Anti-Clickbait News Summaries for September 29, 2024
China encourages firms to prioritize local AI chips over Nvidia's products
China is urging its companies to use locally made artificial intelligence chips instead of those from Nvidia. This guidance aims to strengthen China's semiconductor industry and reduce reliance on foreign technology amid ongoing U.S. sanctions.
Chinese regulators are discouraging the purchase of Nvidia's H20 chips, which are essential for AI development. The initiative supports domestic chipmakers like Cambricon and Huawei, allowing them to gain market share.
Despite this push, China will still permit foreign chip purchases if necessary for optimal AI system performance. Nvidia has not commented on the situation, but its shares fell by nearly 4% following the news.
U.S. stocks expected to outperform bonds as investors favor equities for fourth quarter
A recent survey indicates that U.S. stocks are expected to outperform government and corporate bonds for the remainder of 2024. Sixty percent of respondents believe equities will yield the best returns in the fourth quarter, driven by recent interest rate cuts by the Federal Reserve.
The survey also shows a preference for emerging markets over developed ones, with 59% of participants favoring the former. Investors are moving away from traditional safe assets like Treasuries and gold, reflecting a more risk-tolerant outlook.
Concerns about oil prices and Treasuries are growing, with 36% of respondents advising against buying oil due to oversupply fears. Additionally, 29% suggest avoiding Treasuries, as inflation risks remain amid uncertain interest rate cuts.
Source: https://ca.finance.yahoo.com/news/stocks-bonds-top-trades-rest-190000400.html
US stocks reach new highs as S&P 500 gains 5.1% in third quarter
U.S. stocks have shown strong growth despite economic challenges, including a contentious presidential election and changing Federal Reserve policies. The S&P 500 Index gained 5.1% in the third quarter, marking its best start since 1997 and surpassing a $50 trillion market cap.
Notably, these gains were not primarily driven by major technology companies. The Nasdaq 100 Index rose only 1.7%, while the equal-weight S&P 500 increased nearly 9%.
Concerns about a potential recession remain, but expectations for steady economic growth persist. Key upcoming events include jobs reports, earnings from major companies, and the Fed's interest-rate decision, which may impact market trends.
ByteDance partners with Broadcom and TSMC to develop AI chips, challenging Nvidia's dominance
ByteDance, the parent company of TikTok, is partnering with Broadcom and TSMC to develop its own AI chips. This move aims to reduce reliance on Nvidia, which has faced supply issues due to U.S. trade restrictions affecting Chinese companies.
ByteDance has invested over $2 billion in Nvidia's H20 GPUs in 2024 but is now focusing on creating two new AI chips for training and inference. These chips will utilize TSMCβs advanced manufacturing processes, similar to those used for Nvidiaβs GPUs.
Broadcom, known for its AI chip designs, will lead this development, with mass production expected by 2026. However, ByteDance will need to create its own software platform to support its new hardware, which presents additional challenges.
Elon Musk backs Vivek Ramaswamy's election reform proposals in social media post
Elon Musk has endorsed election reform proposals from Vivek Ramaswamy, calling them βsimple and effective.β The proposals include making Election Day a national holiday, using paper ballots, and requiring government-issued IDs.
Musk shared his support on social media, highlighting the importance of these reforms amid ongoing debates about voting methods in the U.S. His endorsement may draw more attention to the proposals.
Ramaswamy has noted Musk's strong stance on government employment issues, indicating a potential collaboration. The impact of Musk's endorsement on the election reform discussion remains uncertain.
Tesla prepares to report third-quarter deliveries with mixed expectations
Tesla is expected to release its third-quarter delivery report soon, with estimates around 465,000 vehicles, a 7% increase from last year. However, some analysts predict a slight miss, estimating deliveries at 452,000, which would still show 4% growth.
Despite recent political controversies involving CEO Elon Musk, analysts believe Tesla can return to growth after declines earlier this year. Strong performance in China is also contributing to positive expectations for the quarter.
Tesla shares have recently recovered, rising 2.45% to $260.46. The upcoming delivery numbers and the launch of robotaxis on October 10 are key factors for future stock performance.
Vistra becomes top S&P 500 stock of 2024 with 210% surge
Vistra, a retail electricity provider, has become the top-performing stock in the S&P 500 for 2024, rising 210%. This surpasses Nvidia's 155% increase, highlighting a shift in investor interest towards utility stocks amid growing electricity demand.
The company's growth is driven by its acquisition of Energy Harbor, adding 1 million customers and significant nuclear generation capacity. Vistra's focus on clean energy aligns with the ongoing transition away from coal, with a substantial portion of its energy coming from natural gas and nuclear sources.
Additionally, Vistra secured long-term power purchase agreements with major cloud providers like Microsoft and Amazon. These agreements reflect a favorable market outlook for nuclear energy and position Vistra well in the evolving energy landscape.
China's missile stockpile grows rapidly, matching US ICBM numbers
China's missile stockpile is rapidly expanding, now matching the U.S. in intercontinental ballistic missiles (ICBMs). The Chinese Rocket Force has doubled its missile stocks, with over 500 operational nuclear warheads, more than half being ICBMs.
The arsenal includes the anti-ship Dong-Feng 21 missile, which threatens the U.S. Navy. China is also advancing in hypersonic weapons, with the Dong Feng-17 missile as a key component. Recent satellite images show over 100 new missile silos under construction.
In response, the U.S. is enhancing its defenses, including a partnership with Japan to counter hypersonic threats. China's missile development outpaces both the U.S. and Russia, raising concerns about the balance of power in the Asia-Pacific region.
Google accuses Microsoft of antitrust violations in cloud services dispute
Google has filed a complaint with the European Commission, accusing Microsoft of violating antitrust laws by forcing customers to use its cloud services. This marks a significant escalation in their long-standing rivalry.
Microsoft responded, claiming Google will not succeed in this complaint, as it has previously settled similar issues. The dispute highlights the ongoing competition between the two companies in various tech sectors, including cloud computing and artificial intelligence.
Google alleges that Microsoft imposes high fees for customers switching to other cloud services while offering low migration costs for its own Azure platform. This complaint echoes past antitrust cases against Microsoft regarding its market dominance.
US banks gain $1 trillion from high interest rates as CFOs predict election outcome
U.S. banks, including JPMorgan and Bank of America, have gained a $1 trillion windfall from high interest rates maintained by the Federal Reserve for two and a half years. This has resulted in $1.1 trillion in excess interest revenue, as banks did not pass on higher rates to savers.
In a recent survey, 55% of chief financial officers predict Vice President Kamala Harris will win the upcoming presidential election. This marks a shift from previous expectations, despite CFOs believing Donald Trump would be better for the economy.
Chinese economist Zhu Hengpeng has gone missing after criticizing President Xi Jinping's economic policies. His detention follows comments made in a private WeChat group, raising concerns about freedom of expression in China.
Trump and Harris propose new border wall sections as materials sit unused in Arizona
Both Donald Trump and Kamala Harris have announced plans to build more border wall sections, despite Harris previously criticizing the wall as a waste of taxpayer money. Some construction materials have been unused since 2021.
Harris's current border plan includes filling in strategic wall sections, reflecting a shift from her earlier stance. The Biden administration halted wall construction upon taking office, but some materials remain stacked in Cochise County, Arizona.
While illegal crossings have decreased, Cochise County remains a hotspot. Harris's campaign emphasizes her law enforcement background, while Trump continues to advocate for mass deportations and highlights his previous wall construction efforts.
Source: https://www.nbcnews.com/investigations/trump-harris-border-wall-arizona-rusting-2021-rcna173094
Source: https://www.bbc.com/news/articles/c8el1ky2nd6o
SpaceX pauses Falcon 9 launches to investigate Crew-9 mission issue
SpaceX has paused all Falcon 9 launches to investigate an issue that occurred during the Crew-9 mission on September 28. The rocket's second stage experienced an off-nominal deorbit burn, landing outside the intended area in the ocean.
Despite the issue, the Crew-9 mission successfully launched NASA astronaut Nick Hague and Russian cosmonaut Aleksandr Gorbunov to the International Space Station. The Falcon 9's first stage landed successfully, and the Crew Dragon capsule is on track for its arrival.
This incident follows a previous upper-stage issue in July, which resulted in lost satellites. SpaceX had resumed launches quickly after that, but the current pause will last until the root cause of the latest problem is understood.
Source: https://www.space.com/spacex-pause-launches-crew-9-falcon-9-issue
Economists criticize Trump and Harris for plans that could worsen U.S. budget deficit
Economists have criticized both former President Trump and Vice President Harris for their tax and spending plans, stating they would worsen the growing U.S. budget deficit. Neither candidate has presented clear policies to address this issue.
Currently, the U.S. government is facing a cumulative deficit of $1.9 trillion for fiscal year 2024. Trump's proposals could increase the deficit by about $4 trillion over ten years, while Harris's plans may add approximately $1.5 trillion.
Concerns have been raised about the lack of focus on fiscal responsibility in the current campaign. Economists argue that both candidates need to provide more detailed plans to address the deficit and its potential impacts on the economy.
Apple Intelligence features remain unavailable for iPhone 16 users as beta testing continues
Apple's new iPhone 16 features a focus on "Apple Intelligence," but the software is currently only available to beta testers. Many promised features are not yet accessible, making it hard for users to get excited about the new technology.
The public beta of iOS 18.1 was released earlier this month, but the full launch of Apple Intelligence is still unclear, with a vague timeline of "October." Some features, like custom emojis and advanced Siri upgrades, are expected to arrive later.
While the iPhone 16 has strong hardware improvements, the emphasis on unfulfilled software promises may dampen consumer interest. Analysts suggest this uncertainty could be affecting demand compared to previous models.
U.S. student loan borrowers face uncertainty as political disputes continue
U.S. student loan borrowers are facing uncertainty as political disputes over $1.74 trillion in debt continue. Many, like Angela Carpio, are struggling to manage their finances amid stalled repayment plans and legal challenges to debt forgiveness initiatives.
President Biden's administration has canceled over $168 billion in student debt, but a Supreme Court ruling blocked a major proposal to forgive $400 billion. A new repayment plan, Save, is currently on hold due to ongoing court reviews, leaving borrowers confused about their obligations.
As the November election approaches, candidates are divided on student debt solutions. While Democrats emphasize forgiveness, Republicans criticize the proposals as unfair to those without loans. Polls show mixed public support for Biden's handling of the issue.
Source: https://www.bbc.com/news/articles/c204ywxzl11o
Morse Micro's Wi-Fi HaLow technology achieves 10-mile range in real-world tests
Morse Micro has achieved a significant milestone with its Wi-Fi HaLow technology, reaching a range of 16 kilometers (10 miles) in real-world tests. This surpasses the previous record of 3 kilometers (1.8 miles) set earlier this year.
The tests were conducted at Joshua Tree National Park, where the technology demonstrated its ability to maintain a data rate of 2 Mbps at maximum range. Wi-Fi HaLow operates in the sub-GHz range, allowing it to connect more devices over longer distances.
In addition to its extended range, Wi-Fi HaLow's low power consumption enables devices powered by coin batteries to last for months without needing a change. This advancement could enhance the functionality of Internet of Things devices in remote areas.
Boeing strike continues as contract talks collapse again, union reports
Contract talks between Boeing and the union representing striking factory workers have broken off again. The union claims Boeing did not address key issues like higher pay and the restoration of a pension plan.
Boeing stated it is ready to negotiate anytime and aims to reach an agreement quickly. The company recently offered a 30% pay raise over four years, which the union still finds insufficient.
The strike, involving nearly 33,000 machinists, is now in its third week. While it has halted production of Boeing's popular airplanes, it is not expected to disrupt airline flights in the near term.
Google warns users of risks with new AI features in Gmail update
Google is updating Gmail with new AI features, including Gemini-powered smart replies that provide more detailed responses based on email threads. This change aims to enhance user experience on Android and iOS devices.
However, a report warns of significant risks associated with these AI tools. Malicious emails could exploit vulnerabilities in the AI, potentially leading to phishing attacks by tricking users into clicking harmful links.
Google acknowledges these risks and is actively working on defenses against such attacks. The company emphasizes its commitment to user safety while continuing to integrate AI across its platforms.