This week ahead || May 13th - May 17th 2024
Here's your news for the week ahead.
Apple’s iPad event was an AI teaser for its future
Apple's artificial intelligence push has taken a significant step forward with the unveiling of its latest iPad Pros featuring the all-new M4 processor. While the chip offers improved CPU and graphics performance, it's Apple's focus on the M4's AI capabilities that stands out. With the M4 capable of 34 trillion operations per second, Apple is positioning itself strongly in the AI space, aiming directly at competitors like Intel, AMD, and Qualcomm. This move serves as a precursor to the AI features expected to be unveiled at WWDC in June, where Apple is anticipated to introduce generative AI-powered software for its devices. While details on specific AI software updates were scarce, Apple's early emphasis on AI signals its commitment to catching up in the generative AI race. Analysts believe that these offerings could boost iPhone sales, especially as consumers increasingly hold onto their devices for longer periods.
Fed officials stick to Powell’s higher-for-longer script as a key inflation reading looms
Federal Reserve officials, including New York Fed president John Williams, Minneapolis Fed president Neel Kashkari, and Chicago Fed president Austan Goolsbee, have reiterated the central bank's stance of maintaining higher interest rates for a prolonged period. This follows the Fed's decision to keep its benchmark interest rate at a 23-year high of 5.25%-5.50%. With concerns over hotter-than-expected inflation persisting, the Fed is taking a cautious approach to monetary policy, awaiting further data before considering any rate cuts. The upcoming Consumer Price Index (CPI) reading for April will provide additional insight into inflation trends. Former Fed officials Esther George and James Bullard, who experienced the Fed's decision-making during the 2016 election year, emphasized the importance of confidence and caution in monetary policy decisions. While some analysts anticipate rate cuts later in the year, others, like Fed governor Michelle Bowman, do not expect any cuts due to inflation trends. Kashkari and Goolsbee also raised concerns about the potential for overheating in the economy, suggesting that the Fed may need to wait and monitor the situation before making any further moves.
Lufthansa boss vents frustration about Boeing problems
Lufthansa CEO Carsten Spohr expressed frustration over the aircraft delivery delays from Boeing, stating that they are "extremely annoying" and costly for the airline. However, he remains confident that Boeing will resolve its problems. Spohr emphasized the importance of having two strong aircraft manufacturers in the industry, including Boeing's European rival Airbus. Regarding the possibility of buying Chinese aircraft, Spohr suggested it is unlikely due to safety standards. He also expressed optimism about Lufthansa's planned stake purchase in Italy's ITA Airways, expecting regulatory approval. Additionally, Spohr stated that he would not be willing to give up transatlantic flights to North America as a concession for approval.
British newspaper groups warn Apple over ad-blocking plans, FT reports
British newspaper groups are warning Apple against implementing a "web eraser" tool in the Safari browser, as it could jeopardize the financial sustainability of journalism, the Financial Times reported. Apple plans to introduce an AI-based privacy feature in the next iOS 18 update, which would remove ads and unwanted website content. The News Media Association (NMA) expressed concerns about how this tool would impact digital revenues, emphasizing that advertising is a vital revenue stream for publishers. The NMA also raised worries about editorial accountability if AI tools selectively alter or remove content. The association has called for a meeting with Apple to discuss these potential implications. Apple and NMA have not yet responded to Reuters' request for comment.
