Observe. Think. Chat. Do. Trade. Repeat…
The ruling stems from a 2017 antitrust investigation by the European Commission, the executive arm of the European Union.
The Commission reportedly found that Google had unfairly favoured its own shopping comparison service, to the detriment of rival services.
The core inflation rate, which excludes the volatile elements of energy, food, alcohol, and tobacco, dropped to 2.8% in August from July’s 2.9%, aligning with predictions.
Market expectations have fully incorporated a 0.25% rate cut by the ECB in September 2024, following its initial rate reduction in June 2024, with anticipation of an additional 0.25% reduction before year-end.
This follows a slowdown in price increases in Germany, the largest economy in the eurozone, which cooled to an unexpected 2% for the month, according to the index of consumer prices.
The Nasdaq, known for its tech-centric portfolio, along with the Dow Jones Industrial Average and the S&P 500, all ended the day in more positive territory.
This ‘lift’ came after a period of muted activity in UK and European markets, with London’s FTSE 100 experiencing an initial surge before retreating.
In Japan, the Nikkei 225 stock index recorded a substantial rise of 10.2%, or 3217 points, marking its largest single-day point increase following a steep drop the day before.
The recent turmoil in the stock market was triggered on Friday 2nd August 2024 by unsatisfactory U.S. job data for July 2024, which indicated an increase in unemployment, raising alarms over a potential recession.
Additionally, there has been growing apprehension that stocks of major technology firms, especially those with significant investments in artificial intelligence (AI), may have been excessively valued, leading to challenges for some of these companies.
Core EU inflation, which omits the more volatile prices of energy, food, alcohol, and tobacco, reached 2.9% in July, surpassing expectations.
Services inflation, a closely monitored indicator, registered at 4% for July, marking a slight decrease from the 4.1% figure in June.
The surge in artificial intelligence (AI) has significantly increased the demand for data centres, essential for the ‘exploding’ tech sector. This necessity has led Europe to consider spatial alternatives for digital storage, aiming to diminish reliance on energy-intensive ground facilities.
The Advanced Space Cloud for European Net zero emission and Data sovereignty (ASCEND), a 16-month study investigating the viability of deploying data centres in orbit, has reportedly reached a ‘very encouraging‘ conclusion, according to the report.
The ASCEND study, coordinated by Thales Alenia Space for the European Commission and valued at 2 million euros ($2.1 million), asserts the technical, economic, and environmental viability of space-based data centres.
“The idea [is] to take off part of the energy demand for data centres and to send them in space in order to benefit from infinite energy, which is solar energy,” according to a spokesperson for ASCEND.
Data centres are crucial for advancing digitalization; however, they demand substantial electricity and water to operate and cool their servers. The total global electricity consumption from data centres could reach more than 1,000 terrawatt-hours in 2026 – that’s roughly equivalent to the electricity consumption of Japan, as reported by the International Energy Agency.
The ASCEND study is not alone in exploring the potential of orbital data centres. Microsoft, which has already trialed the use of a subsea data centre – positioned 117 feet deep on the seafloor, is collaborating with companies such as Loft Orbital to explore the challenges in executing AI and computing in space.
However, core inflation, excluding energy, food, alcohol and tobacco, remained at 2.9% from the prior month, just missing the 2.8% forecast.
The rate of price rises in services also failed to move sticking at 4.1%.
This decision reportedly follows an inquiry into the surge of inexpensive, government-subsidized Chinese vehicles entering the EU market.
From 4th July 2024, Chinese EV producers who participated in the investigation will incur an average duty of 21%, while those who did not will face a substantial 38.1% tariff. Specific rates will be imposed on firms such as BYD, Geely, and SAIC.
Additionally, non-Chinese automobile companies manufacturing some EVs in China, including those based in the EU like BMW, will also be impacted. Tesla might receive a specially calculated duty rate upon request.
These levies are on top of the current 10% tariff on all electric cars manufactured in China. The EU’s action comes after the United States’ drastic measure last month to increase its tariff on Chinese electric cars from 25% to 100%.
Some critics view this anti-subsidy probe as protectionist, potentially harming China-EU economic relations and the worldwide automotive production and supply chain. The German Transport Minister has reportedly cautioned about the possibility of a trade conflict with Beijing.
Although the tariffs are intended to shield the EU’s own industry, they highlight the challenges of maintaining a balance between free trade and competitiveness in the swiftly changing EV sector.
Unless a qualified majority of EU nations opposes it, the tariffs will become permanent in November 2024. The European car industry stresses the need for free and fair trade but recognizes that promoting the adoption of electric cars requires a diverse strategy.
As the dispute over tariffs persists, the repercussions for the EV market are yet to be determined.
One thing is for sure, the consumer will suffer through these tariffs and also through extra road tax levies yet to be introduced, especially in the UK.
Analysts had anticipated a 0.1% rise from the 2.4% headline figure reported in April 2024.
Core inflation, which omits the unstable effects of energy, food, alcohol, and tobacco, rose to 2.9% from April’s 2.7%. Contrary to the flat reading projected by economists.
A deviation from the expected 0.25% cut at the ECB’s June 2024 meeting would significantly surprise the markets, given the strong signals from policymakers in recent weeks.
This expansion occurs as the European Union investigates subsidies provided to Chinese electric vehicle manufacturers, a situation that may lead to the imposition of tariffs.
In May 2024 Nio opened a new EV showroom in Amsterdam, while Xpeng introduced its G9 and G6 sports utility vehicles in France.
Over the years, China’s electric vehicle industry has flourished due to the government’s incentives and support, raising concerns among politicians in Europe and the U.S.
Public marketing campaigns are unfolding against the backdrop of a European Commission investigation into subsidies provided to Chinese electric vehicle manufacturers. The outcome of this inquiry may result in EU tariffs being imposed on Chinese EV imports.
The United States has preempted such measures, with the Biden administration enacting a 100% tariff on Chinese EV imports.
Meanwhile, Chinese EV producers are intensifying their international expansion efforts, aiming to compete with Elon Musk’s Tesla on a global scale and secure an early advantage over traditional car manufacturers.
The EU Council announced it has granted final approval for the AI Act, a pioneering regulation designed to establish the first extensive framework for artificial intelligence.
The EU Commission is authorized to impose fines on companies violating the AI Act, up to 35 million euros ($38 million) or 7% of their annual worldwide turnover, whichever is greater.
Headline inflation at 2.4% aligned with economists’ forecasts, while monthly inflation registered at 0.6%. Core inflation, which excludes energy, food, alcohol, and tobacco, fell to 2.7% from March’s 2.9%.
Energy prices’ year-on-year decline softened to -0.6% from -1.8% in March. Meanwhile, the gross domestic product increased by 0.3% in the first quarter, slightly exceeding economists’ expectations.
However, the GDP for the fourth quarter of 2023 was revised from no growth to a contraction of 0.1%, indicating a technical recession in the euro zone for the latter half of the year.
There is growing anticipation that the European Central Bank (ECB) may reduce interest rates at the upcoming monetary policy meeting on 6th June 2024.
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.
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.
Eurozone inflation eased to 2.4% in March 2024, as indicated by preliminary figures released on Wednesday 3rd April 2024.
This decrease has increased expectations that interest rate cuts may start in the summer 2024.
Market analysts anticipate that the central bank will commence reductions in interest rates starting in June 2024, reflecting recent communications from the ECB.
On Monday, 25th March 2024, the European Union initiated its first investigation under the new Digital Markets Act, targeting Apple, Alphabet, and Meta for potential tech legislation breaches.
“Today, the Commission has opened non-compliance investigations under the Digital Markets Act (DMA) into Alphabet’s rules on steering in Google Play and self-preferencing on Google Search, Apple’s rules on steering in the App Store and the choice screen for Safari and Meta’s ‘pay or consent model” – the Commission said in a statement.
Known as the Artificial Intelligence Act, this groundbreaking legislation is expected to serve as a global signpost for other governments grappling with how to regulate this fast-developing technology.
The AI Act takes a risk-based approach, categorizing AI applications based on their risk levels. It prohibits certain high-risk uses, emphasizes transparency, and aims to keep AI development human centric. This landmark regulation should help set a precedent for responsible AI deployment worldwide.
The regulation is expected to become enforceable in May 2024, after passing final checks and receiving endorsement from the European Council.
Euro zone inflation eased to 2.6% in February figures showed on Friday 1st March 2024, but both the headline and core figures were higher than expected.
Core inflation, removing the volatile elements of energy, food, alcohol and tobacco was 3.1% above the 2.9% rate expected.
The February figures will be a headache for EU policymakers, as core inflation is still holding above 3% even as the headline rate moves toward the ECB’s 2% target.
The EU agreed guidelines around AI in systems like ChatGPT and facial recognition.
The European Parliament will vote on the AI Act proposals early next year, but any legislation will not take effect until 2025 at the earliest. The U.S., UK and China are all rushing to publish their own guidelines.
The proposals include safeguards on the use of AI within the EU as well as limitations on its adoption into law.
European Commission President Ursula von der Leyen said the AI Act would help the development of technology that does not threaten people’s safety and rights. Consumers would have the right to launch complaints and fines could be imposed for violations.
In a social media post, she said it was a ‘unique legal framework for the development of AI you can trust’.
The European Parliament defines AI as software that can ‘for a given set of human-defined objectives, generate outputs such as content, predictions, recommendations or decisions influencing the environments they interact with.’
This is a significant step towards ensuring that AI development and deployment are aligned with ethical standards and respect for human rights.
Will the EU, UK, U.S., China and other countries AI rules conflict?
Annual inflation in the euro zone sank to 2.4% in November 2023 from 2.9% in October 2023, data showed Thursday 30th November 2023.
Core inflation was also below expectations at 3.6%.
The European Central Bank has stressed that it is too early to declare victory in the 20-member euro zone bloc, as they monitor potential pressures from wage increases and energy markets.
Headline inflation has now fallen significantly from the peak levels of 10.6% in October 2022.
Target of 2% and is well within reach.
The company aims to offer sustainable, high-speed air mobility through its aircraft, vertiports and digital service. Lilium successfully tested its prototype in 2019 and 2021 and plans to launch its services in multiple cities by 2025.
Lilium is one of the leading companies in the emerging eVTOL market, which faces challenges such as regulation, infrastructure, safety and public opinion. Lilium claims that its jet is faster, quieter and more efficient than its competitors, and that it can travel up to 300 km in just 60 minutes.
Lilium has been granted EU approval to design and operate its electric vertical takeoff and landing vehicles globally.
It’s a key milestone for the industry. Lilium has been working for several years to get such vehicles ready for commercial market.
According to the latest data from Eurostat, the statistical office of the European Union, the euro area annual inflation was 2.9% in October 2023, down from 4.3% in September 2023.
The main factor behind the decline in inflation was a sharp drop in energy prices, which fell by some 15% year-on-year in October 2023, compared to a 10.7% decrease in September.
The euro area economy also contracted by 0.1% in the third quarter of 2023, after growing by 0.6% in the second quarter, according to preliminary estimates from Eurostat. This puts the eurozone on the brink of recession, as high interest rates and weak demand weigh on the economic activity.
However, some analysts argue that the ECB’s monetary policy is too tight and risks choking off the recovery. They suggest that the ECB should adopt a more flexible approach and consider cutting rates or expanding its bond-buying programme if the economic outlook worsens.
Core inflation which excludes volatile food and energy prices dropped to 4.2% year-on-year in October 2023 from 4.5% in September 2023, according to European Union statistics agency Eurostat.
The agency also revealed Tuesday that the euro zone economy contracted by 0.1% in the third quarter, according to initial estimates, below consensus estimates for GDP to be unchanged from the previous quarter.
The ECB expects the euro zone economy to grow by just 0.7% this year, by 1% in 2024 and 1.5% in 2025.
TikTok is a popular social media app that allows users to create and share short videos. But, it has faced some controversies regarding its algorithm, design, and data protection.
The company was fined $368 million in Europe for failing to protect children’s data. The Irish Data Protection Commission, which oversees TikTok’s activities in the European Union, said that the company had violated the bloc’s signature privacy law.
An investigation by the DPC found that in the latter half of 2020, TikTok’s default settings didn’t do enough to protect children’s accounts.
TikTok drove online ultra online ‘frenzies’ that encouraged anti-social behaviour to spill over into the real world, a BBC Three investigation revealed.
Ex-employees said that the issue was not being tackled for fear of slowing the growth of the app’s business. These ‘frenzies’ were evidenced by interviews with former staffers, app users and BBC analysis of wider social media data. They included false murder accusations, interference in police investigations, school vandalism, and riots.
The algorithm and design means people are seeing videos which they wouldn’t normally be recommended – which, in turn, incentivise them to do unusual things in their own videos on the platform.
Former employees likened these frenzies to ‘wildfires’ and described them as ‘dangerous’, especially as the app’s audience can be young and impressionable.
The bank raised its key rate for the 10th time in a row, to 4% from 3.75%, as it warned inflation was expected to remain too high for too long.
The latest increase came after forecasts predicted inflation, which is the rate prices rise at, would be 5.6% on average in 2023. However, the ECB signalled that this latest hike could be the last for now.
‘The council considers that the key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target’, the bank reportedly said. The central bank originally expected inflation to be ‘transitory’.
It added that it expected inflation in the 20-nation bloc to fall to around 2.9% next year and 2.2% in 2025.
As in other parts of the world, the eurozone has been hit by rising food and energy prices that have squeezed household budgets and from the Russia/Ukraine war. Central banks have been increasing interest rates in an attempt to tame inflation and slow rising prices.
The theory behind increasing rates is that by making it more expensive for people to borrow money, the ‘consumer’ will then have less excess cash to spend, meaning households will buy fewer things and then price rises will ease. But it is a balancing act as raising rates too aggressively could cause a recession.
Interest rates in the UK are currently higher than in the eurozone at 5.25%, but UK inflation is also higher at 6.8%, and the Bank of England is expected to raise rates again next week.
According to latest figures the country’s trade fell more sharply than expected in July 2023, as both global and domestic demand receded amid the pandemic and ongoing tensions with the United States.
China’s exports fell by 14.5% in July 2023 from a year ago, the biggest drop since February 2020, while imports dropped by 12.4%, according to Chinese data. This was much worse than the 5% decline in both exports and imports analysts were expecting.
Some of the reasons for the poor trade performance are the rising costs of raw materials, the global shortage of semiconductors, the Covid-19 outbreaks in some regions, and the U.S. sanctions on some Chinese companies.
China’s trade with the U.S., its largest trading partner, fell in the first seven months of the year. The trade slump has added pressure on China to provide more support for the economy, which has lost momentum after a strong recovery in late 2020 and early 2021.
China’s trade situation is also closely watched by other countries, as it reflects the health of the global economy and demand for goods. Some analysts have warned that China’s trade slowdown could signal a broader weakening of consumer spending in developed economies, which could lead to recessions later this year. China’s trade data also has implications for inflation and monetary policy, as lower import prices could ease inflationary pressures and allow central banks to keep interest rates low.
China’s exports to the U.S. plunged by 23.1% year-on-year in July 2023, while those to the European Union fell by 20.6%, CNBC analysis of customs data showed. Exports to the Association of Southeast Asian Nations fell by 21.4%, according to the data. Chinese imports of crude oil dropped by 20.8% in July from a year ago, while imports of integrated circuits fell by nearly 17%.
China’s imports from Russia fell by around 8% in July 2023 from a year ago, the data showed.
A slowdown in U.S. and other major economies’ growth has dragged down Chinese exports this year. Meanwhile, China’s domestic demand has remained subdued.
Among the few higher-value export categories that saw a significant increase in the first seven months of the year were: cars, refined oil, suitcases and bags. And for imports: paper pulp, coal products and edible vegetable oil were among the categories seeing significant growth in the January to July period from a year ago.
Euro zone inflation fell in July, and new growth figures showed economic activity picking up in the second quarter of this year, but economists still fear a recession.
Headline inflation in the EU was 5.3% in July, according to preliminary data released end of July 2023, lower than the 5.5% registered in June. However, it still remains substantially above the European Central Bank’s 2% target.
GDP growth accelerated in the second quarter, expanding by 0.3%, higher than the 0.2% expected by analysts.