AI under scrutiny.

Guten morgen. In today’s daily we’ve got:

• AI scrutiny heating up.

• Netflix is dropping DVD’s, no.. really dropping.

• Commercial real estate lenders are making some tough calls.

Group of lawmakers from European Union want to introduce new rules to regulate AI. They called for increasing regulations on AI development in order to ensure goals of safety and trustworthiness in the future. Future of Life Institute sent a letter to AI labs and urged to cease AI model training for 6 months which were superior compared to GPT-4. The letter was signed by major tech personalities like Steve Wozniak and Elon Musk. Referring to the letter, EU lawmakers agreed upon some of the concerns raised while dismissed others as ‘alarmist’. A.I. has now become taken the center stage for most tech conversations post the viral growth of ChatGPT; which became the fastest product to reach 1 million users in just 5 days of launch. According to a report by PWC - The AI market could contribute a staggering 15.7 trillion dollars of the global economy by 2030.

Sector Sweep

Tech

• Meta just launched Horizon worlds VR app for teenagers as part of its strategy to augment engagements in Quest headsets as it looks to make inroads into the Metaverse.

• Netflix lost 1.75 million subscribers and profits fell 18% to $1.8billion in their recent quarter. The company stated that it would enable added password sharing restrictions and will soon end the DVD mail-in business.

Real Estate

• Insurance lenders have paused or stopped giving loans to commercial buildings after observing the rising vacancy rates and the falling rents. 15% of insurers who have commercial real estate lending businesses are shrinking activity as remote work has caused the return to office rates to be just half of what they were in pre-pandemic times.

Hospitality

• Hilton group and other hotels are looking to acquire new properties from competing brands as hotel construction slows down.

Health

• Abu Dhabi sovereign wealth fund Mubadla Investment co is nearing a deal to acquire kidney-care provider Diaverum for more than $2 billion.

• Medical procedure volumes have increased as covid restrictions have softened and part shortages for medical devices have reduced. Medical device makers Boston scientific, Edward lifesciences and Stryker stocks have gained about 10% this year as a consequence.

That’s all for today folks. Do keep a lookout for our weekly email about stock deep dives and personal finance strategies this Saturday.

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Cheers!

Reserve currency says what now?

Netflix got no chill.