A federal judge declined AstraZeneca’s legal challenge against Medicare’s newfound authority to negotiate prices for specific high-cost prescription medications with manufacturers.
The ruling marks another legal victory for the Biden administration amidst an ongoing legal clash with the pharmaceutical sector regarding the constitutionality of these pricing negotiations. Central to the Inflation Reduction Act, these negotiations represent a pivotal policy endeavor aimed at enhancing medication affordability for seniors, potentially impacting pharmaceutical companies’ profits.
Although this ruling favors the administration, the legal battle is far from concluded, with manufacturers indicating their intent to escalate the matter to the Supreme Court. The judge’s decision arrives just before a critical deadline, as manufacturers of the initial ten selected drugs for negotiation, including AstraZeneca’s Farxiga, have until Saturday to respond to Medicare’s initial price proposals for their treatments. Final negotiated prices for this first batch of drugs are slated to take effect in 2026.
The ruling favors the Biden administration in an ongoing legal battle with the pharmaceutical industry.
In a comprehensive 47-page opinion, U.S. District Judge Colm Connolly of the District of Delaware highlighted that AstraZeneca failed to pinpoint a constitutionally protected property that would be jeopardized by the pricing negotiations.
He emphasized that AstraZeneca’s engagement in the Medicare market is voluntary, dismissing the notion that the company’s desire or anticipation to vend its drugs to the government at previous higher prices establishes a protected property interest.
Connolly underscored the significant incentive for manufacturers to engage in price negotiations with the government, given the expansive market encompassing more than 49 million Medicare and Medicaid beneficiaries. He refuted AstraZeneca’s contention that participation amounted to coercion, emphasizing it as a discretionary economic opportunity.
In response, AstraZeneca expressed disappointment with the court’s ruling and its potential adverse effects on patient access to future life-saving medications. The company indicated it is assessing its options moving forward.
Manufacturers intend to escalate the issue to the Supreme Court; legal wrangling continues.
AstraZeneca’s lawsuit argued that the negotiations would compel the sale of medications at substantial discounts, below market rates, violating due process under the Fifth Amendment, which mandates reasonable compensation for private property taken for public use.
This ruling adds to the setbacks faced by the pharmaceutical industry, which has lodged numerous lawsuits challenging the constitutionality of these negotiations. It follows a recent decision by a federal judge in Texas to dismiss a separate lawsuit contesting the pricing talks. Another federal judge in Ohio previously denied a preliminary injunction sought by the Chamber of Commerce, a prominent lobbying entity, to halt the negotiations before October 1.
While some cases remain pending, on March 7, Bristol Myers Squibb, Novo Nordisk, Novartis, and Johnson & Johnson will present their oral arguments to a federal judge in New Jersey during the same hearing.
Cohere President, Martin Kon believes that many of the leading artificial intelligence startups in today’s market are akin to high-performance sports cars. In contrast, he describes his company’s product as more akin to a heavy-duty truck.
In an interview with CNBC, Kon explained, “If you’re looking for vehicles for your field technical service department, and I take you for a test drive in a Bugatti, you’re going to be impressed by how fast and how well it performs.” However, he emphasized that the price, space limitations, and lack of a trunk associated with such cars could pose problems.
“What you actually need is a fleet of F-150 pickup trucks,” Kon asserted. “We make F-150s”. Founded by former Google AI researchers and backed by Nvidia, Cohere is placing its bets on generative AI for enterprise applications rather than consumer-oriented chatbots, which have garnered significant attention in the tech industry since the release of ChatGPT by OpenAI in late 2022.
In June, Cohere secured $270 million in funding at a valuation of $2.2 billion, with participation from Salesforce and Oracle. Executives from the company have been active participants in AI forums at the White House, and reports are indicating that Cohere is in discussions to raise $1 billion in additional capital. “We don’t comment on rumors,” Kon stated to CNBC. “But someone once told me startups are always raising.”
Kon emphasizes Cohere’s focus on enterprise chatbots, steering clear of misinformation concerns.
The field of generative AI has experienced explosive growth over the past year, with a record $29.1 billion invested across nearly 700 deals in 2023, marking a more than 260% increase in deal value from the previous year, according to PitchBook. It has become a prominent topic on corporate earnings calls, and various forms of technology are being utilized across numerous industries, including financial services, biomedical research, logistics, online travel, and utilities.
While Cohere is often mentioned alongside AI giants like OpenAI, Anthropic, Google, and Microsoft, its focus solely on enterprise chatbots sets it apart from its competitors.
Kon, who also serves as the company’s operating chief, highlighted that by concentrating solely on the enterprise sector, Cohere can operate efficiently and manage costs effectively, even in the face of challenges such as a chip shortage, escalating GPU costs, and fluctuating licensing fees for AI models. “I’ve rarely seen, in my career, many companies that can successfully be consumer and enterprise at the same time, let alone a startup,” Kon remarked.
“We don’t have to raise billions of dollars to run a free consumer service,” he added. Current clients of Cohere include Notion, Oracle, and Bamboo HR, as listed on the company’s website. Kon noted that many customers are within the banking, financial services, and insurance sectors. In November, Cohere reported an increase in customer interest following OpenAI’s sudden and temporary removal of CEO Sam Altman.
Kon acknowledged the persistent challenges posed by shifting dynamics in the hardware industry. He mentioned that the company has maintained a reserve of Google chips for over two years, acquired during Cohere’s early stages to facilitate the retraining of its models. Currently, Cohere is transitioning towards greater utilization of Nvidia’s H100 GPUs, which power most of today’s large language models.
Cohere’s AI expansion focuses on search capabilities, a pivotal but often overlooked aspect.
According to Kon, Cohere’s relationships with strategic investors differentiate it from its generative AI competitors. While many companies have secured funding from entities like Nvidia and Microsoft, Cohere’s agreements with such investors are subject to certain conditions tied to the use of their software or chips.
Kon firmly asserts that Cohere has never accepted a conditional investment, emphasizing that every check the company has received, including those from Nvidia, came with no strings attached. “In our last round, we had multiple checks the same size; we had no conditions associated with any one of them,” Kon emphasized. “We explicitly made that decision so we could say we’re not beholden to anyone.”
Cohere’s strategic choice to concentrate solely on enterprise chatbots could potentially shield the company from the contentious realm of misinformation concerns, especially with the approach of election season. In January, the Federal Trade Commission initiated an AI inquiry targeting Amazon, Alphabet, Microsoft, OpenAI, and Anthropic. FTC Chair Lina Khan characterized it as a “market inquiry into the investments and partnerships being formed between AI developers and major cloud service providers.”
Notably, Cohere was not included in the investigation. According to Kon, the company’s growth trajectory has predominantly revolved around areas such as search and retrieval, which necessitate dedicated AI models. He refers to this as “tool use,” involving training models on how, where, and when to locate information required by enterprise clients, even if the model wasn’t initially trained on that data.
Kon highlights search as a crucial aspect of generative AI that often receives less attention compared to other areas. “That’s certainly, for enterprise, going to be the real unlock,” he remarked. Regarding expansion plans, Kon characterizes 2023 as “the year of the proof of concept.” “We think 2024 is turning into the year of deployment at scale,” he added.
Dr. Marc Harrison is a unique figure in the world of venture capitalism. He stands apart from the typical image of a VC chasing after the next big tech sensation or dispensing startup advice online. Instead, his background is firmly rooted in the medical field.
Harrison’s journey began in the late 1980s when he attended medical school. For the past two decades, he has held prominent positions within medical systems, culminating in his role as CEO of Intermountain Healthcare, a non-profit organization based in Utah boasting 33 hospitals and over 63,000 employees.
In a surprising move in late 2022, Harrison made a transition to the venture capital realm by joining General Catalyst, a firm renowned for backing tech giants like Stripe, Snap, and Airbnb. However, this shift wasn’t as drastic as it might seem at first glance.
In January, General Catalyst made waves by announcing its acquisition of Summa Health, a non-profit integrated health system serving over 1,000 inpatient beds across hospitals, community-based health centers, and multi-specialty group practice in northeast Ohio. Summa also operates a health insurance entity.
General Catalyst aims to transform Summa Health into a for-profit entity.
Under this new arrangement, Summa will transform into a for-profit organization. General Catalyst aims to implement tech-driven solutions to enhance the accessibility and affordability of care. The driving force behind this initiative is the Health Assurance Transformation Corporation (HATCo), a company established by General Catalyst with a long-term vision.
Harrison, now CEO of HATCo, leads the effort to overhaul Summa’s operations, blending digital innovations with traditional care methods. “This is the first holistic transformation of a health system to a thoughtful combination of digital and in-person care,” Harrison explained in an interview with CNBC. However, this ambitious endeavor is still in its early stages.
HATCo and Summa are currently undergoing due diligence, negotiating a definitive agreement, and outlining the specific challenges they aim to address. Regulatory approvals are expected later in the year. Notably, General Catalyst emphasizes that this acquisition is not merely about profit-seeking through cost-cutting measures. Instead, the focus is on leveraging innovation to improve patient care while ensuring financial sustainability.
Health Assurance Transformation Corporation (HATCo) to pioneer tech-driven healthcare solutions.
Despite the novelty of a venture capital firm acquiring a hospital system, General Catalyst has a strong track record in the broader healthcare sector. With a focus on digital health, the firm has been at the forefront of innovation, backing companies like Oscar and Livongo.
However, transitioning a hospital to a for-profit model raises concerns, particularly regarding the impact on patient care and community welfare. Ceci Connolly, CEO of the Alliance of Community Health Plans, acknowledges the innovation potential but expresses reservations about the shift to profit-driven healthcare.
Critics worry that prioritizing profits may compromise patient care and community well-being. Nevertheless, General Catalyst is undeterred, viewing this venture as an opportunity to pioneer transformative changes in healthcare delivery.
HATCo operates independently from General Catalyst’s traditional venture business, focusing on introducing new revenue streams through innovative care models rather than volume-based revenue or cost-cutting measures.
Chris Bischoff, who oversees health investments at General Catalyst, highlights the synergy between innovation and transformation in healthcare. By partnering with health systems like Summa, the firm aims to accelerate the adoption of new technologies and care models.
Concerns arise over the potential impact on patient care and community welfare in Ohio.
Summa’s transition to a for-profit entity will be accompanied by a shift towards value-based care, incentivizing preventative care over fee-for-service models. While this transition presents challenges, both organizations are committed to driving sustainable innovation in healthcare delivery. Despite some skepticism within the community, Summa’s leadership remains optimistic about the potential benefits of this partnership.
Mayor Shammas Malik sees an opportunity for transformative change while urging transparency and community engagement throughout the process. For Harrison, this endeavor is deeply personal. His own experience battling cancer underscores the importance of innovation in healthcare delivery. With a background in healthcare leadership and a commitment to transformative change, he’s poised to lead HATCo’s efforts to redefine healthcare delivery.
While the road ahead may be complex, General Catalyst and Summa are determined to demonstrate that profitability and patient care are not mutually exclusive. As Harrison embarks on this ambitious journey, he’s determined to prove that community-based healthcare providers can thrive in a rapidly evolving landscape.
Last year, Americans consumed over 1.3 billion cups of Nescafé, contributing to its status as the largest coffee segment for Swiss-based food giant Nestlé. This trend extends globally, with Nescafé sales reaching over 180 countries, where one in every seven cups of coffee consumed bears the Nescafé brand.
Global dominance: Sales in 180+ countries, where every seventh cup of coffee consumed is Nescafé. (Credits: Pexels)
Despite its widespread popularity, Nescafé faces challenges at the source. Farmers supplying the brand contend with obstacles such as high labor costs and escalating temperatures, which threaten to reduce the suitable area for coffee cultivation by up to 50%, as reported by the Inter-American Development Bank.
Nescafé collaborates with a network of over 100,000 farmers and annually purchases more than 13 million bags of green coffee. The brand operates two dozen factories worldwide to meet the demand.
If you’re curious about the production process behind Nescafé instant coffee then embark on a journey to Vietnam, the world’s second-largest exporter of coffee after Brazil, to observe Nescafé’s operations firsthand.
The attorneys who invalidated Elon Musk’s $56 billion compensation as excessive on Friday pursued a groundbreaking $6 billion legal fee, payable in the electric car maker’s stock. “We recognize that the requested fee is unprecedented in terms of absolute size,” the three law firms conveyed in a filing with the Court of Chancery in Delaware.
The fee equates to an hourly rate of $288,888, they stipulated.
Musk criticized the request as “criminal,” expressing on his X platform that “the lawyers who did nothing but damage Tesla want $6 billion.” Tesla and Musk’s attorney did not immediately respond to requests for comment.
The company would compensate the attorneys who represented Richard Tornetta, a shareholder who sued Musk in 2018 over the pay package, which a Delaware judge nullified in January. The electric vehicle maker is tasked with paying the fee because it reaped the benefits of Musk’s pay package, which the legal team stated would result in the return of 266 million shares to the carmaker.
Judge McCormick criticizes Musk’s pay as “unfathomable” while the Delaware Supreme Court reviews the appeal. (Credits: Pexels)
“This structure has the benefit of linking the award directly to the benefit created and avoids taking even one cent from the Tesla balance sheet to pay fees,” the attorneys wrote, adding that the fee would be tax-deductible to Tesla.
Judge Kathleen McCormick, presiding over the case and responsible for deciding on the fee, labeled Musk’s pay “unfathomable” in her ruling. The company might contest the fee, as it has a fee request in a similar case concerning the pay for its directors. The most substantial settlements in shareholder cases have occurred in federal court.
The most significant fee amounted to $688 million in 2008 for the legal team that secured a $7.2 billion settlement in a securities fraud case involving the collapse of Enron Corp. The Tesla fee request arises as the Delaware Supreme Court deliberates on an appeal of a $267 million fee in a case that settled for $1 billion concerning Dell Technologies.
Musk’s compensation package was nullified; the legal battle involved 266 million shares and tax deductions. (Credits: India Today)
Delaware judges have indicated that pursuing cases extensively into litigation, through depositions, and toward trial, should warrant a higher percentage of the recovery to reflect the risk and effort. The Musk pay case proceeded to a one-week trial.
Critics of this approach argue that as settlements and judgments increase in size, attorneys should receive a diminishing percentage to prevent overcompensation. The legal team noted that the requested fee amounted to about 11% of the judgment.
Musk’s pay package comprised stock options enabling him to purchase Tesla stock at substantially discounted prices and mandated him to retain the stock for five years. The legal team expressed their intention to seek stock without restrictions on selling it.
The shareholder’s legal team consisted of three law firms: Bernstein Litowitz Berger & Grossmann and Friedman Oster & Tejtel, both headquartered in New York and Andrews & Springer of Wilmington.
A February report from WalletHub ranked the happiest cities in America for 2024. To rank the cities, the report looked at more than 180 of the largest U.S. cities and examined them across three key dimensions:
Emotional and physical well-being
Income and employment
Community and environment
The three categories were evaluated using 29 metrics graded on a 100-point scale, with a score of 100 representing maximum happiness. Some categories include a life-satisfaction index, life expectancy, job satisfaction, income-growth rate, and a well-being “community” index score.
Madison, Wisconsin.: Strong emotional and physical well-being, vibrant community, favorable income and employment. (Credits: Unsplash)
“While Florida is home to Disney World, often called the happiest on Earth, the Sunshine State didn’t have any city rank in the top 10.”
Fremont, California is the happiest city in America and this is for the third year in a row. Fremont had a total score of 74.16 and ranked 85th in income and employment and third in community and environment. The California city has the highest-earning middle class, according to a 2023 SmartAsset study. Fremont is located in the East Bay region of the Bay Area and has a substantial tech industry population because of its proximity to Silicon Valley and San Francisco.
San Jose, Calif.: High income and employment ranking, tech industry presence, favorable community environment.
The city has the highest share of households with an income above $75,000, at nearly 80%, the WalletHub report states. Another contributing factor is that Fremont has the country’s lowest separation and divorce rate, at only 8.9%.”
The 10 happiest cities in America are as follows:
1. Fremont, Calif.
2. Overland Park, Kan.
3. San Jose, Calif.
4. Madison, Wis.
5. Irvine, Calif.
6. Honolulu, Hawaii
7. San Francisco, Calif.
8. Pearl City, Hawaii
9. Columbia, Md.
10. Scottsdale, Ariz.
Overland Park, Kan.: Lowest poverty rate, low unemployment, residents get more sleep. (Credits: Pexels)
Overland Park, Kansas, secures the second-happiest city spot in the U.S., climbing from the No. 4 position in 2023. It earned a total score of 69.78, ranking sixth in emotional and physical well-being, 36th in income and employment, and sixth in community and environment.
Overland Park, Kansas, takes the No. 2 spot as the happiest city in America, boasting the lowest poverty rate in the country at 4.2% and one of the lowest unemployment rates at 3%. According to the report, residents in Kansas City enjoy more sleep compared to those in most other cities,
As the second-largest city in Kansas, Overland Park boasts a median household income of $92,769, as per the city’s website.
Computer science isn’t a novel major at esteemed institutions, yet due to the soaring demand for AI positions, there’s an expanding array of colleges and universities presenting a specialized four-year “AI” degree.
These curricula typically transcend the basics of computer science, delving into realms like machine learning, computational algorithms, data analysis, and advanced robotics. Recently, the University of Pennsylvania disclosed that its B.S.E. in Artificial Intelligence program will commence in autumn 2024.
Carnegie Mellon pioneered its program well before the era of the “gen AI” buzz, launching it in the autumn of 2018, while MIT’s initiative took root in the autumn of 2022. Purdue University extends an undergraduate major in AI, and numerous institutions incorporate AI courses within their computer science departments, even without a dedicated major.
AI degree programs surge, offering specialized curricula at renowned institutions worldwide. (Credits: Unsplash)
The surge of AI-centric degree programs coincides with the scarcity of talent in this rapidly evolving domain. Indeed.com reports that half of the top-paying skills in the tech industry pertain to AI. Nonetheless, there exists a degree of skepticism regarding the relevance of a four-year AI-specific degree considering the swift pace of technological advancement.
Nevertheless, advocates argue that as long as a program is grounded in computer science and fundamental principles, a focus on AI could furnish a substantial boost to one’s resume.
Here’s what students and their parents, as well as anyone contemplating returning to school for a fresh career, should understand about a four-year AI degree:
STEM fundamentals remain crucial
According to Kerem Koca, CEO of BlueCloud, a cloud service provider, students aspiring to pursue an AI degree should seek programs that impart essential knowledge in areas such as computer science, statistics, mathematics, and engineering. These form the bedrock for a career in AI-related fields. Koca emphasizes that while technology evolves, these core principles remain constant and can equip students for success, even amidst technological shifts.
STEM fundamentals remain crucial for AI success, emphasizing computer science, statistics, and mathematics.
Maria Flynn, President and CEO of Jobs for the Future, an organization dedicated to worker opportunity and education, underscores the importance of AI degrees and educational programs not solely focusing on specific skill acquisition. Instead, Flynn advocates for an emphasis on cultivating students’ ability to learn, fostering intellectual curiosity, and honing skills like leadership, communication, and critical thinking.
AI degree spike since 2011
Numerous programs focusing on AI are available at both the undergraduate and graduate levels, and there has been a notable surge in offerings and degree conferrals for over a decade.
As per the Georgetown University Center for Security and Emerging Technology, AI degrees have diverged from the overall educational trend since 2011, exhibiting positive growth in degree conferrals compared to the negative growth observed across all degree areas. Particularly noteworthy is the accelerated growth of AI-related degree awards, outpacing even STEM degrees across bachelor’s, master’s, and PhD levels. Their analysis of government data and other higher education sources depicts the expansion of AI degree conferrals as “dramatic,” experiencing a 120% increase since 2011 at both bachelor’s and master’s levels.
Some students may also contemplate pursuing AI as an associate’s degree, an option available at several institutions, including Miami Dade College.
Education relevance in the fast-changing tech market
Amidst the rapid evolution of the tech market, some students may question the necessity of obtaining a degree, considering the increasing willingness of employers to hire based on job-specific skills rather than formal education credentials.
However, it’s crucial to recognize that recent research indicates the efficacy of hiring individuals without degrees may be limited. Research from the Ladders career site indicates that a degree remains a prerequisite for the highest-paying positions, including roles such as software engineers.
Celeste Grumpman, Director of Operations at Dataquest (Credits: Medium)
According to Celeste Grupman, a provider of AI-related educational materials and labs to universities, a four-year degree still significantly enhances one’s prospects upon entering the job market for the first time. Grupman emphasizes that it remains one of the primary considerations for employers and lacking one may hinder job opportunities.
Nevertheless, various providers, including Dataquest and Coursera, offer certificate programs designed to swiftly develop skills. These programs could be suitable for students lacking the time or resources to commit to a four-year degree, or for individuals seeking to enhance their skill set post-degree. Online platforms enable students to promptly initiate projects and grasp the practical implementation of these tools for employment purposes.
AI vs. computer science
Students must approach the curriculum of the program they’re considering with critical thinking, discerning how it differs from a standard computer science curriculum, the probable career trajectory for program graduates, and the economic outcomes for graduates. “As we see in product marketing, anyone can slap ‘AI’ onto an existing product. Students should ask what aspects of AI they will be learning,” emphasizes Flynn.
AI-specific degrees gain favor with employers, potentially setting candidates apart in the job market.
Moreover, students should carefully reflect on their aspirations. Do they seek a program offering exposure to AI or hands-on experience with AI applications, or do they prefer a technical program providing foundational content and courses on AI technology? They should also weigh whether they aim for immediate market-relevant skills and knowledge or seek a broader degree serving as a foundation for long-term advancement, advises Flynn.
Nichol Bradford, artificial intelligence and human intelligence executive-in-residence with SHRM, an organization for human resources professionals, likens the decision to choose between a degree in hammers versus architecture. “If you’re an architect, you don’t want a degree in hammers. You want to understand hammers, you want to understand zoning, and you want to understand how to build a house that helps a family come alive. The same is true in AI.”
How to gain an edge with employers
According to David Leighton, CEO at WITI, an organization for technology-minded professionals, some employers may view an AI-specific degree more favorably compared to a traditional computer science degree, believing it sets candidates apart.
However, the future value of such a degree remains uncertain. “In the year 2000, if you had an internet degree, if there was such a thing, it would have looked great,” notes Koca. “Now, it wouldn’t be as applicable. But if you had it in 2002, you could have gotten a job anywhere. The same could be true for a degree in AI.”
Uncertainty surrounds the future value of AI degrees, but fundamentals and practical skills are essential. (Credits: Unsplash)
Given this uncertainty, some professionals suggest that students can’t go wrong with either a traditional computer science degree or an AI-specific one, as long as the fundamentals are covered.
Those opting for the former should consider supplementing their education with classes in AI and data science, as these skills are increasingly important for future employment. Otherwise, students may need to bridge the practical application gap themselves post-graduation, advises Bryan Ackermann, head of AI strategy and transformation at Korn Ferry, a management consultancy.
Amy, 28, and Tori, 27, experienced a year marked by significant milestones.
“The couple bought their home in September 2022, left their jobs in pursuit of better ones, and got married in September 2023,” they recently disclosed to Ramit Sethi on his “I Will Teach You to be Rich” podcast.
Regrettably, their financial situation wasn’t conducive to these decisions. While planning their “dream wedding” and embarking on a honeymoon in Greece, they accrued approximately $44,000 in credit card debt.
“Now, between making payments on that debt, adding $17,000 in debt and a mortgage that is significantly higher than they anticipated, ‘you’re effectively broke,'” Sethi pointed out to them. Recognizing their predicament, the couple sought assistance on Sethi’s show. Here are some of the missteps that led to their situation and Sethi’s recommendations for moving forward.
Amy secures a job with a $10,000 salary increase; offers financial relief; and the path towards stability. (Credits: Pexels)
Underestimating the cost of significant purchases is a common pitfall. While the notion of expensive weddings is widely acknowledged in the U.S., they needn’t be exorbitant. A marriage license typically costs around $100 or less, depending on the state, and most other wedding expenses are discretionary.
Tori and Amy’s wedding planning timeline was compressed to just four months, primarily because Amy was captivated by a venue, compelling them to make rapid decisions. While they had a budget in mind and anticipated assistance from their families, the urgency resulted in hefty deposits being paid to numerous vendors within a short period.
Expenses quickly accumulated, surpassing their budget. With insufficient time to bolster their savings, they resorted to charging many costs to their credit cards. Amy lamented on the podcast, “It was an inevitable drowning from how close the contracts were [signed].”
While there’s nothing inherently wrong with desiring a lavish wedding, a beautiful home, or another major purchase, it’s crucial to ascertain the actual costs and anticipate spending significantly more, advised Sethi.
Reflecting on his wedding planning, Sethi allowed for a considerable margin of error, adhering to the adage of doubling the budget. Despite this prudent approach, he still exceeded his budget, albeit to a lesser extent.
Couple’s mortgage and credit card debt strain finances; seeking stable income sources for resolution.
Amy and Tori also overspent on their home. They assumed their mortgage rate was fixed upon contract signing, only to discover it had increased before closing, resulting in a monthly payment exceeding their initial estimate by over $500. “It’s important to incorporate a substantial margin of error because once you start overspending on these significant purchases, and you will overspend, because, again, most of us are mostly the same, you’ll have money set aside,” Sethi advised the couple.
When delving into their respective relationships with money, Sethi uncovered contrasting backgrounds between Amy and Tori. Tori endured periods of significant financial instability during her upbringing, while Amy’s family enjoyed relative comfort without the burden of financial concerns. While Tori tends to err on the side of caution with finances, Amy adopts a more optimistic outlook, leading to alternating cycles of saving and spending.
Amy’s commendable saving habits enabled her to finance her college education and graduate without debt. However, she admitted, “There were a couple of times where I had $10,000 in my savings account and then frivolously drained it.” In preparation for purchasing their home, Tori highlighted the couple’s commendable discipline.
They diligently paid off their debts, set smart goals, and adhered to a strict budgeting regimen. However, once they attained the house, their approach became more relaxed. “We paid all of our debt off, we were very strict, we wrote smart goals, and every week we’re budgeting,” Tori recounted. “Once we got into the house, it was a little bit more lenient, I think, because we finally achieved our goal.”
Sethi observed this pattern of “episodic” spending and saving that Amy brought into her relationship with Tori. While not uncommon, Sethi acknowledged that altering such habits can be challenging. “The solution, of course, is not to simply try harder,” Sethi emphasized. “It is to have a powerful, specific vision of why you want to change, and then it’s about getting help.”
In terms of the couple’s future, Sethi’s foremost recommendation for Tori and Amy, aiming to alleviate their debt burden to a manageable extent and meet their financial commitments comfortably, was to concentrate on augmenting their incomes. At the time of the podcast recording, they collectively earned $125,000 annually.
Sethi advises confronting financial challenges directly; and emphasizes the importance of proactive problem-solving approaches. (Credits: Pexels)
Their decision to depart from their jobs shortly after purchasing their home was driven by aspirations of entrepreneurship. However, their current financial predicament has underscored the importance of securing more stable sources of income.
With a nearly $3,000 mortgage payment and an additional $3,000 allocated to credit card debt each month, the couple found themselves constrained to the essentials, with little provision for emergencies, let alone discretionary spending. Exploring alternatives such as selling their home and residing with Amy’s mother or leasing out their spare bedroom, Sethi assessed that a substantial income boost would yield the most significant impact in expediting their debt repayment within a reasonable timeframe.
There’s some positive news on the horizon: Amy shared with Sethi that she recently accepted an offer for a new job, projecting a $10,000 increase in her annual salary, providing the couple with some financial breathing space in the forthcoming months. Both of their entrepreneurial ventures are thriving, with expectations of continued growth. Tori intends to maintain her focus on her business full-time, while Amy plans to juggle hers alongside her 9-to-5 job.
“Sometimes I think that when we have really big challenges in life, we dance around it, but sometimes the solution is just to walk through the fire,” remarked Sethi. “We need to face the problem and just own it. Go straight at it.”
Reddit is aiming for a valuation of up to $6.5 billion in its forthcoming IPO, as indicated by a knowledgeable individual. The company intends to set the price of its IPO between $31 to $34 per share, as stated by the source. The Wall Street Journal was the first to disclose the anticipated range and valuation.
In February, Reddit filed for its public debut and plans to be listed on the New York Stock Exchange under the ticker symbol RDDT.
During the offering, employees will have the opportunity to sell Reddit stock, the source added. According to PitchBook, Reddit had a private market valuation of $10 billion when it last secured a funding round of $1.3 billion in 2021.
At the upper end of the range, Sam Altman’s shares in the company would exceed $400 million in value. Altman, the CEO of OpenAI, spearheaded a $50 million funding round into Reddit in 2014.
Sam Altman’s Reddit shares could value over $400 million at the top range. (Credits: New York Magazine)
He expressed in a blog post at the time that he had been a daily Reddit user for nine years and viewed the company as “an example of something that started out looking like a silly toy for wasting time and has become something very interesting.” Altman served on Reddit’s board from 2015 until 2022.
Other notable shareholders include Tencent and Advance Magazine Publishers, the parent company of publishing giant Condé Nast. Condé Nast acquired Reddit a year after tech entrepreneurs Alexis Ohanian and Steve Huffman founded the company, before spinning it out in 2011. In 2021, Reddit submitted a confidential draft of its public offering prospectus to the Securities and Exchange Commission.
According to its latest IPO prospectus, the company generated $804 million in annual revenue for 2023, marking a 20% year-over-year increase from $666.7 million. Its net loss decreased to $90.8 million for 2023 from $158.6 million the previous year.
Reddit’s non-employee forum moderators, referred to as Redditors, can participate in the upcoming IPO through the company’s “directed share program,” the filing stated. Similar programs, allowing community members or customers an opportunity to purchase shares at the IPO price, were offered by companies like Airbnb, Doximity, and Rivian.
The company plans to trade on the NYSE under the symbol RDDT; employees can sell shares.
Last summer, several prominent Reddit moderators restricted access to their communities, or subreddits, due to disagreements with the company’s plans concerning its application programming interface (API), which third-party developers use to build apps on the platform. The proposed change would have required some third-party developers to pay more to access Reddit’s API, based on their usage.
Reddit justified the API pricing changes, citing the usage of its data by tech companies training large language models similar to OpenAI’s GPT family of software.
The company is currently devising a data-licensing model to complement its core online advertising business, according to the filing. Google recently announced an expanded partnership with Reddit, granting it access to Reddit’s data.
Reddit’s debut on Wall Street coincides with a historically sluggish period for IPOs, partly due to concerns about interest rates and global economic uncertainty. Reddit’s IPO will mark the first significant tech offering of the year and the first social media IPO since Pinterest’s debut on Wall Street in 2019.
John Tuttle, the vice-chair of the New York Stock Exchange, expressed optimism about the IPO market in 2024 during an interview in January, stating, “We have a robust pipeline from across sectors and geographies.”
Jack Krawczyk, a Google artificial intelligence product lead, has withdrawn from social media platforms, such as X and LinkedIn, following the tumultuous debut of the company’s AI image generator, which subjected him to online harassment.
Krawczyk, who typically engages actively on social media, where he seeks user feedback and commends Google products and colleagues, has scrubbed identifying details and privatized certain accounts. Krawczyk holds the official position of senior director of product management for Gemini, the company’s primary suite of AI models.
Jack Krawczyk withdraws from social media amid AI image generator controversy, facing online harassment. (Credits: Fox Business)
Despite scaling back his public presence, Krawczyk remains involved in Gemini product development and retains his title, according to informed sources who preferred anonymity when discussing the matter.
Earlier this month, Google revealed an AI image generator as part of Gemini. This tool enabled users to input prompts for generating images, akin to text-based services like ChatGPT, which furnish nuanced responses and information.
In the days following the image engine’s launch, users unearthed historical inaccuracies that gained widespread traction online. Google responded by withdrawing the feature last week, with intentions to reintroduce it shortly.
Shortly before the product’s removal, Krawczyk became the first Google executive to address the issue on X, acknowledging, “We are aware that Gemini is producing inaccuracies in certain historical image renderings, and we are swiftly working to rectify this.”
On Tuesday, Alphabet CEO Sundar Pichai circulated a memo to staff denouncing Gemini’s image generation problems as “problematic,” asserting they “have aggrieved our users” and “exhibited bias,” deeming the situation “entirely unacceptable.”
By that time, Krawczyk had borne the brunt of criticism as past posts resurfaced. Detractors baselessly accused him of harboring an “anti-white” agenda and incorporated images of Krawczyk into their commentary. X CEO Elon Musk, a vocal critic of Google’s operations, amplified these voices on his platform, singling out Krawczyk.
Subsequently, Krawczyk eliminated images of himself and any identifying information from social media platforms.
Change Healthcare announced on Friday the completion of its new electronic prescription service setup, aiming to alleviate the strain on pharmacies and physicians grappling with the aftermath of the ongoing cyberattack.
Parent company UnitedHealth Group disclosed a cyber threat breach in part of its information technology network on February 21, leading to the immediate isolation and disconnection of affected systems upon detection. This disruption has caused widespread ripple effects across the healthcare sector.
Change Healthcare specializes in payment and revenue cycle management tools facilitating transactions between providers and major insurance companies, alongside providing electronic prescription software.
UnitedHealth Group launches a temporary funding program to assist providers with cash flow needs.
In a recent update, Change Healthcare confirmed the successful testing of a new iteration of its “Rx ePrescribing service” with vendors and retail pharmacy partners. The service became operational for all customers from 2 p.m. ET on Friday. However, existing Clinical Exchange ePrescribing provider tools remain inactive.
UnitedHealth also launched a dedicated website on Friday to provide information regarding Change Healthcare’s response to the cyberattack. The site includes details on a temporary funding assistance program established to aid providers facing interrupted payment distributions.
This program incurs no fees, interest, or associated costs, with repayment expected upon the resumption of standard operations. Providers can assess their eligibility via a link provided on the new website.
Cyberattack fallout prompts Change Healthcare to test and activate a new Rx ePrescribing service. (Credits: Pexels)
Recognizing the urgency of restoring payment operations, UnitedHealth underscored the program’s role in maintaining the flow of payments across the healthcare ecosystem. Notably, the program does not cater to providers experiencing disruptions in claims submissions. For such cases, manual workarounds are recommended, with efforts underway to address the 15% of claims beyond workaround capabilities.
UnitedHealth reported that over 90% of the nation’s pharmacies had implemented modified electronic claims processing workarounds, with the remaining establishments resorting to offline processing systems. As of Friday, data suggests that pharmacy claims are approaching normal levels of processing, according to the new website.
Despite experiencing 10 consecutive days of system downtime, UnitedHealth remains committed to resolving disruptions and restoring operational stability.
Alphabet’s Waymo robotaxi unit has received approval from the California Public Utilities Commission to expand its service to parts of Los Angeles and the Bay Area, as announced in a notice posted to the regulator’s website on Friday.
“Waymo may begin fared driverless passenger service operations in the specified areas of Los Angeles and the San Francisco Peninsula, effective today,” the release stated.
In mid-February, Waymo initiated a voluntary recall filing notice with the National Highway Traffic Safety Administration, aiming to address software issues. This recall was prompted by two previously undisclosed incidents in Phoenix on Dec. 11, where unmanned Waymo vehicles collided with the same towed pickup truck within minutes of each other.
Concerns arise over safety after Waymo’s recall due to collisions with a towed pickup truck. (Credits: Waymo)
These collisions exacerbated existing concerns about the use of autonomous vehicles in California. Competing taxi and transit service providers, along with labor activists, expressed worries about potential job losses for drivers. Meanwhile, safety advocates urged regulators and politicians to impede Waymo’s expansion in the state.
In February, the CPUC suspended Waymo’s expansion efforts for up to 120 days to allow for additional review time.
In its latest communication on Friday, the regulator approved Waymo’s new proposal, citing “Waymo’s updated Passenger Safety Plan (PSP), submitted in connection with its expanded operational design domain (ODD) for deployment,” which had also received approval from the California Department of Motor Vehicles.
Waymo’s progress in California contrasts with the exits of Cruise and Apple from autonomous vehicles. (Credits: Waymo)
“We’re grateful to the CPUC for this vote of confidence in our operations, which paves the way for the deployment of our commercial Waymo One service in Los Angeles and the San Francisco Peninsula,” remarked a Waymo spokesperson in a statement.
Waymo’s advancements in California follow the exits of General Motors-owned Cruise and Apple from the autonomous vehicle business in the state. Meanwhile, Elon Musk’s Tesla has yet to develop an autonomous vehicle capable of safely operating without a human driver at the controls.
Regulators in California halted the operations of self-driving Cruise robot axis in October after a series of incidents, including one where a robotaxi rolled over a pedestrian who had initially been hit by a human-driven car and was then pulled forward about 20 feet by the Cruise vehicle.
Waymo’s latest approvals enable the company’s robotaxis to operate in proximity to Tesla’s Palo Alto engineering headquarters in San Mateo County. This approval specifically applies to the commercial ride-sharing service Waymo One. The company has been deploying testing vehicles in these areas for several years.
The debt burden of the United States has been increasing at a faster rate in recent months, with approximately $1 trillion being added every 100 days.
According to data from the U.S. Department of the Treasury, the nation’s debt surpassed $34 trillion on January 4th, after briefly exceeding this milestone on December 29th. This marks a significant acceleration, considering it reached $33 trillion on September 15, 2023, and $32 trillion on June 15, 2023. Before this, the journey from $31 trillion to $32 trillion took about eight months.
Gold hits $2077/oz, Bitcoin at $67734; cryptocurrency records best month since 2020.
The U.S. debt, representing the funds borrowed by the federal government to cover its operational expenses, currently stands at nearly $34.4 trillion as of Wednesday. Michael Hartnett, an investment strategist at Bank of America, predicts that this pattern of a $1 trillion increase every 100 days will persist, with the debt likely moving from $34 trillion to $35 trillion.
“Little wonder ‘debt debasement’ trades closing in on all-time highs, i.e. gold $2077/oz, bitcoin $67734,” he wrote in a note Thursday.
Spot gold is currently hovering around $2,084 an ounce, while bitcoin was recently around $61,443. The cryptocurrency in February closed out its best month since 2020, briefly trading above $64,000 on Wednesday before pulling back. Inflows into crypto funds are on course for a “blowout year,” with an annualized inflow of $44.7 billion so far this year, Hartnett noted.
Moody’s lowers U.S. government rating outlook to negative, citing rising fiscal risks and deficits.
Moody’s Investors Service lowered its rating outlook on the U.S. government to negative from stable in November due to the rising risks of the country’s fiscal strength.
“In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues,” the agency said. “Moody’s expects that the US’ fiscal deficits will remain very large, significantly weakening debt affordability.”
Executives at OpenAI have responded to claims made by Elon Musk in a lawsuit filed on Thursday, disputing his assertions and suggesting that his legal action may stem from regret over his departure from the artificial intelligence startup.
In an internal memo seen by CNBC on Friday, OpenAI’s Chief Strategy Officer, Jason Kwon, expressed disappointment over Musk’s lawsuit, implying that it reflects his disappointment at no longer being part of the company. Kwon emphasized Musk’s integral role in founding OpenAI in 2015 and his subsequent departure from the board in 2018, noting Musk’s earlier warnings about the potential dangers of AI.
Elon Musk’s lawsuit against OpenAI sparks debate over its founding mission and corporate evolution.
Musk’s lawsuit targets Microsoft-backed OpenAI and its CEO, Sam Altman, among others, alleging a deviation from the company’s original mission of developing AI for the benefit of humanity. Since the public release of OpenAI’s ChatGPT chatbot in late 2022, the company has experienced significant growth, with a reported valuation exceeding $80 billion.
However, internal struggles, including Altman’s brief ousting from the board last year, have surfaced due to the company’s complex “capped-profit” structure. Musk’s legal team asserts his substantial financial contributions to OpenAI, totaling over $44 million between 2016 and September 2020, as well as his provision of initial office space and involvement in significant company milestones.
However, Kwon adds context to Musk’s involvement, noting instances where Musk sought full control and majority equity and proposed a merger with Tesla, which OpenAI deemed unsuitable for its mission.
The internal memo reveals OpenAI’s perspective on Elon Musk’s legal action and past involvement. (Credits: Unsplash)
Despite acknowledging Musk’s early contributions, Altman, in the memo, expresses admiration for Musk but emphasizes the company’s commitment to its mission.
While this lawsuit marks the first public confrontation between Musk and OpenAI, tensions have existed for some time. Notably, Tesla hired OpenAI co-founder Andrej Karpathy, who later returned to OpenAI in 2023. Musk has also publicly criticized OpenAI’s transformation into a for-profit entity, questioning its alignment with its original open-source mission.
Kwon maintains OpenAI’s independence and dedication to ensuring that artificial general intelligence benefits humanity as a whole. As of now, no response has been provided by Musk’s legal representatives.
British telecommunications giant BT has announced its anticipation to roll out its inaugural stand-alone 5G network in 2024. Howard Watson, BT’s chief technology officer, revealed to CNBC that the telco group is poised to activate its stand-alone 5G network, also known as “true” 5G, later this year.
“Others are talking about it. They’re talking about it. But we are working to get the right ecosystem in place, which means the right set of devices,” Watson expressed in an interview with CNBC at the Mobile World Congress tech trade show in Barcelona, Spain.
This development follows a trial conducted by the company in collaboration with Swedish telco infrastructure firm Ericsson and chipmaking giant Qualcomm, showcasing network “slicing.” Network slicing involves configuring the network to allow the creation of multiple networks on the same common physical network infrastructure.
“We’ve already been ensuring that the SIM cards that our customers have in their current 5G devices can do 5G stand-alone,” Watson elaborated. “And so once we think there’s enough critical mass to have a real proposition, with some slicing behind it as well, we will launch that, and that will be later this year.”
As of now, rival U.K. carriers Vodafone and Virgin Media O2 have already activated 5G stand-alone solutions, while BT’s EE, the U.K.’s largest mobile network, is yet to unveil its stand-alone network. Its launch is contingent upon the forthcoming release of Apple’s new iPhone 16, expected to support 5G stand-alone in Europe upon its autumn debut.
What is a ‘5G stand-alone’?
5G stand-alone would provide users with a dedicated portion of the network, offering specific bandwidth and latency commitments. Each network slice acts as an isolated segment of the network tailored to meet the requirements of a particular application.
For instance, gamers seeking ultra-low latency for competitive online play could leverage 5G stand-alone to achieve latency as low as nine to 10 milliseconds, akin to what they experience with a direct connection to their home via HTTP.
Network slicing showcases multiple networks on shared infrastructure, enhancing efficiency and customization.
Latency is crucial for gamers as it directly impacts response times. Higher latency results in more noticeable lag during gameplay, leading to a less fluid gaming experience. “You may not want that 24 hours, seven days a week,” Watson explained. “So we might have a really flexible pricing mechanism that says you can have that from 6 p.m. to 8 p.m.”
“Bringing it to life in propositions for customers is how we will market it rather than with, come and buy some ‘stand-alone,’” he added. Milind Kulkarni, vice president and head of InterDigital’s wireless labs, emphasized that network slicing is just one step in a series of technological advancements leading to the evolution of 5G Advanced, an enhanced version of the 5G network.
“5G offers a fantastic platform with a lot of capability to support many use cases, and we have to continue our focus in enabling more vertical markets and increasing its capabilities as we march through 5G Advanced,” Kulkarni told CNBC.
However, it’s important to note that 5G stand-alone differs from 5G Advanced. While 5G stand-alone pertains to the development of a 5G network independent of 4G cores, 5G Advanced represents a comprehensive evolution of the network. BT and other network operators view 5G stand-alone as a means to generate additional revenue from the next-generation networks they began deploying approximately five years ago.
Does 5G have a future?
Undoubtedly, 5G plans come with a higher price tag compared to 4G.
However, consumers have been grappling with the perceived value of 5G, particularly considering that its speed improvements over 4G are often seen as only incremental. This challenge is compounded by the fact that many regions in the U.K. and other developed countries still lack widespread 5G connectivity.
To kickstart the implementation of 5G stand-alone networks, network operators are reliant on smartphone manufacturers like Apple and Samsung to equip their devices with stand-alone capabilities.
Apple’s potential integration of stand-alone capabilities in the next iPhone could shape the 5G landscape. (Credits: Unsplash)
According to Watson, Apple has yet to do so in Europe, leaving him in anticipation of the next iPhone release to see if the tech giant will integrate stand-alone readiness into its smartphones.
In 2023, BT’s consumer business underwent a significant rebranding initiative, with a primary focus on introducing a comprehensive suite of services. This move addresses an area where telecom companies have historically struggled to match the scale of digital behemoths like Meta, Google, Apple, and Amazon.
As the leading telecom company in the U.K., BT operates both fixed and wireless networks nationwide. Its consumer division commands approximately 30% market share in broadband and mobile services, while its enterprise segment caters to larger business clientele. Since its acquisition in 2016 for £12.5 billion ($15.8 billion), BT has been overseeing the EE mobile network.
The healthcare industry has continually added jobs throughout the last year, averaging 58,000 jobs per month in 2023, according to the Bureau of Labor Statistics. In January 2024, the industry added 70,000 jobs in ambulatory healthcare services, hospitals, and nursing and residential care facilities.
It makes sense, then, that when six-figure jobs site Ladders looked into its jobs with the most listings that pay $200,000 or more, many positions were in the healthcare field. The job with the most listings altogether: is family practitioner. Family practitioners give physical exams and prescribe medication Family practitioners go by multiple names. They’re also called general practitioners, family doctors, and physicians.
These doctors give physical exams, order tests and examine results, update patient charts, prescribe medication, order consultations with other medical specialists, counsel patients on preventative health care and day-to-day habits like diet, and more. They work in hospitals as well as nonclinical settings like government agencies and nonprofits.
Family practitioner tops job listings for $200,000 or more annually. (Credits: Pexels)
The path to becoming a physician is a long one. Medical doctors must get a bachelor’s degree, attend medical school, and do a residency, the latter of which alone can last three to nine years. They must then get licensed by their state.
The path is also expensive: The median cost of attending a four-year medical school in 2024 is $276,006 for public schools and $374,476 for private schools, according to the Association of American Medical Colleges.
Their eventual salaries can help pay back those costs. Family practitioners make a median annual salary of $229,300, according to BLS.
It will be ‘a top high-paying job for decades to come’ One reason family practitioners are so sought after at the moment is the aging baby boomer population. By 2030, the estimated 73 million members of the generation will be 65 or older, according to the Census Bureau.
The aging baby boomer population escalates the need for skilled healthcare professionals. (Credits: Pexels)
“As this significant segment of the population grows older, their need for healthcare services, particularly those addressing noncommunicable and chronic conditions, escalates,” says John Mullinix, head of growth marketing at Ladders. “This demographic shift necessitates a greater number of compassionate and skilled health-care professionals to provide the comprehensive care required.”
Another factor that plays into this demand could be the general shortage of healthcare professionals, in part spurred by an ongoing exodus from the field, according to McKinsey.
“I expect health care will remain a top high-paying job for decades to come,” says Mullinix. Other in-demand jobs that pay $200,000 or more include dentist, principal software engineer, and psychiatrist, according to Ladders.
Approximately half of European companies fell short of earnings expectations in the most recent reporting season, despite analysts’ already modest projections. Analysts foresee ongoing challenges for the region, particularly in light of elevated interest rates.
As of February 29, with 313 companies having disclosed their earnings, 50.2% exceeded expectations, according to CNBC’s analysis of FactSet data. This marked the lowest proportion of companies surpassing expectations—indicating the most challenging earnings season—since the first quarter of 2020, coinciding with the initial impact of the pandemic on European businesses.
Breaking down the performance by sector, materials, consumer discretionary, and health care emerged as among the weakest sectors in the final quarter of 2023. Conversely, technology and utilities stood out with the highest proportion of companies surpassing expectations, according to FactSet data.
Edward Stanford, Head of European Equity Strategy at HSBC, emphasized to CNBC on Monday that such a low level of companies surpassing expectations hasn’t been observed in quite some time. He noted that the disappointment has been widespread across various sectors.
Record-high inflation and energy crisis spark share buyback trend among European corporates. (Credits: Pexels)
Philippe Ferreira, Deputy Head for Economy and Cross Asset Strategy at Kepler Cheuvreux, outlined some factors contributing to these disappointing results. He cited a sluggish macroeconomic environment in Europe, with GDP growth hovering around 0% in the third and fourth quarters. Additionally, certain companies faced challenges due to their significant exposure to China, which is grappling with deflation and subdued consumer demand. For instance, L’Oreal encountered hurdles in this regard.
Europe’s statistics office data revealed a 0.1% contraction in the European economy in the third quarter. However, in the fourth quarter, the region’s GDP experienced a modest 0.1% expansion, thereby avoiding a technical recession, defined as two consecutive quarters of economic contraction.
The European economy has encountered a myriad of challenges, exacerbated by the reverberations of Russia’s full-scale invasion of Ukraine. This incursion triggered an energy crisis across the region, leading to record-high inflation. Consequently, the bloc is contending with historically elevated interest rates set by the European Central Bank, rendering it costlier for companies to secure new financing.
A notable trend observed during this earnings season, as highlighted by Sharon Bell, Senior European Strategist at Goldman Sachs, is the surge in share buyback announcements among European corporates.
Analysts foresee continued pressure on European corporate earnings due to growth slowdown and weak demand. (Credits: Pexels )
“What you have seen is a lot of companies announcing buybacks,” Bell remarked during an interview on CNBC’s “Squawk Box Europe” on Tuesday. She explained that buybacks involve firms repurchasing their shares, thereby reducing their availability in the market, which in turn tends to bolster their price and offer a boost to existing shareholders.
“It is huge, you’ve never really seen this before in 20, 30 years; European companies pay dividends, they don’t do buybacks,” she noted.
Several prominent European stocks, including Shell, Deutsche Bank, Novo Nordisk, UBS, and UniCredit, unveiled plans for share buybacks in 2024. Bell outlined several factors driving this trend, noting that “earnings in the last few years have been reasonably good, they have good balance sheets,” and highlighting that “there aren’t a lot of buyers for European shares.”
Despite this buyback surge, analysts express pessimism regarding a turnaround in the next reporting season. “We believe European corporate earnings might continue to be under pressure for the very same reasons, namely a growth slowdown and the lack of monetary policy support, on top of weak domestic consumer demand,” remarked Ferreira.
“We expect nonetheless a significant divergence between those companies exposed to U.S. consumers or to fast-growing emerging markets, more positive and those whose revenues are less diversified geographically,” he added.
Elon Musk has initiated legal action against Microsoft-backed OpenAl and its CEO, Sam Altman, along with others, asserting that they have veered away from the organization’s original mission to develop artificial intelligence (AI) “for the benefit of humanity broadly.”
In a lawsuit filed on Thursday in a San Francisco court, Musk’s legal team claimed that the tech mogul was approached in 2015 by Altman and OpenAI co-founder Greg Brockman with the proposal to establish a nonprofit laboratory dedicated to advancing artificial general intelligence (AGI) for the betterment of humanity.
ChatGPT’s explosive growth signals AI chatbot dominance, sparking competition among tech giants.
Having been a co-founder of OpenAI in 2015, Musk resigned from the board of the organization in 2018, after previously expressing concerns about the potential dangers of AI, stating that it is “potentially more dangerous than nukes.”
Clash of Tech Titans in AI Legal Battle
The lawsuit filing stated, “To this day, OpenAI, Inc.’s website continues to profess that its charter is to ensure that AGI benefits all of humanity. In reality, however, OpenAI, Inc. has been transformed into a closed-source de facto subsidiary of the largest technology company in the world: Microsoft.”
According to Musk’s legal team, OpenAI’s shift towards maximizing profits for Microsoft contradicts the initial agreement.
Musk’s Neuralink advancements and xAI launch contrast with Altman’s rocky OpenAI relationship.
“Under its new Board, it is not just developing but is actually refining an AGI to maximize profits for Microsoft, rather than for the benefit of humanity,” the filing asserted.
The lawsuit submitted by Musk aims “to compel OpenAI to adhere to the Founding Agreement and return to its mission to develop AGI for the benefit of humanity, not to personally benefit the individual Defendants and the largest technology company in the world.”
Microsoft, currently under scrutiny from EU antitrust regulators over its reported $13 billion investment in OpenAI, recently unveiled a new partnership with French start-up Mistral AI.
The U.S. tech giant announced on Monday its investment in Mistral AI, often seen as Europe’s counterpart to OpenAI, aiming to facilitate “new commercial opportunities” and global market expansion.
Maserati’s premier GranCabrio convertible since 2019 is anticipated to hit the U.S. market this summer, boasting a staggering top speed of nearly 200 miles per hour and an anticipated six-figure price tag that’s bound to make an impression.
Derived from the Maserati GranTurismo Trofeo sedan currently retailing from $190,000, this sports car shares the same 3.0-liter twin-turbo V6 engine, generating an impressive 542 horsepower and 460 foot-pounds of torque, as confirmed by the manufacturer.
Stellantis-owned Maserati has disclosed that the pricing for the convertible variant will be disclosed closer to its market availability—a customary practice as convertibles typically command higher prices than their hardtop counterparts.
Maserati’s newest GranCabrio: Top speed near 200 mph, anticipated six-figure price.
The 2024 GranCabrio could prove instrumental in bolstering Maserati’s profits and sales for the year. Despite experiencing marginal upticks in revenue and sales in 2023, the Italian performance automaker saw its adjusted operating income dip by 30% from the previous year, amounting to 141 million euros, or $152.9 million.
In terms of aesthetics, the exterior of the vehicle, akin to its hardtop counterpart, exhibits a less aggressive demeanor, characterized by smoother design lines compared to its predecessor.
Inside the four-seater GranCabrio, which was unveiled online Thursday, one can expect sporty aesthetics, luxurious amenities, and an array of digital screens and gauges.
Equipped with a 3.0-liter twin-turbo V6 engine, generating 542 horsepower.
Additionally, the car comes equipped with an “innovative neck warmer” as a standard feature for the front driver and passenger seats, ideal for combating chilly temperatures. Functioning by emitting warm air directly from the seats at three different intensity levels, this feature adds to the vehicle’s allure.
As the latest iteration of the GranCabrio, which debuted as a nameplate in 2009, this model could potentially mark the swan song for gas-powered versions of the iconic drop-top. Maserati has outlined plans to transition exclusively to electric vehicles by 2028.
Nevertheless, with some automakers facing slower-than-anticipated EV sales, several have opted to delay or scale back their investments.
Norway proudly holds the title for the highest electric vehicle adoption rate globally. According to the Norwegian Road Federation (OFV), a remarkable 82% of new car sales in Norway in 2023 were electric vehicles (EVs).
In stark contrast, estimates from Kelley Blue Book indicate that only 7.6% of new car sales in the United States were electric last year. Meanwhile, in China, the world’s largest auto market, 24% of new car sales in 2023 were EVs, as reported by the China Passenger Car Association.
Abundant hydropower makes electric cars in Norway one-third the cost of gasoline vehicles.
“Our goal is that all new cars by 2025 will be zero-emission vehicles,” stated Ragnhild Syrstad, the state secretary of the Norwegian Ministry of Climate and Environment. “We believe we’re on track to achieve that goal.”
The Norwegian government initiated incentives for EV purchases back in the 1990s, offering benefits such as free parking, access to bus lanes, toll exemptions, and crucially, zero taxes on zero-emission vehicles.
However, it wasn’t until about a decade ago, with the introduction of Tesla and other EV models, that sales truly started to surge, noted Syrstad.
Oslo transforms with electrified ferries, buses, and charging stations, paving the way for sustainability.
Furthermore, Norway’s capital, Oslo, is making strides in electrifying various modes of transport, including ferries, buses, semi-trucks, and even construction equipment.
Gas pumps and parking meters are being replaced by charging stations, painting a picture of an electric utopia in the making. Norway’s grid has thus far managed the influx of EVs smoothly, thanks to its abundant hydropower resources.
“Electric cars are perhaps a third of the price of gasoline cars because we rely on close to 100% hydropower. It’s cost-effective, readily available, and renewable. That’s a significant advantage,” explained Petter Haugneland, the assistant secretary general of the Norwegian EV Association.
