ABNamro: Overlooked factors for a successful energy transition. “The energy transition represents a structural shift in our economic system where consumption and production paradigms are expected to change. Energy will shift away from fossil fuels towards more renewable energy sources, while efficiency improvements, electrification, hydrogen, and synthetic fuels are the main pillars for the transition. Transition is driven mainly through policy intervention, technological progress, and the change in consumer behavior. However, application is usually met with some unforeseen complexities. In this article we aim to highlight the specificities of the current transition by articulating some of the overlooked challenges that hinder or slow down the timely achievement of transition goals. Furthermore, we highlight the essential components needed to be considered for a successful transition. We judge that such issues need to be brought to the forefront to better understand the transition dynamics and be prepared to address them in a timely and efficient manner. Accordingly, the article touches on a wide range of transition related areas with a mutual theme of overlooked challenges.
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Deutsche Bank: Latest in AI: Mistral fund-raising, privacy at Apple, AI chips, UK and AI After the initial wave of excitement, investors have become more selective with their funding for AI start-ups. ”In this edition of ‘Latest in AI’ we discuss how big money is still being allocated to revenue-generating start-ups such as Mistral in France, however, some newer firms are having a harder time convincing investors. As the following chart shows, pre-seed and seed funding for generative AI start-ups in the US tumbled to about $123m in the first quarter, a 70% drop from the previous quarter. In fact, the first-quarter figure was as low as the third quarter of 2022, just before the launch of ChatGPT in November of that year. The number of deals more than halved to 34 in the first quarter from the prior quarter. Further in the newsletter, we explain how user privacy at Apple, which last week again became the world’s most valuable company, can be a differentiating factor in the AI race.
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Natixis: Reality Bites: Retirement anxieties grow as Generation X turns 60. “Generation X is the stubborn middle child of demographics. Perpetually stuck between older, more popular Baby Boomers and younger, more precocious Millennials, Generation X has been overlooked for most of the 21st century. But while the world focused on their siblings, Gen Xers (born between 1965 and 1980) rose from their slacker beginnings and the low-paying Mc-Jobs that marked their early years, and now 51% of business leadership roles globally are held by members of Generation X.1 These latchkey kids, who learned self-reliance fending for themselves in the hours between school and dinner as children, came of age as investors with the E-Trade baby and the democratization of online investing. From that start, their resilience has been continually tested as they weathered the dot.com bubble, the global financial crisis and Covid. But as the oldest Gen Xers are set to turn 60 in 2025, retirement is rapidly approaching, and their resiliency is being tested in a new way.”
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ING: Wider French spreads possible but spillovers contained. ”Monday saw a bit of a relief after risk-off sentiment dominated on Friday, which suggested that investors weren’t keen to go into the weekend with too much risk on their books. French government spreads didn’t reverse much however and ended near last week’s close. The 10y OAT-Bund spread now stands at 77bp, the highest level since the eurozone debt crisis, and just between the spreads for Portuguese and Spanish bonds. Some of the risk reversal may be attributed to Le Pen assuring markets that she was not calling for institutional chaos. European Central Bank chief economist Lane didn’t seem too concerned about the ongoing market dynamics, but Lagarde later in the day acknowledged that recent market developments are being closely watched. In theory the ECB can resort to the Transmission Protection Instrument (TPI) to address market volatility if it poses a risk to the transmission of monetary policy. But given French spreads are still well below that of e.g. Italy, we see little reason for the ECB to react through such tooling in the near term.”
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Morten W. Langer
