Newsletter - Week of Dec 18, 2023
Hi All,
It's Christmas here! (Equally, happy Hanukkah!). There is no theme for this week other than, RELAXATION & REJUVENATION. We will be back after this holiday season!
As always let me know if you have any suggestions and/or feedback! If you liked it, please subscribe and share it with your friends, colleagues and family. Also, ping me if you want to collaborate! Previous newsletters can be found here.
Until next time, have a lovely week! :D
📈Markets & Investing
- Weekly global market recap here. Key events: Mixed European and Chinese stock performances contrast with the US market's new record highs and modest Japanese gains, amid varied regional economic challenges and monetary policy expectations. UK is grappling with inflation and recession risks, Germany's business sentiment is declining, and ECB officials are suggesting sustained high interest rates. The US stock market hit new records in positive economic indicators (slowing inflation) and growing investor confidence, with expectations of Federal Reserve rate cuts next year. BOJ's dovish monetary policy continued with no immediate interest rate hikes. The market expects the People's Bank of China to maintain a loose monetary policy into 2024.
- Deglobalization has been in everyone's mind quite for some time. Here are some useful insights from Rana Forroohar, FT columnist.
Rana Foroohar - Ideas Lab Series - March 29th, 2023 | Top Traders Unplugged
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Key takeaways:
- Cybersecurity Threats: Growing risks to critical infrastructure like power and water systems due to cyberattacks, esp. with the increased use of the Internet of Things.
- Shift Towards Localized Economies: The trend away from globalization highlights the need for more resilient and locally focused economies, as revealed by recent global challenges such as pandemics.
- Data's Role in Enhancing Democracy: Data can improve democratic processes. Example: Audrey Tang's work in Taiwan on how technology can facilitate more effective governance.
- Advancements in Manufacturing: The potential of additive manufacturing in revolutionizing production suggests a shift towards more localized and efficient manufacturing methods.
- Estimation of China's Economic Catch-Up: When advocating 'globalization,' U.S. government officials originally estimated that it might take three to five generations for global wage levels to equalize, particularly with China's rise, reflecting the long-term impact of economic globalization. The estimation was wrong, and now they are reeling back.
🌍 Sustainability
Key takeaways:
- Large-Scale Investment in Clean Energy: The Inflation Reduction Act (IRA) represents the largest investment in clean energy in history, aiming to rapidly advance the U.S. toward net zero emissions. It includes significant funding for clean manufacturing and renewable energy, particularly solar, with a focus on reshoring supply chains and reducing dependence on foreign sources like China.
- Industrial and Climate Policy More than Inflation Reduction: Despite its name, the IRA primarily serves as industrial and climate policy, rather than directly addressing short-term inflation. It offers $370 billion in tax credits, loans, and grants to boost domestic manufacturing, signaling a major shift in U.S. economic policy towards active state involvement in industrial strategy.
- Job Creation and Economic Impact: The IRA, along with the Chips and Science Act, is expected to create over a hundred thousand jobs and stimulate over $220 billion in clean technologies and semiconductor production. This marks a significant repositioning of the U.S. in global industry and the fight against climate change.
- Global Trade and Diplomatic Implications: The IRA’s approach, focusing on domestic production and potentially protectionist measures, raises questions about global trade dynamics and WTO regulations. It may also influence global economic policies, leading to increased subsidies and a shift away from the free-market globalization era.
- Challenges and Future Outlook: While the IRA aims for a 40% reduction in emissions by 2032, it faces challenges like labor shortages, supply chain issues, and balancing environmental goals with industrialization. There’s uncertainty about its long-term success, especially with potential political shifts in the U.S., and its impact on global strategies for addressing climate change.
👽 AI
- Apple's AI Research Overview: Newly published Apple research reveals advanced AI capabilities for iPhones, including assistants and 3D avatars, hinting at enhanced mobile device functions.
- Key Research Findings:
- Human Avatar Generation: One paper presents a method for creating animated human avatars from iPhone videos, offering significant improvements in photorealism and speed compared to existing techniques.
- LLM Optimization: Another study describes how to streamline large language models (LLMs) using flash storage optimization, making it feasible to run complex applications like chatbots on mobile devices.
- Apple's AI Strategy: Cautious Public Approach: Apple has been hesitant to publicly emphasize its AI efforts. / Increased AI Hiring: The company is actively increasing its AI-focused workforce. / Future Plans: Apple reportedly aims to integrate AI technology into its wearables, particularly for health tracking purposes.
- Advanced AI guide by the Run Down
- Some worthy videos to watch: A TED talk by Ilya Sutskever, a co-founder and the chief scientist at OpenAI, and Sam Altman's TIME interview, and future of AI by Stuart Russell.
😍 My Favorites
📚 Eudaimonia Book Club: The list of the list...book and podcast list of 2023.
🎥Movie: Do you like nature and outdoor sports? If you have time to sit back and relax, but can't be out there now, hope one of these makes you feel refreshed!
👍 Quote of the week
