EU. ————————————————- Being a bully on trade won’t work long term, warns ECB President Christine Lagarde, as coercive policies risk mutual damage and economic retaliation. Speaking in Beijing, she urged cooperative solutions over protectionism, stressing that tariffs don’t fix imbalances but erode prosperity. While de-risking is here to stay post-pandemic, she said open trade is still vital, especially in a world where supply chains and geopolitics no longer align. ———————————————- The World Bank warns that the Trump-driven trade war will drag down growth in nearly two-thirds of developing countries in 2025, with global trade expansion slowing to just 1.8%. Emerging economies are forecast to grow 3.8%, down from 4.2% in 2024, as globalization reverses course. Sluggish per capita income growth and falling foreign investment now threaten decades of economic progress. Yet despite the gloom, markets are rallying on bets of a weaker dollar and potential tariff rollbacks, with the Brazilian real and Mexican peso each up around 10% this year amid improving fundamentals in key economies. ———————————————- Treasury Secretary Scott Bessent is emerging as a serious contender to replace Jerome Powell as Fed chair when Powell’s term ends in May 2026, Bloomberg reports citing people familiar with the matter. President Trump says a decision is coming “very soon.” While Bessent lacks deep monetary policy credentials, his leadership on Trump’s economic agenda and strong global market trust make him a viable option. Other contenders include Kevin Warsh, Kevin Hassett, and David Malpass. The choice will be closely watched for its impact on Fed independence, especially given Trump’s pressure to cut interest rates amid trade uncertainty. ————————————————- German nuclear fusion start-up Proxima Fusion has raised a record €130 million in Europe’s largest private fusion funding round to date. The company is becoming the continent’s champion of a technology that could shape the future. Spun out of the Max Planck Institute, Proxima is betting on a stellarator design, which it says offers more plasma stability than traditional tokamaks. Backed by Cherry Ventures and Balderton Capital, the company aims to build a model coil by 2027 and a €1 billion demo plant by 2031, seeking government support. CEO Francesco Sciortino warns Europe risks falling behind unless it backs domestic fusion tech at this pivotal stage. —— —— MEF MOBILE NEWS 11 JUN 2025 Meta is finalizing a $14 billion investment in Scale AI and plans to hire its CEO, Alexandr Wang, to lead a major overhaul of its AI efforts — the Wall Street Journal reports citing people familiar with the matter. The move comes as Meta struggles with delays and setbacks in developing its Llama AI models, prompting CEO Mark Zuckerberg to personally recruit new talent. Scale AI, known for data-labeling services that train AI systems, will bring key employees to Meta to boost advanced AI development. The deal could give Meta nearly half ownership of Scale, signaling a big shift as tech giants turn to startups to keep pace in the AI race. With the pressure mounting, this partnership aims to accelerate Meta’s push toward building next-generation AI. —————————— Apple is quietly transforming digital identity with iOS 26 by integrating government-issued IDs into iPhones and enabling secure, permission-based identity sharing across apps. This shift moves identity verification from networks to devices, reducing onboarding friction for mobile operators and opening new opportunities in authentication, eSIM activation, and IoT security. The Mobile Ecosystem Forum (MEF) highlights this as a major shift toward device-centric identity, urging operators to collaborate on interoperable standards and consider adopting Apple’s system for wholesale, roaming, and enterprise services. Notably, this transformation was quietly announced at Apple’s Worldwide Developers Conference, reflecting an industry-wide push toward trusted, device-based authentication. MEF sees this as a critical frontier for innovation in mobile trust, identity-as-a-service, and secure connectivity solutions. —————————— The Central Bank of the UAE has ordered banks to ditch weak authentication like SMS and email one-time passwords to fight rising fraud. This is because scams in the UAE jumped 43% last year, with over 40,000 victims losing thousands on average. Banks must switch to stronger tech like Emirates Facial Recognition, biometrics, and app-based tokens by March 2026. But this shift is tough — legacy systems need major upgrades, and many customers aren’t used to these digital tools yet. Leading banks like Emirates NBD and FAB are already moving toward biometric logins. Experts say future banking will rely on new standards like passkeys and behavioral biometrics for safer, seamless access. Success depends on strong collaboration between banks, tech firms, and telecoms to outsmart threats like SIM swap fraud. —————————- Nintendo Switch 2 sales smashed records with 3.5 million units sold in four days, outpacing the original Switch’s first-month numbers. The strong demand highlights the growing mobile gaming market, where versatile devices let players game anywhere. The surge boosts the gaming sector by balancing out the dominance of big live-service games, keeping innovation alive. But supply shortages and potential tariff-driven price hikes threaten to slow sales. Nintendo is speeding up production and cracking down on resellers, while trade tensions with China pose risks to supply chains and costs. How Nintendo handles these challenges will shape the mobile gaming landscape this year. ———————————— Hong Kong has banned the Taiwanese mobile game Reversed Front: Bonfire under national security laws, accusing it of promoting armed revolution against Beijing. This marks the first time the 2020 security law has been used to block a video game, expanding Hong Kong’s digital controls amid tightening political oversight. Internet providers must now disable access or face fines and jail time, signaling growing risks for game developers and platforms operating in the region. The ban raises concerns about censorship and freedom in Hong Kong’s mobile gaming ecosystem, as authorities warn residents to uninstall the game or face charges of sedition or incitement. —————————— Protests in Los Angeles against immigration raids have been clouded by a surge of fake images and conspiracy theories spreading on social media — the New York Times reports. This disinformation fuels outrage against immigrants and Democrats, while exaggerating the scale of violence to suggest the entire city is in chaos. The false narratives also claim the protests are staged provocations, deepening confusion and tensions. With 700 Marines and 2,000 National Guard troops deployed—some ordered by President Trump without state approval—the misinformation risks inflaming further unrest. Experts warn this online distortion can actually drive more protesters to the streets, worsening the situation. ———————————— Snap is set to relaunch its AI-powered smart glasses, “Specs,” next year to compete with Meta and Apple. This shows a push to expand the mobile ecosystem beyond phones, using AI and augmented reality to change how we access information on the go. Specs will run standalone without needing a phone, powered by Qualcomm chips and advanced AI from OpenAI and Google. Snap aims to make these glasses a full AR workstation, offering immersive experiences and real-time info overlays, moving wearables closer to everyday mobile computing. —— —— MEF TECH NEWS 11 JUN 2025 Amazon’s top security chief is urging lawmakers to back off regulating AI, warning it could “retard progress” and cripple innovation. The push reflects tech giants’ growing fear that heavy oversight will slow the U.S. in its AI race with China. If the U.S. Congress yields to industry pressure, device-level AI services may accelerate unchecked, reshaping mobile ecosystems globally. Steve Schmidt, Amazon’s CSO, told Bloomberg that customer needs—not government rules—should shape AI standards. Meanwhile, a provision buried in Trump’s tax plan would block states from enforcing AI laws, though its future hinges on Senate rules. MEF will track these developments closely for their impact on AI-enabled mobile services. ————————————- GQG’s Rajiv Jain is scaling back AI-linked investments, citing overstated data center demand flagged by Asian utilities. The shift reflects growing caution that the AI boom may be in its later innings, not its early surge. Jain now favors utilities, which he sees as long-term winners in powering AI infrastructure. Speaking at the Morgan Stanley Australia Summit, he noted “double counting” in demand forecasts from hyperscalers. Known for bold calls—like his $1.9B bet on Adani post-Hindenburg—Jain’s fund now sees power generation and transmission as safer plays amid AI hype. ————————- Bullish Global, the crypto exchange backed by Peter Thiel, has filed confidentially for a U.S. IPO, the Financial Times reports. The move signals rising capital market ambitions among crypto firms, as public listings return to the table. If approved, it could mark one of the first major exchange IPOs since the last crypto winter. Bullish is led by former NYSE chief Tom Farley and has over 275 employees with offices worldwide. The company bought crypto news outlet CoinDesk in 2023. ——————————- AI chatbots are cannibalizing Google search traffic, sending publishers into a crisis. Without search referrals, news sites are losing their largest mobile traffic pipeline — and revenues, according to the Wall Street Journal. A post-search internet could force publishers to abandon ad-based models and rebuild direct user ecosystems from scratch. The Journal reports that traffic from organic search has plunged by over 50% for HuffPost and the Washington Post since 2022, as Google’s AI Overviews and new chatbot-style “AI Mode” remove the need for link-clicking. Business Insider cut 21% of staff. Atlantic’s CEO now assumes Google traffic will fall to zero. As chatbots become default in mobile ecosystems, publishers like the Times and Post are rushing to secure loyalty-driven revenue — from newsletters to live events — to survive AI’s disruption
