Anti-Clickbait News Summaries for September 17, 2024
Investors flock to US junk bonds despite weak protections and risks
Investors are increasingly buying U.S. junk bonds despite warnings about weak protections. A recent bond offering by Wilsonart raised $500 million, even after a research firm cautioned that its terms could disadvantage investors. This trend reflects a broader issue in credit markets, where about 90% of new high-yield bonds lack strong investor protections. Many companies are using liability management exercises to raise funds, often prioritizing new creditors over existing ones in case of bankruptcy.In 2024, 28 companies completed distressed exchanges totaling $35 billion, with a significant portion of junk debt at high risk of default. While some investors are pushing back against weak terms, such actions remain uncommon in the current market.
Source: https://ca.finance.yahoo.com/news/analysis-ignoring-risk-investors-still-101052795.html
Nandan Nilekani predicts rise of diverse language models globally
Nandan Nilekani, co-founder of Infosys, stated that many large language models (LLMs) will emerge globally. He noted that companies are developing India-specific LLMs for local languages.Nilekani explained that as AI models become more common, the focus will shift to applications built on these models. He emphasized the importance of training models with unique regional data.He highlighted that the next wave of value in AI technology will come from applications rather than the models themselves.
Source: https://www.cnbc.com/2024/09/17/big-ai-models-will-be-commoditized-infosys-chair-says.html
Congress unlikely to pass AI election protection laws before elections
Congress is unlikely to pass new laws to protect the upcoming elections from artificial intelligence threats, particularly deepfakes. Despite initial bipartisan support and multiple proposed bills, legislative efforts have stalled, leaving states to manage their own regulations.Lawmakers had previously expressed urgency about addressing AI's impact on elections, but time constraints and partisan disagreements have hindered progress. The Senate's attempts to regulate AI-generated content have failed, and the House has not yet produced any recommendations.As the election approaches, only state laws and limited federal agency actions are in place to combat deepfakes. Experts warn that without federal legislation, the risks to election integrity remain significant.
Source: https://www.yahoo.com/news/congress-promised-ai-rules-protect-090000666.html
GSMA launches roadmap to guide telecoms in responsible AI adoption
The GSMA has launched a Responsible AI (RAI) Maturity Roadmap for telecom operators. This tool aims to help companies adopt ethical AI practices as the industry seeks to tap into a $680 billion opportunity over the next 15-20 years.The roadmap provides guidance for telecoms to assess their current AI maturity and offers tools for improvement. It combines insights from McKinsey and input from various operators, aligning with global regulations and standards.Nineteen mobile network operators have already committed to using the roadmap. This initiative marks the first time an entire sector has agreed on a common approach to responsible AI.
Major companies withdraw from LGBTQ+ rights index amid anti-diversity backlash
Several major companies, including Ford, Harley-Davidson, and Lowe's, have stopped participating in the Human Rights Campaign's Corporate Equality Index. This decision follows pressure from conservative activists who oppose diversity initiatives and have threatened boycotts.The Corporate Equality Index, which began over 20 years ago, aimed to improve workplace policies for LGBTQ+ employees. While the number of companies scoring high on the index increased significantly, recent backlash has led some firms to withdraw from the program, citing concerns over diversity policies.Critics argue that this shift undermines progress made in LGBTQ+ rights and workplace equality. Surveys indicate that many LGBTQ+ consumers may boycott companies that roll back inclusion efforts, potentially impacting their customer base.
Nvidia CEO says AI is essential for modern computer graphics
Nvidia CEO Jensen Huang stated that artificial intelligence is now essential for computer graphics. He explained that AI allows for the efficient generation of images by computing one pixel and inferring others, resulting in high-quality visuals.Huang noted that using AI can save energy compared to traditional image creation methods. He highlighted Nvidia's DLSS technology, which enhances performance by generating additional frames through AI.He also mentioned that AI tools are transforming software development, with all engineers at Nvidia now using code generators. Huang emphasized that this shift means engineers have digital assistants to help them continuously.
Source: https://www.eurogamer.net/nvidia-boss-we-cant-do-graphics-anymore-without-ai
U.S. stocks rise as Fed meeting approaches and market shifts occur
U.S. stocks are rising as the Federal Reserve prepares for a two-day meeting. The equal-weighted S&P 500 index reached a record high, reflecting a shift from large tech stocks to smaller companies. This index is up over 11% this year.The Fed is considering its first interest rate cut, with speculation about a 25 or 50 basis point reduction. Financial conditions are loosening, which may influence the Fed's decision. Market expectations lean towards a 50 basis point cut.In tech news, Apple shares fell nearly 3% due to lower-than-expected demand for the iPhone 16. In contrast, Intel's stock rose 6% after securing federal grants for semiconductor production. Microsoft announced a new $60 billion share buyback program and increased its dividend by 10%.
Source: https://ca.finance.yahoo.com/news/morning-bid-highs-rotation-fed-101351309.html
NASA and GE Aerospace develop hybrid-electric jet engine for fuel efficiency
NASA and GE Aerospace are developing a hybrid-electric jet engine that uses both fuel and electric power to reduce fuel consumption. This engine is part of NASA's Hybrid Thermally Efficient Core (HyTEC) project, aiming for demonstration by 2028.The new engine design features a smaller core that can produce similar thrust to current engines while cutting fuel use and emissions by 5 to 10%. This marks a significant advancement in jet engine technology, potentially leading to the first hybrid-electric engines for narrow-body airliners.Testing will begin later this year to determine the most efficient phases of flight for using electric motors. The project aligns with broader efforts to achieve net-zero greenhouse gas emissions in aviation by 2050.
Source: https://www.nasa.gov/aeronautics/nasa-ge-hybrid-electric-research-092024/
Nonprofits assist over three million families with college funding in 2023-24
Nonprofit organizations helped over three million families access and pay for college in the 2023-24 academic year, according to the Education Finance Council's new report. These organizations provided resources, grants, and low-cost loans to support students.In this period, they managed $22.6 billion in college savings accounts and administered $3 billion in grants and scholarships. They also assisted 1.2 million families with college access programs and helped many complete financial aid applications.Despite challenges in federal higher education policies, these nonprofits focused on improving college affordability and student success. They offered valuable support through counseling sessions and favorable loan terms.
China's ultra-rich population outpaces U.S. growth, report finds
A report by Henley & Partners reveals that China's ultra-rich population is growing faster than that of the U.S. Over the past decade, the number of centimillionaires worldwide increased by 54%, with China seeing a 108% rise.Currently, China has 2,350 centimillionaires, driven mainly by tech and industrial sectors. In contrast, the U.S. experienced an 81% increase in its super-wealthy population during the same period.Despite this growth, China's economy has faced challenges, including a struggling property sector and high unemployment. Most of the increase in centimillionaires occurred between 2013 and 2020, with only a 10% rise since then.
Source: https://www.cnbc.com/2024/09/17/chinas-ultra-rich-population-growing-faster-than-the-us-report.html
Investors seek clarity as aviation shifts to sustainable jet fuel
The aviation industry is increasingly focused on sustainable aviation fuel (SAF) to meet decarbonization goals, despite concerns about higher costs for passengers. Recent partnerships, like United Airlines with Neste, aim to boost SAF availability at airports.Governments are also setting mandates for SAF use, such as the U.K.'s goal for 10% of jet fuel demand by 2030. However, production challenges remain, with current SAF output projected to cover only a small fraction of aviation fuel needs.Investors are seeking clearer regulatory frameworks and funding opportunities to support SAF infrastructure. While SAF is expected to be more expensive initially, industry leaders believe large-scale production could eventually lower costs.
Chinese firms ramp up AI chip development to challenge Nvidia
Chinese companies, including Huawei, Alibaba, and Baidu, are intensifying efforts to develop AI chips to compete with Nvidia. U.S. sanctions have prompted China to boost its domestic semiconductor industry, aiming for self-sufficiency in AI technology.Huawei's HiSilicon unit is advancing its Ascend series of processors, with the upcoming Ascend 910C expected to rival Nvidia's H100. Alibaba and Baidu are also designing their own chips, with Alibaba's Hanguang 800 already enhancing its e-commerce platform.Other companies like Biren Technology and Cambricon Technologies are also in the race, despite facing U.S. restrictions. Moore Threads, backed by major investors, is developing GPUs for AI training, further diversifying China's semiconductor landscape.
Source: https://www.cnbc.com/2024/09/17/chinese-companies-aiming-to-compete-with-nvidia-on-ai-chips.html
Engineers develop first DNA computer for data storage and problem solving
Engineers have developed a new DNA computer that can both store data and solve problems, overcoming previous challenges in creating a synthetic system for these functions. This advancement allows for data storage, reading, erasing, and rewriting, similar to traditional computers.Researchers from North Carolina State University and Johns Hopkins University demonstrated that their DNA-based technology can perform a full range of computing tasks. They used dendricolloids to store DNA, enabling easier editing and preserving information for thousands to millions of years.While still in early stages, this DNA computer has successfully solved simple problems like chess and sudoku. The research, published in Nature Nanotechnology, shows potential for compact data storage and computing in the future.
Source: https://www.sciencealert.com/first-of-its-kind-dna-computer-can-both-store-data-and-solve-problems
Ex-Im Bank's space project pipeline grows to $9.5 billion in a year
The U.S. Export-Import Bank's pipeline for space projects has increased to $9.5 billion, more than double from last year. The bank is currently underwriting $800 million in space transactions, focusing on satellite projects for Earth observation and internet constellations.Ex-Im Bank has also launched a domestic finance initiative, allowing loans for U.S. factories that export part of their production. So far, four projects have been approved, potentially supporting satellite antenna manufacturing.In contrast, the French export credit agency BPI has reduced its exposure to space projects but is open to supporting non-geostationary satellite constellations again. Meanwhile, the International Finance Corporation is increasing its involvement in space, facilitating $50 billion in transactions last year.
Source: https://spacenews.com/ex-im-banks-space-project-pipeline-doubles-to-9-5-billion-in-one-year/
Animal feed enzymes market to reach $1.8 billion by 2032
The global animal feed enzymes market is projected to grow at a rate of 5.2% annually, reaching an estimated value of $1.8 billion by 2032. This growth is driven by new feed ingredients and the need for improved nutrient digestibility.Powdered enzymes are the most popular form due to their ease of use. Phytase is the leading enzyme type, particularly for poultry, which dominates the market due to high demand for efficient feed solutions.Key factors influencing market growth include rising meat quality demands, concerns over antibiotic use, and advancements in enzyme technology. North America and Western Europe are significant markets, focusing on sustainability and animal welfare.
Global democracy declines for eighth year, report shows worsening elections
A new report from the International Institute for Democracy and Electoral Assistance reveals a significant decline in democracy for the eighth consecutive year. The report highlights the worst drop in credible elections and parliamentary oversight in nearly 50 years.Key factors include government intimidation, foreign interference, and disinformation. Voter turnout has decreased from 65.2% in 2008 to 55.5% in 2023, with one in three elections being disputed.While some regions, like Africa, have seen stability, others, including Western Asia and Europe, report widespread declines. Notable improvements were found in countries like Burundi, Zambia, Montenegro, and Latvia.
Nippon Steel aims to buy US Steel while preserving American jobs
Nippon Steel plans to buy US Steel and aims to maintain jobs in America. Economists support this move, viewing it as beneficial. However, U.S. presidential candidates are opposing the acquisition, highlighting the political tensions surrounding the deal. The situation raises questions about how politics may influence economic decisions, particularly in key battleground states like Pennsylvania.
Source: https://www.npr.org/2024/09/16/1199975711/bad-economics-smart-politics
Report finds cheaper Nvidia AI GPU rentals in China than US
A recent report indicates that renting slower Nvidia AI GPUs is cheaper in China than in the US. This price difference arises from a black market that circumvents US export controls, allowing Chinese providers to offer Nvidia A100 servers at significantly lower rates.Despite US restrictions on high-end GPUs, small Chinese cloud providers charge about $6 per hour for these servers, compared to around $10 in the US. The report highlights that these GPUs are available on various Chinese platforms and markets, often with altered serial numbers to avoid detection.Larger companies in China, like Alibaba and ByteDance, charge higher rates to comply with regulations, indicating a divide between legal and illegal markets. Nvidia faces challenges in tracking second-hand sales, complicating efforts to enforce export laws.
Morgan Stanley names Constellation Energy among top stock picks for 2025
Morgan Stanley has named Constellation Energy Corporation (CEG 0.00%↑ ) as one of its top stock picks for 2025. This comes as the market anticipates interest rate cuts, which could create favorable conditions for certain stocks, particularly in the energy sector.CEG is the largest green energy producer in the U.S., with significant nuclear power generation capacity. The company is well-positioned to benefit from increasing demand for clean energy, especially as artificial intelligence technology grows.Despite recent concerns about a potential recession, CEG's strong market position and government support through initiatives like the Inflation Reduction Act may provide resilience. However, some analysts suggest that other AI stocks could offer better returns in the near term.
Source: https://ca.finance.yahoo.com/news/constellation-energy-corporation-ceg-among-003913719.html
Google invests $13 million in satellite system for wildfire detection
Google has announced a $13 million investment in the FireSat satellite constellation, aimed at improving wildfire detection. This initiative, managed by Earth Fire Alliance, plans to deploy over 50 small satellites that can identify fires as small as 16 by 16 feet globally.The FireSat satellites will utilize advanced infrared sensors and Google AI to quickly assess fire locations and sizes. With the first satellites expected to launch next year, the system will provide updates every 20 minutes in wildfire-prone areas, enhancing response times for emergency services.This project marks a significant advancement in wildfire monitoring, surpassing existing systems in sensitivity and resolution. The initiative is part of a broader trend of increased private investment in satellite technology, making space more accessible for various applications.
Source: https://arstechnica.com/?p=2050160
Larry Ellison proposes AI surveillance to improve citizen behavior
Larry Ellison, cofounder of Oracle, suggests that constant AI surveillance will encourage better behavior among citizens. He stated that AI could monitor police activities and report issues in real-time during a recent financial analysts meeting.Ellison envisions a future where AI drones could follow suspects instead of police engaging in dangerous pursuits. This approach aims to enhance safety and efficiency in law enforcement.Oracle, under Ellison's leadership, is advancing its AI capabilities, despite facing legal challenges over privacy concerns. The company settled a lawsuit in July 2023 for $115 million related to allegations of running a global surveillance operation.
Source: https://futurism.com/the-byte/billionaire-constant-ai-surveillance
Jefferies highlights stocks poised to benefit from AI data center growth
Demand for AI data centers is rapidly increasing, leading to a surge in the need for cooling systems. Jefferies projects the global market for liquid cooling will grow from $997 million in 2023 to $27.8 billion by 2030, with a 61% annual growth rate. In China, stricter power efficiency regulations and Huawei's expected increase in GPU capacity are anticipated to boost liquid cooling development. Jefferies forecasts a 13% annual growth rate for data center cooling solutions in China from 2023 to 2030, with liquid cooling growing at 66%.Jefferies identified three stocks to buy based on this trend: Schneider Electric, expected to benefit the most in Europe; Envicool Technology, with significant growth in Southeast Asia; and Megmeet Electrical, set to receive orders for Nvidia server power supplies by 2025.
Federal class action lawsuit targets AT&T over massive data breach
AT&T is facing a federal class action lawsuit in North Texas after a data breach that impacted nearly all of its 110 million customers. The lawsuit claims the company had inadequate security measures to protect customer data, including call and text records.This is the second class action against AT&T related to the breaches. The first was filed in July, alleging a lack of transparency about the data security issues. The compromised data includes records from AT&T customers and those using networks that rely on AT&T.AT&T stated that the breached data does not include personal information like Social Security numbers. The company is investigating the incident and has engaged cybersecurity experts to address the issue.
Oracle's stock surges but still trails Microsoft in market value
Oracle's stock has tripled in value over the past five years as it shifted focus to cloud services, growing its revenue at an 8% annual rate. Its market cap is currently $450 billion, significantly smaller than Microsoft's $3.2 trillion.Oracle's cloud revenue now accounts for 42% of its total, with a 22% year-over-year increase. Analysts expect Oracle's revenue to grow at 12% annually through 2027, but even with this growth, it may not surpass Microsoft’s valuation.Microsoft is also expanding its cloud services and integrating AI tools, with projected revenue growth of 14% through 2027. Analysts predict Oracle's market cap could reach $1.2 trillion by 2030, still below Microsoft's expected $7.6 trillion.
Invesco QQQ ETF outperforms market with 700% return over decade
The Invesco QQQ 0.00%↑ ETF has outperformed the broader market, achieving a 700% return over the past decade. It tracks the Nasdaq-100, which includes major technology companies that dominate growth sectors like AI and cloud computing.While the ETF offers significant potential returns, it is subject to market volatility. Investors may face substantial declines during downturns, making diversification and risk management important.Despite concerns about a potential market bubble, the long-term outlook for the Invesco QQQ remains positive. A balanced investment strategy, including regular contributions and diversification, is recommended for managing risk.
Biden administration denies funding blacklist of conservative media outlets
The Biden administration has denied allegations that the State Department funded a blacklist of conservative media outlets. Reports suggested the Global Engagement Center pressured social media platforms to suppress certain posts, particularly regarding COVID-19.Matt Taibbi and Gabe Kaminsky highlighted the GEC's alleged role in censorship, claiming it targeted Republican-leaning outlets. The State Department, however, stated it had no involvement in funding the Global Disinformation Index, which created the blacklist.The State Department emphasized its commitment to responding to media inquiries and maintaining that the GEC's focus is on countering foreign disinformation, not censoring domestic content.
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