Elon Musk Threatens To Ban Apple Devices Over OpenAI Deal

Posted on June 11, 2024 by RTT Staff Writer

Elon Musk, the founder and CEO of Tesla and SpaceX, among others, said he would ban Apple devices from his companies if the tech major incorporates OpenAI technology into its operating system.

Musk, in a series of posts on his social media platform X, was responding to Apple’s partnership with OpenAI, the developer of generative chatbot ChatGPT, that was announced at its annual developers conference on Monday.

In a post, Musk said, “If Apple integrates OpenAI at the OS level, then Apple devices will be banned at my companies. That is an unacceptable security violation.”

He further stated that visitors to his companies will have to check their Apple devices at the door, where they will be stored in a Faraday cage, so as to prevent any potential data breaches.

The iPhone maker, at its annual developers conference, announced new AI-powered features backed by a partnership with OpenAI. An updated version of its voice assistant Siri will be able to tap into ChatGPT and will be capable of hundreds of more tasks. The company also stated that its users will be asked for permission to share their questions with ChatGPT. Their requests and information will not be logged, it said.

In his posts, Musk further said, “It’s patently absurd that Apple isn’t smart enough to make their own AI, yet is somehow capable of ensuring that OpenAI will protect your security & privacy!.. Apple has no clue what’s actually going on once they hand your data over to OpenAI. They’re selling you down the river.”

Meanwhile, Apple reportedly said that it is using own AI, and its integration with OpenAI is an optional feature.

Apple also emphasised on its commitment to privacy, noting that AI features would prioritise on-device processing and utilise cloud computing with a view to safeguarding user data.

Musk, who co-founded OpenAI in 2015, had stepped down from its board in 2018. In 2023, he established AI company X.AI Corp., doing business as xAI, whose first AI chatbot technology named Grok competes with OpenAI’s ChatGPT. Musk, also the owner of brain interface startup Neuralink, recently raised $6 billion in a funding round for xAI.

In March, he filed a lawsuit against OpenAI and its CEO Sam Altman alleging that the firm is developing AI for profitability instead of its foundational mission of utilizing it for the benefit of humankind.

U.S. Stocks Regain Ground After Early Move To The Downside

Posted on June 11, 2024 by RTT Staff Writer

Stocks moved mostly lower early in the session on Tuesday but have regained ground over the course of the trading day. The major averages have climbed well off their worst levels, with the Nasdaq reaching positive territory.

The Nasdaq is currently off its highs of the session but still up 18.18 points or 0.1 percent at 17,210.71. Meanwhile, the S&P 500 is down 11.29 points or 0.2 percent at 5,349.50 and the Dow is down 189.97 points or 0.5 percent at 38,678.07.

The early weakness came as some traders looked to cash in on yesterday’s modest gains, which lifted the Nasdaq and the S&P 500 to new record closing highs.

Selling pressure waned shortly after the start of trading, however, as traders remain reluctant to make significant moves ahead of two major economic events on Wednesday.

Early trading on Wednesday is likely to be driven by reaction to the Labor Department’s closely watched report on consumer price inflation in the month of May.

Economists expect consumer prices to inch up by 0.1 percent in May after climbing by 0.3 percent in April, while core consumer prices, which exclude food and energy prices, are expected to increase by 0.3 percent for the second straight month.

The annual rate of growth by consumer prices is expected to come in unchanged at 3.4 percent, but the annual rate of core consumer price growth is expected to slow to 3.5 percent in May from 3.6 percent in April.

The data could have a significant impact on the outlook for interest rates ahead of the Federal Reserve’s monetary policy announcement later in the day.

While the Fed is widely expected to leave interest rates unchanged, traders are likely to pay close attention to the accompanying statement as well as officials’ latest projections for the economy and interest rates.

Sector News

Despite the lackluster performance by the broader markets, banking stocks have moved sharply lower on the day, dragging the KBW Bank Index down by 2.0 percent to its lowest intraday level in nearly two months.

Gold stocks are also seeing considerable weakness even though the price of the precious metal is moving higher, with the NYSE Arca Gold Bugs Index down by 1.5 percent.

Significant weakness is also visible among housing stocks, as reflected by the 1.4 percent loss being posted by the Philadelphia Housing Sector Index.

Steel, brokerage and airline stocks have also shown notable moves to the downside, while most of the other major sectors are showing more modest moves.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Tuesday. Japan’s Nikkei 225 Index rose by 0.3 percent, while China’s Shanghai Composite Index slid by 0.8 percent.

Meanwhile, the major European markets have all moved to the downside on the day. While the French CAC 40 Index has slumped by 1.2 percent, the U.K.’s FTSE 100 Index is down by 0.9 percent and the German DAX Index is down by 0.6 percent.

In the bond market, treasuries are regaining ground following the pullback seen over the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.4 basis points at 4.455 percent.

Brazil Inflation Rises For First Time In 8 Months

Posted on June 11, 2024 by RTT Staff Writer

Brazil’s consumer price inflation increased in May after easing in the previous seven months and remained above the central bank’s 3 percent target, suggesting that policymakers are likely to leave the Selic rate unchanged next week.

The consumer price index climbed 3.93 percent year-over-year in May, faster than the 3.69 percent rise in April, figures from the Brazilian Institute of Geography and Statistics, or IBGE, showed on Tuesday. Economists had expected inflation to rise to 3.89 percent.

Nonetheless, inflation remained within the central bank’s upper tolerance band of 4.50 percent.

Prices of food and beverages grew at a faster pace of 3.56 percent annually in May versus a 3.1 percent rise a month ago. The upward trend in inflation was also influenced by a 4.32 percent rise in transportation costs, which was 3.27 percent in April.

On a monthly basis, consumer prices moved up 0.46 percent in May, following a 0.38 percent rise in the previous month.

The expected increase was 0.42 percent. The rise in monthly inflation was largely due to price developments in food and drinks.

The rise in inflation and, more importantly, the re-acceleration in underlying core services inflation means a rate cut next week is off the table, Capital Economics economist William Jackson said.

“And given that inflation is set to rise further, the labor market remains strong and that inflation expectations are rising, it now looks most likely that the Selic rate will remain at 10.50 percent until year end,” Jackson added.

ECB's Lane Says Restrictive Monetary Stance Must Be Maintained

Posted on June 11, 2024 by RTT Staff Writer

The European Central Bank, which last week cut interest rates for the first time in five years, will have to maintain a tight policy stance given the high uncertainty and sticky inflation in the euro area, the bank’s chief economist Philip Lane said Tuesday.

“It should be clear that the high level of uncertainty and the still-elevated price pressures that are evident in the indicators for domestic inflation, services inflation and wage growth mean that we will need to maintain a restrictive monetary stance,” Lane said in a speech in Dublin, Ireland.

The ECB lowered interest rates by 25 basis points last Thursday, taking the refi rate to 4.25 percent. That was the first reduction since 2019 and a rare occasion when the euro area central bank cut rates ahead of the US Federal Reserve.

The ECB will continue its data-dependent and meeting-by-meeting approach to determining the appropriate level and duration of restriction, Lane said.

The central bank will not pre-commit to a particular rate path, Lane said, echoing words of ECB President Christine Lagarde.

The ECB may wait several meetings before another interest rate cut, Lagarde said in an interview to some European newspapers yesterday.

Wage growth is still elevated in Eurozone and primarily driven by the ongoing adjustment to the past inflation surge, Lane said. Citing the forward-looking wage trackers, the policymaker said wage dynamics will remain elevated in 2024 but will decelerate in 2025.

“This negatively-sloped profile for wage growth helps to underpin the projected decline in inflation in 2025, with less pressure from labour costs next year,” Lane said.

On the other hand, the net impact of labor cost increases on inflation is being buffered by a lower contribution from profits, the rate-setter observed.

The tight monetary stance is constraining the ability of firms to pass through cost increases to consumer prices by dampening demand and containing inflation expectations, Lane said.

Nasdaq Reaches New Record High But Dow, S&P 500 Remain In The Red

Posted on June 11, 2024 by RTT Staff Writer

After moving to the downside early in the session, the major U.S. stock indexes have turned mixed over the course of the trading day on Tuesday. The tech-heavy Nasdaq has bounced off its lows of the session and into positive territory, while the Dow and the S&P 500 remain in the red.

The Nasdaq reached a new record intraday high in recent trading and is currently up 38.36 points or 0.2 percent at 17,230.89.

Meanwhile, the S&P 500 is down 10.73 points or 0.2 percent at 5,350.06 and the Dow is down 262.29 points or 0.7 percent at 38,605.75.

The mixed performance by the major averages comes as traders are looking ahead to two major economic events on Wednesday.

Early trading on Wednesday is likely to be driven by reaction to the Labor Department’s closely watched report on consumer price inflation in the month of May.

The data could have a significant impact on the outlook for interest rates ahead of the Federal Reserve’s monetary policy announcement later in the day.

Sector News

While most of the major sectors are showing only modest moves, banking stocks continue to see considerable weakness, dragging the KBW Bank Index down by 2.1 percent to its lowest intraday level in nearly two months.

Significant weakness also remains visible among gold stocks, as reflected by the 2.0 percent slump by the NYSE Arca Gold Bugs Index. The sell-off by gold stocks comes amid a slight decrease by the price of the precious metal.

Airline stocks have also shown a notable move to the downside on the day, with the NYSE Arca Airline Index falling by 1.6 percent.

Steel, housing and brokerage stocks are also seeing some weakness, while modest strength has emerged among computer hardware stocks.

Other Markets

Meanwhile, the major European markets all moved to the downside on the day. While the French CAC 40 Index tumbled by 1.3 percent, the U.K.’s FTSE 100 Index slumped by 1.0 percent and the German DAX Index fell by 0.7 percent.

Oil Price Fails at MAs Despite Higher OPEC Demand Forecast

Posted on June 11, 2024 by Skerdian Meta

Oil prices turned quite bearish early this month, with WTI Crude falling around $8 below $73. However, the decline stalled last week and we saw a bullish reversal which sent the price $5 higher, but buyers seem reluctant to push the price above the 100 SMA (green) which has turned from support into resistance. This moving average was holding during pullbacks lower in May, but it got br0oken and now it seems to have shifted into a resistance indicator.

Continue reading “Oil Price Fails at MAs Despite Higher OPEC Demand Forecast” →

Ripple Update: Ripple Finalizes Standard Custody Acquisition to Enhance Stablecoin Strategy, XRP strengthens Innovation and Utility in the APAC region

Posted on June 11, 2024 by Sophia Cruz

Ripple has confirmed the successful finalization of its acquisition of Standard Custody & Trust Company, a regulated digital asset custodian. This regulatory-approved milestone signifies strategic growth for Ripple, further strengthening its capacity to provide secure digital asset custody solutions.

Ripple Finalizes Standard Custody Acquisition to Enhance Stablecoin Strategy, XRP strengthens Innovation and Utility in the APAC region

Ripple’s acquisition of Standard Custody aligns with its goal of integrating blockchain technology into the global financial system. Standard Custody & Trust Company is recognized for its secure, enterprise-grade custody solutions. Consequently, this acquisition expands Ripple’s range of licenses with the addition of a limited-purpose trust company regulated by the New York Department of Financial Services.

Ripple’s regulatory achievements now encompass nearly 40 US state money transmitter licenses. Additionally, the blockchain company holds a Major payment institution License from Singapore’s Monetary Authority and a Virtual Asset Service Provider (VASP) registration from the Central Bank of Ireland.

This acquisition marks a significant milestone for Ripple as it aligns with the company’s leveraging blockchain and digital asset technology, empowering institutional clients to tokenize, store, transfer, and exchange value more efficiently.

Furthermore, this acquisition opens avenues for Ripple to explore new product offerings, including its upcoming USD-backed stablecoin. Ripple’s stablecoin initiative aims to bridge the gap between blockchain and traditional finance while addressing the increasing demand for stablecoins that provide trust, stability, and utility.

Meanwhile, Ripple announced the launch of the XRP Ledger Japan and Korea Fund. This dedicated fund aims to advance innovation and utility within the Asia-Pacific region for the XRP Ledger (XRPL). It will prioritize various initiatives such as corporate partnerships, developer support, startup investments, and community expansion to strengthen XRPL.

The XRP Ledger Japan and Korea Fund will provide opportunities for corporations, startups, developers, community members, and other entities to apply for and benefit from the fund. Further information on the application process tailored for the dynamic Japanese and Korean markets will be released by the company.

Asian Markets Showed Mixed Performance Amidst US Inflation reports and Fed’s Policy Meeting

Posted on June 11, 2024 by Sophia Cruz

In today’s trading, Asian stocks had a mixed performance amidst a week packed with several key US inflation reports and a Federal Reserve policy meeting. US futures and oil prices declined.

Asian Markets Showed Mixed Performance Amidst US Inflation reports and Fed’s Policy Meeting

The key decision was anticipated to follow the release of the May inflation report, potentially affecting global economic outlooks.

“Asian markets are closely evaluating the impact of right-wing parties’ success in the European Union and its potential effects on the bloc’s unity,” said TickMill market analyst Patrick Munnelly.

Munnelly also noted that Japan, South Korea, and Taiwan saw gains in Asian markets, while China declined under post-payroll pressure following a Monday holiday.

In Tokyo, the Nikkei 225 index went up by 0.1% to 39,092.32 as investors awaited the results of a Bank of Japan meeting. In March, the central bank raised its benchmark interest rate from 0 to 0.1% from -0.1% its first increase in 17 years.

Chugai Pharmaceutical surged by 3.47% Ebara climbed by 3.44%, and Taiyo Yuden rose by 3.35%. Meanwhile, the broader Topix index slipped slightly by 0.2% to 2,776.80

Market analysts indicated that markets were anticipating two rate hikes by the end of the year, with widespread expectations for additional increases as early as July.

Hong Kong’s Hang Seng dropped 1.1% to 18,165.21, and the Shanghai Composite fell 0.9% to 3,023.46 after reopening following a public holiday. In contrast, the Shenzhen Component went up by 0.07% to 9,262.35

South Korea’s Kospi index rose by 0.15% to 2,705.32. The index was bolstered by substantial gains from Posco International, which soared by 14.13%, Hanwha Solutions, up by 8.74%, and Lotte Chemical Corporation, rising by 8.61%.

In Australia, the S&P/ASX 200 fell 1.4% to 7,748.30, while South Korea’s Kospi edged up by 0.3% to 2,709.87.

Where is GBPUSD Headed After the UK Employment?

Posted on June 11, 2024June 11, 2024 by Skerdian Meta

GBPUSD has shown a consistent upward trend over the past two months, indicating the strength of the British pound against the US dollar. However, last week, the pair encountered significant resistance at the 1.28 level, leading to a decline below 1.27, particularly influenced by robust NFP data.

Continue reading “Where is GBPUSD Headed After the UK Employment?” →

Oracle Stock Dips before Earnings Report Releases

Posted on June 11, 2024 by Timothy St. John

The market is expecting a mixed earnings report from Oracle (ORCL), and the corporate technology company is set to release its 4th quarterly fiscal earnings report for 2024 on Tuesday, after the markets close.

Oracle is about to release its Q4 report.

It is expected that the cloud computing business will report $14.57 billion in earnings for the quarter. Even though the company is leaning heavily on AI tech to help its customers do even more, that hot niche for the tech market might not be enough to push the company to a revenue increase.

If Oracle’s earnings are in line with expectations, that would mean that the company has earned more this quarter than it did at the same time in 2023, but the company’s net income is down from this time last year. However, net income should be up from the previous quarter.

Analysts anticipate that the earnings per share for the company’s stock will be down slightly to $1.17 compared to $1.9 last year. At the same time, that would be an increase from last quarter’s earnings per share, which were $0.32.

Where Will Oracle’s Stock Head?

We expect that Oracle will see a further stock price drop following the earnings report release. That should begin first thing Wednesday, after investors have had time to digest the company’s quarterly earnings.

What may cushion the blow of slightly favorable but still mixed data would be if Oracle were to use the press release as an opportunity to announce new tech and new initiatives. That could create a positive outlook for the next quarter and for the fiscal 2025 year.

Oracle may see some impact from today’s Fed release, which will show how the Consumer Price Index has affected inflation. The expectation is that inflation will still be shown to be holding strong and may have little to no indication of diminishing. That will make it tough for Oracle to keep its stock price high and encourage consumer confidence.