Cryptocurrency
Global Inflation Pressures Could Become Harder To Manage In Coming Years, Research Suggests
JACKSON HOLE, Wyo. Trade restrictions are rising. Population ageing. A broad shift away from carbon-emitting fossil fuels and towards renewable energy.
The predominance of such tendencies could exacerbate global inflation pressures in the coming years, making it more difficult for the Federal Reserve and other central banks to fulfill their inflation targets.
This was a recurring topic in several high-profile speeches and economic research delivered Friday and Saturday at the Federal Reserve’s annual gathering of central bankers in Jackson Hole, Wyoming.
The global economy has been moving towards deeper integration for decades, with goods flowing more freely between the United States and its trading partners. Lower-wage production elsewhere allowed Americans to enjoy low-cost items while keeping inflation low despite losing many American industrial jobs.
That tendency, however, appears to be reversing since the outbreak. Global firms are relocating their supply chains away from China. Instead, They are attempting to make more items in the United States, particularly semiconductors, which are critical in creating automobiles and electrical goods, with the encouragement of substantial subsidies from the Biden administration.
Simultaneously, large-scale expenditures in renewable energy could be disruptive by boosting government borrowing and demand for raw materials, raising inflation. The world’s population is aging, and older people are less likely to continue working. These changes could operate as supply shocks, comparable to how shortages of products and labor drove inflation during the pandemic recession’s recovery.
Global Inflation Pressures Could Become Harder To Manage In Coming Years, Research Suggests
“The new environment sets the stage for larger relative price shocks than we saw before the pandemic,” European Central Bank President Christine Lagarde said in a speech Friday. “If we face both higher investment needs and greater supply constraints, we are likely to see stronger price pressures in commodity markets, particularly for metals and minerals critical to green technologies.”
This would complicate the work of the ECB, the Fed, and other central banks tasked with controlling price hikes. Almost all central banks are still fighting to contain the excessive inflation that began in early 2021 and has just partially abated.
“We live in a world where we can expect more and possibly larger supply shocks,” said Pierre-Olivier Gourinchas, chief economist of the International Monetary Fund, in an interview. “All of these things tend to make production more difficult and expensive.” And that is undoubtedly the combination that central banks despise the most.”
The changing trends in global trade patterns drew the greatest attention during Saturday’s Jackson Hole summit sessions. According to research by Laura Alfaro, an economist at Harvard Business School, China’s proportion of US imports declined 5% from 2017 to 2022 following decades of expansion. Her analysis ascribed the fall to US tariffs and the attempts of significant US corporations to locate alternative sources of goods and parts after China’s epidemic shutdowns hampered output.
Those imports were mostly from nations like Vietnam, Mexico, and Taiwan, which have better relations with the US than China – a trend known as “friendshoring.”
Global Inflation Pressures Could Become Harder To Manage In Coming Years, Research Suggests
Despite these developments, US imports reached an all-time high in 2022, indicating that total commerce remains strong.
“We are not deglobalizing yet,” Alfaro explained. “As trade patterns shift, we are witnessing a looming ‘Great Reallocation.'”
She also mentioned that there are early signs of “reshoring,” or the return of certain manufacturing to the United States. According to Alfaro, the United States is importing more parts and unfinished goods than before the pandemic, indicating that final assembly is taking place in the country. According to her, the fall in manufacturing jobs in the United States appears to have peaked.
However, Alfaro emphasized that these developments come with drawbacks: in the last five years, the cost of goods from Vietnam has climbed by approximately 10%, and items from Mexico have increased by about 3%, adding to inflationary pressures.
She also stated that China has increased its investment in manufacturing in Vietnam and Mexico. Furthermore, other countries that ship goods to the United States import components from China. These events indicate that the United States’ economic connections with China have remained strong.
At the same time, some global factors may act in the opposite direction, lowering inflation in the future years. One of these factors is slowing growth in China, the world’s second-largest economy after the US. With its economy in shambles, China will buy less oil, minerals, and other commodities, putting downward pressure on world prices.
Global Inflation Pressures Could Become Harder To Manage In Coming Years, Research Suggests
During a discussion on Saturday, Bank of Japan Governor Kazuo Ueda noted that while China’s stuttering growth is “disappointing,” it is primarily due to mounting defaults in the country’s bloated property sector rather than changes in trading patterns.
Ueda also criticized the United States’ growing use of subsidies to encourage domestic manufacturing during the last two years.
“The widespread use of industrial policy around the world may simply result in inefficient factories,” Ueda added, because they may not be positioned in the most cost-effective locations.
And World Trade Organisation Director-General Ngozi Okonjo-Iweala defended globalization while criticizing growing subsidies and trade obstacles. She claimed that global commerce frequently restrains inflation and has considerably reduced poverty.
“Predictable trade,” she explained, “is a source of disinflationary pressure, lower market volatility, and increased economic activity.”Economic fragmentation would be excruciating.”
SOURCE – (AP)
Cryptocurrency
Sony Is Once Again Facing A Potential Security Breach, This Time By A Ransomware Group
Once more, Sony faces the possibility of a security breach, this time from a ransomware group alleging to have compromised PlayStation systems. On Sunday, the group LAPSUS$ proclaimed the alleged hack on their dark website. This could have significant implications for PlayStation users, although details remain scant.
According to the ransomware group, they have compromised all Sony systems and seized valuable information, including game source code and firmware. As “proof,” they have provided screen captures of what appears to be an internal login page, PowerPoint presentation, and file directory.
However, according to cybersecurity specialists, this information could be more convincing. Cyber Security Connect stated, “None of it appears to be particularly compelling information.” They suspect that LAPSUS$ may have exaggerated the scope of their breach.
Based on the limited data available, it is extremely difficult to determine the scope or integrity of the hackers’ claims. PlayStation’s online services do not appear to have been impacted so far, with no word if user data is at risk.
Sony Is Once Again Facing A Potential Security Breach, This Time By A Ransomware Group.
Not for the first time have Sony’s systems been targeted. In 2011, the PlayStation Network was compromised, exposing the personal information of 77 million users. Sony ultimately locked down PSN for nearly a month to improve security.
In 2014, North Korea launched a devastating cyberattack against Sony Pictures in retaliation for the film The Interview. The release of terabytes of sensitive data, including scripts for upcoming films and employees’ personal and medical information. Time will tell if Sony can once again recover its systems from a significant cyberattack. However, PlayStation users may need to prepare for potential consequences.
If LAPSUS$’s claims are accurate, this breach could have comparable repercussions. There is a possibility that sensitive source code and intellectual property could be compromised. There is also the possibility of significant PlayStation Network service disruptions. As with any hack, we recommend that users alter any passwords used on any PlayStation service to avoid problems with other online accounts.
CGMagazine has sought out Sony for comment, but at the time of publication, the company has neither confirmed nor denied the breach’s scope; we will update the article if the situation changes.
SOURCE – (cgmagonline)
Cryptocurrency
Amazon Is Investing Up To $4 Billion In AI Startup Anthropic In Growing Tech Battle
Amazon is investing up to $4 billion in artificial intelligence startup Anthropic and acquiring a minority stake in the company, the two companies announced on Monday.
The investment underscores how Big Tech companies are pouring money into AI as they race to capitalize on the opportunities that the latest iteration of the technology is set to fuel.
According to Amazon and Anthropic, the agreement is part of a larger collaboration to develop so-called foundation models, which are the basis for the generative AI systems that have garnered worldwide attention.
Foundation models, also known as large language models, are trained on vast online information pools, such as blog posts, digital books, scientific articles, and pop songs, to generate text, images, and videos that resemble human labor.
Amazon Is Investing Up To $4 Billion In AI Startup Anthropic In Growing Tech Battle.
Under the terms of the agreement, Anthropic will use Amazon as its primary cloud computing service and train and deploy its generative AI systems using Amazon’s custom processors.
Anthropic, based in San Francisco, was founded by former employees of OpenAI, the creator of the ChatGPT AI chatbot that made a global impact with its ability to generate responses that resembled human responses.
Anthropic has released Claude, its own ChatGPT competitor. The most recent version, available in the United States and the United Kingdom, can “sophisticated dialogue, creative content generation, complex reasoning, and detailed instruction,” according to the company.
Amazon is racing to catch up to competitors such as Microsoft, which invested $1 billion in OpenAI in 2019 and another multibillion-dollar investment at the beginning of the year.
Amazon has been releasing new services to keep up with the AI arms race, such as an update to its popular assistant Alexa that enables users to have more human-like conversations and AI-generated summaries of consumer product reviews.
SOURCE – (AP)
Computer
Photo Giant Getty Took A Leading AI Image-Maker To Court. Now It’s Also Embracing The Technology
Anyone seeking a gorgeous photograph of a desert landscape will find various options in the Getty Images stock photography collection.
But suppose you’re searching for a wide-angle image of a “hot pink plastic saguaro cactus with large, protruding arms, surrounded by sand, in a landscape at dawn.” According to Getty Images, you can now request that its AI-powered image generator create one on the spot.
The Seattle-based company employs a two-pronged strategy to address the threat and opportunity of artificial intelligence to its business. First, it filed a lawsuit against a prominent provider of AI-generated images earlier this year for what it claimed was a “stunning” violation of Getty’s image collection.
But on Monday, it joined the small but expanding market of AI image creators with a new service that enables its customers to create novel images trained on Getty’s vast library of human-made photographs.
According to Getty Images CEO Craig Peters, the distinction is that this new service is “commercially viable” for business clients and “wasn’t trained on the open internet with stolen imagery.”
He compared this to some pioneers in AI-generated imagery, such as OpenAI’s DALL-E, Midjourney, and Stability AI, the creator of Stable Diffusion.
“We have issues with those services, how they were built, what they were built upon, how they respect creator rights or not, and how they actually feed into deepfakes and other things like that,” Peters said in an interview.
Anyone seeking a gorgeous photograph of a desert landscape will find various options in the Getty Images stock photography collection.
In a lawsuit filed early this year in a Delaware federal court, Getty alleged that London-based Stability AI copied without permission more than 12 million photographs from its collection, along with captions and metadata, “as part of its efforts to build a competing business.”
Getty asserted in its lawsuit that it is entitled to damages of up to $150,000 per infringed work, which could reach $1.8 trillion. Stability seeks dismissal or transfer of the case but has not formally responded to the underlying allegations. Similar to the situation in the United Kingdom, a court conflict is still brewing.
Peters stated that the new service, dubbed Generative AI by Getty Images, resulted from a long-standing partnership with California-based tech company and chipmaker Nvidia, which predated the legal challenges against Stability AI. It is based on Edify, an AI model created by Picasso, a division of Nvidia’s generative AI division.
It promises “full indemnification for commercial use” and is intended to eliminate the intellectual property risks that have made businesses hesitant to use generative AI tools.
Getty contributors will also be compensated for having their images included in the training set, which will be incorporated into their royalty obligations so that the company is “actually sharing the revenue with them over time rather than paying a one-time fee or not paying that,” according to Peters.
Anyone seeking a gorgeous photograph of a desert landscape will find various options in the Getty Images stock photography collection.
Getty will compete with rivals such as Shutterstock, which has partnered with OpenAI’s DALL-E, and software company Adobe, which has developed its own AI image-generator Firefly, for brands seeking marketing materials and other creative imagery. It is unlikely to appeal to those seeking photojournalism or editorial content, where Getty competes with news organizations such as The Associated Press.
Peters stated that the new model cannot produce politically damaging “deepfake” images because it automatically blocks requests containing images of recognizable persons and brands. As an illustration, he entered “President Joe Biden on a surfboard” as a demonstration to an AP reporter, but the tool rejected the request.
“The positive news about this generative engine is that it cannot cause the Pentagon to be attacked. “It cannot generate the pope wearing Balenciaga,” he said, referring to a widely shared fake image of Pope Francis wearing a fashionable puffer jacket generated by artificial intelligence.
Peters added that AI-generated content will not be added to Getty Images’ content libraries, reserved for “real people in real places doing real things.”
SOURCE – (AP)
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