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Credit Suisse Rescued By Swiss Rival UBS for $3 Billion

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Credit Suisse Rescued By Swiss Rival UBS for $3 Billion

Credit Suisse has been rescued by its Swiss rival UBS in a government-backed deal on Sunday. The announcement came after a weekend of emergency talks between the two banks and Switzerland’s financial regulators in Switzerland.

UBS Group AG, founded and headquartered in Switzerland, is a multinational investment bank and financial services firm. According to the Swiss National Bank, the agreement is the best way to restore financial market confidence and manage economic risks.

The Bank of England welcomed the “comprehensive set of actions,” the BBC reported.

Credit Suisse shareholders will receive one share in UBS for every 22.48 shares they own, valuing the bank at $3.15 billion (£2.6 billion).

Credit Suisse was valued at around $8 billion (£6.5 billion) at the close of business on Friday.

However, the agreement accomplished what regulators set out to do: secure a result before the financial markets opened on Monday.

In a statement, Switzerland’s central bank said, “a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation”.

To mitigate any risks for UBS, the federal government announced a $9.6 billion (£7.9 billion) guarantee against potential losses. The Swiss central bank has also offered up to $110 billion (£90 billion) in liquidity assistance.

Credit Suisse

Global financial institutions quickly applauded the transaction between Credit Suisse and UBS.

The Bank of England said it welcomed the “comprehensive set of actions” set out by the Swiss authorities.

“Throughout the preparations for today’s announcements, we worked closely with international counterparts and will continue to support their implementation.”

It said the UK banking system was “well capitalized and funded and remains safe and sound”.

The UK Treasury also said it welcomed the merger and the British government would continue to engage with the Financial Conduct Authority (FCA) and the Bank of England “as is usual”.

Because both UBS and Credit Suisse have operations in London, the FCA said on Sunday that it was “minded to approve” the takeover to support financial stability.

“The FCA remains closely engaged with UK and international regulatory partners to monitor market developments,” the watchdog said.

Credit Suisse

Christine Lagarde, President of the European Central Bank, said she welcomed the “swift action” of the Swiss authorities.

“They are instrumental in restoring orderly market conditions and ensuring financial stability. “The eurozone banking sector is resilient, with strong capital and liquidity positions,” stated Ms. Lagarde.

The remarks of the European Central Bank President were echoed in the United States.

Treasury Secretary Janet Yellen and Federal Reserve Board Chairman Jerome Powell said the Swiss authorities’ announcement supported “financial stability”.

“The US banking system’s capital and liquidity positions are strong, and the US financial system is resilient,” they said.

Credit Suisse is the latest and most significant casualty of a confidence crisis that has already resulted in the failure of two mid-sized US banks and an emergency industry whip-round for another. But this is not the case. Switzerland’s second-largest lender was considered one of the world’s top 30 most important banks, so the Swiss authorities rushed through this takeover.

Although the causes of each failure vary slightly, the main factor has been a sharp rise in global interest rates, which has reduced the value of even safe investments in which banks keep some of their money. This has alarmed investors, causing all bank share prices to fall, with the weakest banks suffering the most.

The EU, US, and UK financial authorities have supported this agreement, emphasizing that banks are strong and people’s savings and deposits are secure. The acid test for whether this Swiss rescue has calmed financial markets will be when they open on Monday, so completing this on Sunday night was critical.

Credit Suisse

Following the announcement on Sunday night, UBS chairman Colm Kelleher said Credit Suisse was a “very fine asset we are determined to keep” in Bern, Switzerland.

“This acquisition is appealing to UBS shareholders, but let us be clear: this is an emergency rescue for Credit Suisse,” he added.

Mr. Kelleher stated that UBS would acquire Credit Suisse’s investment banking division.

The chairman of UBS said it was “too early” to predict what would happen to jobs: “We need to do this in a rational and thoughtful way after we’ve sat down and analyzed what we need to do,” he said.

The weekend deal comes after the Swiss National Bank’s emergency $54 billion (£44.5 billion) lifeline on Wednesday failed to reassure markets, and Credit Suisse shares fell 24%, sparking a wider sell-off on European markets.

The 167-year-old bank is losing money and has had many problems recently, including allegations of money laundering.

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Google Denies Gmail Is Shutting Down After Viral Hoax

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Google has been forced to publicly affirm that Gmail is “here to stay” after a hoax claiming it was shutting down went viral on social media.

A post on X, formerly Twitter, which has been read over seven million times, stated that it would close in August.

Google responded to the same platform to deny the bogus allegation.

google

Google Denies Gmail Is Shutting Down After Viral Hoax

A communications expert told the BBC that it was “a classic example” of the risks of misinformation.

“Most people believe what they see online, and there’s a lack of tools and processes to verify the facts,” said Richard Bagnall, CEO of CARMA, a communications evaluation organisation.

“Whilst social networks can act without responsibility and pump unfiltered, unverified information to their audiences, this Gmail incident won’t be the last case we’ll see.”

All social media sites struggle to combat misinformation, but X has been singled out for special criticism, with the EU saying in 2023 that it was worse than its rivals at propagating lies.

The corporation has previously stated that it is devoted to “tackling hate speech” while aiming to “protect free speech.”

The BBC has contacted X for comment on this scam, which appears to be based on an email from Google in 2023. It informed users that access to Gmail’s most basic HTML view would be disabled.

google

Google Denies Gmail Is Shutting Down After Viral Hoax

The initial HTML interface was utilised when Gmail started in 2004 and would be unfamiliar to most individuals who use the service today.

“We are reaching out to share an important update about Gmail,” the viral post states.

“After years of connecting millions worldwide, enabling seamless communication, and fostering countless connections, the journey of Gmail is coming to a close.”

Gmail is the world’s most popular email service, with over 1.5 billion active users globally, according to Statista.

google

Google Denies Gmail Is Shutting Down After Viral Hoax

Despite firmly denouncing the bogus claims in the hoax communication, Google has closed numerous services in recent years.

In 2023 alone, Google discontinued its Stadia gaming service and its Snapchat-like YouTube Stories feature and began deleting old and inactive Gmail accounts.

It has stated plans to close Google Podcasts however this service has been effectively replaced by YouTube Music, which it also controls.

SOURCE – (BBC)

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AI Chip Firm Nvidia Valued At $2tn

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Nvidia’s market value has reached $2 trillion (£1.58 trillion), marking a new milestone in the chipmaker’s meteoric rise to the ranks of the world’s most valuable corporations.

Shares of the Silicon Valley corporation gained more than 4% in opening trading on Friday before falling slightly.

The gains built on the company’s impressive earnings announcement earlier this week.

nvidia

AI Chip Firm Nvidia Valued At $2tn

The company is profiting from improvements in artificial intelligence (AI), which has boosted demand for its processors.

The company’s turnover doubled last year to more than $60 billion, and CEO Jensen Huang told investors this week that demand was “surging” worldwide.

The corporation, which became worth $1 trillion less than a year ago, is now the world’s fourth most valuable publicly traded company, trailing Microsoft, Apple, and Saudi Aramco.

nvidia

AI Chip Firm Nvidia Valued At $2tn

After shares fell from their early Friday highs, the company’s market capitalization ended the day just under $2 trillion.

Nvidia was founded in 1993 and was originally recognized for producing computer processors that processed images, primarily for computer games.

Long before the AI revolution, it began adding capabilities to its chips that it claims to aid in machine learning, which has helped it acquire market dominance.

It is currently regarded as a vital company to monitor how quickly AI-powered technology spreads throughout the commercial world.

The firm’s stock price has more than tripled the previous year, from less than $240 per share to about $800 in midday trading on Friday.

On Thursday, the day after its earnings release, purchasers snapped up shares, boosting its value by $277 billion, the greatest one-day rise in Wall Street history.

He research has also contributed to a larger market rise, appearing to persuade investors that, as Derren Nathan of Hargreaves Lansdown put it, the AI boom is “living up to the hype”.

nvidia

AI Chip Firm Nvidia Valued At $2tn

“It’s being used in automotive for design, in telecommunications for network planning, and in mainstream companies to figure out and get insights into data that they haven’t been able to get before,” Bob
O’Donnell, a technology analyst based in the United States, told the BBC earlier this week.

“This is now really starting to hit the kinds of companies across the board, not just specialized tech companies and that’s a real tipping point for the industry.”

SOURCE – (BBC)

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The Tesla Cybertruck Is Impressive And Worrying

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cybertruck

There was a time when an electric Tesla truck, built to compete with America’s most popular goods, the Ford F-150 and Chevrolet Silverado, appeared to be the perfect way to propel Tesla into the mainstream.

Then, in 2019, Elon Musk revealed the Tesla Cybertruck, a bare metal box with wheels. It is the furthest thing from the mainstream. This truck has ardent fans and much more ardent detractors. However, it has good towing and hauling capabilities despite its edgy design limiting its usability. For some clients, the sacrifice is unquestionably worthwhile.

However, it is possible that Ford and GM are overly concerned.

If it’s a popularity contest, they win. Even after I put a rented Tesla Cybertruck next to a hot-pink McLaren supercar in a shopping centre parking lot in California, the McLaren drivers couldn’t stop chatting about the Cybertruck. The large, bright silver truck drew a crowd everywhere I went, attracting both young people waiting to see one in person and others, usually older, who had no idea what it was.

cybertruck

The Tesla Cybertruck Is Impressive And Worrying

The Tesla Cybertruck resembles nothing else on the road. Its size, which is not quite as long as a Ford F-150 but appears even larger, is also striking. Of course, once the Cybertruck has been on the market for a time, its appeal will fade.

There’s much to enjoy about the Cybertruck, but it also represents a terrible amount of personal arrogance in cold, unforgiving steel. Elon Musk, the CEO of Tesla, has prioritized design and technical goals over customer needs and concerns for other drivers’ safety. As Walter Isaacson’s latest biography of Musk explains, Musk’s obsession with this structure, built from the same steel SpaceX uses for rockets, resulted in the rectilinear mass of naked metal that I was driving through the southern California hills.

It was the most enjoyable electric truck I’d ever driven. I’ve driven practically all of the other electric trucks on the market, including Fords and Rivian, and I don’t anticipate any of them outperforming Cybertruck’s sports-car-like performance. Normally, it is not a priority in a pickup. It has exceptional acceleration and steering that feels quick, sensitive, and agile. Its powerful acceleration, fast steering, and custom-designed Goodyear truck tyres reminded me of driving the Lamborghini Huracán Sterrato, a high-performance sports vehicle outfitted with off-road tyres and higher suspension. However, the Cybertruck is significantly larger and heavier.

Even a light tap on the accelerator swiftly pushed everyone else behind. With its drive-by-wire steering system, a tiny turn of its small, rectangular steering wheel produced tight bends at lower speeds, but it was easy to keep the truck in its lane at greater speeds. With four-wheel steering, it can turn around in a smaller area than one may imagine.

Tesla did not provide CNN with a Cybertruck for testing. Instead, we rented one for more than $1,000 daily from Turo, a-to-peer vehicle rental service. (Turo does not determine the rates; vehicle owners do, and Cybertruck charges have decreased slightly since then.) My Turo host guided me through the Cybertruck’s several unusual controls – by non-Tesla standards.

Instead of a stalk, steering wheel buttons control the turn signals. (Again, this is comparable to a Lamborghini or Ferrari.) I swiped up and down on a truck icon on the centre screen to shift the truck into drive or reverse. (If the screen ever goes blank, there is a row of gear selector buttons on the ceiling, right over the windscreen.) And I had to hunt around on the touchscreen to find the control for the Cybertruck’s single massive windscreen wiper. Everything made sense after driving the vehicle for an hour.

So, what’s with the rearview mirror?
It features a rearview mirror on the windscreen, but it is largely ineffective. With the bed cover closed, nothing is visible from the back window.

Many current SUVs include rearview mirrors that double as video screens, displaying a view from a camera installed in the rear. Tesla could have employed a comparable technology but didn’t. The Cybertruck’s back video view is presented in a small rectangle on the truck’s centre screen. It’s always there while you’re driving.

cybertruck

The Tesla Cybertruck Is Impressive And Worrying

This seemingly trivial element reveals Tesla’s approach to car controls. The only justification for having the rearview video display within the rearview mirror is that this is where drivers are accustomed to viewing. Similarly, the only purpose for a turn signal stalk is because it is what people expect. For better or worse, Tesla is okay with what you’re used to.

There are indicators that this mentality contributes to greater crash rates, yet if Tesla were designing a vehicle from the start, the unusual choices would be entirely understandable.

Then there’s the Cybertruck’s unusual shape. Other firms have been producing pickup trucks for well over a century, and there are reasons why they are rarely shaped like wedges. In this case, the Cybertruck’s obvious and unnecessary desire to stand out is a hindrance.

Not suitable for freight.
If you load the cargo bed in the Cybertruck and decide you want to reach anything in the front or back window, you’ll need to begin unpacking. It is not accessible by reaching over the side of the bed. The side wall is too high.

Unlike other large trucks, the Cybertruck has nowhere to put your foot to help you reach over the cargo bed’s edge to save the back tyre, which may be sticky with mud and filth. There isn’t even much room to stand on the rear bumper.

The “frunk,” or front trunk, is a rather ineffective afterthought compared to the one on the Ford F-150 Lightning. Ford’s is just larger and has plenty of power outlets, making it a truly useful office. The Cybertruck is useful as a place to sit. However, there is a reasonably sized storage bin.

For now, the Cybertruck is also more expensive than the Lightning. The Foundation Series truck that I drove cost more than $100,000. It will be next year before Tesla says it will begin building trucks for under $60,000.

Most problematic, however, is the manufacturing quality. The cabin is relatively good, although spartan, but that’s the easy part, especially because Tesla eliminates most switches. The difficult element is creating a body from stainless steel, particularly one with relatively straight edges that do not conceal misalignments.

Body panel alignments are primarily cosmetic in most automobiles and trucks. Having large, irregular gaps between different body portions does not look nice. However, most automobiles are not composed of thick, hard-edged stainless steel. Our Cybertruck’s front corners had openings large enough to see daylight through and hard edges protruding from the body.

cybertruck

The Tesla Cybertruck Is Impressive And Worrying

I was concerned that if this vehicle collided with a pedestrian or if someone slid while climbing over the bedside, the unforgiving metal might inflict serious injury. It’s not knife-edged, but it appears to rip through the skin when it hits soft flesh with enough force. I emailed Tesla to see if they had any issues, but I am still awaiting a response. Tesla has been waiting to respond to CNN’s questions for years.

This is not a truck that customers will buy in large numbers, and it’s not simply because Tesla still needs to produce them. It’s entertaining and engaging, but there’s little need to acquire this instead of something more ordinary and useful for those who want to get the job done. It doesn’t do much better – or at least anything significant – than a Ford F-150 Lightning or a Chevrolet Silverado EV, and it will undoubtedly be worse in several critical respects.

If you want to attract a crowd, this is your ride. At least as long as the novelty lasts.

SOURCE – (CNN)

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