Observe. Think. Chat. Do. Trade. Repeat…
Sir Winston Leonard Spencer Churchill was a British statesman, soldier, and writer who served as Prime Minister of the United Kingdom twice, from 1940 to 1945 during the Second World War, and again from 1951 to 1955.
But the revenue forecast for Q4 was less than anticipated, with the company reportedly projecting $64 billion, which is below the consensus of $64.5 billion – (only just).
Revenue: $61.86 vs. $60.80 billion expected
Earnings per share: $2.94 vs. $2.82 expected
Additionally, Microsoft is reportedly boosting its capital expenditures to acquire Nvidia graphics processing units, which are essential for training and operating artificial intelligence (AI) models.
This announcement follows Meta’s board authorising its own inaugural dividend in February. As of 31st March 2024, Alphabet, the parent company of Google, had $108 billion in cash and marketable securities.
After the announcement, which coincided with the release of first-quarter earnings that surpassed expectations, shares surged by 15% in after-hours trading.
The personal consumption expenditures (PCE) price index, crucial for the Federal Reserve’s inflation assessments, climbed at an annualised rate of 3.4% for the quarter, marking the largest increase in a year.
Meanwhile, consumer spending rose by 2.5% during the quarter, a decrease from the 3.3% rise in the previous quarter and falling short of the 3% expectation.
AI startup Synthesia on Thursday 25th April 2024 announced its ‘Expressive Avatars’. These are AI-generated digital avatars that can express human emotions including happiness, sadness, and frustration.
Synthesia, supported by the tech giant Nvidia, reportedly secured an investment of $90 million in 2023, reaching a valuation close to $1 billion.
This video was created using the Synthesia platform, it took just two minutes to create.
The decline happened following the company’s first-quarter earnings call, during which CEO Mark Zuckerberg highlighted the company’s substantial investments in artificial intelligence (AI) and the Metaverse, instead of concentrating on immediate revenue streams.
Despite a 27% increase in revenue to $36.46 billion and a net income that more than doubled to a $12.37 billion (rounded), investors were unsettled by the company’s projections for future expenses.
Shares dropped by 15.5% as Zuckerberg outlined expensive future projects, including the expansion of business messaging and the integration of ads into AI interactions.
Meta’s stock took a 15% hit in extended trading, bringing its market capitalization down to around $1.2 trillion, still a high valuation. This highlights the unpredictable nature of tech stocks, especially during significant, unmonetized product development stages.
Zuckerberg’s prioritization of long-term growth over immediate profits is a gamble, placing a bet on AI and the Metaverse to transform digital interactions.
This strategy carries considerable financial risks, as the recent market reaction has shown. Meta’s future now depends on the successful deployment and monetization of these cutting-edge technologies.
Delving deeper into AI, it becomes crucial to comprehend the environmental impact of this technological revolution.
A new peer-reviewed study featured in ‘Joule‘ highlights the significant energy requirements of AI. The research, carried out by Alex de Vries, a data scientist at the Dutch central bank, provides a quantification of the energy usage linked to the trends in AI capacity and adoption.
The AI industry is experiencing rapid growth as major technology companies incorporate AI-driven services into their platforms. These applications require significantly more power than traditional ones, resulting in online interactions that are more energy-intensive.
Continuing on the present course, NVIDIA could be dispatching 1.5 million AI server units each year by 2027. If these servers were to run at maximum capacity, they would consume a minimum of 85.4 terawatt-hours of electricity annually. For comparison, this amount of energy surpasses the yearly consumption of numerous small nations.
By 2027, it is projected that global AI-related electricity consumption may rise by 85 to 134 terawatt-hours (TWh) annually. This estimate is on par with the yearly electricity requirements of nations such as the Netherlands, Argentina, and Sweden.
While AI heralds significant breakthroughs, its sustainability is a crucial risk factor to consider. Picture Google’s search engine evolving into a ChatGPT-style chatbot, managing nine billion interactions daily. This would cause energy demands to soar, matching the consumption of a nation like Ireland. Although this scenario isn’t immediately likely due to logistical limitations, it highlights the resource-intensive nature of generative AI applications.
As we explore the AI domain, sustainability should not be neglected. Discussing AI’s risks, such as errors and biases, should also include its environmental impact. Innovation must be balanced with responsible energy use for a sustainable future.
In essence, AI’s demand for power is substantial, and the challenge is to leverage its capabilities while reducing its environmental impact. We must proceed with caution to ensure our technological advances do not compromise the health of our planet.
The company is also reducing its workforce by thousands in an effort to improve its financial outlook. The electric vehicle manufacturer reported earnings of $1.13 billion for the first quarter, a sharp decline from $2.51 billion in the previous year.
Owned by billionaire Elon Musk, Tesla plans to lay-off over 6,000 workers across its Texas and California locations. The firm has been challenged by reduced demand and increased competition from more affordable Chinese imports, resulting in a 43% drop in its stock value throughout 2024.
This month, Tesla announced a 10% cut in its global workforce. Revenue figures for the first quarter of 2024 showed a total of $21.3 billion, falling short of the anticipated $22 billion.
However, Tesla’s shares saw a nearly 12.5% increase in after-hours trading following the announcement that the launch of new models would be moved up from the latter half of 2025. The company has yet to disclose the pricing for these upcoming vehicles.
Mr. Musk’s ‘compensation package’, previously valued at $56 billion, was rejected by a Delaware judge. The judge reportedly determined that Tesla’s directors failed to fulfill their duties to the company when they awarded Mr. Musk the payout.
With the decline in Tesla’s stock value, the compensation package is now estimated to be about $10 billion less, yet it remains larger than the GDP of many small countries.
Musk also appears to have his sights set on creating a Tesla manufacturing hub in India.
Tesla’s Cybertruck was reportedly recalled recently with a suspected accelerator pedal issue.
The new all-time high was likely propelled by a weakening pound and reduced tensions in the Middle East. The FTSE 100 has been the laggard for many months.
The index concluded Monday at 8023 points, setting a new record and eclipsing its previous peak of 8012 from February of the preceding year.
At the close, it had risen by 1.62%, with retailers such as, Tesco, Sainsbury’s, M&S and Ocado being among the top gainers of the day.
The shares have gained from the depreciating pound since the London Stock Exchange index includes numerous companies with significant international operations.
A depreciated pound lowers the cost of exported goods for overseas buyers and boosts the value of international business transactions.
On Tuesday morning 23rd April 2024 the FTSE 100 climbed to a new intraday high of: 8080
It embarked on an incredible journey, venturing beyond the boundaries of our solar system and into interstellar space.
On 14th November 2023, Voyager 1 experienced an unexpected glitch, rendering its binary communication code with NASA’s flight team incomprehensible.
However, after several months of indecipherable signals, Voyager 1 has resumed clear communication with Earth. On 20th April2024, the spacecraft reported back to its NASA team, detailing its health status for the first time in five months.
Although it is not yet transmitting scientific data, Voyager 1 is providing valuable information regarding the health and functionality of its onboard engineering systems.
Thirty-five years post-launch, Voyager 1 marked a milestone as the first human-made object to exit the solar system and enter interstellar space.
Six years thereafter, in 2018, Voyager 2 emulated its predecessor, venturing beyond the sun’s dominion. Together, these spacecraft stand as humanity’s lone envoys in the cosmic expanse, bearing our scientific endeavours and inquisitive spirit.
In March, the team operating NASA’s Voyager 1 sent a command to the spacecraft, which triggered its flight data subsystem (FDS) to transmit a complete memory readout to Earth.
The analysis of the memory dump reportedly indicated that the malfunction was due to a piece of corrupted code on a single chip, accounting for approximately 3% of the FDS’s memory.
While it’s not possible to physically repair or replace the chip, the team is adeptly shifting the problematic code within the FDS’s memory. This process apparently involves dividing the code into segments and reallocating them to different storage areas, with the goal of maintaining the smooth operation of Voyager 1’s systems.
Ultimately, Voyager 1’s recent successful communication serves as a remarkable example of human creativity and determination in space exploration. Even from its extraordinary distance from Earth, the venerable spacecraft continues to provide important updates on its status and insights into the unknowns of interstellar space.
Voyager 1 is approximately 15 billion miles from home. It takes about 1 day for information to travel from Voyager to Earth. Voyager 1 is travelling at an estimated speed of: 38026
Voyage One mission status
This is a simple yet beautiful and profound quote.
It reminds us of the enduring strength and resilience of nature. The mountain, despite the fierce winds, stands unwavering and unyielding.
Bitcoin halving, which happens roughly every four years, cuts the rate of new Bitcoin creation by half. This event is tied to the method of recording and generating Bitcoins. Transactions are logged on a blockchain, a ledger accessible to all.
Miners compile transactions into blocks and connect them by resolving cryptographic challenges, earning new bitcoins as their reward.
Satoshi Nakamoto, the enigmatic creator of Bitcoin, designed the cryptocurrency to have a maximum circulation of 21 million coins. To ensure this, the Bitcoin protocol halves the reward given to miners every 210,000 blocks, an event that occurs approximately every four years.
The latest Bitcoin halving took place in the early hours of Saturday 20th April 2024, reducing the reward for adding a new block of transactions to the blockchain from 6.25 Bitcoins to 3.125. Bitcoin’s halving will persist until the total supply approaches the 21 million cap, anticipated around the year 2140.
The halving of Bitcoin reduces the number of new coins entering circulation, which, in theory, could drive up the price if demand remains constant.
According to economic principles, a stable demand coupled with a reduced supply should lead to a price increase.
Analysis of the three previous halvings (in 2012, 2016, and 2020) indicates an average price surge of 16% in the 60 days post-halving.
Typically, investors see the highest price increase approximately 500 days following a halving event.
Despite a recent drop from its peak, Bitcoin holds a high-level interest for crypto investors, even with its volatile behaviour. It has posted a 40% increase in 2024 compared to the same period last year.
In summary, the halving of Bitcoin reduces the availability of new coins, which could lead to an increase in value. However, the complete effects may only become apparent gradually over time.
Britain’s Metropolitan Police announced on Thursday 18th April 2024 that the ‘LabHost‘ website had been utilised by 2,000 criminals to pilfer personal details from users.
The police have reportedly identified approximately 70,000 UK individuals whose details were compromised via LabHost’s websites. The websites of LabHost have been disrupted and now displays a notice indicating that the services have been seized by law enforcement.
They have arrested 37 people worldwide and are contacting victims affected by the scam.
Officers say younger people who grew up with the internet were the most likely to fall for the ‘phishing’ scam.
‘Phishing’ is a type of social engineering attack where perpetrators trick individuals into disclosing sensitive information or downloading malware. This often entails the use of deceptive emails or messages that mimic reputable entities, luring users to input their login details on counterfeit websites.
See Wikipedia definition.
The technology enabled scammers without technical expertise to inundate victims with deceptive messages aimed at eliciting online payments.
Authorities focused on the gang’s website, LabHost, which facilitated the despatch of these messages and steered victims towards counterfeit websites. These sites mimicked authentic online payment or shopping platforms.
This operation allowed the perpetrators to pilfer personal identity details, including 480,000 card numbers and 64,000 PIN codes. It was referred to as ‘fullz data‘ in criminal circles, according to the police.
The exact amount of money stolen remains unknown. However, detectives estimate that the LabHost site generated close to £1 million ($1.25 million) in profits.
The assistant is reportedly designed to respond to queries, craft animations, and produce ‘high-quality’ images, according to Meta CEO Mark Zuckerberg in a recent video posting.
Zuckerberg also noted that the company has integrated ‘real-time knowledge’ from Google and Microsoft’s Bing to enhance the assistant’s responses.
The development of Meta AI is based on the company’s most advanced large language model, Meta Llama 3, which was unveiled on the same day – Thursday 18th April 2024.
Established in the 1990s, Norway’s sovereign wealth fund, the largest in the world, invests the surplus revenue from the nation’s oil and gas sector. The fund has invested in over 8,800 companies across more than 70 countries to date.
Amid this volatility, the European Union’s securities watchdog, the European Securities and Markets Authority (ESMA), has sounded a cautionary note.
ESMA’s latest report highlights a considerable concern: the high level of concentration in crypto trading. A handful of exchanges, led by Binance, dominate the market. In fact, Binance alone accounts for more than half of all crypto trading activity. While this concentration might seem advantageous from an efficiency standpoint—thanks to economies of scale—it raises significant questions.
Imagine a scenario: Binance, Coinbase or any crypto platform for that matter experiences a catastrophic failure or malfunction. The repercussions would reverberate far beyond its platform.
The entire crypto ecosystem would feel the impact. Investors, traders, and enthusiasts would face disruptions, financial losses, and uncertainty. The interconnectedness of the crypto world amplifies the stakes.
ESMA’s concerns centre on systemic risk. When a single entity dominates a market, vulnerabilities emerge. What if Binance falters due to technical glitches, cyberattacks, or regulatory crackdowns? The fallout could destabilise other exchanges, trigger panic selling, and erode investor confidence. The crypto market, already prone to wild swings, would face heightened turbulence.
ESMA’s report underscores the need for vigilance. Regulatory bodies must strike a delicate balance: promoting innovation while safeguarding stability. Diversification across exchanges, robust risk management practices, and stress testing are essential. Additionally, fostering competition and encouraging new players can dilute concentration risk.
Crypto enthusiasts should heed ESMA’s warning. While the allure of rapid gains remains strong, prudent risk assessment is crucial. Investors must diversify their holdings, stay informed, and choose exchanges wisely. As the crypto landscape evolves, collaboration between regulators, industry players, and investors will shape its future.
In this high-stakes game, the EU watchdog’s message is clear: Tread carefully as you navigate the digital frontier.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct their own research and consult professionals before making investment decisions
Remember to always do your own careful research or employ regulated financial advice.
On a linear scale, the size of a dust speck is nowhere near the midpoint between an atom and Earth. However, if we consider a logarithmic scale, which compares things in terms of orders of magnitude rather than absolute size, the idea becomes more meaningful.
While 30 grams is heavier than what we’d typically consider a speck of dust, it’s not too far off when we’re looking at the vast difference in scale between an atom and the Earth.
So, proportionally speaking, a speck of dust’s mass is closer to the midpoint on a logarithmic scale, even though it’s not exactly halfway.
It’s a way to visualize and understand the immense range of scales in our universe, from the very small to the very large. It’s not meant to be a precise measurement but rather an illustration of the concept of scale.
Unprecedented demand for AI chips is being led by the proliferation of large language models such as ChatGPT and Chinese equivalents.
Taiwan Semiconductor Manufacturing Company (TSMC) on Thursday 17th April 2024 beat revenue and profit expectations in the Q1. Strong demand for advanced microchips, especially those used in AI tech.
TSMC announced that its net revenue has increased by 16.5% from the previous year to NT$592.64 billion, and its net income has risen by 8.9% to NT$225.49 billion. The company has forecasted its revenue for the first quarter to be in the range of $18 billion to $18.8 billion.
As the world’s largest producer of advanced processors, TSMC serves high-profile clients including Nvidia and Apple.
According to the latest World Economic Outlook released by the IMF, Russia’s economy is projected to expand by 3.2% in 2024.
This growth outpaces the anticipated growth rates for the U.S. at 2.7%, the U.K. at 0.5%, Germany at 0.2%, and France at 0.7%.
The forecast may be galling for Western countries that have endeavoured to economically isolate, restrict and punish Russia for its invasion of Ukraine in 2022.
Russia has demonstrated that Western sanctions on its industries have made it more self-sufficient and that private consumption and domestic investment remain resilient.
Oil and commodity exports to nations such as India and China, (two of the largest countries in the world by population) – as well as alleged sanction evasion and high oil prices, have allowed Russia to maintain strong oil export incomes streams.
Outside of Russia, the IMF has revised its forecasts for Europe and the UK, projecting a growth of 0.5% for this year. This positions the UK as the second-lowest performer within the G7 group of advanced economies, trailing behind Germany.
The G7 also includes France, Italy, Japan, Canada and the U.S.
However, UK growth is expected to improve to 1.5% in 2025, placing the UK in the top three best G7 performers, according to the IMF.
The IMF also reported said that interest rates in the UK will remain higher than other advanced nations, close to 4% until 2029.
Modernising the Bank of England’s forecasting system has become a critical necessity. A recent independent review has cast a spotlight on the ‘serious deficiencies’ within its economic forecasting system, calling for an urgent modernisation.
What have they all been doing for all these years to not have updated their systems?
The review, led by Dr. Ben Bernanke, a former chair of the U.S. Federal Reserve, paints a picture of an institution grappling with outdated systems and under-investment in critical infrastructure. The Bank’s staff, the report suggests, are hindered by software that is not just out-of-date but also complicates the already intricate task of economic forecasting.
This revelation comes at a time when accurate economic forecasting is more vital than ever. The world is still reeling from the effects of the pandemic, the 2008/2009 financial crisis and the UK faces unique challenges post-Brexit. The Bank’s ability to predict economic trends accurately is paramount in crafting policies that safeguard the nation’s financial health.
The deficiencies highlighted are not just a matter of outdated software; they reflect a deeper need for a paradigm shift in how economic data is handled and analysed. The report recommends a complete overhaul of the system, emphasizing the need for automation of tasks that are currently performed manually.
Governor Andrew Bailey’s reportedly responded to the review by acknowledging the gravity of the situation, stating that updating the Bank’s systems is a ‘high priority’. This commitment to modernisation is a step in the right direction, but it should be followed by swift and decisive action, surely.
The Bank of England’s forecasting system is more than a tool; it is the compass by which the nation navigates its economic future. Modernising this system is not just a recommendation; it is an imperative. As the UK charts its course in a rapidly changing global economy, the reliability and sophistication of its economic forecasting are not just beneficial but essential for continued prosperity.
In conclusion, the Bank of England’s economic forecasting system is at a crossroads. The call to modernise is clear, and the path forward must be paved with innovation, investment, and a steadfast commitment to excellence in economic stewardship.
The future of the UK’s economy depends on it.
The relentless downpours, likely exacerbated by climate change, are now threatening the very foundation of UK food production.
UK farmers are facing the repercussions of extreme weather events. Fields that would normally be abundant with crops are currently waterlogged, making them barren. Livestock are also suffering, unable to graze in the inundated fields, leading to a shortage of feed. The circumstances are critical, prompting the National Farmers Union (NFU) to raise the alarm.
The NFU emphasizes that climate change-induced flooding imperils food security. Rachel Hallos, NFU vice president, warns that these extreme conditions could become the norm. Urgent action is needed to safeguard our agricultural systems.
A recent report from a mixed dairy, beef, and arable farmer in Gloucester whose land lies in the floodplain reportedly said that floods occurred every six years, but now they occur with alarming frequency. Cattle, unable to graze, face dwindling feed supplies. Livelihoods hang in the balance.
The farmer went on to say, ‘climate change affects us all. It threatens our food supply and prices. We must think about resilience and feeding the world amidst a changing climate.’
Extreme flooding transcends a natural disaster; it poses a threat to our very sustenance. In the face of such challenges in the UK, it is imperative that farmers, policymakers, and communities collaborate.
Prompt action is essential to safeguard our food security and foster resilience for the future.
Building and farming on low-lying land, often on floodplains, is likely a big part of the problem, along with the potential effects of the ever-changing climate and weather patterns.
Low lying land has always flooded – isn’t it natures safety valve? We cohabit with nature and low-lying land, as good as it is for farming (and building), will always flood – as it has for thousands of years.
But we do need to do more to protect our food production in the UK.
But a higher-than-expected reading creates more concern as investors push back bets on the timing of the first Bank of England (BoE) rate cut.
Economists expected 3.1% as inflation has been falling gradually since it peaked at 11.1% in late 2022.
Food prices provided the biggest downward drag on the headline rate, the ONS said, while motor fuels pushed it higher.
The core inflation rate, excluding energy, food, alcohol, and tobacco, was reported at 4.2%, slightly above the forecasted 4.1%. Services inflation, closely monitored by U.K. monetary policymakers, decreased from 6.1% to 6%, still surpassing the expectations of economists and the Bank of England (BoE).
The March core inflation figure, remaining above 4%, is expected to fuel speculation that inflation is more persistent than recent projections indicated, potentially delaying the anticipated timing of initial interest rate reductions.
The unemployment rate has seen a slight uptick to 4.2%, a rise from the previous 3.9%. This increase, which is more than anticipated, suggests a softening in the labour market.
Conversely, wage growth appears to be resilient in the face of rising unemployment. Although core wage growth has decelerated, it remains in the region of 6%. This could indicate that employers are maintaining competitive wages to attract and retain skilled workers, even amidst a slowing labour market.
The ONS said employment rate dipped to 74.5% between December and February and the percentage of 16 to 64 year-olds defined as economically inactive rose from 21.8% to 22.2%, which equates to 9.4 million people.
In February 2024, the average weekly earnings were estimated at £677 for total earnings and £633 for regular earnings. This equates to an annual growth in regular earnings (excluding bonuses) of 6.0%, and annual growth in employees’ average total earnings (including bonuses) of 5.6%.
However, when adjusted for inflation using the Consumer Prices Index including owner occupiers’ housing costs (CPIH), the real terms growth for regular pay was 1.9%, and for total pay was 1.6%. This implies that while nominal wages are increasing, the real purchasing power of these wages may not be keeping up with inflation.
The Bank of England will likely approach this data with caution. The combination of increasing unemployment and slowing wage growth could be indicative of a weakening economy, potentially prompting the Bank to contemplate rate cuts.
The response of the Bank of England to these trends will be pivotal in the forthcoming months.
In summary, the UK labour market is exhibiting signs of cooling with an increase in unemployment and a slowdown in wage growth. However, wages continue to grow at a relatively high rate. The real impact on workers will hinge on how these wage increases stack up against inflation.
As of December, Tesla had a total of 140,473 employees worldwide.
This decision is believed to be a response to the obstacles Tesla is encountering with slowing growth and operational effectiveness and cheaper competition.
In an internal memo, billionaire owner Elon Musk addressed the layoffs, acknowledging that it was a difficult decision but necessary for the company’s future. He emphasized the need to streamline operations and prepare for the next phase of growth.
The layoffs have already begun and also include some key executives.
Analysts offer diverse interpretations of the layoffs. Some perceive them as indicative of cost pressures stemming from Tesla’s investments in new models and artificial intelligence (AI).
The company’s delay in updating its aging vehicle lineup, coupled with high interest rates, has weakened consumer demand. Moreover, the influx of affordable electric vehicles, especially from China, such as BYD, has intensified the competition.
While the layoffs indicate challenges, they also highlight Tesla’s dedication to adaptability and efficiency. As the electric vehicle (EV) industry progresses, Tesla strives to stay lean, innovative, and strategically positioned for ongoing growth. The company is scheduled to announce its quarterly earnings later this month, which analysts will scrutinize in the context of the recent workforce reductions.
In summary, Tesla’s layoffs are indicative of the intricate dynamics within the automotive sector, where innovation, cost control, and market forces converge.
The company’s capacity to steer through these complexities will determine its future prosperity.
Beijing’s growth target for 2024 is around 5%.
China’s growth was driven in part by external demand, as export volume grew by 14% year on year.
Industrial output for March grew 4.5% year on year, missing expectations of 6%.
Retail sales grew 3.1% year on year, lower than expectations of 4.6%.
Muhammad Ali – (Cassius Clay) 1942 – 2016
He was an American professional boxer, activist, spokesperson for civil rights and entertainer. Nicknamed “the Greatest“, he is regarded as one of the most significant sports figures of the 20th century and is often regarded as the greatest heavyweight boxer of all time.