Google's Ad Tech Divestiture Offer Rejected by EU Publishers

MARKET

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Fed's Shock 50-Basis Cut Spurs Short-Lived Stock Highs Amid Inflation Fears

The Federal Reserve has implemented a 50-basis-point rate cut in response to the falling inflation and cooling jobs market. While stocks initially soared to record highs, they declined by closing time amid increasing yield due to inflation worries. Predictions suggest further rate cuts by year-end as the Federal Reserve continues aggressive policies to address slowing inflation and job growth.

TECH BRIEF

YouTube Incorporates AI Tools for Enhanced Content Creation (4 minutes read)

YouTube has revealed new AI-related features, including an 'Inspiration Tab' that suggests video ideas, and a video creation tool called Veo, associated with DeepMind and YouTube Shorts. This technology can produce Veo videos from short clips and AI-generated backgrounds. Each feature will slowly become available to creators later this year or early next. Additional AI tools include auto-dubbing to multiple languages and interaction with fans through the app's new Communities section. YouTube intends these enhancements to make content creation easier and rival platforms like TikTok and Instagram.

YouTube Launches "Communities" Feature to Boost Creator-Viewer Interactions (3 minutes read)

YouTube has introduced a new feature, Communities, allowing creators and fans to interact directly on the platform, rather than moving to other platforms like Instagram or Reddit. The Communities feature, similar to earlier forums, subreddits or Facebook groups, offers a space for creators' posts and fan discussions. Additionally, YouTube is rolling out a Community Hub tool to moderate and manage activity on their channels. YouTube aims to make its platform more social and engaging for its users.

Alibaba Intensifies AI Race with New Open-Source Models, Text-to-Video Tech (3 minutes read)

Alibaba has released new open-source AI models and text-to-video technology to bolster its position in the generative AI market. Hailing from Alibaba's Qwen 2.5 family, the models support over 29 languages, boast between 0.5 and 72 billion parameters and are proficient in mathematics and coding. Simultaneously, Alibaba unveiled a text-to-video model, further diving into an emerging market and competing with global players like OpenAI.

Microsoft's Inflection Acquihire Evades EU Merger Scrutiny (2 minutes read)

Microsoft's talent acquisition from artificial intelligence startup Inflection will not be treated as a merger under EU regulations. Initially, seven EU nations had called for a probe, but these requests were subsequently withdrawn. Despite concerns raised by critics, the Microsoft-Inflection agreement was regarded as a structural market change, rather than a 'killer acquisition'. Following the move, Inflection's focus will shift towards its AI studio business. Microsoft has welcomed the EU announcement.

Google's Ad Tech Divestiture Offer Rejected by EU Publishers (4 minutes read)

Google's proposal to sell its AdX advertising marketplace to end an EU antitrust investigation has been rejected by European publishers, seeking a divestment beyond AdX to ease conflicts of interest. The EU antitrust chief previously suggested Google divest sell-side tools DFP and AdX to curb conflicts, though now seems likely to order a halt to alleged anti-competitive behaviours before asset divestment.