Knowledge Archives - Page 6 of 11

March 12, 2024September 12, 2025

World Wide Web turns 35 today 12th March 2024

The World Wide Web (WWW), the invention attributed to Tim Berners-Lee while working at CERN, was conceived on 12th March 1989. This makes the World Wide Web 35 years old today.

It is important to recognise that the Web and the Internet are two different entities; the Web is a service that functions via the Internet, a worldwide network of interconnected computer networks. Whereas the Internet is the system.

The first successful communication between a Hypertext Transfer Protocol (HTTP) client and server through the Internet took place in mid-November 1989.

The Web has since evolved significantly, with the release of the first web browser and server, and the development of HTML, CSS, and JavaScript, which have shaped the modern digital experience.

First website

The inaugural website was launched at CERN and became accessible on 20th December 1990. Tim Berners-Lee developed this site to disseminate information about the World Wide Web project. In August 1991, it was made available to the public. Today, it is still possible visit this site, offering an intriguing look into the web’s nascent stages.

The internet

The internet, as we know it today, began to evolve in the mid-20th century. This era, known as the Information Age, Digital Age, or Computer Age, is characterised by a transition from traditional industry to an economy driven by information technology. This shift commenced in the 1940s and 1950s. The invention of the transistor in 1947 and the optical amplifier in 1957 were pivotal developments that propelled the advent of the internet.

The term ‘internet’ commonly denotes the worldwide system of interconnected computer networks that utilize the Internet protocol suite (TCP/IP) to connect devices globally. It is an extensive network comprising private, public, academic, business, and government networks of local to global systems.

ARPANET

Since the ARPANET’s inception, which is the internet’s precursor, the internet has been in existence for over 50 years. The ARPANET was conceived in the late 1960s and became operational in 1969. The internet is approximately 55 years old.

**Art illustration depicting users on the World Wide Web – 35 years old today, 12th March 2024**

The ARPANET, also known as the Advanced Research Projects Agency Network, represented the first wide-area packet-switched network featuring distributed control and was among the earliest to adopt the TCP/IP protocol suite.

These innovations laid the groundwork for what would become the Internet. Initiated by the U.S. Department of Defence’s Advanced Research Projects Agency (ARPA), the primary goal of ARPANET was to connect computers at Pentagon-funded research institutions via telephone lines, facilitating resource sharing and communication across distant computers.

The project commenced in 1966, with the initial computers being connected in 1969. By 1971, the network was operational and underwent rapid expansion. ARPANET was instrumental in introducing several protocols pivotal in today’s Internet communication, including the Network Control Protocol (NCP) and subsequently, TCP/IP.

Following the advent of the wider Internet, which ARPANET played a crucial role in catalyzing, the network was officially decommissioned in 1990.

Happy Birthday WWW and thank you Tim-Burners-Lee (I think)

Let’s see how far artificial intelligence (AI) becomes embedded in the next generation of the World Wide Web and of further internet development. Will the big tech companies of today still be running the AI projects of tomorrow?

March 11, 2024September 12, 2025

New UK British ISA announced in the March 2024 budget

The new UK British ISA

UK chancellor Jeremy Hunt revealed the British ISA as part of the Spring Budget 2024.

The British ISA aims to boost demand for UK businesses and encourage investment in UK-focused assets.

Key Features

Additional Allowance

The British ISA provides a separate £5,000 annual allowance in addition to the existing £20,000 ISA allowance.

Tax Advantages

Like other ISAs, investors in the British ISA will not pay tax on capital gains or income.

Investment Focus

While it’s not yet clear whether the new ISA will be exclusively for UK shares, it is expected to support UK-focused funds and investment trusts.

Eligibility Uncertainty

The inclusion of UK gilts or UK corporate bonds remains uncertain.

Consultation Period

The consultation period for the British ISA runs until June 6, 2024.

Potential Impact – Reviving UK Stock Market

The British ISA aims to revive interest in the UK stock market, which has faced challenges since the Brexit vote in 2016.

Supporting UK Companies

By providing tax-free savings opportunities, the ISA encourages investment in UK businesses.

Fund Industry Support

Fund management firms, including Premier Miton, lobbied for the British ISA’s creation.

Historical Context

The British ISA draws parallels with its predecessor, the personal equity plan (PEP), which focused on UK shares and funds.

ISAs replaced PEPs in 1999.

Conclusion

In summary, the British ISA introduces an additional allowance for UK-focused investments, supporting savers and UK companies alike. Its impact on the stock market and investor sentiment remains to be seen, but it represents a step toward bolstering the UK’s economic landscape

By ensuring that companies are valued fairly, a stronger stock market will facilitate the capital raising process for companies that seek to grow and attract more listings. This will have a positive impact on the economy and employment and is ultimately in everyone’s interest.

March 4, 2024September 12, 2025

A brief explanation of Bitcoin halving

Bitcoin halving is an event that occurs approximately every four years, when the reward for mining Bitcoin transactions is reduced by 50%. This means that the number of new Bitcoins created and entering circulation is also cut in half.

Bitcoin mining

Bitcoin mining is the process of using computers to validate transactions and add them to the blockchain, a distributed ledger that records all Bitcoin activity. Miners compete to solve complex mathematical problems and the first one to find a valid solution gets the block reward, which is currently 6.25 Bitcoins per block.

Bitcoin halving

The Bitcoin halving is coded into the Bitcoin protocol by its perceived creator, Satoshi Nakamoto, as a way to control the total supply of Bitcoin and make it scarcer and more valuable.

There can only be 21 million Bitcoins in existence, and the halving ensures that the last Bitcoin will be mined around the year 2140.

The Bitcoin halving has implications for the Bitcoin network and the price of Bitcoin. On one hand, the halving reduces the inflation rate of Bitcoin and increases its scarcity, which could lead to higher demand and upward pressure on the price.

**A brief explanation of Bitcoin halving**

On the other hand, the halving also reduces the profitability of mining and could cause some miners to exit the network, which could affect the security and stability of the network.

Important

The Bitcoin halving is an important event for the Bitcoin community and the cryptocurrency industry, as it reflects the unique and innovative nature of Bitcoin as a digital and decentralized form of money.

March 4, 2024September 12, 2025

Is it acceptable to use the North Sea as a dumping ground for carbon waste?

Norway has a long history of carbon management. For nearly 30 years, it has captured and reinjected carbon from gas production into seabed formations on the Norwegian continental shelf.

Norway’s government wants to show the world it is possible to safely inject and store carbon waste under the seabed, saying the North Sea could soon become a ‘central storage camp’ for polluting industries across Europe.

Norway’s carbon management projects (Sleipner and Snøhvit) have been in operation since 1996 and 2008, respectively, and are often held up as proof of the technology’s viability. These facilities separate carbon from their respective produced gas, then compress and pipe the carbon and reinject it underground.

Carbon capture storage – nothing new

Offshore carbon capture and storage (CCS) refers to a range of technologies that seek to capture carbon from high-emitting activities, transport it to a storage site and ‘lock’ it away indefinitely under the seabed.

Norway is currently a leading pioneer in carbon capture and storage (CCS), a technology that aims to reduce greenhouse gas emissions by trapping carbon dioxide from industrial sources and injecting it into underground reservoirs. Norway has been operating CCS projects in the North Sea since 1996, using depleted oil and gas fields as storage sites.

Norway’s ambitious plan to expand CCS is called Project Longship, which involves building a full-scale CCS value system that can serve as a model for other countries and industries. The project consists of two parts: a capture facility in Brevik that will process emissions from a cement factory, and a transport and storage system that will ship the captured CO2 by ship to an offshore terminal and inject it into a permanent storage location in the North Sea.

Project Longship is expected to be completed by 2024, with a reported capacity to store 1.5 million tonnes of CO2 per year. The project has a total cost of 1.7 billion euros, of which the Norwegian government will cover 80%. The project is also supported by the European Union, which sees CCS as a key climate solution.

Norway’s current Energy minister (2004) reportedly said that the project will prove to the world that CCS is possible and necessary to meet the Paris Agreement goals. He also said that the North Sea could become a ‘central storage camp’ for CO2 from other countries and industries, as it has the potential to store up to 1.25 billion tonnes of CO2. That’s a real concern to me.

Long-term safety concerns

However, not everyone is convinced by Norway’s CCS vision. Some critics have raised concerns about the long-term safety and environmental impacts of storing CO2 under the seabed, as well as the ethical and moral implications of using the North Sea as a dumping site for carbon waste.

Norway’s CCS project is a controversial and complex undertaking that will test the feasibility and acceptability of this technology.

Whether it will succeed or fail remains to be seen, but it will certainly have a significant impact on the future of climate action.

Is it safe or wise to pump waste into and hide it under the sea? Humankind doesn’t have a very good track record when it comes to clearing up after itself, does it? Go look at the rubbish in space!

Only time will tell?

February 29, 2024September 12, 2025

Water scarcity and its impact on semiconductor production

Water scarcity is a pressing global issue and has far-reaching consequences across various industries. One sector significantly affected is semiconductor manufacturing.

How does water scarcity pose a threat to the production of essential microchips.

Water in Semiconductor Manufacturing

Ultra-pure water is a critical resource in semiconductor fabrication plants (fabs). It is used for cleaning, cooling, and various processing steps during chip production.

Microchips power our devices—computers, smartphones, sensors, and LEDs—all of which rely on water-intensive manufacturing processes.

Global Water Scarcity

Freshwater availability is unevenly distributed worldwide. While oceans contain 97% of water (mostly saline), accessible freshwater constitutes only a small fraction.

Approximately four billion people experience severe water scarcity for at least one month annually, and half a billion face it year-round.

Taiwan’s Drought and Chip Production

Taiwan, a semiconductor manufacturing hub, faces a severe drought. Over 20% of global microchips are produced there.

Water shortages threaten supply chains, potentially impacting chip production.

Cost and Sustainability

Creating fully self-sufficient local supply chains would cost $1 trillion. Such self-reliance could increase semiconductor costs by up to 65%.

Urgent action is needed to ensure sustainable water management in fabs, as chips control everything from cars to appliances.

In conclusion, water scarcity poses a real danger to semiconductor production. Addressing this challenge requires strategic planning, conservation efforts, and global cooperation.

AI a problem or a solution?

Will the problem of water scarcity exacerbate the uneven distribution of water around the world as the rich have easier access to the precious resource.

Will the explosion of AI tech push the imbalance – water is a basic necessity to maintain human life. Will AI have a hand in controlling the distribution of water – even for its own needs?

February 28, 2024September 12, 2025

Google’s woke AI needs fixing!

Google’s ‘Woke’ AI Problem needs attention

In recent days, Google’s artificial intelligence (AI) tool, Gemini, has faced intense criticism online. As the tech giant’s answer to the OpenAI/Microsoft chatbot ChatGPT, Gemini can respond to text queries and even generate images based on prompts. However, its journey has been far from smooth.

The AI answer is wrong

The issues began when Gemini’s image generator inaccurately portrayed historical figures. For instance, it depicted the U.S. Founding Fathers with a black man, and German World War II soldiers included both a black man and an Asian woman.

Google swiftly apologized and paused the tool, acknowledging that it had “missed the mark.”

It gets worse

But the controversy didn’t end there. Gemini’s text responses veered into over-political correctness. When asked whether Elon Musk posting memes was worse than Hitler’s atrocities, it replied that there was “no right or wrong answer.” In another instance, it refused to misgender high-profile trans woman Caitlin Jenner, even if it meant preventing nuclear apocalypse. Elon Musk himself found these responses “extremely alarming.”

Nuance

The root cause lies in the vast amounts of data AI tools are trained on. Publicly available internet data contains biases, leading to embarrassing mistakes. Google attempted to counter this by instructing Gemini not to make assumptions, but it backfired. Human history and culture are nuanced, and machines struggle to grasp these complexities.

Political bias

Google now faces the challenge of striking a balance: addressing bias without becoming absurdly politically correct. As Gemini evolves, finding this equilibrium will be crucial for its survival.

After all, it’s not just about AI, is it? It’s about navigating the delicate intersection of technology, culture, and ethics.

Definition of nuance – I asked ChatGPT for its definition…

Nuance refers to the subtle, intricate, or delicate aspects of something. It encompasses the fine distinctions, shades of meaning, and context-specific interpretations that add depth and complexity to a situation, conversation, or piece of art. In essence, nuance recognizes that not everything can be neatly categorized or expressed in black-and-white terms; rather, it acknowledges the richness and variability of human experiences and ideas. Whether in literature, politics, or everyday interactions, appreciating nuance allows us to navigate the complexities of life with greater understanding and empathy.

February 20, 2024September 12, 2025

Magnificent 7 company profits now exceed almost every country in the world

Magnificent Seven market cap at $15 trillion

The Magnificent Seven, or MAMA ANT, is a term coined by Bank of America to describe the seven most dominant tech companies in the world

The Seven are: Microsoft, Amazon, Meta Platforms, Apple, Nvidia, Tesla, and Alphabet. These companies have not only led the tech sector in terms of innovation, growth, and profitability, but have also become some of the most valuable entities in the world by market capitalization.

Valuation at $15 trillion

Market capitalization, or market cap, is the total value of all the shares of a company that are traded on the stock market. It reflects the market’s perception of the company’s future prospects and earnings potential.

As of January 2023, the Magnificent Seven had a combined market cap of about $15 trillion, which was more than the gross domestic product (GDP) of almost every country in the world, except for the United States, China and Japan (just).

Magnificent Seven

The Magnificent Seven have achieved such a remarkable feat by leveraging their core competencies in various fields of technology, such as artificial intelligence (AI), cloud computing, social media, e-commerce, gaming, electric vehicles, and online advertising. They have also diversified their revenue streams by acquiring or developing new products and services, such as Activision Blizzard, AWS, Oculus, iPhone, GeForce, SpaceX, and YouTube. They have also benefited from the increased demand for digital solutions amid the Covid-19 pandemic, which accelerated the adoption of online platforms, remote work, and entertainment.

Challenges

However, the Magnificent Seven also face some challenges and risks that could threaten their dominance and valuation. These include increasing competition from other tech companies, especially from China, such as Alibaba, Tencent, Baidu, and Huawei.

They also face regulatory scrutiny and pressure from governments and consumers over issues such as antitrust, privacy, taxation, content moderation, and environmental impact. Furthermore, they may encounter technical difficulties, security breaches, or ethical dilemmas that could damage their reputation and customer trust.

Conclusion

In conclusion, the Magnificent Seven are the most powerful and influential tech companies in the world, and their market cap surpasses that of almost every country in the world.

List of 10 countries by stock market capitalization

**List of 10 countries by stock market capitalisation**

The meteoric rise in the profits and market capitalisations of the Magnificent 7 U.S. tech giants: Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla – outstrip those of all listed companies in almost every G20 country. Of the non-U.S. G20 countries, only China and Japan (and the latter, only just) have greater profits when their listed companies are combined.

They have achieved this by exploiting their competitive advantages in various domains of technology and expanding their offerings and markets. However, they also need to overcome some challenges and risks that could hamper their growth and value in the future.

A forced size reduction to stop the monopolising of market share could help tame these beasts too and open up fairer competition.

Should we worry?

Basically, yes, we should be concerned about the size and dominance of these companies.

This level of wealth and power concentrated in just a handful of companies has led some analysts to voice concerns over related risks in the U.S. and global stock markets.

Economists and stock market analysts have cautioned that the U.S. stock market is rivalling 2000 and 1929 in terms of being at its most concentrated in history.

The rest is history…

February 19, 2024September 12, 2025

Big tech vows action on ‘fake’ AI in elections

Most of the world’s largest tech companies, including Microsoft, Amazon and Google have agreed to tackle what they are calling deceptive artificial intelligence (AI) in elections

The tech accord

The twenty companies have signed an accord committing them to fighting voter-deceiving content. They say they will deploy technology to detect and counter the material.

The Tech Accord to Combat Deceptive Use of AI in 2024 Elections was announced at the Munich Security Conference on Friday 16th February 2024.

The issue has come into sharp focus because it is estimated up to four billion people will be voting this year in countries such as the U.S., UK and India.

Technology to mitigate risk

Among the accord’s pledges are commitments to develop technology to mitigate risks related to deceptive election content generated by AI, and to provide transparency to the public about the action firms have taken.

Other steps include sharing best practice with one another and educating the public about how to spot when they might be seeing manipulated content.

Signatories include social media platforms X, Snap, Adobe and Meta, the owner of Facebook, Instagram and WhatsApp.

Proactive

However, the accord has some shortcomings, according to computer scientist Dr Deepak Padmanabhan, from Queen’s University Belfast, who has co-authored a report on elections and AI.

But he reportedly said they needed to take more proactive action instead of waiting for content to be posted before then seeking to take it down.

That could mean that realistic AI content, that may be more harmful, may stay on a platform for longer compared to obvious fakes which are easier to detect and remove, he suggested.

Target

The accord’s signatories say they will target content which deceptively fakes or alters the appearance, voice, or actions of key figures in elections.

It will also seek to deal with audio, images or videos which provide false information to voters about when, where, and how they can vote.

We have a responsibility to help ensure these tools don’t become weaponised in elections, Brad Smith, the president of Microsoft is reported to have said.

These measures, in my opinion, are a sticking plaster and will not stop the spread of dishonest and fake news!

February 19, 2024September 12, 2025

Energy hungry data centre power solution

The use of nuclear reactors for data centres is a controversial and complex topic that has both advantages and disadvantages

Nuclear reactors can provide a reliable, stable, and carbon-free source of electricity for power-hungry data centres, which are essential for the operation of various applications, such as artificial intelligence (AI).

Grid overload

Nuclear reactors can also reduce the dependence on the existing grid, which may be vulnerable to blackouts, fluctuations, or cyberattacks. On the other hand, nuclear reactors require a high initial investment, as well as strict safety and regulatory standards. Nuclear reactors also pose potential risks of radiation, waste disposal, and proliferation. Moreover, nuclear reactors may not be suitable for all locations, as they may face public opposition, environmental concerns, or geopolitical issues.

Small Modular Reactor (SMR)

One of the possible solutions to these challenges is to use small modular reactors (SMRs), which are advanced reactors with about a third of the power generation of a traditional, large nuclear plant. SMRs are designed to be more flexible, scalable, and cost-effective than conventional reactors, as they can be built off-site and transported to the desired location. SMRs can also be integrated with renewable energy sources, such as solar or wind, to create a hybrid system that can balance the power demand and supply.

However, the technology of SMRs is still in its early stages of development and deployment, and there are currently no data centres in the world that use built-in nuclear reactors. Therefore, it remains to be seen whether nuclear reactors will become a common or viable option for future data centres. The decision to use nuclear reactors for data centres should be based on a careful evaluation of the benefits and risks, as well as the alternatives and trade-offs, of each specific case.

It has been calculated that a ‘norma’ data centre (whatever that is), needs 32 megawatts of power flowing into the building. For an AI data centre, it’s closer to 80 megawatts.

AI systems are using all this extra electricity simply because they are doing so much more processing than standard computing. They are chewing through far more data.

As AI continues to develop, so too will the power requirement needed to run these monsters.

February 16, 2024September 12, 2025

OpenAI unveils new AI software that lets you create realistic video by typing a descriptive sentence

The new AI tool from OpenAI named Sora, can generate realistic videos from text prompts.

OpenAI has developed a new AI tool named Sora that can generate highly detailed videos of up to 60 seconds from descriptive text prompts.

The tool has raised concerns about its potential misuse, particularly in the creation of deepfakes and disinformation.

On the other hand, it is a remarkable achievement in the current AI arena and created in such a short space of time.

OpenAI has stated that it is working with experts in areas like misinformation, hateful content, and bias, who are testing Sora.

February 2, 2024September 12, 2025

Gold demand hit record highs in 2023

Gold demand hit record highs in 2023 on the back of persistent geopolitical tensions and continued weakness in some world economies, particularly China according to the World Gold Council.

Total gold demand stood at 4,899 tons in 2023 compared to 4,741 tons in 2022. Gold purchases from central banks led to last year’s surge, with purchases exceeding 1,000 tons for two consecutive years.

Prices reached an all-time high of around $2,135 an ounce in December 2023 as central banks and retail buyers increased their gold investments.

Carats at Costco

Buyers have many outlets from which to make their gold purchases. Costco recently reported selling over $100 million worth of gold bars in the final quarter of December 2023. Weird to think that we can now buy carats with carrots.

Gold demand in 2024?

According to some analysts’ gold purchases this year are unlikely to meet 2023 levels, but a fall in inflation could prevent a drastic drop in demand.

When inflation drops significantly, consumers will start to feel ‘better-off’, and this could mitigate some of the drop in demand.

Gold carat

A Gold carat is a unit used to measure the purity of gold, with a carat representing 1/24th part of the whole.

Pure gold is 24 carats, meaning that it is 100% gold with no other metals added. However, gold used for jewellery and other applications is rarely pure, and its purity is measured in carats to determine its value.

February 1, 2024September 12, 2025

Not so FINE at HSBC – £57.4m fine for depositor protection system failings

HSBC fined £57.4m by the Bank of England for ‘serious failings’ to protect customer deposits.

The bank failed to accurately identify deposits eligible for the UK’s Financial Services Compensation Scheme, the Bank’s Prudential Regulation Authority (PRA) announced.

HSBC was fined by the Bank of England’s Prudential Regulation Authority (PRA) for failing to properly implement the depositor protection rules, which are meant to safeguard customer deposits in case of a bank collapse.

Serious concerns

The PRA said the failings were ‘serious‘ and ‘materially undermined the firm’s readiness for resolution’. HSBC reportedly said it was pleased to have resolved the ‘historic matter’ and cooperated with the investigation. The ‘failings’ occurred between 2015 and 2022. The fine is the second highest to date imposed by the regulator.

Protected up to £85,000 per person per institution

Under the scheme, customer deposits are protected up to the value of £85,000.

Under depositor protection rules, banks must have systems and controls in place to make sure that financial information is logged correctly. This information is needed if the FSCS has to make payments to customers upon a bank collapse.

However, the PRA said HSBC Bank incorrectly marked 99% of its eligible beneficiary deposits as ‘ineligible’ for FSCS protection.

Unfortunately this episode doesn’t give me much faith in the banking system that is supposed to protect the ‘saver’. At least the PRA discovered the failings.

January 31, 2024September 12, 2025

Neuralink implants brain tech device in human for the first time

Elon Musk’s neurotech startup Neuralink implanted its device in a human for the first time on Sunday 28th January 2024, and the patient is ‘recovering well,‘ the entrepreneur said in a post on X, on Monday 29th January 2024.

The company is developing a brain implant that aims to help patients with severe paralysis control external technologies using only neural signals.

Neuralink began recruiting patients for its first in-human clinical trial in the autumn after it received approval from the U.S. Food and Drug Administration to conduct the study back in May 2023, according to a blog post.

Musk, in an X post on Monday 29th January 2024 said that Neuralink’s first product is called Telepathy.

If the technology functions well, patients with severe degenerative diseases such as motor neurone disease could someday use the implant to communicate or access social media by moving cursors and typing with their minds.

January 30, 2024September 12, 2025

World’s largest sovereign wealth fund announces record $213 billion profit

Norway’s giant sovereign wealth fund reported record profit of 2.22 trillion kroner ($213 billion) in 2023, supported by returns on its investments in technology stocks.

Despite high inflation and geopolitical unrest, the equity market in 2023 was strong, compared to a very weak year in 2022. It follows a record loss of 1.64 trillion Norwegian kroner for the whole of 2022, which the fund attributed to ‘very unusual’ market conditions at the time.

Norway’s sovereign wealth fund on Tuesday 30th January 2024 reported a record profit of 2.22 trillion kroner ($213 billion) in 2023, supported by robust returns on its investments in technology stocks.

Government Pension Fund Global

The ‘Government Pension Fund Global’, one of the world’s largest investors, reportedly said the fund marked its highest return in kroner ever, with the fund’s return on investment last year coming in at 16% for the year.

Norway’s sovereign wealth fund, the world’s largest, was established in the 1990s to invest the surplus revenues of the country’s oil and gas sector. To date, the fund has put money in more than 8,500 companies in 70 countries around the world.

See wealth fund rankings table here

January 30, 2024September 12, 2025

What is Quiet Luxury?

Quiet luxury is a fashion trend that emphasizes understated elegance, timeless style, and high-quality materials.

It is the opposite of flashy logos, loud colors, and fast fashion. Quiet luxury is about investing in pieces that are durable, versatile, and refined.

Some examples of quiet luxury brands are Hermes, Prada-owned Miu Miu, Brunello Cucinelli, Compagnie Financière Richemont and Swatch Group, The Row, Totême, Tove and LVMH. Quiet luxury is also influenced by social changes, popular culture, and economic factors. It reflects a desire for simplicity, sophistication, and sustainability in a seemingly never-ending chaotic world.

Quiet luxury was one of last year’s biggest viral fashion trends, but unlike other short-lived fads on TikTok or Instagram, this one has made its way into investor portfolios and shown lucrative returns.

Luxury stocks have long been regarded by some as an effective hedge against inflation.

LVMH success – one way to invest in luxury

LVMH shares jumped more than 8% on Friday 26th January 2024, after the world’s largest luxury group posted higher-than-expected sales for 2023 and raised its annual dividend.

The owner of Louis Vuitton, Moët & Chandon and Hennessy, as well as brands including Givenchy, Bulgari and Sephora, on Thursday night 25th January 2024 reported sales amounting to 86.15 billion euros ($93.34 billion) for 2023, forecasts. This equated to a 13% growth from the previous year.

The result was boosted in particular by 14% annual growth in the critical fashion and leather goods sector, along with 11% growth in perfumes and cosmetics. Wines and spirits meanwhile posted a 4% decline.

Bernard Arnault is one of the top 10 wealthiest people in the world.

Is there room in your portfolio for a luxury brand?

January 23, 2024September 12, 2025

Stephen Hawking organised a time travel party in 2009

A time travel party organised by Stephen Hawking in 2009.

This was an experiment that Hawking conducted to test the possibility of backward time travel. He invited people from the future to attend a reception at his university, but he did not send out the invitations until after the party. He hoped that someone from the future would find the invitation and use a wormhole time machine to come back and prove that time travel is possible.

However, no one showed up at his party. He said that he liked simple experiments and champagne. He also said that he had experimental evidence that time travel is not possible. He explained that warping space and time could trigger a bolt of radiation that would destroy the spaceship and maybe the space-time itself.

Is time travel to the future possible?

Based on the current scientific understanding, time travel to the past seems to be very unlikely, if not impossible. There are many paradoxes and inconsistencies that arise from the idea of changing the past.

Time travel to the future, however, may be possible, but only in a limited sense. According to the theory of relativity, time passes at different rates depending on the speed and gravity of the observer. This means that someone who travels very fast or near a massive object could experience less time than someone who stays still or far away from the mass.

Time dilation

This is called time dilation, and it has been experimentally confirmed. However, this does not allow the traveller to return to their original time, as they would have aged less than the rest of the world.

So, in summary, time travel is unlikely, but it is acknowledged that there are some intriguing possibilities and mysteries that remain to be explored.

Never say never!

January 23, 2024September 12, 2025

A new powerful AI is coming but the techies have no clue as to what it will look like

That’s reassuring then, and they are creating it

Leaders at some of the world’s leading artificial intelligence (AI) companies are expecting a form of AI on a par with, or even exceeding human intelligence to arrive sometime in the near future. But what it will eventually look like and how it will be applied are unknown.

Artificial General Intelligence or AGI is coming soon

Leaders from OpenAI, Microsoft and Google’s DeepMind, and many other major tech companies debated the risks and opportunities presented by AI at the World Economic Forum in Davos, Switzerland in January 2024.

AI has become the talk of ‘town’ around the world through 2023, mainly due to the success of ChatGPT, OpenAI’s popular generative AI chatbot, brought to us by Microsoft. Generative AI tools, like ChatGPT, are powered large language models, algorithms trained on vast quantities of data, but are not AGI.

Executives at some of the world’s leading artificial intelligence companies see ‘artificial general intelligence,’ or AGI, a hypothesized form of AI with intelligence on a par or better than humans. This prospect is both exciting and worrying.

Concern

AI and AGI have created concern among governments, corporations and public consultation groups worldwide, owing to the risks around the lack of transparency of AI systems; social manipulation through computer algorithms; job losses due to increased automation; surveillance; and data privacy and worse… the lack of human control!

Extinction event possible

Many industry leaders in technology have warned that AI could lead to an ‘extinction-level’ event where machines become so powerful they get out of control and wipe out humanity.

**A new powerful AI is coming but the techies have no clue as to what it will look like**

Several prominent technology leaders, including Elon Musk and Steve Wozniak for example, have called for a pause in AI development, stating that a moratorium would be beneficial in allowing society to catch up.

Turing test

AI chatbots like ChatGPT have passed the Turing test, a test called the ‘imitation game,’ which was developed by British computer scientist Alan Turing to determine whether someone is communicating with a machine and a human. The one big area where AI is lacking is common sense.

It has been reported on many occasions, that the tech world is taking steps to ensure that the AI race doesn’t lead to a ‘Hiroshima moment.‘

Will AGI be created in the image of humans?

Let’s hope not.

January 19, 2024September 12, 2025

Polluting coal users and renewable producers

The highest coal using countries in the world

China, which consumes over half of the global coal demand and produces over 4 billion tonnes of coal per year.
India, which consumes about 14% of the global coal demand and produces over 900 million tonnes of coal per year.
The United States, which consumes about 9% of the global coal demand and produces over 600 million tonnes of coal per year.
Japan, which consumes about 3% of the global coal demand but imports most of its coal.

These countries accounted for about 82% of the global coal production in 2021 according to 2021 data set. China alone produced more than half of the world’s coal, followed by India with nearly 10%.

Global coal use in 2023 hits few high

Global coal use in 2023 has hit a record high, surpassing 8.5 billion tons for the first time, on the back of strong demand in countries like India and China, said IEA. These countries are the world’s largest consumers of the dirtiest fossil fuel, and continued modernization puts their energy consumption on a rapid growth trajectory.

China

China and India’s growing economies will continue to fuel demand for coal even as they set ambitious renewable energy targets, according to experts.

While China is the world’s largest energy consumer, India is ranked third globally, and both countries are the top consumers of coal as they strive to fuel economic growth.

China’s share of global electricity consumption, 60% of which is coal, is set to jump to one-third by 2025, compared with a quarter in 2015, according to projections by energy watchdog International Energy Agency (IEA).

Global coal usage in 2023 hit a record high, surpassing 8.5 billion tons for the first time, on the back of strong demand in emerging and developing countries such as India and China, IEA noted in a recent report.

China’s electricity sector has been in the throes of a clean revolution over the past few years, with an almost five-fold growth in wind and solar generation since 2015. As a result, the share of coal generation has fallen by 17 percentage points, from 78% in 2000 to 61% in 2022.

China has suffered from drought in recent years, which reduced hydroelectric power generation in its southern provinces. To maintain the necessary power output, the country had to turn to coal.

United States

By contrast, U.S., which is the world’s second largest consumer of coal, has seen a decrease in its usage of the fuel. According to the Institute for Energy Economics and Financial Analysis, the amount of coal that the superpower consumes each day recorded a 62% drop from 2.8 million to 1.1 million tons a day.

75% of India’s power is derived via coal-fired plants. Coal accounts for 61% of China’s power generation, even though the country is recognized as the indisputable leader in renewable energy expansion. It has been adding new projects to the grid almost as fast as the rest of the world combined in 2022 and has ambitions of becoming carbon neutral by 2060.

Annual average capacity additions by country and region, 2016-2023

See IEA report

India’s coal production rose to 893 million tons during the financial year ending March 2023, jumping nearly 15% from a year earlier. China’s raw coal production in 2023 went up by 2.9% compared with the same period in 2022.

There are no signs of a slowdown, with the IEA saying coal consumption in India and Southeast Asia is projected to grow significantly.

Coal won’t go!

But the lack of reliability of renewables means coal has still very much been a critical fallback option for the two countries.

Top five coal producing countries in the world

China: 4,126.0 million tonnes
India: 762.0 million tonnes
Indonesia: 614.0 million tonnes
United States: 523.8 million tonnes
Australia: 467.1 million tonnes

Five of the Greenest energy producers in the world

Sweden
Norway
Denmark
Finland
Switzerland

The greenest were based on these five criteria: carbon emissions, energy transition, green society, clean innovation, and climate policy.

Top countries by renewable energy production

China: 2,271.9 TWh (28.2% of total electricity)
United States: 804.8 TWh (20.5% of total electricity)
Brazil: 491.9 TWh (83.3% of total electricity)
Canada: 433.6 TWh (66.9% of total electricity)
India: 303.5 TWh (24.5% of total electricity)

Note: three of the world’s worst offenders of fossil fuel use are also in the top five for energy production by renewables – China, U.S. and India.

So, are things changing slowly?

January 16, 2024September 12, 2025

Oxfam report says world’s five richest men have more than doubled their wealth in 3 years

The world’s five richest men have increased their combined fortune from $405 billion in March 2020 to $869 billion in November 2023, according to a report from Oxfam.

Wealth increased at a rate of $14 million per hour for 5 people

A report by the charity highlighted the wealth of Tesla CEO Elon Musk, LVMH boss Bernard Arnault and family, Amazon founder Jeff Bezos, Oracle founder Larry Ellison, and investor Warren Buffett.

Oxfam is calling for restrictions on ‘corporate power’ to reduce the massive inequality between the super-rich and the rest of society. Two of the suggestions to correct the inequality is through capping CEO pay and introducing taxes on permanent wealth and excess profits.

This report was released to coincide with the Davos meeting as the rich and wealthy business leaders and bankers gather.

Oxfam says

Fortunes of five richest men have shot up by 114% since 2020.
Oxfam predicts the world could have its first-ever trillionaire in just a decade while it would take more than two centuries to end poverty.
A billionaire is running or the principal shareholder of 7 out of 10 of the world’s biggest corporations.
148 top corporations made $1.8 trillion in profits, 52% up on 3-year average, and dished out huge payouts to rich shareholders while hundreds of millions faced cuts in real-term pay.
Oxfam urges a new era of public action, including public services, corporate regulation, breaking up monopolies and enacting permanent wealth and excess profit taxes.

Full report here

January 15, 2024September 12, 2025

Crypto firms introduce risk assessments and finance tests in response to strict new rules in UK

New rules and risk assessments for UK Crypto traders

Coinbase and Gemini, for example, are among cryptocurrency exchanges that now require U.K. users to fill out risk assessments. These questionnaires are designed to test their financial knowledge.

The measures are a response to new rules in the UK. The rules require crypto companies to clearly inform users of the risks involved in trading cryptocurrencies. If a customer fails to successfully complete the requests, they will be prevented from trading with their crypto account.

Risk warning

Crypto.com, Coinbase, Gemini and other cryptocurrency exchanges are warning UK users that they’ll need to complete investment questionnaires. Thes are aimed at testing their financial knowledge before being allowed to trade.

The companies have told UK users they are required to complete a declaration about what type of investor they are. Traders are required to respond to a set of questions on financial services to permit use of their platforms.

Clients’ declaration

In the client’s declaration section, users are asked to select their investor profile. A trader is directed to inform the company of their financial status.

Questions such as: are you a high-net-worth customer earning above £100,000 per annum or with a net worth of more than £250,000? Or, are you a ‘restricted investor’ who won’t invest more than 10% of their assets. If clients do not complete the requests, they are prevented from trading crypto related products.

The financial questionnaires, require users to respond to numerous questions about the range of products available. They want the client to fully understand the potential volatility of crypto assets.

Strict rules to protect the retail trader

Since the UK passed the Financial Services and Markets Act, companies that offer crypto assets and certain types of digital currency, known as stablecoins, are now covered by UK law.

These are the same rules as those that govern traditional financial services and are aimed at protecting the retail trader.

January 11, 2024September 12, 2025

SEC finally approves Bitcoin ETF

After years of regulatory rejection, the U.S. Securities and Exchange Commission on Wednesday 10th January 2024 finally approved the Bitcoin EFT.

It has approved what are known as ‘spot’ Bitcoin Exchange-Traded Funds (ETFs), which can be purchased by anyone from pension funds to retail investors. This now means that some of the biggest asset managers in the world, including BlackRock and Fidelity can trade a crypto related ETF.

Now, instead of using a crypto asset exchange such as Binance, Coinbase or Kraken to purchase and hold a token like Bitcoin, traders can now trade a ‘spot’ Bitcoin ETF for direct exposure to the digital asset market.

It may also mean that investors could pay lower fees than they would if they bought the digital currency from a crypto exchange directly.

Basically, it is now cheaper than ever to buy Bitcoin – but is this positive for the long-term?

Crypto fans can now invest in Exchange-Traded Funds (ETFs) – but what exactly are they?

A Bitcoin ETF allows investors to buy a product that tracks the price of Bitcoin through the same method they already use to buy stocks and other existing products. This also reduces additional worry of managing their crypto related holdings, which typically involves maintaining a cryptocurrency wallet and a safe storage system to safeguard that investment.

But what exactly is an ETF?

ETFs are holdings or portfolios that allow investors to ‘bet’ on multiple assets, without having to buy any themselves. Traded on stock exchanges like shares, their value depends on how the overall portfolio performs in real time.

An ETF could comprise a combination of gold and silver bullion, for example, or a mixture of shares in both big technology and energy companies. Some ETFs already contain Bitcoin indirectly – but a spot Bitcoin ETF will buy the cryptocurrency directly, ‘on the spot’, at its current live price, throughout the trading day.

Bitcoin, the first cryptocurrency

Based on an idea by someone called, Satoshi Nakamoto, Bitcoin was the first cryptocurrency and remains the most valuable and famous to-date. Its price is often seen as a barometer for the whole industry of thousands of other coins (altcoins), tokens and products built on the same blockchain technology.

**Art illustration of Bitcoin blockchain**

And with an influx of new money, many expect a surge in interest in cryptocurrency technology in general.

How will the decision affect cryptocurrency adoption and is this decentralisation as originally intended?

Some say this decision shows the existing ‘old financial school’ establishment is finally taking Bitcoin seriously, at least as a speculative asset. For those who consider Bitcoin legitimate ‘digital gold’, what better proof could there be than the biggest wealth-management institutions flocking to buy, and now overseen by regulators?

Others say cryptocurrency is about rejecting traditional financial systems in favour of a decentralised, people-powered alternative. And investment bankers buying Bitcoin just to get rich on U.S. dollars is not what Satoshi Nakamoto had in mind.

But judging from the chatter on social media, the prevailing sentiment is expecting the new cash injection will make existing Bitcoin investors and owners rich.

What are the risks to future investors?

It is possible to lose all of your investment

The price of Bitcoin can change rapidly and often without warning or explanation – it is a volatile asset. So investors will need to be aware when investing in ETFs linked to a digital coin.

But ETFs are often sold as high-risk, high-reward products anyway. It is EXTREMELY high risk – don’t do it if you don’t understand it and even if you do, or think you do – BE CAREFUL! These products can rip the shirt off your back!

Cyber-crime risk

Another potential risk is cyber-crime. Bitcoin and other cryptocurrencies have been the subject of huge and costly attacks that have seen crypto companies drained of sometimes hundreds of millions of dollars overnight. And if the likes of Blackrock become major holders of Bitcoin, their cyber-security will be tested in ways never before. Let’s hope their security systems are extremely robust.

Cost of mining coins

Another downside is the heavy cost to the environment is that Bitcoin use a massive number of powerful computers around the world, to process transactions on the blockchain ledger and to create coins – this is known as mining.

Renewable energy use is growing – but it remains to be seen how investment companies will tackle the environmental cost of Bitcoin.

Be careful

ETFs are here now – but BE CAREFUL when entering a Bitcoin related ETF trade or investment, or any type of ETF for that matter. If it goes wrong, you will lose your money, and quickly.

Your money is at HIGH risk!

Bitcoin chart as at 12pm January 11th 2024

January 4, 2024September 12, 2025

The Fed in December 2023 saw rate cuts likely in 2024, but that path is uncertain

Federal Reserve officials in December concluded that interest rate cuts are likely in 2024, though they appeared to provide little in the way of when that might occur, according to minutes from the meeting released Wednesday 3rd January 2024.

FOMC meeting minutes

The rate-setting Federal Open Market Committee (FOMC) agreed to keep its rate steady in a range between 5.25% and 5.5%. Members indicated they expect 0.75% cut by the end of 2024.

Uncertainty

However, the meeting summary noted a high level of uncertainty over how, or even if, that will happen. Markets have reacted negatively to this news.

The minutes noted an unusually elevated degree of uncertainty about the policy path. Several members said it might be necessary to keep the funds rate at an elevated level if inflation doesn’t cooperate, and others noted the potential for additional increases.

But, despite this cautionary tone from Fed officials, markets expect the central bank to cut rates in 2024.

Dot plot

The dot plot of individual members’ indications released following the meeting showed that members expect cuts over the coming three years. This will bring borrow back to the 2% desired target.

The minutes indicated that clear progress had been made against inflation, with a six-month measure of personal consumption expenditures even indicating that the inflation rate has edged below the Fed’s 2% target.

FOMC Dot plot projections through 2026

However, the document also noted that progress has been uneven across sectors, with energy and core goods moving lower but core services still moving higher.

The Dot plot – what is it?

The dot plot, in relation to the FED or FOMC, is a chart that shows the projections of the Federal Reserve Board members and Federal Reserve Bank presidents for the federal funds rate, which is the interest rate that U.S. banks charge each other for overnight loans.

The dot plot is updated four times a year, after each FOMC meeting, and reflects the individual views of the policymakers on the appropriate level of the federal funds rate for the current year, the next few years, and the longer run.

The graph (dot plot) can help markets and the general public understand the Fed’s monetary policy stance and expectations for the future path of interest rates.

However, the dot plot is not a policy commitment or a forecast, but rather a snapshot of the opinions of the FOMC participants at a given point in time. The dot plot can change over time as new information and economic conditions develop.

January 3, 2024September 12, 2025

Wind power is being wasted adding £40 to household energy bills, according to think tank

Wasted wind power will add £40 to the average UK household’s electricity bill in 2023, according to a think tank.

That figure could increase to £150 in 2026, Carbon Tracker has estimated.

When it is very windy, the grid cannot handle the extra power generated. So, wind farms are paid to switch off and gas-powered stations are paid to fire up. The cost is passed on to consumers.

The government said major reforms will halve the time it takes to build energy networks to cope with extra wind power. Energy regulator Ofgem announced new rules in November 2023, which it said would speed up grid connections.

Bottleneck

Most of the UK’s offshore wind farms are in England. Dogger Bank, off the coast of Yorkshire is the largest in the world. Meanwhile, around half of onshore wind farms are in Scotland but most electricity is used in south-east England.

Carbon Tracker said the main problem in getting electricity to where it is needed is a bottleneck in transmission.

Wind curtailment

The practice of switching off wind farms and ramping up power stations is known as wind curtailment. This cost is passed on to consumers, it said. Carbon Tracker researches the impact of climate change on financial markets. It said since the start of 2023, wind curtailment payments cost £590m, adding £40 to the average consumer bill.

It warned the costs were set to increase adding £180 per year to bills by 2030. Wind farms are being built faster than the power cabling needed to carry the electricity.

Cable issue

‘The problem is, there are not enough cables. The logical solution would be to build more grid infrastructure,‘ said an analyst at Carbon Tracker. ‘It’s not even that expensive,’ he added, compared with mounting wind curtailment costs.

Industry group RenewableUK reportedly said that grid constraints, ‘reflect a chronic lack of investment in the grid.’

‘We need to move from a grid which is wasteful, to one that’s fit for purpose as fast as possible.’

However, historically it has taken between 10 and 15 years for new transmission cables to be approved.

Maybe more battery storage plants around the UK would help reduce the bottlenecks? As renewable power continues to expand, this would enable the extra power to be stored to use later.

This would be better than firing up antiquated fossil fuel power plants.

January 3, 2024September 12, 2025

New HMRC UK tax rules for online sellers

Are you selling online and making a little extra income?

Well, if you are, as from 1st January 2024 you will now fall foul of UK tax rules if you do not declare the income generated from these sales.

Companies like Etsy, eBay, Vinted, Airbnb etc. are obliged to collect and share details of such transactions with the tax authorities. That will allow HMRC to zero in on anyone who should be declaring the extra income but isn’t.

While HMRC was already able to request information from UK-based online operators, from the start of this year there are new rules that the UK has signed up to in cooperation with the OECD – Organisation for Economic Cooperation and Development, as part of a global effort to clamp down on tax evasion.

New rules

The new rules require digital platforms to report the income sellers are getting through their site on a regular basis.

It will apply to sales of goods such as second-hand clothes and items that have been handcrafted, but also services such as: food delivery, taxi hire, freelance work and accommodation lets or even renting out your driveway for parking.

Rule summary

Online sellers already paying tax do not need to alter what they are already doing.
Individuals have a £1,000 tax-free allowance for money made through property.
There is also a £1,000 allowance for trading income – for example, if you offer tutoring or gardening, or if you are selling new or second-hand items online.
People earning below those thresholds may not have to fill in a tax return, but should keep records in case they are asked for them.

The information will be shared between countries that have signed up to the OECD tax rules.

The UK government said the new rules would help it ‘bear down on tax evasion’, as sellers on digital platforms would now be treated more like traditional businesses.

December 29, 2023September 12, 2025

UK house prices 1.8% lower in 2023, says Nationwide

House prices down in 2023 says Nationwide

House prices have ended the year 1.8% lower in the UK, according to Nationwide Building Society

The Nationwide forecasts no growth or a further fall in 2024.

The lender said the average house price across the UK was £257,443 in December 2023. This was flat compared to November 2023 but down compared to December 2022.

The lender reportedly said that consumer confidence ‘remains weak’, despite some mortgage rates falling in anticipation for Bank of England (BoE) to cut borrowing costs in the months ahead.

The number of housing transactions has been running at around 10% below pre-Covid levels, Nationwide reported. The fall was more pronounced for those buying a house using a mortgage – down 20% compared to before the pandemic.

However, the volume of cash deals continues to run above the levels recorded before Covid hit.

December 15, 2023September 12, 2025

What is deflation?

Deflation is an economic phenomenon characterized by a general decline in prices for goods and services. It occurs when the inflation rate falls below 0%, resulting in a negative inflation rate.

This means that the purchasing power of currency increases over time, allowing you to buy more with the same amount of money. It can be as damaging to the economy as inflation.

Consumer and Asset Prices: During deflation, both consumer and asset prices decrease, which might seem like a good thing because it increases the purchasing power.

Economic Impact: However, deflation can be harmful to the economy. It often signals an impending recession or hard economic times. If people expect prices to fall further, they may delay purchases, hoping to buy later at a lower price. This leads to reduced spending, which can cause producers to earn less, potentially leading to unemployment and higher interest rates.

Measurement: Deflation is measured using economic indicators like the Consumer Price Index (CPI), which tracks the prices of commonly purchased goods and services. When the CPI shows that prices are lower than in a previous period, the economy is experiencing deflation.

Causes: The main causes of deflation include a decrease in demand or an increase in supply. A decline in aggregate demand can lead to lower prices if supply remains unchanged. Conversely, an increase in supply can also cause prices to drop if demand does not increase accordingly.

It’s important to note that deflation is different from disinflation. Disinflation refers to a slowdown in the rate of inflation, where prices are still rising but at a slower pace than before.

Deflation can have complex effects on an economy, and while it may benefit consumers in the short term, it can lead to broader economic challenges.

Deflation, friend or foe?

Deflation, often perceived as a relief during times of high prices, is a complex economic condition that presents both benefits and challenges. It is defined by a general decrease in the price level of goods and services, leading to an increase in the real value of money. This means consumers can buy more for less, but this apparent advantage masks the potential dangers lurking beneath the surface.

The immediate effect of deflation is an increase in consumer purchasing power. As prices drop, money buys more, which can be particularly beneficial for individuals on fixed incomes. However, this boon is short-lived if deflation persists. Consumers, anticipating further price drops, may postpone purchases, leading to a decrease in consumer spending, the lifeblood of any economy. This reduction in demand can force businesses to lower prices further, creating a vicious cycle that’s hard to break.

**Deflation can lead to a reduction in demand and can force businesses to lower prices, creating a vicious cycle that’s difficult to break.**

Moreover, deflation can exacerbate debt burdens. As prices and revenues fall, the real value of debt increases, making it more challenging for borrowers to repay their obligations. This can lead to increased loan defaults and financial instability. For businesses, falling prices mean reduced profit margins, leading to cost-cutting measures such as layoffs, reduced investment, and even bankruptcy.

Causes

The causes of deflation are multifaceted, often stemming from a decrease in aggregate demand or an oversupply of goods. Technological advancements, while boosting productivity, can also contribute to deflation by lowering production costs and increasing supply faster than demand. Additionally, a strong currency can make imports cheaper, contributing to lower prices domestically.

Tools

Central banks and governments typically combat deflation with monetary and fiscal policies aimed at stimulating demand. Lowering interest rates, increasing government spending, and quantitative easing are common strategies employed to inject money into the economy and encourage spending.

While deflation can initially seem like a welcome development, its long-term effects can be detrimental to economic health. It is a delicate balance that policymakers must navigate carefully to ensure stability and growth in the economy.

During this period of inflationary pressure, no country is beyond the grasp of deflation.

A message for governments and central banks around the world – don’t push too hard!