📣 China's stock rally loses steam

This is the Techonomy Barista, where we compile the source code of global techonomy!

Today’s news:

1. China’s stock rally loses steam.

2. Epic games’ victory over Google Play Store.

3. US debt figures under Harris vs Trump.

4. Samsung apologizes for underperformance in business.

Markets and Economic Calendar

1. China's stock rally loses steam as stimulus hopes fade 📉

Chinese shares soared on expectations of government stimulus.

Key takeaways:

• CSI 300 Index rose 5.1% after initial 11% surge as mainland markets reopened.

• Record 2.6 trillion yuan ($368 billion) turnover in Shanghai and Shenzhen.

• Officials held back on major stimulus announcements at NDRC briefing.

• Skepticism grows over durability of rally without concrete fiscal action.

• China aims for 5% growth in 2024 amid sluggish consumer spending and property downturn. 🏡 

How it could impact the Chinese economy:

• Without concrete fiscal measures, we might see a "pump and dump" scenario playing out.

• If you're invested in emerging markets funds, your returns might be affected. Time to check if your portfolio is as balanced as your chakras! 🧘‍♀️

• Reduced Chinese demand might lead to lower commodity prices, affecting everything from gas prices to your morning coffee.

2. Epic victory: Google's Android app store monopoly shattered 🏛️

Key takeaways:

• Judge rules that Google can't require developers to use only its app payment methods for the next three years.

• Google must stop blocking installation of rival app stores on Android devices.

• Outside app stores now allowed in Google Play store.

• Decision likely to impact Google's revenue, as Play store accounted for 20% of Alphabet's operating income in 2019.

• Google plans to appeal the ruling, which follows a jury's antitrust verdict 10 months ago.

What this could mean for you and app developers:

• More payment options for your Android apps might lead to better deals as developers might finally escape the "Google tax."

• Expect to see a wider variety of app stores on your Android device, provided decision is upheld after Google’s appeal. ⚖️ 

3. US debt to balloon by $7.5Tn under Trump vs $3.5tn under Harris 💸

Key takeaways:

• Trump's economic plans estimated to raise debt by $7.5tn and Harris' to increase debt by $3.5tn. 🤯 

• Trump's tax cuts and exemptions would increase debt by $9tn, offset by $3tn from tariffs.

• Harris's tax cuts for households under $400,000 and families with children to cost over $4tn.

• Debt-to-GDP ratio: under Harris would rise to 133%, under Trump to 142%.

• National debt currently at 99% of GDP, projected to reach 125% in 10 years under current laws.

How it could impact the US economy:

• Both candidates' plans could lead to slower growth and weakened national security due to the high debt burden.

• The next president will face fiscal challenges that make climbing Mount Everest look like a walk in the park. Whoever wins, it seems the national piggy bank is going on a diet! 🐖

4. Samsung apologizes for chip business struggles, promises overhaul 🔧

Key takeaways:

• Samsung Electronics issued an apology to investors for disappointing results in its semiconductor business.

• The company admitted to delays in delivering high-bandwidth memory (HBM) chips for AI processors, allowing SK Hynix to dominate the market.

• Samsung warned of "inventory adjustments" by customers and increasing competition from less-advanced Chinese memory chipmakers.

• The company's shares have fallen by more than 20% this year, reaching their lowest point since March 2023.

• Samsung plans to review its organizational culture and processes, including global job cuts.

Samsung is in 3rd place in the high-bandwidth memory market compared to SK Hynix Inc and Micro Technology Inc.

What this could mean for the semiconductor industry:

• The industry might see a shift in power dynamics, with companies like SK Hynix and TSMC gaining more market share. 🏆

• Expect more intense competition and innovation in AI-related chips, which could lead to faster advancements in AI technology. Just don't expect your toaster to become sentient overnight! 🤖 

Other stories:

AI

Hopfield and Hinton win Nobel Physics prize for their work on artificial neural networks.

ByteDance is scraping the internet at a rate faster than OpenAI.

Google’s NotebookLM thinks this guy left a Gatorade bottle on the moon.

Tim Brooks, the head of OpenAI’s Sora video gen project, leaves for Google.

CERN trains AI models to revolutionize cancer treatment.

Meta announces Movie Gen to be available in Instagram next year.

Tech

Russian YouTubers show off M4 MacBook Pro in historic leak.

AirPods Pro 2 at all-time low as Amazon reduces profit margin.

Starlink to provide cell phone service in areas hit by hurricane Helene.

Startup

Former Humane execs secure $25 million valuation for new AI venture.

Inside Q-CTRL’s $86.3M Series B funding.

Turkish cloud kitchen software startup raises $2.7M for expansion.

Business

Pfizer and GSK RSV vaccines sales fall in the US.

Boeing, striking union to continue negotiations on Tuesday.

Lyft unveils improved pay measures to attract more drivers.

US Politics

Harris calls Trump ‘incredibly irresponsible‘ for misinformation spread.

Musk joins Trump on stage expanding profile on politics.

Top Economies (non-US)

China’s growth set to slow despite stimulus.

Japan trusts BOJ on monetary policy, economy minister says.

India central bank seen on hold, but may open door to easing.

German industrial output rises more than expected in August.

Fascinating / Funny

If this newsletter was forwarded to you and you liked it, sign up here and we’ll send you this curated info fresh to your inbox!