Anti-Clickbait News Summaries for November 2, 2024
Google Cloud reports 35% growth in Q3, surpassing AWS and Azure
Hi, it’s Jack again with your daily news summaries 😇
The Markets:
Futures
Summary: Mixed movements in futures show Crude Oil ticking up slightly, while Natural Gas dropped over 2%. Major indices like the Dow, S&P 500, and Nasdaq 100 have all advanced, indicating positive momentum in the stock market.
Crude Oil: $69.33 (+0.10%)
Natural Gas: $2.6490 (-2.14%)
Gold: $2745.90 (-0.12%)
Dow: 42203.00 (+0.61%)
S&P 500: 5759.25 (+0.36%)
Nasdaq 100: 20170.25 (+0.74%)
Russell 2000: 2220.40 (+0.53%)
Forex & Bonds
Summary: The USD strengthens, particularly against the Euro and Yen. Treasury yields are also rising, with the 10-year yield climbing 1.80%, signaling increased confidence or inflation concerns.
EUR/USD: 1.0832 (-0.47%)
USD/JPY: 152.92 (+0.58%)
GBP/USD: 1.2913 (+0.11%)
BTC/USD: 69051.00 (-0.76%)
5-Year Treasury: 4.209 (+1.30%)
10-Year Treasury: 4.361 (+1.80%)
30-Year Treasury: 4.558 (+1.90%)
Major Stock Changes
Summary: A mixed day for major stocks, with notable gains in tech as AMZN and INTC surge, while AAPL dips slightly. Big movers include Atlassian (+18.99%) and Charter Communications (+11.87%).
AAPL: -1.33%
AMZN: +6.19%
INTC: +7.81%
NVDA: +1.99%
GOOG: -0.02%
GOOGL: +0.11%
MSFT: +0.99%
XOM: -1.57%
CVX: +2.86%
META: -0.07%
TSLA: -0.35%
TEAM: +18.99%
CHTR: +11.87%
BA: +3.54%
UBER: +1.67%
PLTR: +0.87%
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Google Cloud reports 35% growth in Q3, surpassing AWS and Azure
Google's cloud business grew 35% year over year in the third quarter, reaching $11.35 billion. This growth rate is an increase from 29% in the previous quarter, indicating stronger momentum in the competitive cloud market.
In comparison, Amazon Web Services, the market leader, grew 19% to $27.45 billion, while Microsoft’s Azure services increased by 33%. Google Cloud's growth is notable as it begins to diversify Alphabet's revenue beyond digital advertising.
Google also reported a 17% operating margin for its cloud services, marking a significant improvement after turning a profit last year. This shift reflects a change in the company's financial performance in the cloud sector.
Source: https://www.cnbc.com/2024/11/02/googles-cloud-outpaces-aws-azure-in-q3-as-ai-battle-heats-up-.html
Interest rates show bearish steepening trend while economic data remains strong
Interest rates have shown a bearish steepening trend, indicating a potential shift in the economic landscape. This contrasts with previous stability in rates, suggesting changing market conditions.
Despite the rise in interest rates, coincident economic data remains strong. This data provides a snapshot of current economic activity, suggesting resilience in the economy.
The analysis focuses on high-frequency weekly indicators, which can signal changes in economic trends before monthly or quarterly reports are released.
Veteran strategist warns of potential 12% stock decline as inflation and high rates persist
Veteran strategist Bill Blain warns that inflation and high interest rates are likely to persist, leading to a potential 12% decline in stock prices over the next year. He believes that the Federal Reserve will not implement significant rate cuts as many investors expect.
Blain cites entrenched inflation, rising federal debt, and ongoing supply chain issues as factors that will keep rates elevated. He predicts that interest rates will stabilize between 4.5% and 6%, which could hinder lending and slow down dealmaking.
Despite current market optimism for rate cuts, Blain suggests that stocks remain overvalued due to a speculative bubble from the previous era of low rates. He emphasizes that the economic landscape is changing, and investors should prepare for a different environment.
Key dates to watch after the election on November 5
After the polls close on November 5, several key dates will follow for certifying the election results. States have staggered deadlines, with Delaware certifying by November 7 and Georgia by November 23. Certification continues through December 2.
New rules require both campaigns to begin transition planning if no candidate concedes within five days of the election. This change aims to prevent disruptions seen in the 2020 transition when Trump did not acknowledge Biden's win.
Electors will cast their votes on December 17, and the official electoral votes must arrive in Washington by December 25. The final step occurs on January 6, 2025, when the Vice President oversees the counting of electoral votes, leading to the inauguration on January 20.
Source: https://time.com/7171517/electoral-college-dates-inauguration/
Bill Clinton campaigns for Kamala Harris in New Hampshire
Former President Bill Clinton visited New Hampshire on Friday to support Vice President Kamala Harris and rally Democratic volunteers. He emphasized the importance of discussing economic issues with supporters of former President Donald Trump.
Clinton highlighted Harris' economic proposals, claiming they are more cost-effective and beneficial than Trump's. He also addressed key ballot issues, including the economy and reproductive rights, while criticizing Trump's leadership style.
The New Hampshire Republican Party responded to Clinton's visit, questioning his support for Harris on border security. Clinton's visit included appearances with U.S. Senators Jeanne Shaheen and Maggie Hassan, reinforcing the state's history of electing women.
Source: https://www.wcvb.com/article/bill-clinton-kamala-harris-portsmouth-nashua-11124/62791321
UN report shows sharp rise in journalist deaths with most cases unsolved
A UN report reveals a 38 percent rise in journalist deaths from 2022 to 2023, with 162 killed, averaging one every four days. Most cases remain unsolved, highlighting ongoing impunity for crimes against journalists.
Latin America and the Caribbean recorded the highest fatalities, with 61 deaths, while North America and Western Europe had the fewest at six. In 2023, conflict zones accounted for 59 percent of journalist deaths, reversing a previous decline.
The report notes that 85 percent of journalist killings since 2006 remain unresolved. UN Secretary-General Antonio Guterres urged governments to protect journalists and address violence against media workers.
Media focus on male voters overshadows women's influence in election coverage
The media's focus on male voters in the current election contrasts with the significant role of women voters. Despite the election being framed around women's issues, analysis often centers on young men and their voting habits, overshadowing women's preferences.
Recent polls show Vice President Kamala Harris leading among young women but struggling with young men, similar to President Biden's performance. This highlights a gender gap in voting trends, yet media narratives often emphasize male voter dynamics instead of women's increasing influence.
The 2022 midterms demonstrated the power of female voters, particularly regarding abortion rights. Despite this, coverage remains skewed towards male concerns, with less attention given to women's economic issues and preferences in the election.
Esprit files for bankruptcy and closes U.S. operations after 56 years
Esprit Holdings Limited has filed for Chapter 7 bankruptcy for its two U.S. subsidiaries, Esprit U.S. Distributions Limited and Esprit U.S. Retail Inc. This decision follows a decade of declining sales and comes after attempts to revive the brand with pop-up stores.
Once a popular retailer in the U.S., Esprit's presence has dwindled to just 80 locations. The company cited poor financial conditions and high operating costs as reasons for the closures, which will allow them to liquidate assets to pay off debts.
While the U.S. operations are shutting down, Esprit Holdings Limited will continue to operate from Hong Kong, having already closed 160 stores in Europe earlier this year.
Infineon unveils world's thinnest silicon wafer for AI data centers
Infineon has launched what it claims is the world's thinnest silicon power wafer, designed for AI data centers. The wafer is 20 micrometers thick and can reduce power loss by over 15%, aiming to improve energy efficiency in AI applications.
Conversica has updated its AI agents, integrating technology from major companies like OpenAI and Google. The new features allow for customized interactions with customers, enhancing revenue conversion for enterprise teams.
Apple announced its acquisition of Pixelmator, known for its AI-powered image editing apps. The deal is pending regulatory approval, but Pixelmator will continue to operate its existing apps without immediate changes.
Source: https://qz.com/infineon-wafer-ai-agent-apple-pixelmator-bret-taylor-1851687584
Sam Altman discusses future of open source in AI during Reddit AMA
OpenAI CEO Sam Altman recently discussed the future of open source in AI during a Reddit AMA. He hinted that OpenAI may open-source more of its work, acknowledging the importance of open-source models in the AI ecosystem.
Altman expressed pride in the value users gain from OpenAI's services and emphasized the need for powerful, user-friendly APIs. He stated, "I would like us to open source more stuff in the future."
This discussion comes amid ongoing criticism from Elon Musk, a co-founder of OpenAI, who has accused the company of prioritizing profits over its original mission. Musk's comments reflect a broader debate in the tech industry about the role of open source in AI development.
Hackers target iPhones with advanced spyware in new cyber threat
Apple iPhone users are facing new cyber threats as hackers target devices with advanced tools. A recent report highlights the return of LightSpy spyware, which has improved its capabilities and can compromise older iOS versions, particularly those below 13.5.
The spyware exploits known vulnerabilities in Safari to gain access and escalate privileges, allowing full control of the device. It can disable the phone or wipe data, including contacts and messages, making it difficult to trace the attack.
Experts recommend that users keep their iOS updated and reboot their devices regularly to limit potential data theft. Currently, these attacks appear to be focused on victims in China and Hong Kong.
China lowers investment threshold for foreign investors in listed companies
China has updated its rules for foreign investment in listed companies to attract more capital. The asset requirement for non-controlling foreign investors has been reduced from $100 million to $50 million.
Foreign individuals can now invest strategically in these companies. Additionally, the new regulations include tender offers as an approved investment method, alongside private placements and negotiated transfers.
Source: https://www.cnbc.com/2024/11/02/china-eases-rules-for-foreign-investment-in-listed-companies.html
Trump targets cryptocurrency investors to boost electoral support
Donald Trump is actively courting cryptocurrency investors, particularly young men, to gain an electoral advantage. He has made significant efforts to engage this demographic, which tends to favor him over Democrats, despite only 7% of Americans owning cryptocurrencies.
Trump's campaign has launched a cryptocurrency venture and secured support from influential figures in the crypto community. This strategy aims to mobilize young male voters, similar to his previous outreach to fitness enthusiasts.
In response, Kamala Harris is working to attract crypto investors by proposing regulatory support for the market. Her campaign seeks to change the perception that Democrats are less favorable to crypto interests, recognizing the importance of this demographic in the upcoming election.
Source: https://english.elpais.com/usa/elections/2024-11-02/why-trump-is-courting-the-crypto-bros.html
X faces new layoffs with engineering department hit hardest
Elon Musk's social media platform X, formerly known as Twitter, is reportedly facing another round of layoffs, primarily affecting the engineering department. The exact number of job cuts has not been disclosed.
This follows a request made to employees two months ago, asking them to summarize their contributions to the company. It is unclear if these summaries played a role in the layoffs.
Since Musk's acquisition of Twitter for $44 billion in October 2022, the platform's value has significantly declined. Fidelity recently valued X at under $10 billion, a stark contrast to the purchase price.
Reproductive rights take center stage in 2024 presidential election debate
Reproductive rights are a key issue in the 2024 presidential election, especially after the 2022 overturning of Roe v. Wade. The debate now includes not just abortion, but also fertility treatments and birth control.
Vice President Kamala Harris supports protecting reproductive freedom and plans to push for a federal abortion legalization bill. She and her running mate, Tim Walz, advocate for access to fertility treatments like IVF and birth control.
Former President Donald Trump favors state control over abortion laws and opposes late-term abortions. He supports IVF and birth control but has a mixed history on reproductive rights, with some past statements supporting a woman's right to choose.
Source: https://www.wmur.com/article/reproductive-rights-abortion-ivf-2024-election/62268346
Globalstar stock jumps over 30% after Apple announces $1.5 billion satellite investment
Globalstar's stock rose over 30% on November 1 after announcing Apple’s $1.5 billion investment in a new satellite constellation. Apple plans to acquire a 20% stake for $400 million and provide $1.1 billion in cash prepayments.
The investment aims to enhance satellite communications for iPhones, building on Apple’s existing use of Globalstar’s network for emergency services. Globalstar will use part of the funds to reduce its debt.
Globalstar will allocate 85% of its network capacity to Apple while continuing to support its legacy services. The deal comes amid competition from other companies developing satellite services for mobile phones.
Source: https://spacenews.com/globalstar-soars-on-apples-1-5-billion-satellite-investment/
Economists warn Republican sweep in U.S. elections could drive inflation higher
As the U.S. approaches the Nov. 5 elections, economists warn that a Republican sweep could lead to higher inflation. Key factors include increased tariffs, a growing budget deficit, and stricter immigration policies, which may prompt a more aggressive Federal Reserve response.
Goldman Sachs economists predict that reinstating tariffs on Chinese imports and autos could raise the effective tariff rate by 3-4 percentage points. This change could increase core personal consumption expenditures inflation by 0.3-0.4 percentage points at its peak.
Additionally, a Republican administration may see a significant rise in the budget deficit, potentially adding $7.75 trillion to the national debt by 2035. Reduced immigration could further strain the labor market, leading to higher wages and increased inflationary pressures.
Nvidia replaces Intel in Dow Jones Industrial Average on November 8
Nvidia will replace Intel in the Dow Jones Industrial Average on November 8, 2024. This change reflects Nvidia's strong performance in the AI sector, with its shares rising over 180% this year, while Intel's shares have dropped 51%.
In addition to Nvidia's inclusion, Sherwin Williams will take the place of Dow Inc in the index. This marks the first adjustment to the Dow since February, when Amazon replaced Walgreens Boots Alliance.
The Dow now includes more technology companies, highlighting the shift in focus from traditional industries to tech giants like Nvidia, Microsoft, and Apple.
Source: https://www.cnbc.com/2024/11/01/nvidia-to-join-dow-jones-industrial-average-replacing-intel.html