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Time Is Money

Feb 4, 2024 • 7 min read

Trending:

Electric Vehicle Slump
Joe Rogan Spotify Deal

Week Recap:

A drone strike in northeastern Jordan near the Syrian border resulted in the deaths of three U.S. service members and injuries to up to 34. President Joe Biden, attributing the attack to Iran-backed militant groups, emphasized that the U.S. would respond decisively. The attack, has significantly escalated tensions in the Middle East. The attack was claimed by the Islamic Resistance in Iraq, a coalition of Iran-backed militant groups. It targeted a base on the Jordan-Syria border, causing a high number of casualties due to its early morning timing near barracks. This incident adds to the over 150 attacks by Iran-backed groups in Iraq and Syria against U.S. forces since October 7, which have primarily resulted in traumatic brain injuries.
Anduril Industries has joined the U.S. Air Force's Collaborative Combat Aircraft (CCA) program as one of the five key vendors. This program aims to develop advanced autonomous drones, intended to operate alongside manned aircraft like the F-35A Joint Strike Fighters. Anduril's role is notable for its innovative approach in defense technology, highlighted by its acquisition of Blue Force Technologies and the development of the Fury drone. Additionally, Anduril's AI-enabled Lattice platform could be significantly relevant to the CCA program.
SpaceX recently completed two Falcon 9 launches. The first, on January 28, involved a rocket with a notable history of 17 previous missions, lifting off from Cape Canaveral in Florida to deploy 23 Starlink satellites. The next day, January 29, a Falcon 9 rocket launched from Vandenberg Space Force Base in California, sending 22 Starlink satellites into orbit, marking its ninth mission. Both launches continued SpaceX's expansion of its Starlink satellite constellation. Additionally, SpaceX launched Northrop Grumman's 20th Commercial Resupply Services mission to the International Space Station.
A Hong Kong court has mandated the liquidation of China Evergrande Group, a major real estate developer with significant debt. The decision came after the company's unsuccessful attempts to restructure its $300 billion debt. Judge Linda Chan, overseeing the case, pointed out Evergrande's failure to present a feasible restructuring plan and its insolvency as key reasons for the court's action. The collapse of China Evergrande is part of a broader trend affecting numerous Chinese property developers since 2020.
Recently, Elon Musk's Neuralink announced a significant advancement in brain-computer interfaces. On January 28, 2024, Musk revealed on X that the first human had been successfully implanted with Neuralink's device, known as the Link. This development is crucial in the company's efforts to integrate the human brain with technology. Musk also shared that the first product derived from the Link is an application named Telepathy.
Meta recently introduced a new variation of its large language model, Code Llama, adding a robust dimension to its already impressive Llama series. Code Llama, specifically crafted for coding tasks, stands out in its proficiency in multiple programming languages, offering solutions for code generation, debugging, and more.
During a Senate hearing on child safety, bipartisan support emerged for the stricter regulation of social media platforms like Meta, TikTok, X (formerly Twitter), Snap, and Discord, highlighting the growing concern over the impact of these platforms on young users. Lawmakers, expressing frustration with the executives of these companies, warned of the potential for legislative action that could significantly impact their operations.
Despite Beijing's initiatives to support the stock market, foreign investors pulled out a net 14.5 billion yuan ($2 billion) from mainland Chinese shares in January, extending a trend of withdrawals that began in August 2023. This marks the most significant and prolonged net outflow since the Stock Connect trading link's inception in 2014. In response, Beijing has implemented several measures to stabilize the market, including reducing the bank reserve ratio and suspending stock borrowing for short selling.
Following the attack that resulted in the deaths of three U.S. service members in northeastern Jordan, the United States initiated a precise counter-operation under President Biden's directives. On February 2nd, in a significant retaliatory measure, U.S. forces conducted airstrikes targeting seven key locations utilized by the Islamic Revolutionary Guard Corps (IRGC) and its affiliated militias in Iraq and Syria. These groups have persistently targeted U.S. and Coalition forces, prompting this defensive action. The coordinated strikes, carried out at 4:00 PM EST by CENTCOM, targeted more than 85 specific facilities across these seven locations.
Canada's Industry Minister, François-Philippe Champagne, has announced a partnership with Nvidia, a leading company in artificial intelligence (AI) technology. Through a letter of intent, Canada aims to enhance its computing capabilities, tapping into Nvidia's expansive AI and deep learning expertise. The announcement, made on the social media platform X, aligns with Nvidia CEO Jensen Huang's recent visit to Toronto. While specifics of the agreement remain undisclosed, Huang expressed enthusiasm for supporting Canada's development of cutting-edge technology infrastructure.

Electric Vehicle Slump:

Amid a global slowdown in the electric vehicle (EV) market, Volvo has announced its withdrawal of financial support for Polestar, a move indicative of broader industry trends. Despite an initial surge in EV sales, the growth rate has begun to slow, prompting major automakers like Ford, GM, and Renault to reduce their EV investments. This downturn has also led rental car giant Hertz to sell off a substantial portion of its EV fleet and Tesla to issue warnings about future market challenges. Volvo, in partnership with a Chinese carmaker, had launched Polestar but is now considering selling its stake after the venture's market value plummeted by 83%, despite Volvo's annual investment of over $1 billion.
Ford is responding to the shifting market by increasing production of the Bronco SUV and Ranger pickup, while scaling back on the electric F-150 Lightning, aligning with changing consumer demands. This decision will result in a reduction of shifts at its Rouge Electric Vehicle Center in Michigan, impacting around 1,400 employees. Some of these workers will be transferred to the Michigan Assembly Plant, while others may opt for retirement under a new incentive program. This adjustment reflects Ford's strategic pivot away from an overemphasis on electric vehicles due to softened demand.
Hertz is similarly adjusting its strategy by offloading around one-third of its global EV fleet, approximately 20,000 vehicles, to purchase more internal combustion engine vehicles, reflecting persistent high demand for traditional cars. This move, coupled with the acknowledgment of higher damage costs for EVs, signifies a cautious approach towards a rapid transition to electric mobility. Together, these industry shifts underscore the evolving dynamics within the automotive sector, as companies recalibrate their strategies to navigate the uncertain future of EV market growth and consumer preferences.

Joe Rogan Spotify Deal:

Spotify Technology has renewed its partnership with comedian and podcaster Joe Rogan, securing a multi-year agreement to leverage his show's wide appeal for its advertising growth. Despite reports from news outlets estimating the deal's value at around $250 million, Spotify has not confirmed the figures, stating only that the actual value differs without specifying. This contract includes a guaranteed payment to Rogan, plus additional earnings from advertising revenue.
Since its 2009 launch, The Joe Rogan Experience has been exclusive to Spotify since 2020, earning the title of the world's most popular podcast. In a strategic move to broaden its reach, Spotify plans to distribute Rogan's content across additional platforms like Apple, Amazon, and YouTube. Rogan's podcast, known for its diverse guest lineup from Elon Musk to Miley Cyrus, plays a key role in Spotify's strategy to enhance its advertising income through the Spotify Audience Network, a marketplace for podcasters and publishers.

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