Apr 21, 2024
Welcome to Bespoke Brunch Reads — a linkfest of the favorite things we read over the past week. The links are mostly market-related, but there are some other interesting subjects covered as well. We hope you enjoy the food for thought as a supplement to the research we provide you during the week.
While you’re here, join Bespoke Premium with a 30-day trial!
On This Day in History:
The Surgeon’s Photograph: On April 21st, 1934, 90 years ago today, the Daily Mail published the “Surgeon’s Photograph” depicting the Loch Ness Monster. Captured by Dr. Robert Kenneth Wilson, a London gynecologist, the photograph showed what looked like the head and neck of a serpent-like creature emerging from the waters of Loch Ness in Scotland. For decades, the picture captivated the public and fueled speculation about the existence of a mysterious aquatic creature. Depending on your perspective, fortunately, or unfortunately, a hoax. The photograph is really a toy submarine attached to wood putty in the shape of a sea serpent’s head, but tough to tell in a low-quality photo from the thirties! We’ve come a long way with media and image quality, especially with smartphones and the introduction of AI. So, how tough would it be to pull something like this off today?
Microsoft’s AI Copilot Is Starting to Automate the Coding Industry (Bloomberg)
Microsoft’s AI Copilot, developed by GitHub using OpenAI’s GPT-4 technology, is revolutionizing the coding industry by automating routine tasks and allowing software engineers to focus on more complex problems. The ability to complete and translate code across programming languages is saving engineers hundreds of hours each month. This tool has garnered over 1.3 million users, including businesses like Goldman Sachs and Ford, helping GitHub stay competitive against rivals like Amazon and Google. Despite its benefits, Copilot still has limitations, such as occasionally generating outdated or buggy code, and requires careful usage by developers. [Link]
Crucial connection for ‘quantum internet’ made for the first time (Phys.org)
Researchers have successfully produced, stored, and retrieved quantum information for the first time. Quantum information is a bit like the data stored in your computer but operates under the rules of quantum mechanics, which allows it to behave in ways that regular computer data can’t. This breakthrough overcomes a big hurdle. Usually, quantum information gets lost or degrades when sent over long distances, just like a phone call might drop out in a tunnel. By using devices compatible with each other, information can be sent through existing telecom fibers, showing that it’s possible to build networks that can effectively handle this special type of information. [Link]
If you’ve got an EV, Google Maps is about to become much more valuable (Washington Post)
Google has announced updates to its Maps app to improve support for EV drivers, including a new tool to locate nearby charging stations with real-time availability and charging speeds. If you drive an EV, you know that “range anxiety” can be a real thing. Well, the updates also feature route planning for long trips with integrated charging stops and detailed navigational aids for locating chargers in complex places like parking garages and hotels. [Link]
Google who? Gen Z is searching on TikTok, YouTube instead (Axios)
Gen Z is turning its back on Google Search and instead using social media platforms like TikTok and Reddit for searches. This shift highlights their preference for quick, relatable content and their skepticism towards Google’s algorithm, which often prioritizes sponsored content. While Google still leads in overall search usage, the trend among younger users (18-24 years old) suggests a significant change in how information is accessed online. Have you tried some of the AI features out there in place of Google like ChatGPT, Snapchat’s AI, or even Meta’s brand-new Llama 3? [Link]
Meta adds its AI chatbot, powered by Llama 3, to the search bar across its apps (TechCrunch)
Speaking of Meta’s brand-new Llama 3, the social media giant has integrated its latest language model into the search functionalities of its primary apps including Facebook, Messenger, Instagram, and WhatsApp. Alongside this, Meta has introduced a new website, meta.ai, for easier access to its AI chatbot, and added features like faster image generation and the ability to transform images into GIFs. However, the widespread use of AI across its platforms raises concerns about content moderation, given the potential for AI to generate misleading responses. [Link]
Jamie Dimon Has a New Vision for Money in an AI World (BNN Bloomberg)
JPMorgan’s CEO, Jamie Dimon, envisions a future where AI enhances every aspect of the banking industry from trading, research, equity hedging and customer service, often as a “co-pilot.” Comparing AI’s impact to historical innovations like the printing press and electricity, JPMorgan is integrating AI to boost productivity and improve the quality of life for workers, but some jobs will be lost according to Dimon. Despite the push for a financial “super app” similar to those in China, Dimon foresees a trend towards multiple specialized apps in the US. When it comes to picking stocks though, Dimon doesn’t see AI being able to replace humans and pick flawlessly. [Link]
Wait, When Did the Schlubs of Silicon Valley Learn to Dress? (WSJ)
The tech industry has been known for its “disruptive” persona embodied by the style choices of executives like Mark Zuckerberg and Jeff Bezos. Meta’s CEO, Zuckerberg, has long opted for a look that is about as dressed down as it gets, but recently, he’s been appearing in much more conventional and refined attire for those of his status. Perhaps the change in appearance has to do with increased competition and regulatory issues in the tech industry. TikTok’s Shou Zi Chew and Nvidia’s Jensen Huang are going for more mature and respectable styles as well, as a more polished appearance could help project stability and professionalism. [Link]
Environmental
Dubai’s Extraordinary Flooding: Here’s What to Know (New York Times)
Recent heavy rains in the United Arab Emirates and Oman have caused unprecedented flooding, leading to at least 21 deaths, submerged vehicles, clogged highways, and severe disruptions at Dubai’s airport. Despite the Arabian Peninsula’s low annual rainfall, it often comes in severe bursts, and global warming could make such extreme downpours more frequent and intense. The UAW also employs cloud seeding, a process that attaches tiny particles to clouds to enhance rainfall, but its impact on these specific storms remains unclear. The flooding of cities in arid regions like Sharjah shows how they are often ill-prepared for so much rainfall, lacking adequate drainage systems. [Link]
Record breaker! Milky Way’s most monstrous stellar-mass black hole is sleeping giant lurking close to Earth (Video) (Space.com)
The Milky Way has revealed a new stellar-mass black hole, discovered close to Earth and named Gaia-BH3. Found using the European space telescope Gaia, this black hole is 33 times the mass of our sun and is just 2,000 light-years away, making it the second-closest black hole to Earth ever discovered. Unlike the supermassive black holes, Gaia-BH3 formed from the collapse of a massive star, offering unique insights into the population of dormant stellar black holes in our galaxy. [Link]
Economic Trends
Million-Dollar Analyst Jobs at Risk in China Research Pullback (Yahoo Finance)
Due to a prolonged market downturn and stricter regulations in China, firms are cutting costs by reducing staff, slashing bonuses, and imposing stricter performance metrics. For example, Guotai Junan Securities saw several senior analysts resign rather than accept pay cuts, and another brokerage in Shenzhen laid off 40% of its analysts. That’s a sharp U-turn from previous years when brokerages were expanding and offering high salaries to attract top talent. Additionally, policy changes that reduce trading fees and restrict paid research have further pressured the industry. These challenges are compounded by a general wariness among investors toward Chinese stocks, leading to a decreased demand for equity research. [Link]
Investments
The Headache at the End of the Costco Gold Rush (WSJ)
We’ve discussed the Costco gold bars here before, but selling them proves to be much more challenging than buying them. One buyer bought a gold bar for $2,000 and struggled to sell it close to market value, eventually settling for $1,960. Despite high consumer interest in gold as a hedge against inflation, the reality is that gold is not very liquid, and sellers often face immediate losses due to transaction fees and market discounts, nor does Costco offer buybacks or returns on its gold bars! [Link]
Read Bespoke’s most actionable market research by joining Bespoke Premium today! Get started here.
Have a great weekend!
Apr 4, 2024
See what’s driving market performance around the world in today’s Morning Lineup. Bespoke’s Morning Lineup is the best way to start your trading day. Read it now by starting a two-week trial to Bespoke Premium. CLICK HERE to learn more and start your trial.
“I really had a lot of dreams when I was a kid, and I think a great deal of that grew out of the fact that I had a chance to read a lot.” – Bill Gates
Below is a snippet of commentary from today’s Morning Lineup. Start a two-week trial to Bespoke Premium to view the full report.
While the S&P 500, Nasdaq, and Russell 2000 all managed to post gains yesterday, the DJIA closed lower for its third day in a row. That streak may come to an end today, though, as futures are higher across the board. The only notable data point of the morning was jobless claims. Initial claims came in higher than expected (221K vs 214K) and hit the highest level since late January while continuing claims fell back below 1.8 million versus forecasts for a reading just above that level (1.791 mln vs 1.810 mln). Besides the employment data ahead of tomorrow’s jobs report, there are also a ton of Fed speakers on the calendar today, so by the end of the day we should have a much better idea of the prospects of a June rate cut, which currently stands at just about a coin flip.
Happy Birthday to the “Blue Screen of Death”. The world’s largest company, Microsoft (MSFT), turns 49 years old today as it was founded on this day in 1975 in Albuquerque, NM by Paul Allen and Bill Gates. Of the six US publicly traded companies with trillion-dollar market caps, MSFT is the oldest followed by Apple (AAPL) which was founded nearly two years to the day later. The chart below of the Nasdaq shows the dates that each member of the trillion-dollar club was founded.
It’s interesting to note that not even one of the largest US companies is 50 years old. The youngest of the six is Meta Platforms (META), but it won’t be legal to toast its membership for another ten months as it only turned twenty two months ago. People will tell you that while the 1980s were a lot of fun, not much good came out of them, and that’s also the case with the largest companies. After AAPL was founded in 1976, there was a 17-year lull before the next member, Nvidia (NVDA), was founded in 1993. Just over a year after that, Amazon.com (AMZN) was founded in 1994. That was the same year that Katie Couric, Bryant Gumble, and Elizabeth Vargas asked each other, “What is internet?”. Look who’s laughing now!
Read today’s entire Morning Lineup.
For more analysis of global equities and economic readings released this morning, read today’s full Morning Lineup with a two-week Bespoke Premium trial.
Mar 17, 2024
Welcome to Bespoke Brunch Reads — a linkfest of the favorite things we read over the past week. The links are mostly market-related, but there are some other interesting subjects covered as well. We hope you enjoy the food for thought as a supplement to the research we provide you during the week.
While you’re here, join Bespoke Premium with a 30-day trial!
On This Day in History:
Sláinte!: March 17th marks the death of St. Patrick. Born in Britain around the end of the 4th century, he was kidnapped by Irish raiders when he was in his teens and taken as a slave. He eventually escaped slavery and returned to his family, but then went back to Ireland as a Christian missionary where he helped convert the Irish to Catholicism while building churches, schools, and monasteries across the country. What began as a religious feast day in honor of St. Patrick has become a global celebration of Irish culture and heritage, symbolized by the color green and the three-leaved shamrock that St. Patrick used to explain the Holy Trinity. The first St. Patrick’s Day celebrations were actually in America, specifically when Irish soldiers serving in the English military marched through New York City in 1762. Today in Chicago, the city famously dyes its river green.
These Kids Made Their Influencer Parents Wealthy. Will They See a Dime of That Money? (Cosmopolitan)
Growing up as a child influencer, Vanessa’s life was intertwined with her mother’s blog and social media ventures, with no financial compensation for her efforts. Despite contributing to her family’s income through brand deals and content creation, Vanessa discovered at 18 that she had no earnings set aside for her. This story discusses the “sharenting” industry, where children’s contributions to family vlogging businesses often go unrewarded. The only state that offers legal protection for child influencers’ earnings is Illinois. [Link]
A waste of time and money (Klement on Investing)
Following “finfluencers,” or financial influencers, might not be such a good idea if you’re taking their investment advice. According to one study, on average, investors following these finfluencers underperformed the market by 0.35% per month, translating to an annualized underperformance of 4.1%. While a minority of top-performing finfluencers outperformed the market significantly, a substantial portion exhibited “antiskill,” meaning their recommendations resulted in statistically significant negative returns. Interestingly, the study found that those with the most followers were more likely to offer poor advice, suggesting that popularity on social media platforms might not correlate with financial acumen. [Link]
YouTube TV Is Thriving in the Cable Replacement Space as a ‘One-Stop Shop’ for Consumers (Yahoo Entertainment)
YouTube has emerged as a formidable contender in the streaming landscape, surpassing major streamers like Netflix in total TV viewing share. With its YouTube TV subscription service, YouTube is also challenging traditional cable giants, boasting 8 million subscribers in 2023, nearly double that of its closest competitor, Hulu + Live TV. Importantly, YouTube has captured loyalty with Millennials and Gen Z as it offers its traditional creator channels alongside its TV options which inlcude live sports like the NFL Sunday Ticket package. With streaming services fighting over channels and popular names that often rotate in and out, viewers have become fed up with the number of services they need to pay for to get everything they want. [Link]
American Debt Stings Like Never Before in New Era for Households (Yahoo Finance)
US families, already strained by inflation, are now grappling with the cost of debt due to rising interest rates. This has led to higher delinquency rates and increased financial burdens. The Federal Reserve’s rate hikes have pushed up the cost of consumer borrowing, intensifying economic pressures on households. This situation affects consumer sentiment and may impact political dynamics, as financial stability becomes a crucial issue for Americans in this election year. The resumption of student loan payments after the pandemic-era pause is another stress point for those who can’t even fund a savings account because they are living paycheck to paycheck. [Link]
IKEA slashes prices on products as transportation and materials costs ease (USA Today)
IKEA is reducing prices on numerous products in various countries and plans further cuts in 2024, due to positive economic developments and cheaper raw materials. This strategy, aimed at making quality design more accessible, follows efforts to decrease operational costs and enhance efficiency. The initiative started in Europe, leading to increased customer numbers and sales. Ingka Group, IKEA’s largest store owner, is investing in these price reductions to adjust prices to pre-pandemic levels by the end of the next year. [Link]
Airlines Want to Stop ‘Travel Hack’ JSX From Luring Rich Flyers Away (Yahoo News)
JSX, a Dallas-based carrier, has revolutionized air travel for business travelers by offering the convenience of a chartered plane at near business class prices, thanks to creative use of regulatory loopholes that involves operating two companies that work together to schedule flights and sell tickets while avoiding the stringent safety and security requirements that apply to larger scheduled flights. JSX now operates nearly 35,000 flights over 48 routes and still maintains a strong safety record. It is also considering expansion into hybrid electric planes. JSX says that bigger airlines are trying to put it out of business as they struggle to recover corporate travelers from the pandemic. [Link]
AI & Technology
Why Walmart’s quick success in generative AI search should have Google worried (CNBC)
Walmart is using AI to transform its app into a comprehensive solution for event planning and therefore reducing the need for multiple online sources or reliance on search engines like Google. Walmart CEO Doug McMillon spoke about the search capability improvements within the retailer’s app thanks to generative AI, which helps customers find exactly what they are looking for more efficiently. Other companies are investing in the technology as well, like “Ask Instacart” which allows users to search by theme rather than specific items. Amazon and Shopify are other examples. This trend has begun to emerge amid Google’s own recent issues with Gemini. [Link]
Doctors using the Apple Vision Pro for surgery is now a thing (Quartz)
If people walking around town wearing the headset wasn’t unsettling enough, at London’s Cromwell Hospital, the $3,500 Apple Vision Pro played a crucial role in two spinal surgeries. The device wasn’t worn by the doctors but by a scrub nurse who utilized it to display virtual screens for selecting tools and tracking the surgery’s progress. This integration of VR technology in surgical procedures, developed in collaboration with eXeX for AI-driven surgical apps, is hailed as game-changing by the medical team. Apple’s Vision Pro is also being used for surgical planning, training, and medical education through apps like myMako, Fundamental Surgery, and Complete HeartX. [Link]
China using AI to run world’s largest high-speed railway system (Interesting Engineering)
China has the largest high-speed rail network in the world, spanning 45,000 kilometers. It’s now using AI. Managed from Beijing, the AI system boasts an accuracy level of 89% and significantly enhances the efficiency and safety of the rail network by processing vast amounts of data in real time, enabling maintenance teams to swiftly address any irregularities. This technological advancement has led to an 80% reduction in minor track faults and eliminated major track irregularity warnings, contributing to the high-speed rail’s status as the fastest in the world. As China aims to extend its high-speed rail to connect all cities with populations over 500,000, the use of AI in rail management will be even more important. [Link]
Health & Wellness
Experimental weight loss pill seems to be more potent than Ozempic (New Scientist)
Weight loss drugs have been a spark plug for stocks like Eli Lilly (LLY) and Novo Nordisk (NVO), the makers of Mounjaro, Zepbound, Ozempic, and Wegovy. Now, an experimental pill called Amycretin has shown promising early trial results, causing significant weight loss—13% over three months. That surpasses the effects of injectable treatments such as the aforementioned. Amycretin mimics both the GLP-1 and amylin hormones, potentially offering a more potent weight loss solution compared to the current options. However, its long-term effectiveness and safety remain to be fully evaluated. The pill form could be particularly appealing for those averse to injections. [Link]
Why the Y chromosome is vanishing and what this means for the future (The Week)
The Y chromosome, essential for determining male sex in humans, has lost the majority of its original genes over millions of years. Unlike the X chromosome, the Y chromosome lacks genetic recombination, which helps eliminate harmful mutations, leading to its rapid degradation. Researchers suggest that if the Y chromosome were to disappear, it could result in the extinction of humans or the emergence of new human species with different sex determination systems. Others say that the Y chromosome has developed characteristics to preserve its function. [Link]
‘Alarming’ rise in Americans with long Covid symptoms (The Guardian)
A CDC survey reveals that 6.8% of American adults are currently experiencing long-Covid symptoms. That’s a big increase and has sounded the alarm among “experts”. Following a major surge in infections, the majority of long Covid sufferers report a significant impact on daily activities. The rise in cases is now estimated at 17.6 million Americans. [Link]
No such thing as ‘long COVID,’ health agency says in shocking claim: ‘Unnecessary fear’ (New York Post)
Contrary to the last article, long Covid doesn’t exist at all. Researchers say that the term instills unnecessary fear and isn’t markedly different from post-viral symptoms of other illnesses like the flu. Their study surveyed over 5,000 individuals, finding no significant difference in the severity of post-viral symptoms between those who tested positive for COVID-19 and those who didn’t, or those who had the flu. The discrepancy between findings in these two articles demonstrates the need for further research into post-viral syndromes. [Link]
Environmental
Where Heat Pumps Win — And Where They Lose (Heatmap News)
Researchers at the National Renewable Energy Lab (NREL) found that heat pumps are a cost-effective option for roughly 65 million U.S. homes, or 60% of the country, even before accounting for subsidies. The study considers various factors including home types, local climates, and energy prices, and determined that heat pumps can lower greenhouse gas emissions immediately in all 48 contiguous US states. However, the up-front costs of high-efficiency heat pumps may be prohibitive for many, regardless of the possibility for long-term utility bill savings. Incentives and advancements in heat pump technology could make these systems more accessible and financially viable for a broader range of households. [Link]
It’s Official: America Is Experiencing a Solar Power Explosion Unmatched in History (Popular Mechanics)
The Solar Energy Industries Association reported that the US added 32.4 gigawatts of solar capacity in 2023, the most in a single year. It also represents 52% of all new energy capacity. This growth was propelled by the Inflation Reduction Act’s clean energy incentives and the completion of delayed projects. Texas and California led the expansion which is expected to continue. [Link]
Privacy & Security
Automakers Are Sharing Consumers’ Driving Behavior With Insurance Companies (NYT)
Kenn Dahl experienced an unexpected 21% increase in his car insurance premium, despite being a careful driver with no accident history. Later he found out that it was because his LexisNexis report, which detailed every trip made in his Chevrolet Bolt over six months, including data on speeding, hard braking, and rapid accelerations, provided by General Motors. Automakers and data brokers collect driving data to offer personalized insurance rates. While some programs are voluntary and require driver consent, concerns have arisen about privacy, the clarity of consent, and the potential for increased insurance costs without explicit knowledge. [Link]
How TikTok Was Blindsided by U.S. Bill That Could Ban It (WSJ)
Despite previous signs of stability, including President Biden himself joining TikTok, behind-the-scenes efforts in Washington were aiming to either ban TikTok or force its sale due to concerns over its Chinese ownership and the perceived risks to national security. The proposed legislation, gaining momentum after concerns over TikTok videos related to the Israel-Hamas conflict, represents the most significant threat to TikTok’s operations in the US to date. TikTok has been mobilizing its user base to push back against the legislation, despite facing backlash from lawmakers for this approach. [Link]
Cities to Cities
Automakers Are Sharing Consumers’ Driving Behavior With Insurance Companies (NYT)
Kenn Dahl experienced an unexpected 21% increase in his car insurance premium, despite being a careful driver with no accident history. Later he found out that it was because his LexisNexis report, which detailed every trip made in his Chevrolet Bolt over six months, including data on speeding, hard braking, and rapid accelerations, provided by General Motors. Automakers and data brokers collect driving data to offer personalized insurance rates. While some programs are voluntary and require driver consent, concerns have arisen about privacy, the clarity of consent, and the potential for increased insurance costs without explicit knowledge. [Link]
How TikTok Was Blindsided by U.S. Bill That Could Ban It (WSJ)
Despite previous signs of stability, including President Biden himself joining TikTok, behind-the-scenes efforts in Washington were aiming to either ban TikTok or force its sale due to concerns over its Chinese ownership and the perceived risks to national security. The proposed legislation, gaining momentum after concerns over TikTok videos related to the Israel-Hamas conflict, represents the most significant threat to TikTok’s operations in the US to date. TikTok has been mobilizing its user base to push back against the legislation, despite facing backlash from lawmakers for this approach. [Link]
Read Bespoke’s most actionable market research by joining Bespoke Premium today! Get started here.
Have a great weekend!
Mar 3, 2024
Welcome to Bespoke Brunch Reads — a linkfest of the favorite things we read over the past week. The links are mostly market-related, but there are some other interesting subjects covered as well. We hope you enjoy the food for thought as a supplement to the research we provide you during the week.
While you’re here, join Bespoke Premium with a 30-day trial!
On This Day in History:
Around the World: On March 3rd, 2005, Steve Fossett made history by completing the first solo, nonstop, unrefueled flight around the world in the Virgin Atlantic GlobalFlyer. The flight, beginning in Kansas, took about 67 hours and covered 22,766 miles. Fossett, before embarking on adventures like this one full-time, had a successful career in the financial services industry, founding Lakota Trading in 1980. The GlobalFlyer was specially constructed to be lightweight yet capable of carrying a significant fuel load and was the first to complete such a trip marking significant advancements in aircraft design and fuel efficiency. There have since been several other high-profile attempts to embark on air and space journeys like Fossett’s. Amazon founder Jeff Bezos went to space with his company Blue Origin, and Richard Branson also made a trip of his own. What’s Elon waiting for? Spark up the SpaceX rocket!
A Warren Buffett Protégée Is on the Hunt for Small Companies. She Now Has Millions More to Spend. (WSJ)
Tracy Britt Cool, a former Warren Buffett protégé, co-founded Kanbrick, aiming to invest in midsize businesses with a competitive edge. Focusing on consumer businesses, the company rules out financial services, healthcare, real estate, and other industries in what boils down to a couple of companies a year. It’s a highly selective process trying to find businesses with a “moat,” as Buffett likes to say. While inspired by Berkshire Hathaway’s principles, Kanbrick aims to forge its own path. [Link]
Are We in a Stock Market Bubble? (Ray Dalio)
On LinkedIn, Ray Dalio, founder of Bridgewater, suggests that while some segments like the “Magnificent 7” appear frothy due to high valuations and expectations around generative AI, the broader US stock market does not exhibit classic bubble characteristics. Dalio cited criteria such as price levels relative to traditional measures, sustainability of conditions, the influx of new and naïve buyers, overall market sentiment, the degree of leveraged purchases, and the extent of speculative forward purchases. According to Dalio, while certain areas show elevated metrics, overall, the market does not match the extreme conditions seen in past bubbles. [Link]
Wendy’s Bold Move: Dynamic Pricing Strategy Set to Transform Fast-Food Industry (BNN)
Wendy’s, the fast-food chain, is looking to revolutionize its pricing strategy by introducing dynamic pricing across its outlets. Inspired by practices in the airline and rideshare industries, Wendy’s said it would adjust prices in real-time based on the time of day. The goal was to attract more customers during quieter periods while managing demand during peak times. However, this innovative approach also poses a challenge: 52% of consumers perceive such fluctuations as price gouging. [Link]
Consumers Pushing Back Against Price Increases — And Winning (Voice of America)
Consumer behavior in response to inflation has shifted significantly. Frustrated by persistently high prices, Americans are opting for store-brand items, exploring discount stores, and buying fewer luxury goods. The food sector has seen the most pushback against price increases, prompting large food companies to slow their hikes. Despite overall inflation declining from its 2022 peak, it remains a central concern, with President Joe Biden criticizing excessive corporate price hikes and highlighting “shrinkflation,” where companies reduce product sizes instead of raising prices. [Link]
AI & Technology
There are growing calls for Google CEO Sundar Pichai to step down (Business Insider)
After recent issues with Gemini, analysts and industry insiders are questioning if CEO Sundar Pichai, who has led Google and Alphabet since 2015 and 2019 respectively, is the right person to navigate Google through this critical period of intense competition in AI. Despite Pichai’s success in growing Google’s market cap significantly, there’s concern that the company’s internal bureaucracy, idealogy, and caution are hindering its ability to innovate. [Link]
Apple Cancels Work on Electric Car, Shifts Team to Generative AI (Bloomberg)
Apple has canceled its ambitious decade-long project to build an electric car, according to insiders. The decision surprised the nearly 2,000 employees working on the project. COO Jeff Williams and Kevin Lynch, in charge of the effort, shared the news internally. The car team, known as the Special Projects Group (SPG), will shift to the artificial intelligence division, focusing on generative AI projects. Layoffs are expected, but the exact number remains unclear. [Link]
Klarna says its AI assistant does the work of 700 people after it laid off 700 people (Fast Company)
The AI chatbot now handles two-thirds of all customer service interactions at Klarna, a buy-now, pay-later company. That amounts to 2.3 million conversations, and it has achieved customer satisfaction levels comparable to human agents. Despite layoffs in 2022, Klarna insists the AI’s productivity equivalent to 700 full-time agents is aimed at showcasing the long-term benefits of AI technology rather than replacing human jobs. [Link]
Google Left in ‘Terrible Bind’ by Pulling AI Feature After Right-Wing Backlash (BNN Bloomberg)
Google’s AI chatbot, Gemini, faced controversy for not producing accurate image generations, even in historical contexts where the chatbot seemed to refrain from showing white people in multiple examples where they should be. Google paused Gemini’s image generation feature and is addressing the issue, emphasizing that no AI is perfect. Critics argue that Google’s approach to AI image generation, which aims to counteract bias, lacks clarity and may not fully address underlying data biases. [Link]
Throwback for Philadelphia tech: What were you doing in 2009? (Technical.ly)
In 2009, Chris Wink, Sean Blanda, and Brian James Kirk founded Technical.ly Philly to cover Philadelphia’s rising tech scene. Over 15 years, Technical.ly expanded to Baltimore, DC, Delaware, and Pittsburgh, documenting local tech communities and companies. Reflecting on the changes, industry figures highlight a stronger, more vibrant tech ecosystem in Philadelphia, marked by increased startup activity, collaborative projects, and advancements in digital equity. Looking ahead, there’s optimism for Philadelphia to emerge as a leader in AI ethics. [Link]
Environment
South Fork Wind just became the US’s first complete utility-scale offshore wind farm (Electrek)
New York’s South Fork Wind, developed by Ørsted and Eversource, has completed installation of its final turbine, becoming the first utility-scale offshore wind farm in US federal waters. The 132-MW project will power 70,000 homes in Long Island and reduce carbon emissions significantly, contributing to cleaner energy and environmental benefits. [Link]
Startup is shipping 100,000-year-old Arctic ice from Greenland to chill cocktails in Dubai (New York Post)
Arctic Ice, a Greenland startup, is facing criticism for shipping ancient glacier ice to Dubai for use in high-end cocktails. The company claims it only uses ice from already detached icebergs, aiming to prevent their meltwater from raising sea levels. However, critics argue the operation exploits natural resources and contributes to carbon emissions. [Link]
Geothermal startup Fervo Energy is tapping fresh $221M round, filing reveals (TechCrunch)
Fervo Energy, a geothermal startup from Houston, has raised $221 million to enhance its geothermal power generation methods. Utilizing advanced drilling techniques and technology, the company aims to harness Earth’s deep thermal energy more efficiently. The startup has already achieved a faster and cheaper drilling process, a Department of Energy grant, and the successful launch of a geothermal power plant in Nevada supplying power to Google’s data centers. This new round of funding is expected to further Fervo’s efforts in expanding geothermal energy’s role in providing sustainable power. [Link]
Sports
‘I just saw the best player on the field’: Wyatt Langford is turning heads with every thunderous swing of his bat (ESPN)
At the Texas Rangers spring training, an unexpected star emerged according to pitching coach Mike Maddux: Wyatt Langford, a power-hitting outfielder. Despite the team’s focus on bolstering their pitching, Langford’s prowess at bat has caught the eye of coaches, hinting at an even stronger offensive lineup for the Rangers. Drafted fourth in 2023, Langford quickly ascended through the minor leagues with standout performances, positioning himself as a viable contender for the major league. His rapid progress and remarkable stats suggest Langford could be a significant addition to the Rangers, offering a fresh offensive dynamic to the World Series champions. [Link]
‘Seventy is the new 50’: Why NBA offenses are as prolific as ever (ESPN)
The NBA is witnessing its highest scoring averages since the 1969-70 season, fueled by rule changes in the mid-2000s designed to enhance game pace and scoring. This offensive explosion, highlighted by several players scoring over 60 points in a single game, has led to discussions within the league about the current balance between offense and defense. The league is contemplating if and how to adjust the rules to bring more defense, or less scoring, into the game. With players shooting better than ever from beyond the arch, maybe it’s time to move the three-point line back? [Link]
Health & Wellness
Ultraprocessed foods linked to heart disease, diabetes, mental disorders and early death, study finds (Yahoo Life)
In the age of weight loss drugs and trends towards healthier lifestyles, a comprehensive review of 45 meta-analyses involving nearly 10 million people has found that consuming ultra-processed foods significantly increases the risk of developing or dying from various health conditions. If we’re looking at the numbers, the study suggests a 50% higher risk of cardiovascular disease-related death and common mental disorders. Ultra-processed foods, high in calories, added sugar, sodium, and low in fiber, are linked to obesity, type 2 diabetes, depression, and potentially cancer. [Link]
Obesity now greater risk to global health than hunger (The Telegraph)
Obesity has surpassed hunger as the leading global health threat, with over one billion people worldwide now clinically obese. This marks the first time the number of obese individuals has exceeded those considered underweight. The increase in obesity, particularly among the younger population, raises concerns about the long-term health implications, including type 2 diabetes, cancer, and mental health issues. The study calls for action from both the health sector and broader society to address this growing issue, including changes in food industry practices and government strategies to promote healthier lifestyles. [Link]
Read Bespoke’s most actionable market research by joining Bespoke Premium today! Get started here.
Have a great weekend!
Feb 25, 2024
Welcome to Bespoke Brunch Reads — a linkfest of the favorite things we read over the past week. The links are mostly market-related, but there are some other interesting subjects covered as well. We hope you enjoy the food for thought as a supplement to the research we provide you during the week.
While you’re here, join Bespoke Premium with a 30-day trial!
On This Day in History:
Dollar Debut: On February 25th, 1862, amidst the turmoil of the Civil War, Congress initiated a monumental shift in the American financial landscape by establishing the US Bureau of Engraving and Printing. Before this pivotal change, the American economy was fragmented by the lack of a uniform currency, complicating trade and commerce across state lines. The establishment of the Bureau streamlined the production of a standardized national currency, laying the foundation for a more unified and efficient economic system. Today, the Bureau’s ongoing operations underpin the very fabric of the US economy, ensuring the integrity and reliability of the American dollar, which serves as a cornerstone of the global financial system.
These Teenagers Know More About Investing Than You Do (WSJ)
Teens, with the help of their parents, are venturing into the world of investing, owning shares in major companies like Tesla, Apple, and Amazon.com. The number of custodial accounts at Schwab is up from 120,000 in 2019 to more than 300,000 in 2023. It’s part of a trend that originated during the pandemic when new investors began trading to capitalize on the market’s downturn. Hot tech stocks that today’s youth know well have also brought attention to the benefits of investing. Many are even learning about investing through the Internet’s influencers on platforms like YouTube. [Link]
You can put a price tag on the value of a personal finance education: $100,000 (CNBC)
A personal finance class in high school can yield a lifetime benefit of approximately $100,000 per student by teaching crucial financial management skills, such as avoiding high-interest debt and improving credit scores. This knowledge not only benefits the students but also has a positive ripple effect on families and communities. Many school districts are even requiring the classes as research links financial literacy to significant improvements in financial well-being, including higher savings rates, better credit scores, and lower delinquency rates. [Link]
AI & Technology
Generative AI’s environmental costs are soaring — and mostly secret (Nature)
With all the hype behind AI, it doesn’t sound like anyone wants to address the elephant in the room. OpenAI CEO Sam Altman has acknowledged the AI industry’s looming energy crisis, noting the substantial power consumption expected from future generative AI systems. Without a significant energy breakthrough, AI’s energy demands could outpace current systems. The environmental impact of AI extends beyond energy to include significant water use for cooling data centers, as seen with OpenAI’s GPT-4 and other large models from tech giants. There’s tons of work to be done, especially coming from Altman who has proposed massive investment to fund new AI projects. [Link]
AI Will Transform the Global Economy. Let’s Make Sure It Benefits Humanity. (IMF)
The advancement of artificial intelligence (AI) presents a dual-edged sword: it has the potential to significantly enhance productivity and economic growth globally but also risks replacing jobs and exacerbating inequality. According to IMF research, about 40% of global employment could be affected by AI. Within countries, AI could increase income disparities, benefiting those who can utilize AI effectively while disadvantaging others. The IMF has developed an AI Preparedness Index to help countries assess their readiness for AI adoption, highlighting the need for targeted investments in digital infrastructure, education, and regulatory frameworks to ensure AI benefits are broadly shared. [Link]
Foreign Affairs
How U.S. Pressure Helped Save Brazil’s Democracy (Foreign Policy)
Brazil’s federal police recently raided former President Jair Bolsonaro and his allies for allegedly plotting a coup after his 2022 election loss. Amidst these developments, US President Joe Biden’s targeted pressure on key Brazilian officials played a role in upholding Brazil’s democracy, ensuring a peaceful power transition. Foreign policy has had much of the spotlight in the US during this election year, and this was a win for the US in an area that has otherwise faced heavy criticism. [Link]
Megaprojects in the Desert Sap Saudi Arabia’s Cash (WSJ)
Saudi Arabia’s ambitious Vision 2030 projects, including massive property developments, are driving the kingdom to increase its borrowing and consider another sale of Saudi Aramco stock due to dwindling cash reserves in its sovereign wealth fund. These costly initiatives, aimed at diversifying the economy away from oil, are putting financial pressure on the country amid moderate oil prices and high-interest rates. [Link]
Housing
How the housing industry is working to stop energy efficient homes (Washington Post)
North Carolina developer Ron Jackson argues that tightening energy efficiency building codes would make housing unaffordable for many Americans by significantly increasing construction costs. The regulations are claimed to inflate the upfront costs of new homes. However, critics and some green builders contest these claims, pointing out that the proposed energy efficiency measures would increase costs by far less than the industry states and would pay off over the long-term through lower utility bills. [Link]
End of an Era
Death, Lonely Death (Crooked Timber)
Launched in 1977, Voyager 1’s journey through the Solar System is nearing its end as it faces system failures billions of miles from Earth. After surpassing its original three-year mission by decades and making groundbreaking discoveries including the first close-up photos of Jupiter’s moons and entering interstellar space in 2012, the spacecraft began sending back unintelligible data in December 2023, indicating possible software or hardware issues which efforts to resolve haven’t worked. [Link]
Vice Media stops publishing on website and cuts hundreds of jobs (BBC News)
A lot is going on in digital media these days, especially with the rise of AI and more advanced technology. Vice Media filed for bankruptcy in the US in May and is now laying off hundreds. Vice will collaborate with established media firms for content distribution, citing the current model as cost-ineffective. It marks the end of an era in many ways, as Vice had several notable moments including documenting terror groups in Syria and Dennis Rodman’s relationship with North Korea, to name a couple of examples. [Link]
Strawberries
How Driscoll’s Reinvented the Strawberry (The New Yorker)
Driscoll’s, which holds a major stake in the US berry market, is exploring the introduction of unique strawberry varieties to appeal to new consumer segments, such as millennials who are more open to trying unconventional foods. Facing competition from the University of California Davis’s breeding program, Driscoll’s aims to maintain its market dominance by developing proprietary berries and packaging, despite challenges such as labor shortages and diseases. [Link]
Sports
What Happened to Baseball Jerseys? (The Atlantic)
They’re thin, poor fitting, the colors are off, the spacing is wrong, and they look downright fake. Those are some of the concerns with the MLB’s new Nike uniforms for the upcoming season. If you haven’t heard or seen the news and memes online, the new jerseys have become very unpopular, very quickly. Not only do players and fans disapprove, but they’re expensive for fans who would like to purchase them for casual wear. Unfortunately, some of the measures to enhance the performance of the gear, as well as cut costs, have weighed on the quality of the product. [Link]
Read Bespoke’s most actionable market research by joining Bespoke Premium today! Get started here.
Have a great weekend!
