📣 Big Tech seeks nuclear energy

Welcome again to the Techonomy Barista, where we craft a smooth blend of innovation insights and market foresights.🧠

Today’s news:

1. Amazon and Google invest in reviving nuclear facilities for energy.

2. China’s economic growth at weakest in 6 quarters.

3. Nvidia-TSMC relationship faces strain due to AI demand.

4. European Central Bank to cut rates due to weak economic performance.

5. Uber seeks to acquire Expedia to create a ‘super app.’

Markets

Economic Calendar

1. Amazon invests in small nuclear reactors, joining Google in clean energy push 🔋

Key takeaways:

• Amazon and Google are investing in small nuclear reactors for carbon-free electricity.

• The move aims to meet surging demand from data centers and AI operations.

• Microsoft plans to buy power from the restarted Three Mile Island nuclear plant.

• Data centers' electricity consumption could exceed 1,000 terawatt hours by 2026. 🤯 

• Small modular reactors are expected to start generating electricity in the early 2030s.

What this could mean for you and the energy industry:

• As tech giants go nuclear, your smart home devices might get a radioactive glow-up. Just kidding, but they'll be running on cleaner energy. ♻️ 

• The energy sector is witnessing a plot twist worthy of a blockbuster - tech companies are now becoming power producers. Who needs superheroes when you've got super-reactors? 🦸‍♂️

• This nuclear renaissance might spark a new era of innovation, and the energy industry could be in for a wild ride! 🎢 

2. China's GDP growth slows to 4.5% in Q3, weakest in 18 months

China’s economic growth is seen as slowing

Key takeaways:

• China's economy expected to grow 4.5% YoY in Q3, slowest since March 2023.

• Annual growth target of around 5% still achievable with 4.9% expansion in first nine months.

• Industrial production forecast to rise 4.6% in September, retail sales may climb 2.5%.

• Property investment likely plunged 10% in first nine months of 2024.

• Exports slowed sharply in September, deflationary pressures continued to build.

• President Xi called for "every effort" to meet annual growth target in Q4.

Property investment reduced by 10% and fixed-asset investment slowed to 3.3%

What this could mean for the Chinese economy:

• China's economic slowdown is like a dragon with a cold - still powerful, but not breathing as much fire. 🐲 

• The government's stimulus measures are like chicken soup for the economy, but it remains to be seen if they'll be enough to cure what ails it.

• With property investment taking a nosedive, it's like the country's economic engine is running on fewer cylinders.

• The next few months will be crucial in determining whether China can roar back to life or if it'll need to hibernate for a bit longer. 💤 

• The global economy is watching the #2 economy in the world with bated breath - and maybe a fortune cookie or two for good luck! 🥠

3. Nvidia-TSMC partnership faces strain as AI chip demand surges, delaying Blackwell release 🔥

10-year revenues for Nvidia and TSMC

Key takeaways:

• Nvidia's Blackwell chips faced failures in high-voltage data center environments.

• Issues stem from both Nvidia's design flaws and rushed production by TSMC.

• The partnership is under pressure as Nvidia pushes for yearly architecture updates.

• TSMC struggles to expand manufacturing capacity to meet Nvidia's demands.

• Nvidia explores partnership with Samsung for gaming chips to reduce TSMC reliance.

Market cap for Nvidia and TSMC in the trillions

What this could mean for the semiconductor industry:

• The industry might see a "chip-ocalypse" of mergers and acquisitions as companies scramble to secure their supply chains.

• R&D budgets could skyrocket as chip makers race to solve the AI power puzzle. Expect to see more engineers with "I survived the AI chip wars" t-shirts at industry conferences. 🧠

• The geopolitical chess game over chip manufacturing could intensify. Taiwan might need to invest in a really big "No Vacancy" sign for all the tech giants knocking at its door. 🏝️

4. ECB set for back-to-back rate cuts amid economic concerns 📉

European Central Bank cutting rates faster and lower

Key takeaways:

• ECB expected to lower interest rates by 0.25% to 3.25% on Thursday.

• Inflation has fallen below 2% for the first time since 2021.

• Weaker-than-expected economic data is driving the decision to cut rates.

• Euro-zone economy outlook is deteriorating, with Germany facing potential second annual output drop.

• Geopolitical risks, including US elections and Middle East conflicts, add uncertainty.

US election, among other Geopolitical issues, is seen as largest risks to Eurozone economy

What this could mean for monetary policy in the European economy:

• The ECB's shift towards rate cuts signals a delicate balancing act between supporting economic growth and maintaining price stability. It's like trying to juggle flaming torches while riding a unicycle – impressive if they pull it off, disastrous if they don't! 🎭

• The central bank might need to be more flexible in its approach, potentially leading to a faster normalization of interest rates than previously expected.

• This could have far-reaching implications for the European economy, affecting everything from investment patterns to currency valuations.

5. Uber eyes Expedia acquisition in $20bn 'super app' expansion bid 🚗✈️

Uber stock upswing from 2023

Key takeaways:

• Uber explored a potential bid for Expedia, the $20bn US travel booking website.

• The acquisition would be Uber's largest, aiming to diversify and find new growth avenues.

• Uber CEO Dara Khosrowshahi, former Expedia CEO, would likely recuse himself from deal discussions.

• Uber's market cap of $173bn and recent profitability strengthen its M&A firepower.

• The move aligns with Uber's strategy to become a "super app" for transportation and services.

What this could mean for you:

• Your Uber app might soon become your one-stop-shop for rides, food, and vacations. Talk about a digital Swiss Army knife! 🇨🇭

• Booking your next trip could be as easy as ordering a ride home. Just hope your driver doesn't take you straight to the airport! ✈️

• The "super app" vision is not new - Musk has the same goal for X and Grab in Southeast Asia has aimed for the super app status. One thing we know is it’s not easy to be the next WeChat.

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Other stories:

AI

OpenAI hires Microsoft GenAI research lead.

Nvidia quietly launches its own model on Llama without fanfare.

‘State of AI’ report finds OpenAI’s lead over other companies largely vanished.

TSMC bullish on future as Q3 profit beats forecasts due to AI.

Tech

Nokia and Ericsson see signs of recovery in operating profits.

Google Flights now shows ‘cheapest’ option available.

Amazon reveals the first color Kindle e-reader.

Startup

African crypto startup Yellow Card raises $33M.

Self-driving startup Pony.ai plans for IPO this week.

Lightmatter raises $400M amid data center frenzy at $4.4B valuation.

Business

Meta laid off employees on Wednesday.

Schneider Electric could buy data centre cooling firm Motivair for $850 million.

Boeing hones $15 billion financing plan to weather crises.

Musk plans for SpaceX to catch the entire ship after recent success with the first stage.

US Politics

Trump and Harris talk to Fox News audiences separately.

Kamala Harris focuses on ‘blue wall’ states.

Top Economies (non-US)

Chinese stocks erase gains due to lack of further stimulus.

Bank of Japan calls for ‘very moderate’ pace of rate hikes.

India could add significant value to its economy through AI adoption, a report by Google says.

Germany has no more growth in 2024.

Fascinating

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