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🗞️ US economic data crucial this week; China in the news

🗞️ US economic data crucial this week; China in the news

AI startups are proving hard

Techonomy Barista
August 27, 2024

At Techonomy Barista, we’re brewing up techonomy news so hot, they might just melt the Fed's icy interest rates! ☕️🔥

Washington DC in the era of arial transport, circa 2055.

Ready for consumer confidence, jobless claims & core PCE this week?
The impact of China’s brakes on semiconductor material export.
Ex-Googlers are finding AI startups hard to run.
Anthropic does it again - system prompt published.
China firmly opposes Canada’s recent EV tariff.
Temu parent PDD's (sounds like P. Diddy!) stock drops nearly 30%.

State of the economy

Markets - Top 5 Economies

Economic Calendar

1. Three things this week: Consumer confidence, jobless claims and core PCE

US jobless claims.
Source: US Department of Labor

Core Personal Consumption Expenditure index change %
Source: BEA

Consumer Confidence at 10 AM EST today: Are folks still feeling optimistic? 🎢
Jobless Claims this Thursday: Did we lose more jobs, or are we steady? 🤔
Core PCE Inflation this Friday: Is inflation cooling off, or are we still too hot? 🔥

2. Chinese semiconductor export curbs on materials spark concerns over global chip production.

Source: Argus, FT

China's Export Controls: China’s restrictions on germanium and gallium exports are shaking up supply chains, causing prices to skyrocket and making western tech and military sectors sweat. 😬💸
Price Surge: The price of germanium has jumped 52% since June, while gallium supplies are getting tight, putting pressure on manufacturers of semiconductors and military gear. 📈
Strategic Move: Beijing’s controls are a power play, signaling they can hit back against U.S. chip sanctions anytime they want. 🎯
Global Impact: These curbs could mess with global production of advanced chips, night-vision gear, and fiber optics, creating chaos outside of China. 🌍💥
Long-Term Game: China’s stockpiling and export licensing are part of a bigger plan to secure resources for their own clean energy and tech advancements. 🛠️🌱

3. Xooglers finding AI startups difficult

Source: The Information, PitchBook

Ex-Googler Startup Drama: AI startup H, founded by ex-Google researchers, faced a major fallout with three out of five founders leaving over business disagreements, despite raising $220 million in a seed round.
AI Startups Are Struggling: Similar startups like Inflection and Character, also founded by ex-Googlers, have been absorbed by larger companies, revealing challenges in the transition from research to business.
Not All Roses for AI Ventures: The high cost of AI development and stiff competition from tech giants make survival tough, even for well-funded startups. 💸
Academic to Business Gap: Many founders struggle with the shift from Google’s research-focused environment to the cutthroat world of startup business, leading to internal conflicts.
VCs and AI Hype: Venture capitalists who bet big on generative AI may start showing more caution as returns fail to meet sky-high expectations, even as some founders cash out with hefty payouts. 😬

4. Claude’s system prompt published by Anthropic

We've added a new system prompts release notes section to our docs. We're going to log changes we make to the default system prompts on Claude dot ai and our mobile apps. (The system prompt does not affect the API.)
— Alex Albert (@alexalbert__)
4:28 PM • Aug 26, 2024

No Anthropomorphism Here: Generative AI models aren't sentient; they’re just word-predicting machines that follow set instructions like obedient interns in a tough office. 🤖
System Prompts: The AI's Script: These models are guided by hidden system prompts that dictate their behavior, tone, and what they can't do, like opening URLs or recognizing faces.
Transparency: Unlike other AI companies, Anthropic is spilling the beans on its system prompts, hoping to set a trend in the industry.
Claude's Personality Blueprint: Claude models are designed to appear smart, curious, and impartial, with specific do's and don'ts like avoiding the words "certainly" or "absolutely." 👏

5. China takes a stand against Canada's EV tariffs 🚗✋.

China's Bold Move: China blasts Canada’s new EV tariffs as trade protectionism and a breach of WTO rules ✋.
Canadian Backlash: Beijing warns that this will hurt trade, consumer interests, and Canada’s green goals 🌍.
Tech Innovation: China claims its EV edge comes from innovation, not subsidies 🚀🔧.
Canada's New Tax: Trudeau's cabinet hike on Chinese EV tariffs to 106.1% starts October 1 📈⚠️.
Steel & Aluminum Hit: Tariffs on Chinese steel and aluminum to jump to 25% from October 15 🏗️🔨.

6. Hong Kong's tech tantrum. 📉🇭🇰

PDD’s US depositary receipts fall 29% after revenue misses expectations.
Source: FT.

Temu’s parent, PDD Holdings' Dramatic Drop: PDD Holdings' stock plummeted 29%, creating a stir akin to a Titanic sinking—fast and hard. 🧊
Hong Kong's Financial Woes: The Hang Seng Index is following the downward trend, showing a precarious dip and resembling a lemming leap.
Tech Stocks' Trouble: Tech stocks are facing a dire situation, similar to a smartphone with 1% battery life at a crucial moment.
Walmart's Quick Breakup: Walmart ended its 8-year partnership with JD.com abruptly, likened to a swift end to a bad date.
Resilient Outliers: Despite the chaos, stocks like Trip.com and PetroChina are managing to swim against the current, offering a glimmer of hope.