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🟡 Semafor Business: Spillover inflation
In this edition, the Chicago Fed’s president warns that AI inflation is pushing up prices in unrelated corners of the economy, and Larry Fink fires his first shot in a Wall Street turf battle.
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Asia is world’s largest producer of ‘zombie’ firms, IMF warns
Zombie firms’ debt share has more than doubled since 2008.
Patipat Janthong/Reuters
Bumble to go private in $1.3B acquisition
The company has faced years of falling revenue amid a shift in online dating habits.
Mike Blake/Reuters
Nvidia to announce $2B in European investments
Nvidia CEO Jensen Huang said he plans to unveil $2 billion in new European investments next week, as the continent’s economic prospects get a boost from AI.
Evan Vucci/Reuters
Volta’s $5 billion debt deal is a pulse check on the AI-financing boom
Debt marketed this week for an Anthropic-backed project in Norway shows lenders’ skittishness; high interest rates and a credit-rating provision.
Leah Millis/Reuters
US house sales drop to 12 year lows as borrowing costs spike
Increasing energy prices and higher-for-longer inflation expectations have sent mortgage rates to recent records.
Marco Bello/Reuters
AI is an inflation problem, Fed’s Goolsbee says
Chicago Fed President Austan Goolsbee warns of “spillover” from AI price spikes into unrelated parts of the economy.
Reuters/Elizabeth Frantz
New report shows US chip industry’s reliance on China
More than 5% of equipment and materials supplied to US chipmakers originate in China, which also possesses some 90% of the rare earths required to manufacture semiconductors.
Meta has reached AI ‘frontier,’ Zuckerberg says
Mark Zuckerberg said Meta had reached the “frontier” of AI capabilities with the release of its latest Muse model.
Israel mints tech unicorns. Can it keep them from leaving for New York?
Tel Aviv Stock Exchange’s pitch is aided by US investors’ preference for AI giants: “New York is no longer an option.”
AI infrastructure investments to drive Asia economic boom
JP Morgan said Asia’s expansion was “broadening from an overwhelmingly tech-led export boom towards more balanced growth from tech.”
Inside the Breakup of an American Industrial Giant
After nearly four decades at Honeywell, Vimal Kapur reached the top — and then took on the task of breaking the 140-year-old industrial conglomerate into three companies.
Quinn Emanuel issues warning over data-center financing
The law firm’s March memo on data-center debt was making the rounds in recent days, laying out worst-case scenarios for the AI buildout.
Ariel goes from listener to caller at Mattel
The firm’s first activist-style letter, joined by another investor, puts pressure on new CEO Roger Lynch as Authentic Brands shows interest.
The CEO who put Canary Wharf back on the map
Shobi Khan’s success in filling the east London site is tempting him to think about international expansion.
China rejects yuan manipulation claims amid EU trade dispute
China pushed back against claims that it manipulates its currency to boost the country’s exports, as Beijing and Brussels spar in trade negotiations.
AI export growth will offset trade disruptions this year, WTO says
Global trade in goods is expected to grow by 3.9% this year, The World Trade Organization said Thursday, as conflict-fueled disruptions in the Middle East are more than offset by the booming AI trade.
Coca-Cola looks to sell Costa Coffee
The beverage giant is reviving a plan to unwind its $5 billion acquisition of the British coffee chain it purchased in 2018.
Blue Owl CEOs rebuff credit fears
In a rare joint appearance, the co-CEOs of Blue Owl dismissed the idea of a management buyout, the classic fix for a company heavily controlled by its founders and unloved by stockholders.