📉 SEC's compromise fuels volatile Bitcoin market.

Hello tech enthusiasts,

As a reminder, we will soon change the name of this publication to Front Research. So that you do not miss future updates.

Now, welcome to your daily dose of technology and investment insights. Today, January 10, 2024, we bring you a concise yet comprehensive overview of the latest trends and news rocking the tech world.

• AI Expansion - Apple aggressively enters generative AI, focusing on Siri and service enhancements.

• OpenAI Response - The AI organization addresses NYT's copyright issues, hinting at potential collaboration.

• Unity's Shakeup - Significant job cuts announced, signaling major organizational restructuring.

• Carta's Challenges - The startup faces scrutiny over alleged investor data misuse.

• Vision Pro Launch - Anticipated release date set for the new product, pre-orders begin.

• Fed's Rate Strategy - Governor Bowman suggests a possible delay in anticipated rate cuts.

• Bitcoin's Turbulence - SEC decisions lead to heightened unpredictability in cryptocurrency markets.

• and more…

Let’s get to it!

NORDIC UNIVERSE

The Stockholm stock exchange traded slightly down during Wednesday's lunchtime, with Dustin surging against the trend following its quarterly report. Viaplay also rose after its rescue plan was approved. In the Swedish large-cap index, household appliance giant Electrolux saw a decline of 3.4% with no known news, followed by the forest company SCA. Construction company Skanska announced write-downs and changes in property values of 2 billion SEK, leading to a 2.9% decline in its shares.

SAS Partners with AVTECH for Emission-Reducing Flight Optimization Service

SAS Airlines has partnered with AVTECH Sweden for its ClearPath flight optimization service to increase flight efficiency and reduce carbon emissions.

• SAS and AVTECH sign 2-year agreement, starting January 2024.

• ClearPath provides flight guidance, reducing carbon emissions.

• The partnership could raise AVTECH's revenue by 10%.

• AVTECH's share price increased by 11%.

Lime Amps Up Position with SportAdmin Acquisition, Targets 5th Industry

Lime Technologies AB has acquired 85% of shares in SportAdmin, a market-leading software provider for sports clubs. The acquisition is part of Lime’s strategy to strengthen its position in selected industries. SportAdmin, with a strong customer base in Sweden and an average growth rate of 31% over the last three years, will contribute to increased recurring revenue for the Lime Group.

⚡️ Short

Kambi's founder Kristian Nylén stepping down as CEO - Kristian Nylén, Kambi Group founder and CEO, plans to step down this year once a successor is appointed, citing a desire to spend more time with family.

US MARKETS

The S&P 500 and Dow Jones endured moderate losses while Nasdaq rebounded, ending Tuesday with slight gains. Tech remained rough around the edges in early 2024, inversely pressuring the broader market. Meanwhile, healthcare emerged as a strong interest for buyers, being the best-performing sector with a 3% year-to-date gain. In other news, Nvidia and Amazon recorded over a 1% rise, whilst Juniper Networks soared almost 22% amid reports of Hewlett Packard Enterprises' planned $13 billion acquisition.

Goldman Sachs Predicts New Economic Super Cycle Driven by AI, Decarbonization

Goldman Sachs' head of macro research in Europe, Peter Oppenheimer states the world is entering a new "super cycle" driven by artificial intelligence and decarbonization. Super cycles are long periods of economic growth often characterized by robust GDP, strong consumer demand, and high employment levels. Oppenheimer highlights that despite AI and decarbonization being relatively new concepts, historical parallels can be seen, providing lessons for the future.

ECONOMICS & MACRO

U.S. interest rates are expected to remain stable in the short term, then decline later in the year, a Reuters market survey reveals. The ten-year Treasury bond rate, which dropped significantly last autumn, is anticipated to rise to 4.10% within three months before dropping to 3.75% by end of year. The inverted yield curve between two- and ten-year bonds will likely revert to a positive gap of 25 points by year end.

Fed Governor Bowman Pivots on Rate Stance, Hints at Delay in Cuts

Federal Reserve Governor Michelle Bowman, previously a strong advocate for tight monetary policy, stated that she's no longer advocating for interest rate hikes, but isn't ready to cut rates yet. Seeing declining inflation, she has considered the possibility of a drop in inflation if short-term rates remain at their current levels. The Federal Open Market Committee kept the benchmark federal funds rate at a target range of 5.25%-5.5% during a recent meeting. Market predictions suggest rate cuts could start in March.

Saudi Price Cut Triggers 4% U.S. Crude Oil Fall Amid Global Demand Fears

U.S. crude oil prices dropped 4% following Saudi Arabia's decision to slash its costs, exacerbating global demand concerns. The move reflects ongoing market weakens due to record U.S. crude production and declining demand in China. Despite rising Middle East tensions and increased U.S. crude exports, worries of an unbalanced market persist due to an overabundance of supply and weak demand.

SEC's compromise fuels volatile Bitcoin market.

A false announcement of Bitcoin Exchange-Traded Funds (ETFs) approval caused by the hacking of the U.S. Securities and Exchange Commission's (SEC's) official Twitter account causes market turmoil.

• SEC's Twitter account was compromised; false approvals were announced.

• Bitcoin prices became highly volatile due to the misinformation.

• Chairman Gary Gensler refutes the claims, clarifying no ETF approvals were made.

• The incident sparks cryptocurrency market speculation.

TECH

Unity Software Inc. axes 25% jobs amidst organizational changes.

Unity Software Inc. plans to cut its workforce by 25%, or approximately 1,800 jobs, intending to enhance long-term profitability.

• 25% workforce reduction planned by Unity Software.

• Almost 1,800 jobs expected to be cut.

• Strategy aims to boost long-term profits.

• Unity's stock prices have seen a positive surge.

⚡️ Short

Start-up Carta grapples with allegations of misused investor data - Carta Inc. is investigating allegations of data misuse and internal protocol breach regarding a customer's share sale proposal.

Vision Pro pre-orders kick-off: release date revealed - The launch and pre-order dates for Vision Pro were unveiled on the 9to5Mac Daily podcast.

AI

Apple leaps into generative AI, eyeing Siri revamp and feature overhauls.

Apple plans to enhance its next iOS version with significant generative Artificial Intelligence (AI) features, including a major Siri upgrade.

• AI aims to be incorporated into services like Apple Music.

• Plans include AI-enhanced customer support systems.

• Competition in AI space is intense, Apple is playing catch-up.

⚡️ Short

OpenAI counters NYT's copyright lawsuit with hopes for partnership - OpenAI defends against New York Times' lawsuit, denying verbatim reproductions. The firm recognizes fair use, removed a content-duplicating feature, and still seeks a Times partnership.

Caution Urged on GenAI Impact on Company Productivity - Despite high expectations of boosting productivity, company-wide adoption of generative AI like LLMs could result in costly mistakes, necessitating caution.

OpenAI GPT Store slated to launch next week - OpenAI's GPT store, offering customized AI agents for sale, is set to open next week, promising usage-based pay for creators.