Global Markets Grapple with Tariffs, Tech Developments, and Rising Gold Prices
Global markets experienced a week of significant activity, marked by rising tariffs, tech industry settlements and controversies, and a surge in gold prices driven by geopolitical instability and economic uncertainty.
President Donald Trump announced increased tariffs on South Korean imports, raising them to 25% after accusing Seoul of "not living up" to a trade deal reached last year, according to the BBC. Trump stated on social media that he would increase levies on a range of products, including automobiles, lumber, and pharmaceuticals. South Korea responded that it had not received official notice and sought urgent talks with Washington.
In the tech sector, Google agreed to pay $68 million to settle a lawsuit claiming it recorded private conversations through Google Assistant, reported BBC Technology. Users alleged that the virtual assistant was inadvertently triggered, recording conversations that were then shared with advertisers for targeted advertising. While Google denied wrongdoing in a filing seeking to settle the case, it stated it was seeking to avoid litigation. The Verge reported that the class-action lawsuit stemmed from a 2019 report about human contractors listening to recordings made when devices were triggered inadvertently.
Meanwhile, OpenAI's president, Greg Brockman, faced scrutiny after it was revealed he and his wife donated $25 million to a pro-Trump super PAC, MAGA Inc., according to The Verge. This financial support raised concerns about potential conflicts of interest as the Trump administration backs AI development and seeks to preempt state-level regulations. Hayden Field, senior AI reporter for The Verge, noted that the Brockmans' donations made up nearly one-fourth of the super PAC's total funds.
Gold prices surged to over $5,000 an ounce, fueled by geopolitical risks, inflation, and a weak dollar, Bloomberg reported. Yihui Xie of Bloomberg noted that the weak dollar made gold more affordable for more buyers. Investors sought refuge in safe-haven assets amid economic uncertainty. Multiple sources, including BBC Business, indicated that precious metals like gold and silver reached record highs.
In other business news, Ryanair announced that fares are expected to rise by up to 9% due to "strong demand" and a predicted increase in passenger numbers, according to BBC Business. However, the airline also reported a steep drop in quarterly profits after being fined 256 million by Italy's competition watchdog for "abusing its dominant position" by blocking travel agencies from accessing its services.
Anta Sports Products Ltd. agreed to buy a 29% stake in Puma SE for $1.8 billion, becoming the biggest shareholder in the German company, Bloomberg reported. The agreement will see Anta buy about 43 million Puma shares from Artémis, the holding company of Frances billionaire Pinault family, for 35 each, Anta said in a filing to the Hong Kong stock exchange.
Y Combinator revised its standard deal terms to exclude Canada as a permitted site of investment, according to Hacker News. This implies that Canadian startups aspiring to join the accelerator will have to incorporate their companies elsewhere.
Canada and India pledged to expand trade in oil and gas as the countries reboot their relationship after a diplomatic chill, Bloomberg reported. Ottawa will commit to ship more crude oil, liquefied natural gas and liquefied petroleum gas to India, while New Delhi will send more refined petroleum products to Canada.
The Treasury Department canceled $21 million in contracts with Booz Allen Hamilton after a contractor leaked confidential IRS data, revealing tax avoidance strategies of wealthy individuals, NPR reported. This decision, impacting 31 contracts, follows the contractor's 2023 guilty plea and subsequent five-year prison sentence.
Caribbean nations are increasingly entering the cannabis industry through legalization efforts, aiming to capitalize on favorable conditions and cultural acceptance, according to multiple sources.
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