MEF BUSINESS NEWS 15 MAY 2025 The UK led G7 growth in Q1 2025 with a 0.7% GDP bump, outpacing sluggish eurozone economies and even the US, which saw a slight contraction due to tariff-driven import spikes under Trump. For mobile ecosystem players, this rebound is a green light: rising consumer confidence, faster retail and digital adoption, and a stronger pound could lift mobile ad spend, app engagement, and device upgrades. It’s an especially good signal for platforms like Netflix, Apple, and Tencent, which are investing heavily in UK-centric AI, content, and payment ecosystems. With Japan expected to contract, the UK’s digital economy is now G7’s breakout zone. ————————————— The Trump administration has unveiled a $142 billion defense deal with Saudi Arabia, calling it the largest ever—but the math is raising eyebrows, according to Bloomberg. Critics note the kingdom’s total defense budget this year is just $78 billion, suggesting the agreement may recycle older deals. Details on weapons, timelines, and contracts remain vague. Still, the move signals deepening U.S.-Saudi ties after years of strained relations, and could yield gains in missile defense. Some analysts caution the deal could eventually raise questions about Israel’s military edge, though no red flags have emerged yet. ———————————- And Trump has announced over $243 billion in deals with Qatar during his Middle East tour, including a record $96 billion Boeing jet order by Qatar Airways and nearly $3 billion in drone and defense contracts with Raytheon and General Atomics. The agreements cover technology, energy, and security, with plans to expand to a $1.2 trillion economic pledge. Despite Qatar’s small size, it plays a growing role in U.S. defense strategy, hosting the largest U.S. base in the region. Trump says the deals mark a “new Golden Age” for American innovation and industry. ———————————- The U.S. is preparing to roll back key bank regulations imposed after the 2008 financial crisis, the FINANCIAL times reports citing people familiar with the matter. Regulators may soon reduce the supplementary leverage ratio, a rule requiring banks to hold set amounts of top-tier capital against their total exposures, including low-risk assets like U.S. Treasuries. Bank lobbyists argue the rule hampers liquidity and lending. Supporters of deregulation say this could lower government borrowing costs, while critics warn the move is risky given current global uncertainty. A formal proposal is expected by summer. ———————————- Burberry is slashing 1,700 jobs — about 20% of its workforce — as new CEO Joshua Schulman moves to reverse a decade-long push into high fashion that failed to pay off. Facing a historic slump in sales, Schulman says the British brand is returning to its trench coat roots, cutting costs, and scrapping handbag-heavy runway looks. Night shifts at its iconic Castleford factory will also end as part of a £60 million savings plan. Investors welcomed the shake-up, sending Burberry shares up 17% Wednesday, though the company remains far off its peak. ———————————— Allianz posted record first-quarter profits of €4.24 billion, driven by strong insurance income and €26 billion in fresh inflows at its bond giant Pimco. The German financial powerhouse said this marks Pimco’s fifth straight quarter of inflows. Operating profit rose over 6%, and Allianz reaffirmed its full-year target of up to €17 billion. CEO Oliver Baete also boosted deal activity, including a €3.5 billion life insurance buyout and a €2.6 billion exit from Indian ventures. Property and life-health insurance units also posted solid gains. ————————————- Warren Buffett says he didn’t get old—until he did. The 94-year-old billionaire investor, stepping down as CEO of Berkshire Hathaway this December, told The Wall Street Journal there was no dramatic moment—just a gradual realization: his days were getting slower, while successor Greg Abel’s were full of energy. “It was unfair, really, not to put Greg in the job,” Buffett said. He admits his balance is a bit off and newspapers seem to have thinner ink, but insists his investment instincts are still intact. He’ll stay on as chairman—and in the office, not watching soap operas. —— —— MEF MOBILE NEWS 15 MAY 2025 Deutsche Telekom raised its full-year earnings forecast after mobile subscriber growth in Germany helped first-quarter profits exceed expectations. The company now expects adjusted earnings of around 45 billion euros, up from 44.9 billion. Mobile customers in Germany grew by nearly two percent to almost 70 million, as Deutsche Telekom resisted price cuts, relying on its strong network reputation. Profits from its majority stake in US operator T-Mobile have supported investments back home. The CEO emphasized resilience amid challenges and called for European telecom deregulation to encourage industry consolidation. ——————————- Elon Musk’s AI chatbot Grok is under fire after it began citing “white genocide” in South Africa in response to unrelated questions on X, the Financial Times reports. Users asking about celebrity gossip or earthquakes were met with controversial answers referencing racially charged South African topics. The glitch, which has since been fixed, raised fresh concerns about the reliability of Musk’s AI, which is integrated into the X platform. Grok later claimed it was “instructed” to respond that way, but also called it an “AI error.” Musk’s critics say it’s the latest example of fringe narratives surfacing under his leadership. ————————————- U.S. smartphone shipments jumped 30 percent in March as Apple, Samsung, and Motorola accelerated imports ahead of potential tariffs, says Counterpoint Research. Apple alone airlifted two billion dollars worth of iPhones from India, using local suppliers to meet demand. Although the U.S. paused tariffs for 90 days, this surge helps Apple avoid price hikes through the summer. With plans for the next iPhone, India is set to become the main production hub for U.S.-bound devices, reflecting a broader industry shift to diversify supply chains beyond China. ———————————— Shein has cut prices in the United States following a temporary reduction in tariffs on Chinese imports, aiming to win back shoppers deterred by recent price hikes. The average cost of tracked products on Shein’s site dropped by 13 percent to $5.56, and the company assured customers there would be no extra tariff fees at checkout. This move comes after US sales had fallen 15 percent compared to last year, reflecting how tariffs had affected cross-border online shopping. The tariff relief lasts 90 days, but uncertainties remain for e-commerce platforms relying on imports from China. ———————————— Netflix now has 94 million subscribers on its ad-supported streaming plan, up from 70 million in November, reflecting strong demand amid economic uncertainty. With over 300 million total users worldwide, Netflix reports steady spending across all subscription levels. The company recently enhanced language options to appeal to global viewers, supporting popular foreign shows like “Squid Game” and “Money Heist.” Despite concerns over past U.S. tariff threats on foreign-made media, Netflix says it has not seen major changes in consumer spending, signaling resilience in its mobile and streaming ecosystem. —— —— MEF TECH NEWS 15 MAY 2025 Cisco’s strong Q3 results and raised outlook reflect growing demand for its secure networking tech, critical for mobile and AI-driven ecosystems. Product revenue jumped 15%, showing enterprises are investing heavily in infrastructure supporting mobile devices and cloud connectivity. This boosts Cisco’s role as a backbone provider in the expanding mobile ecosystem, powering faster, more secure data flow for businesses and consumers alike. Plus, with new leadership focused on strategy and finance, Cisco aims to capitalize on mobile-driven growth amid evolving network needs. ————————————- CoreWeave, a key AI data center operator supporting tech firms building advanced AI models, reported soaring revenue growth but lowered its profit outlook, causing shares to drop nearly 8%. The company is rapidly expanding its data centers, driven by strong demand for AI cloud infrastructure, investing heavily to keep pace with the mobile ecosystem’s growing reliance on AI-powered applications. Despite increasing net losses and significant debt, CoreWeave secured major contracts, including an $11.2 billion deal with OpenAI, highlighting its pivotal role in powering next-generation AI services that underpin many mobile and cloud technologies. ——————————— Tencent’s Q1 revenue grew 13% to nearly $25 billion, driven by strong gaming and AI-powered ad growth. AI innovations boosted advertising revenue by 20%, leveraging Tencent’s massive 1.4 billion monthly active users on Weixin/WeChat, which integrates mini-programs and payment services—key for monetizing mobile users. Heavy AI investment, including GPUs and multiple AI models, is helping Tencent deepen its mobile ecosystem with smarter ads, enhanced gaming, and new AI features in its apps. Despite US chip export restrictions, Tencent’s strong chip stockpile and local substitutes mitigate risks, positioning it well in the evolving AI-driven mobile market. ——————————— Databricks is buying the cloud database company Neon for around one billion dollars to help businesses build artificial intelligence agents using their own data more easily — the Wall Street Journal reported. Neon’s platform, based on a popular open-source database system, allows developers and artificial intelligence bots to create and manage databases automatically, which is a major challenge in running AI-powered applications. This is Databricks’ third billion-dollar purchase in the artificial intelligence and data space, strengthening its role in the technology ecosystem that supports enterprise and mobile services. The acquisition reflects a wider push in the tech industry to simplify building artificial intelligence agents by combining advanced data management with cloud-based analytics. ——————————— Xiaomi’s electric vehicle sales in China have dropped significantly since March following a fatal highway accident and consumer complaints about misleading advertising for one model. Orders for the Xiaomi SU7 sedan fell 55 percent in April to about 36,000 units, with deliveries also declining over the past several weeks. The crash, which killed three people, has sparked increased government scrutiny on electric vehicle safety, including stricter rules on advanced driver assistance systems, battery safety, and the design of recessed door handles that may fail in emergencies. Additionally, over 300 customers have sought to cancel orders for the SU7 Ultra model, upset about false advertising regarding its carbon fiber front hood, which was marketed as having air ducts for better aerodynamics but instead features only holes and plastic parts. These issues have hit Xiaomi’s sales and share price, with the company delaying the launch of its first sport utility vehicle, the YU7, amid the ongoing challenges. ——————————— The UK government is trialing an artificial intelligence tool called Consult to speed up public consultations by analyzing responses 1,000 times faster than humans, promising to save millions of pounds and thousands of staff hours annually. Initially tested in Scotland on cosmetic procedure regulations, Consult identifies key themes in thousands of replies with accuracy comparable to experts. While officials tout its efficiency and cost savings, experts warn about risks of bias and manipulation, emphasizing the need for careful oversight. The tool is expected to roll out across government departments by the end of the year, aiming to streamline public engagement in policymaking.

MEF BUSINESS NEWS 15 MAY 2025 The UK led G7 growth in Q1 2025 with a 0.7% GDP bump, outpacing sluggish eurozone economies and even the US, which saw a slight contraction due to tariff-driven import spikes under Trump. For mobile ecosystem players, this rebound is a green light: rising consumer confidence, faster retail and digital adoption, and a stronger pound could lift mobile ad spend, app engagement, and device upgrades. It’s an especially good signal for platforms like Netflix, Apple, and Tencent, which are investing heavily in UK-centric AI, content, and payment ecosystems. With Japan expected to contract, the UK’s digital economy is now G7’s breakout zone. ————————————— The Trump administration has unveiled a $142 billion defense deal with Saudi Arabia, calling it the largest ever—but the math is raising eyebrows, according to Bloomberg. Critics note the kingdom’s total defense budget this year is just $78 billion, suggesting the agreement may recycle older deals. Details on weapons, timelines, and contracts remain vague. Still, the move signals deepening U.S.-Saudi ties after years of strained relations, and could yield gains in missile defense. Some analysts caution the deal could eventually raise questions about Israel’s military edge, though no red flags have emerged yet. ———————————- And Trump has announced over $243 billion in deals with Qatar during his Middle East tour, including a record $96 billion Boeing jet order by Qatar Airways and nearly $3 billion in drone and defense contracts with Raytheon and General Atomics. The agreements cover technology, energy, and security, with plans to expand to a $1.2 trillion economic pledge. Despite Qatar’s small size, it plays a growing role in U.S. defense strategy, hosting the largest U.S. base in the region. Trump says the deals mark a “new Golden Age” for American innovation and industry. ———————————- The U.S. is preparing to roll back key bank regulations imposed after the 2008 financial crisis, the FINANCIAL times reports citing people familiar with the matter. Regulators may soon reduce the supplementary leverage ratio, a rule requiring banks to hold set amounts of top-tier capital against their total exposures, including low-risk assets like U.S. Treasuries. Bank lobbyists argue the rule hampers liquidity and lending. Supporters of deregulation say this could lower government borrowing costs, while critics warn the move is risky given current global uncertainty. A formal proposal is expected by summer. ———————————- Burberry is slashing 1,700 jobs — about 20% of its workforce — as new CEO Joshua Schulman moves to reverse a decade-long push into high fashion that failed to pay off. Facing a historic slump in sales, Schulman says the British brand is returning to its trench coat roots, cutting costs, and scrapping handbag-heavy runway looks. Night shifts at its iconic Castleford factory will also end as part of a £60 million savings plan. Investors welcomed the shake-up, sending Burberry shares up 17% Wednesday, though the company remains far off its peak. ———————————— Allianz posted record first-quarter profits of €4.24 billion, driven by strong insurance income and €26 billion in fresh inflows at its bond giant Pimco. The German financial powerhouse said this marks Pimco’s fifth straight quarter of inflows. Operating profit rose over 6%, and Allianz reaffirmed its full-year target of up to €17 billion. CEO Oliver Baete also boosted deal activity, including a €3.5 billion life insurance buyout and a €2.6 billion exit from Indian ventures. Property and life-health insurance units also posted solid gains. ————————————- Warren Buffett says he didn’t get old—until he did. The 94-year-old billionaire investor, stepping down as CEO of Berkshire Hathaway this December, told The Wall Street Journal there was no dramatic moment—just a gradual realization: his days were getting slower, while successor Greg Abel’s were full of energy. “It was unfair, really, not to put Greg in the job,” Buffett said. He admits his balance is a bit off and newspapers seem to have thinner ink, but insists his investment instincts are still intact. He’ll stay on as chairman—and in the office, not watching soap operas. —— —— MEF MOBILE NEWS 15 MAY 2025 Deutsche Telekom raised its full-year earnings forecast after mobile subscriber growth in Germany helped first-quarter profits exceed expectations. The company now expects adjusted earnings of around 45 billion euros, up from 44.9 billion. Mobile customers in Germany grew by nearly two percent to almost 70 million, as Deutsche Telekom resisted price cuts, relying on its strong network reputation. Profits from its majority stake in US operator T-Mobile have supported investments back home. The CEO emphasized resilience amid challenges and called for European telecom deregulation to encourage industry consolidation. ——————————- Elon Musk’s AI chatbot Grok is under fire after it began citing “white genocide” in South Africa in response to unrelated questions on X, the Financial Times reports. Users asking about celebrity gossip or earthquakes were met with controversial answers referencing racially charged South African topics. The glitch, which has since been fixed, raised fresh concerns about the reliability of Musk’s AI, which is integrated into the X platform. Grok later claimed it was “instructed” to respond that way, but also called it an “AI error.” Musk’s critics say it’s the latest example of fringe narratives surfacing under his leadership. ————————————- U.S. smartphone shipments jumped 30 percent in March as Apple, Samsung, and Motorola accelerated imports ahead of potential tariffs, says Counterpoint Research. Apple alone airlifted two billion dollars worth of iPhones from India, using local suppliers to meet demand. Although the U.S. paused tariffs for 90 days, this surge helps Apple avoid price hikes through the summer. With plans for the next iPhone, India is set to become the main production hub for U.S.-bound devices, reflecting a broader industry shift to diversify supply chains beyond China. ———————————— Shein has cut prices in the United States following a temporary reduction in tariffs on Chinese imports, aiming to win back shoppers deterred by recent price hikes. The average cost of tracked products on Shein’s site dropped by 13 percent to $5.56, and the company assured customers there would be no extra tariff fees at checkout. This move comes after US sales had fallen 15 percent compared to last year, reflecting how tariffs had affected cross-border online shopping. The tariff relief lasts 90 days, but uncertainties remain for e-commerce platforms relying on imports from China. ———————————— Netflix now has 94 million subscribers on its ad-supported streaming plan, up from 70 million in November, reflecting strong demand amid economic uncertainty. With over 300 million total users worldwide, Netflix reports steady spending across all subscription levels. The company recently enhanced language options to appeal to global viewers, supporting popular foreign shows like “Squid Game” and “Money Heist.” Despite concerns over past U.S. tariff threats on foreign-made media, Netflix says it has not seen major changes in consumer spending, signaling resilience in its mobile and streaming ecosystem. —— —— MEF TECH NEWS 15 MAY 2025 Cisco’s strong Q3 results and raised outlook reflect growing demand for its secure networking tech, critical for mobile and AI-driven ecosystems. Product revenue jumped 15%, showing enterprises are investing heavily in infrastructure supporting mobile devices and cloud connectivity. This boosts Cisco’s role as a backbone provider in the expanding mobile ecosystem, powering faster, more secure data flow for businesses and consumers alike. Plus, with new leadership focused on strategy and finance, Cisco aims to capitalize on mobile-driven growth amid evolving network needs. ————————————- CoreWeave, a key AI data center operator supporting tech firms building advanced AI models, reported soaring revenue growth but lowered its profit outlook, causing shares to drop nearly 8%. The company is rapidly expanding its data centers, driven by strong demand for AI cloud infrastructure, investing heavily to keep pace with the mobile ecosystem’s growing reliance on AI-powered applications. Despite increasing net losses and significant debt, CoreWeave secured major contracts, including an $11.2 billion deal with OpenAI, highlighting its pivotal role in powering next-generation AI services that underpin many mobile and cloud technologies. ——————————— Tencent’s Q1 revenue grew 13% to nearly $25 billion, driven by strong gaming and AI-powered ad growth. AI innovations boosted advertising revenue by 20%, leveraging Tencent’s massive 1.4 billion monthly active users on Weixin/WeChat, which integrates mini-programs and payment services—key for monetizing mobile users. Heavy AI investment, including GPUs and multiple AI models, is helping Tencent deepen its mobile ecosystem with smarter ads, enhanced gaming, and new AI features in its apps. Despite US chip export restrictions, Tencent’s strong chip stockpile and local substitutes mitigate risks, positioning it well in the evolving AI-driven mobile market. ——————————— Databricks is buying the cloud database company Neon for around one billion dollars to help businesses build artificial intelligence agents using their own data more easily — the Wall Street Journal reported. Neon’s platform, based on a popular open-source database system, allows developers and artificial intelligence bots to create and manage databases automatically, which is a major challenge in running AI-powered applications. This is Databricks’ third billion-dollar purchase in the artificial intelligence and data space, strengthening its role in the technology ecosystem that supports enterprise and mobile services. The acquisition reflects a wider push in the tech industry to simplify building artificial intelligence agents by combining advanced data management with cloud-based analytics. ——————————— Xiaomi’s electric vehicle sales in China have dropped significantly since March following a fatal highway accident and consumer complaints about misleading advertising for one model. Orders for the Xiaomi SU7 sedan fell 55 percent in April to about 36,000 units, with deliveries also declining over the past several weeks. The crash, which killed three people, has sparked increased government scrutiny on electric vehicle safety, including stricter rules on advanced driver assistance systems, battery safety, and the design of recessed door handles that may fail in emergencies. Additionally, over 300 customers have sought to cancel orders for the SU7 Ultra model, upset about false advertising regarding its carbon fiber front hood, which was marketed as having air ducts for better aerodynamics but instead features only holes and plastic parts. These issues have hit Xiaomi’s sales and share price, with the company delaying the launch of its first sport utility vehicle, the YU7, amid the ongoing challenges. ——————————— The UK government is trialing an artificial intelligence tool called Consult to speed up public consultations by analyzing responses 1,000 times faster than humans, promising to save millions of pounds and thousands of staff hours annually. Initially tested in Scotland on cosmetic procedure regulations, Consult identifies key themes in thousands of replies with accuracy comparable to experts. While officials tout its efficiency and cost savings, experts warn about risks of bias and manipulation, emphasizing the need for careful oversight. The tool is expected to roll out across government departments by the end of the year, aiming to streamline public engagement in policymaking.